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Over at Golf News Net, I take a look at the sponsor crisis facing both the LPGA and PGA Tours. I explore why the LPGA Tour has faced more criticism over their woes as compared to the PGA Tour. Also, we look at what is causing the issues and what some of the solutions may be.

6 months ago Ryan2_tiny Ryan Ballengee 5 comments 0 recs  | 

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business model?
The business model that has driven the game’s explosive growth since the early 1990s is in danger because of global recession and a saturated market place.

That business model is named Tiger Woods. As we’ve all discussed before, when he made his debut, the price of running a tournament skyrocketed. The LPGA has unsuccessfully tried to keep up. There is too much money tied up in golf and too little return for those who pay the bills in the current economy. There is no reasonable justification for a single tournament to pay any golfer over a million dollars.

Tour golf risks putting itself out of business if it doesn’t reevaluate.

Truth has a well-known liberal bias.

by dianemarie on Apr 21, 2009 12:28 PM EDT reply actions   0 recs

The business model I’m implying is corporate title sponsorships, and more regional gap sponsorships. Companies are still willing to sink a ton of money into tournaments – not at the current prices, I don’t think, but still a big chunk o’ cash.

I do think player payouts are going to have to change some. The days of the $1 million first place prize may be over for a while.

by Ryan Ballengee on Apr 21, 2009 12:31 PM EDT up reply actions   0 recs

supply and demand...

D – there IS a justification. Because there are only so many weeks in the season, and the PGA Tour had the leverage, they could continually bump prices up because there were always more companies wanting to take the place of the former sponsor.

I agree with you that paying the winner more than $1 million is a big gaudy – but it’s what the market allowed.

That swing may have reached about as far as it can go because of this economy. I have been saying over the years that this “squeeze every dollar out of every possible sponsor” mentality is going to end and eventually bite the Tour in the butt. There was no humility, and very little loyalty to long time sponsors unless there was a binding contract. I figured this wasn’t going to happen until Tiger retired or dropped down the rankings – oops.

Both the PGA and LPGA Tours are going to have to rework their tournament pricing. Players will play for whatever is in the pot. There will be a few whiners who cry about not having top end BMW keys handed to them every week, but eventually they will shut up and deal with reality. I wouldn’t be surprised to see both tours shortening their seasons, leaving time for players to play overseas.

Sirak’s One World Government…errrr….Tour isn’t going to happen. Reading his ideas, he seems to forget one thing – it takes a LONG time to fly between continents. We don’t live in the Star Trek world where people just beam from place to place. As sweet as the idea sounds – it’s not going to happen anytime soon.

"this ball will fit in that fairway"

by courtgolf on Apr 21, 2009 12:56 PM EDT reply actions   0 recs

Yeah, I imagine it’s tough to get more than the current 52 week season.

Truth has a well-known liberal bias.

by dianemarie on Apr 21, 2009 1:11 PM EDT up reply actions   0 recs

i don’t believe these gloom and doom scenarios are going to happen. yes the economy is in bad shape now, but it will recover just like it always does. now whether that is this year or next or whenever is debatable, but sponsors will always be there. i don’t agree with gauging sponsors like the pga tour has done at times but i also don’t agree with sponsors undervaluing events either, like those on the lpga tour. as far as the lpga having to expand it’s international schedule, why should we be mad? if our companies would step up to the plate and do what international companies are doing for the lpga tour, maybe the tour would have a larger schedule in the united states. i do believe it will have a larger one here once the economy improves.

by golfnut1985 on May 17, 2009 6:20 PM EDT reply actions   0 recs

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