Tour To Lose More Tournaments?

Filed in archive Golf Business on January 13, 2009

Kapalua's Plantation Course, Hawaii

Everything is related. Make no mistake about it. Yet, when I peruse The stories the golf media is writing these days, it's as if everything is fine.

But it isn't. I have been harping on about the global economic situation for some weeks now. And for good reason.

Our current situation is unlike anything we have witnessed before. Economists refer to the Great Depression, citing the years between 1929 and 1932 to draw parallels with what is happening today.

What is happening today is far worse than 29-32.

And the cracks are showing up everywhere, growing wider by the day.

But back to golf. There are reports that the PGA Tour is planning to move away from Kapalua.



Why? Well, no one seems to know, really. Commissioner Tim Finchem says he's "looking at options". Again, why?

Kapalua's Plantation course is a layout the players love, much like F1 drivers love Spa in Belgium. It's a player's course and the conditions are often perfect - apart from ocean winds. And Kapalua's officials certainly want to keep the Mercedes-Benz Classic there.

The real reason in my mind is that Mercedes is planning to end its tournament involvement as a sponsor. In fact, its deal with the PGA Tour runs out next year.

Blame the economy, pure and simple. No one is buying Mercs anymore. Or Hondas. What happens with the Honda Classic in Florida? Is it next on the list of tournaments to disappear?

As a matter of fact, the Japan Automobile Manufacturers Association is seriously considering cancelling the Tokyo Motor Show this year. Car shows to auto makers are one of their most powerful marketing and promotion tools.

That's how bad things are and they're going to get worse.

If the Mercedes Classic dies, that would leave the Sony Open as the other major Hawaii-based Tour event. And with Sony Corporation posting a 1 billion dollar loss for 2008, figure that one to disappear, as well, by next year.

Over on the Nationwide Tour, they have announced the end of the Xerox Classic this year.

Xerox is laying off 3 thousand employees; sponsoring golf tournaments doesn't fly anymore.

Nationwide Tour officials say they're looking for a new sponsor for 2010. Good luck.

Finally, a real litmus test of how the global economy is performing comes in the form of this story from the Irish Times.

Yes, everything is related.