The USGA is in the final stages of signing the Royal Bank of Scotland as its third corporate partner. A source familiar with the deal valued it at about $3 million annually over a four-year term.
RBS and USGA representatives would not comment, except to say that no deal has been signed.
RBS, like the USGA’s first two partners, will center the majority of its efforts around a specific platform. The financial institution will back a charitable platform still being finalized with the USGA. American Express, signed in late 2006, is working to build the USGA members program, and Lexus, signed months later, provides automobiles.
Unlike some financial sponsorships, the agreement is strictly a marketing deal and does not include management of the USGA’s accounts.
Sources with knowledge of the USGA deals said Lexus is contracted to spend about $4 million a year in cash and services, and American Express spends about $3 million annually. Each company spends millions more on activation and media buys. The USGA does not build media into its marketing partnerships.
The USGA is also in talks with IBM to fill its technology category, according to multiple sources, but negotiations are still in the preliminary stage. Whoever the USGA signs in that category will back a slew of changes planned for USGA.org and USOpen.com.
The 15-member USGA executive committee is expected to rubber stamp the RBS partnership during its annual meeting on Saturday in Houston, finalizing a courtship that formally began last April. An announcement could come as soon as next week.
With the USGA deal, RBS will have ties to three of golf’s four majors, including top-level sponsorship status with the R&A and the PGA of America. RBS has not yet renewed a one-year rolling deal with the Masters for licensing rights in the U.K., and has engaged in talks with Augusta National to buy into the new international sponsorship platform.
The USGA and PGA of America will have two corporate partners in common — American Express and RBS. Sources said leaders of all four organizations have discussed the potential of leveraging that commonality in an undetermined manner.
RBS also has endorsements with Jack Nicklaus, PGA Tour player Luke Donald and LPGA player Paula Creamer.
