The U.S. Golf Association has agreed to a five-year renewal with Lexus that will keep the automaker on board as one of the organization’s sponsors through 2020.
Lexus is one of four full sponsors of the USGA. Its deal was set to end this year.
Specific financial terms of the deal were not available, but Sarah Hirshland, USGA senior managing director of business affairs, said the agreement is valued in the seven figures annually at an amount that’s up less than 10 percent from the current deal.
USGA’S FOUR FULL SPONSORS
■ American Express (signed through 2016)
■ IBM (2016)
■ Rolex (2019)
■ Lexus (2020)
Lexus began its USGA sponsorship in 2007 and extended in 2011 through this year.
“These things can run their course, and we have been fortunate to continue to reinvent the activation that works well for them and for us,” Hirshland said.
The deal includes a media buy on the USGA’s new television partner, Fox, on top of the seven-figure spend. The deal also provides Lexus with on-site activation rights at the U.S. Open, the Women’s U.S. Open and the U.S. Senior Open.
Much of the company’s on-site activation involves the Lexus Performance Drive Pavilion, which includes golf simulators, player autograph signings, and photo opportunities with USGA championship trophies.
Lexus also will continue to sponsor a trophy tour around the U.S. Open, as it has the past two years, and the carmaker will supply about 1,000 courtesy vehicles annually at USGA tournaments.
“It is a pretty broad-brush activation,” Hirshland said.
Lexus officials were unavailable for comment. The company uses Team One as its agency on its USGA deal.
Lexus’ other golf involvements include endorsement deals with Jason Day (winner of this year’s PGA Championship), Charles Howell, Mark O’Meara, Johnny Miller and Peter Jacobsen. It also has deals LPGA pro Natalie Gulbis and former LPGA star Annika Sorenstam.
The USGA counts Rolex, American Express and IBM as its other full sponsors.
Hirshland said the USGA is looking to add one or two partners over the next year but is also mindful of not wanting to add too many.
“We want to drive great value with our partners, so we have a fine balance there,” she said. “We want to keep it really clean on-site and on the ground.”
The USGA’s 12-year deal with Fox that began this year includes ancillary programming opportunities, and the rise of digital and social media also is bringing greater sponsorship opportunity for the USGA.
“The value is changing there, and as we form more content partnerships, we can do more,” Hirshland said.
