If You Spend the Money, Why Not Flaunt It? Ask Wells Fargo

After the September '08 fallout of the stock market, revelations of massive financial losses, and the reckless gaming of the stock and real estate markets by a host of players, the financial services industry was properly lambasted in the press and by angered Americans who blamed their ignorant excess for nearly collapsing our economy.  That extended to firms that are title sponsors on the PGA Tour, including those that had little to nothing to do with the financial meltdown. 

Companies like Northern Trust (which claims it was supplied with a TARP loan against their wishes), Morgan Stanley (in a bit of financial limbo), and Wachovia (a total idiot in buying up an "option mortgage" lender) all took measures to mitigate the criticism from Congress and society about their sponsorship of golf.  The PGA Tour went to the Hill to speak with legislators about the benefits of golf sponsorship for those businesses, and the communicate that golf sponsorship was not a sign of excess or arrogance.  That battle was largely won by the Tour and the golf community because it didn't have to defend companies like Goldman Sachs or Lehman Brothers - two of the major culprits in the meltdown.

Northern Trust never took their name off of the event at Riviera, but did scale back some parties planned for clients and associates.  Morgan Stanley took their name off of Jack Nicklaus' event in Ohio, but are back this year as the obvious presenting sponsor.  Wells Fargo, though, has opted to keep about as quiet as possible about the PGA Tour commitment they acquired when they bought what was left of Wachovia in '08.  The contract runs through 2014, when most expect that not only will Wells leave, but Quail Hollow will seek to become host only to major championships, not annual PGA Tour stops.

Corporate hospitality really does not play into Wells Fargo's plans to run out this contract, according to a story in the Charlotte Business Journal.  The major hospitality event is an outing on Quail Hollow in the day after the tournament, which was scraped last year but back this year.

As Jonathan Wall mentions at his From the Rough, I guess it doesn't really matter how a title sponsor chooses to take advantage of their sponsor rights and access so long as they stay on board.  We know both Wells and Quail Hollow are going to leave the Tour in 2014, so why not enjoy the ride?  Wells Fargo has marketed themselves before, during, and since the crisis as an organization of stability that is seeking to kind of clean up the mess made by others.  That seems to have worked well for them in the marketplace, so to take that approach to the golf tournament is hardly outlandish.

The situation begs the question, though: could there be a potential move back away from the need to have naming rights at every tournament? 

Take FedEx, for example.  It seems almost impossible that FedEx will line up for another 9 figure commitment to the PGA Tour after its deal to title the FedExCup ends.  In the oft-used NASCAR parallel example, the primary series sponsorship has changed and survived.  Golf can do the same.  Or it could morph the Cup into something like the Nicklaus Cup - or whatever.

FedEx is a unique example, so how about a tournament like the CA Championship?  CA is out as title sponsor.  Doral is a sacred cow on Tour and should remain as a stop regardless of a sponsor presence or not.  Perhaps the PGA Tour (well, the International Federation of PGA Tours, but who are we kidding here) could wrangle up several presenting sponsors that want to be able to party down in Miami, but don't seek to stick their name out there.  Seems like a better idea to have either one title sponsor or several quiet major sponsors than to have what the LPGA did a few years ago in Arkansas.

What was it?  The P&G Beauty Championship Presented By John Q. Hammons Hotels?  Doesn't Arkansas Golf Classic sound so much better?