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Impact of the Recession Cont'd - Golf

Golf has long been considered to be one sport which would be untouched by a recession. Images of freshly cut fairways and well tended greens with rows of electric carts surrounding a beautiful clubhouse just don't give the appearance of a sport that will have problems in an economic downturn, and in past recession that was indeed the case. This time it's different.

Troubles in the auto industry have directly hit the PGA Tour, with GM announcing that it will no longer supply Tour members with courtesy cars. Buick, the official car sponsor of the PGA Tour had supplied courtesy cars to most tournaments but now those tournament officials are left scrambling to find replacement suppliers. So far, however, GM has not backed out of its sponsorship of two PGA Tour tournaments. Chrysler sponsors one tournament and will continue that sponsorship in 2009. However, should the auto companies not get their bailout from the Feds, those sponsorships are likely to disappear. Further, the PGA Tour has an inordinate amount of financial firms as tournament sponsors and as the recession deepens and carries into 2009, those sponsorships may either disappear before the tournament takes place in 2009 or will almost certainly not be renewed for 2010.

The picture is not quite that rosy for the LPGA Tour. The LPGA just announced its tour schedule for next year and it dropped three tournaments as a result of sponsors withdrawing their supports. Purses will also be down by about $5.25 million from this year. Adding to the LPGA's concern: its television contracts run out in 2009. Should the recession continue deep into next year as anticipated, the LPGA should have a very difficult time filling sponsorships and likely much reduced television revenue in its new contracts.

Full post as published by Sports Biz on November 20, 2008 (boomark / email).