Shell is "dropping its iconic and long-time sponsorship" of Houston's PGA Tour event after the '17 tourney, the "latest sign of financial distress in the oil industry," according to a front-page piece by Aaron Reiss of the HOUSTON CHRONICLE. Next year's Shell Houston Open will mark the 26th time the oil company has served as title sponsor, the "third-longest running" association on Tour. The Houston Golf Association and the PGA Tour will "begin looking for a new title sponsor immediately." HGA President & CEO Steve Timms "declined to say how large Shell's financial sponsorship of the tournament is under the most recent sponsorship agreement." However, he said that he "would like the next sponsor to provide a similar level of financial backing." The HGA "hasn't begun to evaluate whether it wants its next sponsor to be one that, like Shell, has a hand in the local economy" (HOUSTON CHRONICLE, 6/9). Shell President & U.S. Country Chair Bruce Culpepper in an email to company employees wrote that the decision to drop the sponsorship was "made due to the downturn in the energy business." Culpepper: "This was a very difficult decision, driven in large part by the need to adjust our cost structure in response to the challenging business environment in which we operate, but also by a refresh of our branded sponsorship strategy globally." The tournament "has contributed" more than $60M to local charities and youth organizations since '92 (BIZJOURNALS.com, 6/8).
BUSINESS DECISION: Timms said that Shell's decision to leave after '17 "was a function of its business environment and that the company wants to stay involved in some capacity." Timms: "We're proud as heck of what will be 26 years of a long-running sponsorship. This will present some opportunities for us. We're confident in our property. We're in a big market and we feel good about it" (AP, 6/8). GOLFWEEK's Jim McCabe noted in addition to its work in Houston, Shell has also "brought to the golf landscape" its "massive support of the World Golf Hall of Fame (it is the sole founding partner) and the First Tee (founding corporate partner)" (GOLFWEEK.com, 6/8).
GAME OF MUSICAL CHAIRS: GOLFCHANNEL.com's Will Gray noted Shell's departure is the "latest development in what has been a relatively active few months for tournament sponsorship changes on Tour." The Frys.com Open will be "christened as the Safeway Open" when it opens the '16-17 season in October, while Hyundai is "moving its title sponsorship from the Tournament of Champions to what was formerly the Northern Trust Open beginning next year." Northern Trust in turn is "inheriting the first FedEx Cup playoff event, now known as The Barclays," starting in '17. The Tour last week "announced that the WGC-Cadillac Championship will shift next year from Trump National Doral in Miami to a course outside Mexico City, where it will be sponsored by Grupo Salinas." The winners-only event in Hawaii that begins each calendar year "remains in search of a title sponsor" (GOLFCHANNEL.com, 6/8).
