The PGA Tour has been rescued! The question arises: how and by whom? The delay between the PIF and PGA Tour deal has undoubtedly sparked numerous inquiries in the community. Besides the fans, who else eagerly awaits the very delayed $3 billion deal? The sponsors! Sponsors who have even expressed extreme discontent in the past.
Recently, Laurence Applebaum, CEO of Golf Canada, has hinted at some disagreements that could potentially pose a serious threat to Monahan’s circuit, potentially leading to the non-renewal of the agreement. Amidst the PGA Tour’s challenges with unhappy sponsors, a new organization has stepped in to provide support as a title sponsor for a PGA Tour event.
Who is the new title sponsor for the PGA Tour event?
The PGA Tour recently revealed that ISCO Industries will be assuming the position previously held by Barbasol for 4 years, according to the Sports Business Journal. While there is no official confirmation regarding the financial details, a source suggests it will range between $8 million and $10 million annually. ISCO conducted negotiations directly with the Tour’s business development team without employing an agency. With this agreement in place, the Tour is now fully sponsored for the 2024 season.
USA Today via Reuters
Aug 22, 2023; Atlanta, Georgia, USA; PGA Commissioner Jay Monahan addresses the media during a press conference in the Clubhouse Ballroom at East Lake Golf Club prior to Thursday?s start of the TOUR Championship golf tournament. Mandatory Credit: John David Mercer-USA TODAY Sports
The event will be held from July 11th to 14th in Nicholasville, Kentucky. Since 2018, a shaving brand, Barbasol, has been in a deal with this PGA Tour event, formerly known as the Barbasol Championship. However, the 2023 season of the tournament at Keene Trace GC marked the end of their sponsorship deal, as reported by Kentucky.com. Consequently, the Barbasol Championship website has been undergoing maintenance, and the event was without sponsors.
ISCO Industries is a provider of piping solutions with revenue of nearly $500 million, offers a diverse range of piping materials and solutions for a multitude of applications worldwide, including environmental, geothermal, golf, industrial, landfill, mining, municipal, nuclear, waterworks, and culvert-lining projects. Although this PGA Tour event looks safe for now, what about other events whose sponsors have expressed their dissatisfaction with how things are going?
Is the PGA Tour on the verge of losing more sponsors?
It has been seventeen years since the Royal Bank of Canada began sponsoring the Canadian Open in partnership with Golf Canada and the PGA Tour. Furthermore, RBC is currently the title sponsor for the $20 million signature event at Hilton Head. However, RBC extended its contract for the 2024 season, and it could be the last year. This information emerged when RBC’s chief marketing officer, Mary DePaoli, voiced the bank’s frustration with the lack of clarity regarding the sport’s future direction.
Mary DePaoli said, “I think we’re probably all feeling the same; we’re all experiencing this, whether it’s as a sponsor or a fan or the players.” While expressing this, she further added that they are waiting to see how the new for-profit works out and said, “We are all watching the PGA Tour right now. try to sort through a business model that has been under some significant strain and has still not fully resolved itself. And that’s still TBD. So, it’s requiring a lot of patience.”
DePaoli’s remarks imply that a prolonged decision-making process by Monahan could prompt the bank to reconsider its sponsorship of the PGA Tour. Meanwhile, Wells Fargo has already announced they won’t renew their deal with the PGA Tour beyond 2025 for the signature event.
However, the PGA Tour expected the sponsor to contribute more towards the already substantial prize purse. Consequently, they couldn’t reach an agreement, prompting Wells Fargo to announce their withdrawal, and they stated, “Wells Fargo is not renewing the Wells Fargo Championship as a Signature Event in 2025 and beyond.”
What do you think will happen to the PGA Tour next? Let us know your comments below!
