The PGA Tour and Sponsorship ROI

     One of the issues confronting the PGA Tour right now is it's teetering relationship with some of its sponsors. While the Official 2011 Schedule won't be released for another month or so, there are a handful of tournaments that remain sponsor-less and a game of musical chairs has ensued to try and fill various gaps in next year's schedule. The Heritage Classic has moved, Memphis' status is uncertain, The Bob Hope Classic is without a sponsor and Deutsche Bank is rumored to be questioning its financial commitment, to name a few. The short-term impact is a non-issue for us fans; there will be golf next year, regardless. But the long-term issues facing the Tour's business model are hard to ignore and how Finchem and Co. deal with these issues will shape the tour's development and success over the next decade.
     The economic crunch has obviously forced corporate partners to re-evaluate their financial commitments and think long and hard about sponsoring future events. Pretty basic stuff, right?  Taking this closer look, however, has raised bigger questions than just the advertising and sponsorship budgets of big name sponsors.  Now they're investigating the true ROI on these dollars. The sophistication and complexity of sponsorship in the global marketplace make it extremely difficult to decipher one's return on investment (ROI), especially when using what SponsorMap call 'antiquated' ROI valuations. These techniques simply can't keep up with the new complexities. In short, it's  harder and harder for companies to value and quantify the ROI of sponsorship and now they're thinking twice. Just like the consumer, corporations have become more mindful of where the dollars are going.  Corporations are operating leaner than ever and the good ole days of throwing money around - when regulations were far more lenient - are over.  It will be interesting to see how this all shakes out.