North American-based companies will spend an estimated $1.36 billion to sponsor pro and amateur golf tournaments, sanctioning bodies and related events this year, according to new research.
The IEG Sponsorship report found that sponsorship has grown by nine per cent, up from $1.25 billion in 2007. The increase is due in part to some golf properties expanding opportunities for more robust partnerships beyond traditional hospitality packages and tournament title deals.
William Chipps, IEG Sponsorship Report's senior editor, said: "By working with a limited number of sponsors, the USGA has successfully raised the value of its sponsorship packages by providing corporate partners an uncluttered marketing environment.
"The serious issues facing the financial services industry are sure to have some impact on golf sponsorships, but the ability of golf properties to work with other industries will help to offset any loss of funds," Chipps added, pointing to the PGA Tour's recent first-time ties with The Dow Chemical Co. and Transitions Optical, Inc.
New corporate partnership programmes such as those launched by the US Golf Association in 2006 have contributed heavily to the figures, with the Association signing four new partners – two of which are new this year. In addition, the USGA announced a four-year partnership with IBM Corp, which helped re-launch USOpen.com as a platform to demonstrate its digital technology expertise and a four-year partnership with the Royal Bank of Scotland in a deal estimated to be worth $3 million a year. The USGA's other corporate partners are American Express Co. and Toyota Motor Sales, U.S.A., Inc.'s Lexus division.
