How Sports Management Impacts Golf Sponsorship Deals
In many sports, sponsorship deals play a pivotal part in providing much-needed financial support and exposure to individual players and entire leagues. Golf is no exception — and the right sports management strategies can be critical in shaping these deals.
With a thorough understanding of the types of sponsorship deals in golf and their influence on the game, aspiring golf management professionals can be better prepared to explore and pursue the best opportunities.
Understanding Golf Sponsorship Deals
Before diving any further into the importance of sponsorship deals in golf and the different types, let’s first explore what sponsorship entails.
What Is a Sponsorship Deal in Golf?
In simple terms, a sponsorship in golf refers to a formal arrangement or agreement where a company provides financial support in exchange for exposure and promotion. Typically, these sponsorships fall into one of two categories: subscription-based or performance-based.
Subscription-Based Partnerships
In a subscription-based golf partnership or sponsorship, sponsors provide a fixed or recurring payment to a golf player, league, or association in exchange for ongoing brand exposure. With this type of sponsorship, both sides benefit mutually, and these partnerships tend to be long-term.
Performance-Based Sponsorships
In performance-based sponsorship, on the other hand, funding is directly linked to certain outcomes with a focus on tangible results for the sponsor. For example, the amount paid to the player or league may depend on precise performance metrics, with less funding for lower performance. These sponsorships can be an effective way for players to gain access to funds for equipment, travel, and other expenses while providing brands with additional exposure.
Grassroots Sponsorships in Golf
While it’s common to see sponsorships by big brands at professional tournaments, the reality is that grassroots golf tournament sponsorship can be just as essential to supporting local competitions and their communities.
Supporting Local Tournaments
Some brands, for instance, may prefer to invest their money locally rather than at the professional/national level (like the PGA). Instead, by sponsoring junior golf leagues and smaller tournaments, these brands can give directly back to their communities and make a major impact on the game.
Engaging Community Brands
Local sponsorships for smaller tournaments and non-professional golfers provide brands with a unique opportunity to be in the spotlight at the local level. Through these sponsorships, they can build a sense of community while improving their own brand image and helping support golfers’ dreams.
TV Rights and Streaming Platforms
Over the years, television rights and the emergence of streaming platforms have influenced sponsorship deals in golf in a number of ways.
Evolution of Golf Broadcasts
Prior to the widespread availability of television, major golf tournaments (such as The Masters) were broadcast via radio. However, with increased television coverage beginning in the mid-1900s, TV rights began to influence sponsorship opportunities.
Today, key players in the television market — including NBC, CBS, and the Golf Channel — maintain the majority of television broadcasting rights for professional golf tournaments like the U.S. Open and The Masters.
Financial Impact of TV Rights Deals
Television rights deals have a considerable impact on the financial well-being of professional golf leagues, including the PGA. More specifically, these deals account for a significant portion of the league’s revenue. According to an article published in The New York Times, “The PGA Tour has domestic TV and streaming rights contracts through 2030 worth more than $700 million annually with CBS, NBC, and ESPN.”
Rise of Streaming in Golf Coverage
Aside from TV rights deals, the rise of streaming golf coverage in the past decade has led to additional sponsorship opportunities for platforms like ESPN+, Peacock, and YouTube Golf. Many of these platforms offer live streams along with exclusive content while increasing the accessibility of the sport to younger audiences and offering a versatile viewing experience.
Sponsorship Opportunities Through Streaming
From a sponsorship standpoint, streaming services also offer expanded audience reach and the potential for more targeted advertising than live television broadcasts alone. This, in turn, could improve engagement while tailoring ad content to specific demographics.
LIV Golf’s Influence on Sponsorship Deals
LIV Golf, a professional men’s golf tour, held its first Invitational Series in 2022 and has grown massively in popularity since. Today, LIV Golf continues to have a significant influence on sponsorship deals, creating new opportunities for players and brands alike.
Disruption of Traditional Sponsorships
In a sense, LIV Golf has disrupted the way many brands think about sponsorship in golf. Rather than individual golf event sponsorship or sponsoring individual golfers, the team-based format of the league has created some truly unique sponsorship opportunities for equipment brands, apparel companies, and beyond.
New Opportunities for Players and Brands
These new golf sponsorship packages and team-based opportunities have led to better brand-building and fan engagement, as well as a challenge to “traditional” golf sponsorship deals. These team-based sponsorships have also presented an opportunity for brands to reach younger and more diverse audiences than sponsorships in traditional leagues at the professional level, which tend to be more focused on single events or individual players.
ROI of Sports Sponsorships in Golf
What does it mean for golf sponsorship to be successful, anyway? It ultimately boils down to the return on investment (ROI).
Measuring Sponsorship Success
To measure the ROI or overall success of a golf sponsorship, sports managers may use a range of key metrics that include:
- Media exposure value
- Impressions
- Sponsorship recall
- Social media engagement
- Return on ad spend
Benefits for Sponsors and Events
In addition to hard metrics, however, consider the mutual ways in which sponsors, events, and players can benefit from sponsorships and partnerships in golf — be it standalone golf tournament sponsorship or golf sponsorship packages.
Sponsoring brands may enjoy such benefits as increased brand visibility and recognition, as well as the opportunity to generate new leads through targeted marketing. Additionally, players and events may benefit from supplementary funding needed for quality equipment, event staffing, and other key resources.
Athlete Endorsements in Golf Sponsorships
Of course, it’s not just individual brands that can make an impact. In certain scenarios, athlete endorsements of particular events, leagues, or players can be just as powerful.
Role of Star Power
Famous golfers have successfully served as brand ambassadors, increasing the popularity of specific brands while delivering highly targeted advertising in the process. Tiger Woods, for example, served as a brand ambassador for Nike for 27 years. Meanwhile, Nelly Korda has partnered with brands such as Nike, Tumi, and Delta Airlines.
Building Personal Brands
In forging sponsorships and partnerships with professional golfers, brands must be careful to ensure that athletes’ values and beliefs align with their company culture and image. This can help mitigate any reputational risks (such as negative publicity) while building a sense of authenticity and trust.
Sponsorship Opportunities Beyond Players
Aside from sponsoring individual players or teams, brands are also beginning to explore unique sponsorship opportunities with specific golf facilities, staff, and even caddies.
Facility Sponsorships
Sponsorships with golf facilities offer unique branding opportunities for clubhouses, practice ranges, and greens. From facility naming rights to signing and beyond, brands can enjoy a variety of perks by exploring this avenue.
Caddie and Staff Partnerships
In some cases, brands may form partnerships with non-playing personnel as a means of boosting visibility cost-effectively. For instance, a brand might sponsor a golf caddie or other staff members who are regularly visible onscreen.
Learn More in a Sport Management Program
With so many intricacies surrounding golf event sponsorships, having dedicated education and experience can make all the difference. Looking to improve your sports management skills? Check out Keiser University College of Golf’s Associate of Science in Golf Management or Bachelor of Science in Golf Management today!
Want more tips? If you want to take your game to the next level, contact our team at Keiser University’s College of Golf & Sport Management today. With our dedication and experience, together, we can elevate your game to new heights. Give us a call today at 888-355-4465.
Sources
https://collegeofgolf.keiseruniversity.edu/golf-blog-fan/
https://collegeofgolf.keiseruniversity.edu/programs/bachelor-science-golf-management/
https://collegeofgolf.keiseruniversity.edu/programs/associate-of-science-in-golf-management/
https://victory.usopen.com/2020/articles/a-grand-evolution–television-and-the-u-s–open.html
https://www.sponsorunited.com/sponsorship-101/25-potential-kpis-for-sponsorship-deals
https://essential.golf/golfers-with-the-most-lucrative-sponsorship-deals/
https://www.nytimes.com/athletic/4590334/2023/06/07/pga-tour-liv-tv-sponsors/
