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Thursday
Oct192017

Colonial Likely Searching For A Sponsor Again...

Mac Engel reports for the Star-Telegram on a likely early departure for Dean & DeLuca after two years sponsoring the historic Colonial. The food company has four years left on its contract.

Engel obtained a letter to members signed by club president Rob Doby.

“While certainly disappointing, it is not a situation that we as a Membership and Staff are unfamiliar with,” Doby wrote.

The board is scheduled to meet with Dean & DeLuca representatives as early as Thursday about potentially renegotiating the terms of the contract, but at this point the club is preparing to look elsewhere for a title sponsor.

A PGA Tour statement said the Dean & DeLuca is still the sponsor as far as they are concerned but that they are in conversations.

Engel shares several other interesting details, including this:

The PGA wants a little more than $11 million per year from a sponsor for this event, which, per multiple sources, effectively eliminates several companies from landing Colonial. The price tag is roughly $3 million too rich for many companies.

Losing a sponsorship here leaves two Texas stops searching for a sponsor as the 2017-18 schedule is already underway. The Houston Open has yet to secure a sponsor after Shell ended their long run.

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Reader Comments (23)

Bad fit. How they suckered in an overpriced grocery store to buy the Colonial sponsorship is beyond me. It is a great tradition on a historic course that will probably get screwed by garbage WGCs on the calendar. PGA Tour is pulling a NASCAR. So focused on money grabbing and opening new markets that it hurts its core.
10.19.2017 | Unregistered CommenterMJR
I'm not surprised either, MJR. Golf just doesn't suit their customer base.

https://www.youtube.com/watch?v=dunwY-4jYgM
10.20.2017 | Unregistered CommenterD. maculata
Interestingly near the end of the article the writer mentions the unknown impact of moving The PGA Championship to the same month as “The Colonial”, having an effect on this situation.
10.20.2017 | Unregistered CommenterPABoy
I never understood the sponsorship either. D&D is a niche retailer that is invisible in much of the country. I suspect it was a corporate ego decision.
10.20.2017 | Unregistered CommenterGreg B.
The Star-Telegram "obtained" a letter to members, then later in the article they disclose that the Mac is a member of Colonial. That is some real Woodward and Bernstein sleuthing right there.
10.20.2017 | Unregistered CommenterMichael
I didn't know what D&D was without asking my wife, again and again... So anyway, I'm reading Ben Hogan by James Dodson, and of course the creation of the Invitational at Colonial was reviewed, and it is ashamed that the great city of Ft. Worth, a town with soul, has come up against a wall on the sponsorship issue given the history of te event.

it can only be noted again, as said by MJR, the PGAT is neglecting its core, the foundations of the traveling show that became courtesy cars and rubbing elbows with celebrities and business leaders. The North and South, The Western Open, until Valero, The Texas Open was in danger of slipping away: these base events should be put on a pedistal, IMO uch more than the WGC money grabs.

It is amazing that in the fourth largest city in the US, Houston, the tour and the incredible HGA is still without a naming sponsor. This is one of the best attended, largest charity, golfing shows in the country, and its timing is always of interest to TV fans for the setup to Augusta. Maybe the situation is diminishing returns- newer heads of companies are not bitten by the desire to partner with pros on Wednesdays, and have a keynote speaker tell stories of boating trips with their other single golf pros.

The high tech industry has only barely been tapped by the Tour, and the recycle industry has more than one company who has seen gold in them thar trashpiles; more than one group of items to recycle; and unless the EPA ceases to exist, which looks likely with the current administration dismantling the government, the whole green industry is in a position to be a contender for a sponsorship.

Maybe the time has come to have 2 sponsors: the TF and the SS guys, 2 days each 35%/65%-- who knows- it's a different world. Doing instead of watching is coming into vogue. ~~dig~~
10.20.2017 | Unregistered Commenterdigsouth
11 mm for the week after a major? Feels like a lot to me
10.20.2017 | Unregistered Commentered
I wanted to mention that The Texas Open has a grocer sponsor over a decade ago- HEB, a San Antonio based company with stores thru a portion of Texas- a sponsorship that seemed to be to keep the event going and provide the continuation of charitable activities in San Antonio, as they did not even advertise their involvement in Austin, just a blip down the hiway.

Will some Metroplex company step in to sponsor the Colonial? Can Flood ravaged Houston find a local/global company to pick up where Shell left off. Exxon pisses off more money than the sponsorship on bonuses to one person. Halliburton made more in a couple of days furnishing toilet paper in Iraq, Bush's Folly. Come on dudes. ~~dig~~
10.20.2017 | Unregistered Commenterdigsouth
Can the Tour bite the bullet for a couple years to help out a town that has really helped it?

I really don't know how the financials work for these events, but the Tour needs to be in Houston.
10.20.2017 | Unregistered CommenterJS
Is this the first crack at sponsors leaving the PGAT ? 11 million for title sponsor, good grief that is a lot. Did D&D get their money's worth in two year ? Highly doubt it. This situation was on WFAA news last night, it looks bleak for the Colonial club finding another sponsor. Colonial is a wonderful place and everything, but not sure I'd want to join a club that has a tour event, it consumes the club's attention and members are secondary. Have a great weekend!
The business of golf has seen better times. A tour Messiah who's not a jerk would help some. As would actual growth in the game. Not a hot commodity at the moment. Understatement.
10.20.2017 | Unregistered CommenterFC
Cut the purses across the board! Guarantee these clowns will play just as hard for $5mm every week as they do for $9mm
10.20.2017 | Unregistered CommenterOle Tom Morris
@Ole Tom....sure the purses matter to a certain extent at some events (majors, players, WGC's, etc.), but it's all about off the course exposure for players now. Luke Donald makes $1.8 million on the course and almost $5 million off. Players know where their bread is buttered these days.
10.20.2017 | Unregistered CommenterBrandon
Tom-bet you’d work just as hard for 20 pct less pay too.
10.20.2017 | Unregistered CommenterEd
Ed - you're damn right, most folks would not which is the reason for the H1b visa program.

Just saying that it's a great product, but would be more attractive to quality sponsors at a lower price. Hard to justify a huge chunk of your marketing budget going to pay these pros to act like primadonnas and skip your pro-am pairings party....
10.20.2017 | Unregistered CommenterOle Tom Morris
I agree with much. 1) Bush did fight the war poorly in Iraq. Fighting wars on the cheap is never a good idea 2) Turning backs on stalwart sponsors/organizers is not a good idea. Golf is a sport that is losing eyeballs, and unfortunately, they are going to lose the corporate support as well. Unfortunately, I see these things happen simultaneously and the Tour will be flat footed in its reaction.

I predict the era of pampered, highly paid athlete is over. Look at football. That is not ending well. Golf is not that much different. Can you tell me you would spend a lot of time and money watching Brooks, DJ, or Jon Rahm. Nice guys, but they are not particularly compelling people. I am not sure they are worth 11 million to host a tournament. Or to be walking NASCAR billboards for 100K per logo. That is okay. Perhaps we will idolize other things in society besides sports.

I agree golf is a great game. Hard to love a game more. It is fun discussing ways to make it better.

I disagree that getting rid of the EPA is all bad, nor that it will happen, Dig, but hey, why quibble about one disagreement!

Have a great weekend, all! Hit them straight.
10.20.2017 | Unregistered CommenterMJR
MJR,

I'll use your one sentence approach on OT, and maybe Geoff won't whack my post. EPA is needed because self policing of industry has created unusable water, air quality warnings in major cities, and you know the rest. As to Iraq, I must refrain, as this is a golf discussion.

So onto the situation in Pro Golf~ Tiger brought the high costs and larger audiences, and there was money being made in the '90's, early 00's- but we know that a lot of what was happening was a paper tiger- but the financials were flush, be it on paper, credit, or other people's money, so they were the primary backers of a legion of tournaments.

Some things have changed. If you know a lot of people in their 20's- they are living in a different world- computer over TV, activity over couch potatoville, and on and on. Pro golf is needing to address the fringe part of tournaments, and while concerts are a draw, having relevant entertainment i need be addressed, or perhaps even 2 venues at an event, one with a cutting edge act, and one with a retro act ,for example. The golf is good, the players are good, maybe the scoring needs to be addressed- as I have said, a daily winner, a low score of the day winner, and shees birdie champ? I'm just brainstorming- some ideas may trigger others out there.

Then you get into the players and their interaction with sponsors. Hell this is where Phil M. could do for the tour what he did for the Ryder/President's Cups. All just ideas- Better Things, yall? ~~dig~~
10.20.2017 | Unregistered Commenterdigsouth
Why doesn't Trump International Hotels sponsor it? The Trump name is strong and ir would be a perfect golf fit, plus a bonus of MAGA
Maybe Trump Wall can sponsor the Texas tournament. There's gotta be some wiggle room in $21.6B.
10.21.2017 | Unregistered CommenterFC
. "PGA Tour is pulling a NASCAR. So focused on money grabbing and opening new markets that it hurts its core."

Bingo.
10.21.2017 | Unregistered Commenterol Harv
Would be a great course to do an event with the LPGA - even bringing back the memories of Annika's foray there, and of course Vijay's response.
10.21.2017 | Unregistered CommenterBrianS
Change the name to the Jordan Spieth Invitational and problem solved!!!
10.22.2017 | Unregistered Commentermarmooskapaul
Ol Harv look what has happened to NASCAR!
11.8.2017 | Unregistered CommenterTaffy

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