"Just seven years ago, 11 Tour events were sponsored by automotive companies, or more than one in three Tour events with a title sponsor."

Adam Schupak on Hyundai looking like the new sponsor at Kapalua, noted this about car companies as PGA Tour sponsors...

If Hyundai finalizes a deal, it would become the third automaker to make the Tour a cornerstone of their marketing efforts, joining foreign-makers Honda and BMW. In its heyday, autos – arguably more than any other industry – supported golf. Just seven years ago, 11 Tour events were sponsored by automotive companies, or more than one in three Tour events with a title sponsor. That figure dropped to six in 2007 before plummeting to just two this season.

Comments

[Wisconsin Reader]

Evidently the auto makers do not believe golf fans are enough of their demographic to do more than buy TV ads? . . . I guess I need to start pressuring my private jet and limo service providers to step up and underwrite something? . . . The Yellow Cab Milwaukee Open?

[Brad Ford]

Wow. Wasn't Kapalua sponsored by Mercedes for a while? Doesn't it market itself as a premier resort?

Although Hyundai makes good cars, they are hardly a luxury brand.

[OWGR Fan]

Funny to read this glowing press release from the Commish from May 2009. Funny no mention then of SBS not really wanting to sponosr the event. What ever happened to the PGA Tours IRON CLAD contracts????

http://www.pgatour.com/2009/tournaments/r016/05/07/sbs/index.html

[smails]

..."you drove here tonight in a Hyundai. I got here in an $80,000 BMW pal!"

[Mike T.]

Good on Hyundai for stepping up. Not a luxury brand? Who cares. There are plenty of golf players and golf tournament watchers who don't get to the course in a high-priced ride. Might even be good for the game to disestablish some of its perceived elitist image.

[digsouth]

With all you walking advocates, how 'bout the Rockport Open, or New Balance Championship, hosted by used up dancing with the stars wannabe.

[Press Agent]

Considering there are so many people out of work and starving in the rust belt, what used to be the heart of American manufacturing, I don't think throwing money down the drain by sponsoring golf tournaments is a good use of capital for car companies. Honda pulled out of formula 1, a sport that is actually related to what they do, so I don't see them kicking in for golf, a sport that isn't related to ... well, anything.

[OWGR Fan]

Press Agent Honda already sponsors an event on the PGA Tour.

[Del the Funk]

Mike T., check out a Hyundai Genesis when you get a chance. The top of the line model can be had for under $40,000 and it's plenty luxurious. Dollar for dollar probably the finest luxury car in the market. It's about the same size as an E-class Mercedes. Hyundai are also coming with a model that will be the size of the S-class Mercedes, I expect it will be spectacular...and a LOT less expensive than the S-class.

[Brad Ford]

Mike T: Kapalua is not Bethpage. It is a very high end resort. Even by Hawaii standards, everything there is expensive. Generally Hyudai drivers are not their target demographic. When you visit there, they aren't looking for bargain hunters.

BTW - I drive a Chevrolet Silverado and my wife drives a Honda.

[fatgoalie]

Brad,
Kapalua is attracting huge numbers of Korean guests.
Hyundai's cars are their most visible US product, but they are a huge and diversified
world company. Seems like a pretty good catch for Kapalua

[Press Agent]

True enough OWGR, my bad.

[Brad Ford]

Fatgoalie,

Excellent point. I hadn't considered it from that point.

Brad

[bsoudi]

First, this is probably a good move by Hyundai, because they are trying to move much more upscale -- their new Equus sedan is a competitor to the Mercedes S/BMW 7/Audi A8/ Lexus LS, but with an MSRP of $58,000. Car reviewers ar ga-ga over it, because it is so good, it could be a giant killer. So the psuedo-luxury core golf demographic is perfect for this.

But a larger picture. The real value iof sponsoring a PGA Tour event is NOT the "exposure" a brand gets (naming rights, TV mentions, logos everywhere), but the shmooze factor. The luxury tents and pro-ams companies use to wine and dine and watch golf -- that's the REAL benefit.

"Hey John, I've got spot in the Waste Management tournament pro-am...interested in teeing it up with Phil? Or Rocco Mediate? Great. Can I count on you for renewing our hazardous materials contract for $40 million per? Great."

It's not just car companies. Golf has become so niche AND expensive, there's little appeal for almost ANY company selling directly to consumers. The 2010 schedule includes just a handful of true consumer companies. The rest are all insurance, wealth management, etc.

[jstiles]

Agree with bsoudi. When you see the numbers for viewers, I can't see why any car companies would put ad dollars into golf, unless the shmooze factor was oh so enticing.

As a golfer, I can barely watch any of the golf coverage.

Guess the PGA Tour (and TV folks) present a good powerpoint and somehow use smoke and mirrors with the viewership numbers and demographics to sell the many levels of sponsorship (and TV ads).

Maybe the powerpoint begins with the shmooze factor.

You want the young dude stepping out with the hot chick in his Cadilliac CTS-V, not Freddie Couples opening the door and saying he likes Cadillacs.

[Del the Funk]

jstiles, when you look at the viewer numbers what kind of company do they suggest is a good candidate for PGA Tour sponsorship?

[jstiles]

Del the Funk,

Old dudes worried about where their money is, or maybe had an unhappy 'ending'

Have seen the poor viewer numbers which are normally reported. Judging by the ads, they are aiming at the above although it has been some time since I noticed a break down of viewers by age.

Guess I have seen a Caddy ad with the young chick and hip music, which might hook the old guys, come to think about it.

With car companies pulling out of sponsorship as noted, they might be convinced golf is the vehicle for them.

[jstiles]

Del,

With car companies pulling out of sponsorship as noted, they might be convinced golf is NOT the vehicle for them.

[Del the Funk]

Thx jstiles. What I was getting at is that if you based the decision strictly on viewer numbers very very few Tour events would retain their title sponsors. Having said that, I believe that profitability, or a very severe case of lack thereof, is the key driver of most of the car companies bailing out. That and the fear political backlash given all the bailout/stimulus thrown at the industry. Healthy car companies are still involved (Honda, BMW, Hyundai).

I think in the vast majority of cases sponsorship decisions are made at the CEO level. Ken Thompson made it happen for Wachovia. Seth Waugh made it happen at Deutsche. When there was a change at the top at Nestle, Arnie lost them as a sponsor shortly afterwards. The only way to justify a PGA Tour sponsorship is as an "image" componenent as small part of a much larger overall ad campaign.

Just look at McGladrey down at Sea Island. I bet they didn't draw over 10,000 people for the entire week and television viewership had to be abysmal. But the CEO is buddies with Zach and there you go!

[digsouth]

But the CEO is buddies with Zach and there you go!


Yes , and ror the publicly rade companies stockholders, there goes the dividend, redirected to upper management lsgnappe.

[digsouth]

shit, sorry.


Yes , and for the publicly traded companies stockholders, there goes the dividend, redirected to upper management lagnappe.