Kapalua Saved. PGA Sighs With Relief
Filed in archive Golf Business on May 8, 2009
Courtesy: golfswitch.com
Back after an extended hiatus so let's get right to it.
I note that the PGA Tour has landed its first new sponsor since the economic meltdown. Depending on which economist you like to believe in, that could be the first new sponsor since 2007 when the Great Recession began or since 2008 when the American economy began to slide off the cliff.
At any rate, this new sponsor is a very interesting entity. SBS, the initials of the Seoul Broadcasting System, has signed a 10 year deal to take over the season opening event at Kapalua in Hawaii.
Why would a broadcast company want to become a tour sponsor, given the costs involved?
Because SBS worked a deal with the PGA Tour to extend its rights to show PGA events in Korea by another 7 years in exchange for sponsorship revenue at Kapalua.
And I'll bet you they got those 7 years real cheap.
Remember that Kapalua was the Mercedes event for 10 years and when Mercedes decided to break its contract and opt out of its final year, the Tour was without a title sponsor.
So Finchem and Co. decided to pull out of Kapalua - after the resort had redone its greens and completed renovations to its hotel and villas.
See how s**t flows downhill?
With more than a hint of unintended irony, Commissioner Finchem declared that it was an indication that the Tour needed to be "spreading sponsorship over broader industry sectors" rather than sticking with the traditional financial and automotive firms.
Ya think? The Tour should have been doing this last year but apparently they're not too forward-thinking until they're hit over the head with a frying pan.
Kapalua is saved, the PGA Tour saves face and SBS has what is in all likelihood a sweetheart deal to show PGA events to a golf-mad Korean audience for another 7 years.
Even in a recession, that's got to be worth some money for SBS. Possibly enough to cover its expenses at Kapalua.
Permalink: Kapalua Saved. PGA Sighs With Relief
Tags: golf pga golf pga tour mercedes championship kapalua hawaii sbs seoul broadcasting system sponsors g
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Response from:
Andy Brown
(05/13/09 7:22pm)
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That is something that the tour should have realised ages ago instead of letting the entire tour rest on the shoulders of just a couple of sectors. While it would be difficult to get used to the SBS Open instead of what he had heard for the last few years but nevertheless it is still a positive development. Like you have mentioned, it seems they had almost given up on that tournament. It would have been a real pity because that course is a real stunner and it is always fun to see the season start there.
There have been a lot of barbs aimed at ‘brand lady’ for rejecting SBS and going for another rival Korena broadcaster and they have portrayed this as her mistake. I don’t necessarily think that should be the case. Anyway, it seems that this sponsorship is more of a barter system.
At the end of the day, I think for us fans it doesn’t mater if the money goes to Fort Knox or there is no money exchanged, as long as we get to see great quality golf that is all that we can ask for.