Ginn Files for Mediation in PGA Tour Dispute

by Ryan Ballengee on Mar 16, 2009 11:55 AM EDT

It has been a couple of weeks since we last reported on the Ginn Development drama, but there is news on that front from over the weekend. SBJ's Jon Show reports that Ginn has filed for mediation in their dispute with the PGA Tour over owed sponsorship dollars.

Ginn Development Co. filed a motion to compel mediation in a dispute with the PGA Tour, which sued Ginn in January after the Georgia-based real estate developer announced it would no longer serve as tournament organizer and title sponsor of events on the PGA and Champions tours.

The tour sued Ginn on Jan. 30 for damages of more than $15,000, two days after the company issued a press release announcing the “end of its sponsorships of professional golf,” which included an event on both the PGA and Champions tours from 2007 to 2011.

The PGA Tour’s contracts for title sponsorships call for “dispute resolution procedures.” If the two sides can’t resolve a dispute in the normal course of business, they must enter formal negotiations or nonbinding mediation and, ultimately, seek a legal resolution.

More or less, this was instigated by Ginn because they have a procedural dispute with the Tour about their rights to mediation per their sponsorship contract. The details aren't particularly informative to the gist of the story, but Jon has them in his story if you want the full picture.

When asked for comment about the LPGA's approach to their Ginn problem, the CCO David Higdon said that they were keeping their options open.

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Comments

I know it’s how business is done these days – and they are just putting their name in line just in case Ginn comes up with some money in the future – but $15,000 ?? Come on. They are well past the “beating a dead horse” or “squeezing blood from a turnip” point with Ginn. They have been ruined and may not ever get back to operational status. Seems that the Tour’s energy would be better saved in finding new sponsors instead of looking to Ginn for money they don’t have.

"this ball will fit in that fairway"

by courtgolf on Mar 16, 2009 12:52 PM EDT reply actions

That surprised me, too. $15K? Just don’t pay someone for 40th place next week.

by Ryan Ballengee on Mar 16, 2009 1:03 PM EDT reply actions

welllll....

…I’d be pretty PO’d if it was MY $15k check they decided not to pay. :-D It’s just such a paultry amount compared to what they deal with every week – and Ginn put millions in the pockets of the Tour. Granted, it was contractual, but Ginn didn’t ask for or do anything to cause the real estate market problems. There just doesn’t seem to be a point in kicking someone when they are down.

"this ball will fit in that fairway"

by courtgolf on Mar 16, 2009 1:12 PM EDT up reply actions