FBR May Have Restructured Sponsor Deal

Things are hush-hush down in Arizona about what is happening with FBR Open title sponsor Friedman, Billings, and Ramsey.  They have bene getting hammered in the economic downturn and have seen their stock become worth less than that new Filet-O-Fish and Apple Pie meal at McDonald's.  (I love the Filet O Fish.)  Apparently, though, there are rumors flying that the organization has restructured its deal with the Thunderbirds - and it's hurting charity.  Bill Huffman reports:

Two different sources close to the Thunderbirds told me a new deal was recently brokered between FBR and the Thunderbirds that reduces FBR's overall financial commitment to the tournament "by millions." And the restructuring was all one-sided, with FBR telling the Thunderbirds it would walk if they didn't accept the terms.

According to those sources, FBR is going to keep its commitment to the tournament on several fronts. It will be the title sponsor and pick up TV costs, but it has reduced its charitable contributions significantly. And, as previously reported by the Tribune, FBR also will cut back on its entertainment commitment, which means the corporate hospitality, the pro-am and Tuesday night dinner.

John Felix, the 2009 FBR Open tournament chairman, said he could not comment on whether or not the Thunderbirds' contract with FBR had been amended.

"That's between FBR, the (PGA) Tour and us," Felix said. "As far as contractual terms, we don't discuss those details with other parties other than to say FBR is a great sponsor and will be so in 2009.

"The only thing I'll say about FBR is I can't give them enough credit. What they've done for our charities since 2004 in terms of (donations) is just staggering."

This is what is expected to be the impact of sponsors re-negotiating deals for the next few years.  Charitable contributions will be the first to suffer, then purses.