This is a HUGE warning from a MAJOR name in golf and is set to rock the industry because we can not simple keep going the way we are! The PGA tour is set to LOOSE more major sponsors in the coming years if they keep going the way they are! Famers Insurance have announced they will not be renewing there contract pluss Wells Fargo and now we hear from a major champion that more huge sponsors could be lost
MAJOR champ fears MORE and MORE sponsors will quit PGA Tour…
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Now I mentioned this briefly in yesterday’s video about the PJ tour losing sponsors and now a major Champion is warning us that more could be to follow so we’ve heard Welsh Fargo aren’t renewing their sponsorship RBC are very much on the fence about their sponsorship going forward and the
Farmers Insurance are not renewing theirs they’re also pulling out a sponsoring Ricky Fowler now Farmers Insurance are a huge sponsor the Farmers Insurance open is worth around $14 million a year to the PGA tour now this major Champion is Webb Simpson he is one of the players directors on the PGA tour
So part of one of six of them who are the negotiators between the PGA Tour and the players and essentially represent the cohort of players who play on the PGA tour now he has done an interview basically saying there needs to be a major shift and we’re going to go
Through exactly what he says here because I’ve been thinking this for a long time I’ve been thinking sponsors are going to be pulling out because two reasons right one the the money they they can’t compete with playing these players x amount more because they’re not actually going to get x amount
More well exposure now this might be a controversial thing what I’m about to say and it hurts me to say it but golf is not a household sport now let me hear me out here compare that to the Premier League here in the UK American football over in America basketball what I’m
Trying to say here is it’s not a household sport it’s not as big as those Sports so where where can companies say okay we’re going to pay more for this sponsorship this year just so you can compete with your priz funds it doesn’t work like that the model is broken if
That is the way it’s going to continue and it’s going to come to a very abrupt end if that is the way that the PJ tour want to go with this now don’t just believe this from me let’s let’s go through exactly what web Simpson said
Here now as I said this is coming from one of the player directors so a guy who represents all the players on the PGA tour let’s analyze what he said here web Simpson said the amount of money we’re playing for is astonishing considering how many people watch our sport first
Point there getting in exactly what I said it’s true and it hurts me I wish more people would watch the beautiful game of golf but the reality is it’s not a popular as other sports so how can sponsors justify paying more and more and more he goes on further to say
Without SSG now SSG is a Sports Group who are interested in investing in the PGA Tour without SSG where we are where we were it’s not sustainable to keep paying for 450 million without some kind of subtle to major shift in how we’re thinking about everything the model is
Broken at the purse sizes we’ve been going at the last year and the sponsors are starting to feel it again reiterating the fact that maybe the sponsors now don’t see value in what they’re getting sponsors are pulling out Welsh Fargo farmers and they’re probably be a couple more this year I would think
Maybe one or two now that scares me RBC potentially could be one of them but who else could it be if you’ve got any inklings any ideas let me know down in the comments here because I want you to get involved in this story because I honestly think it’s worrying times for
The PJ tour in the sense of losing major sponsors now on the flip side of this they might not care about that if they’re pursuing other revenue streams okay now he goes on further to say this I hope not but that’s a lot of money to
Put up for a week considering the price of stadiums a stadium sponsorship and all that kind of stuff I’m close with the Welsh Fargo people they’ve been extreme extremely happy until having to continue to increase their purse and they just didn’t feel like it was a good
Fit for them so the product is really good we’ve just got to sell it at the right price we’ve got to be careful now that’s so true I want to pick out a few things here I think Golf and sometimes the PJ tour or whoever are forgetting
That we’re competing with the likes of let’s say football whether that’s American football or whether that’s Football Premier League over here in the UK and those rights could be sold for um x amount less actually or the same amount to the fact that that sponsorship is going to be seen every single home
Game throughout an entire season so actually the actual amount of minutes that’s going to be seen for is going to amount to more than just one week tournament and I honestly think we’re forgetting that sometimes I really really do now as I want to reiterate
Here I really do hope gol gets some more popular and isn’t that more popular but we can’t keep just increasing the purse size can we surely it has to stop somewhere otherwise we’re going to lose more and more people now I realized I’m getting very uptight about this I’m
Getting very feel very strong about this but I honestly think web Simpson is sending a warning to the PJ toour whoever because this is going to happen very shortly I feel now it’s no wonder the consistent prize money has gone up and up and up throughout the whole well
Argument civil war between Liv Golf and the PJ tour before the framework agreement all the PJ tour were trying to do was compete offer a value for money I guess proposition towards its players where they wouldn’t be swayed to go and join Liv golf to play for at least 20
Million a week or I think more but 20 25 million a week like they had to do it they felt in order to compete that’s why we saw all the elevator events and then they’ve been changed this year to Signature Events that have been introduced into the schedule which boost
The total price purse on the PGA tour to around 20 million now I’m going to say right now in the next few years I anticipate maybe less well elevator events I I I really do I just don’t see how this can continue if a framework agreement isn’t to be signed now the
Rumors are that something is going to be signed but in what capacity and what investment we do not know but ass sure as soon as we do know we will be sharing this with you cuz we bring you all the breaking news here at B 9 FMS now I find
This a seriously interesting story something I feel passionate about and I think web Simpson is telling us exactly what could be happening if we’re not careful going into 2024
43 Comments
Is this a warning?⚠️
More than a few of the world's best players left as we all know. Beyond that, sonetimes i want to watch, but it is on Peacock, or some is on free tv then other parts are on a certain cable tv package. Years ago when Tiger was the best, i could watch on TV. Commercials were banks, investment firms, premium products. I even remember reading that the stock market would do great on Mondays when Tiger was in contention on Sundays. In short, sponsors are paying more but getting much less.
The PGA made a fatal mistake.. they held on to the past so hard.. they choked out their future.
Golf is going to crash hard. The warning signs are there. Do you really think the dome collapsed on Rory and Tigers' multi-million dollar facility? Ofcourse many do.
From the outset, this was my main reason for not supporting LIV. This article confirms that opinion.
The equipment manufacturers are putting the game out of reach for beginners and a big percentage of the playing population. $600-$700 for a driver! I'll use Taylormade for an example. Before they sell 1 club, they start off in the red because of the tens of millions they pay the pros. And it's not just the big name pros. My club pro gets $5k a year plus a full bag every year and never plays a tournament.
The whole sports world has gone nuts with multi million dollar contracts. Whether it be baseball, football, soccer, golf, tennis, or race cars, the whole pay scale has gotten ridiculous. I believe it is becoming or has become unsustainable.
The ROI is not there, so they will be pulling out. How did we get from $5k to $4 million for a tournament winner in such a short period of time!?
Golf can never be on a par with the likes of the Premier league. The costs for people are just too high. I can buy a football and go and have a kick around with my grandson for next to nothing. When he gets older (he's 2 at the moment) he can have a free kick around in the park with his friends. However, to play golf it is going to cost a lot more and finding friends to play with a lot harder. Unless golf makes itself much more accessible I can't see how it can attract enough people to make the profits needed to compete with the likes of football (soccer).
PGA is circling the drain…they have for too long held up their sponsors for bigger & bigger purses.
If FedEx pulls their sponsorship, the PGAT is finished.
Everything the PGAT did was a reaction to LIV. Every decision turned out to be bad.
LIV was never about earning a genuine return on investment on these ridiculous player salaries – it was always about breaking the PGA Tour. And it’s working.
Start again. World golf tour. All players get a points ranking. Top 120?? start in WGT. New sponsers around the world with additional funds from PIF. All other players play PGAT,DPT,LIV become 2nd tier and so on for other tours being 3rd tier. Promotion/Relegation all tiers say 10 up/down. Much like English Football. Just work out the number of tournaments plus Majors. Just another idea. Tinkering here and there would be required. At least i tried😂🇦🇺🦘🇦🇺🦘
If the PGA tour collapses due to sponsors pulling out then so will LIV golf. All LIV has going for it, is it is throwing huge amounts of money at players to join a flawed model in itself. The public I believe see through this. Good luck to Rahm for getting 400 million to slap a white ball around some elite frequented piece of real estate, but this is not what excites me as a golf lover. Sport also has to speak to each ones core values and for me pro golf has lost the plot in this mindless sea of money.
Television golf is only good to pit people to sleep. Three hours of putting and no player interaction. Bbbbbbboring.
Argument wise, this might be your best video.
PS They are “elevated” events, not “elevator” events.
Nobody is forcing the PGAT to demand these outrageous purses. They are the ones that talked about legacy and tradition, or were they lying about that also. If they don’t want the PIF , then don’t do it or stop spewing their BS.
The sponsors are leaving because they anticipate "hard times" (banks and insurance companies are underwater) and have figured their ROI will not carry when the Board and shareholders are saying "WTF"? No guilt upon leaving since PIF will fill the void. The old business model will crash (sponsors) and revert to equity investment. It is likely that the player impact index will be where the purse distribution eventually falls. The sponsor unraveling will push the old guard out and their sacred cows. I anticipate "The" players will embrace a new equity share model. Follow the money. Somewhere is all this will be a cry from the legacy enclave to restore open competition no matter what tour you belong to. I never thought I would see this debacle in my lifetime.
I think you could go a little deeper into the sponsorship model. It's more than just viewership numbers. It's also the type of audience that will potentially purchase the goods and services of the sponsor, or be entertained by them at the event. These people want to see marque players and many of these are now at LIV.
They crucified LIV and LIV players. I don’t feel sorry for them. Phill was right all along
Go,Greg.
We need new WRS now.
Golf is successful despite itself. That was until now because they, the PGA in particular in this case but also clubs, courses and equipment manufacturers have made it way too expensive to play this beautiful game. If prices and fees were lower this sport will have an explosion of participants. But unfortunately, the powers that control the game want to keep it an elitist sport and have things stay the same to protect their little spot in the world…my opinion anyway
"If we are not careful?" Who the F is "we?" Are you saying "we" golfers are part of the PGA Tour? That is a lot of BS. I and many of us here play golf not Because of the PGA Tour! The PGA Tour is on fire and it is all due to its stupid leader and the steps the took on LIV! If the PGA Tour need a restart big time.
Gotta wonder if the FedEx Cup will stick around…yes FedEx gets name exposure every event by the commentators, but after 30 years it doesn’t have the fans truly engaged in the outcome…
Pga is done no money and drop kicks are in charge
Gotta keep in mind Simpson is about as pga tour centric as it gets. I take his comments with the same grain of salt I’ve taken Monahans comments. I think he is trying to scare players.
The reality is things are worth what people are willing to pay for them.
The pga tour has realized their sponsors are not willing to pay more for less. This of course was obvious and one of the many reasons they should have collaborated from the beginning.
But while the pga tour is diminishing in value Golf imo is worth more than people like Webb Simpson believe. That’s why not just pif but private equity firms are willing to invest so much.
The old model of commissioners shmoozing with the companies for sponsorship dollars one event at a time —especially in a non profit capacity—is not dying, but it’s no longer going to be where the most money is coming from.
Clearly for the foreseeable future most of the money will come from pif and some from other investors. Those are the sponsors. Eventually once things are settled, actual sponsors will pay more than ever to be in golf as many fields will be —hopefully— more stacked with top players than ever.
If all goes as it should LIv world tour, top pga tour events, and top of the top DP world tour events will all be stacked with deep fields. As will the majors.
I don’t think the talk about the Australian open and South African open is needed. All those countries opens need is the pga tour and LIv not playing big events that time of year so all their big regional All stars can be there; and hopefully more of the big names.
Everything will be ok Alex. Things are moving in the right direction. The golf organizations are starting to transition out many of the main characters whom have made this saga harder than it had to be.
All will be good.
For now I don’t know about y’all but the Sony open had a super exciting finish with all sorts of good story lines. Maui had great story lines. LIv has great story lines going. Rory played on the DP world tour and lost to fleetwood in another exciting finish.
Things are good. It’s going to be a great year for golf.
I think that is why the LIV model would be more enticing to the sponsors because they will be guaranteed that the best players will be on show for the entire tournament due to the no-cut policy. And for the people watching the game in person, they don't have to spend the whole day watching the tournament because of the shot gun start. You can see all the players in 4 hrs.
Wonder if Jay is regretting his decision to brush PIF yet………… LIV wins the longer this drags out and they know it.
Outside of the majors golf is boring to the majority because the majors are the only time you get the best players going head to head also knowing if they don't perform over the first 2 rounds they are GONE
So lets all have a look at the PGA financials shall we 🙂How much of the sponsorship MILLIONS get syphoned off every week to go to Jay and the Board members and their MASSIVE expense accounts along with Jays lawyer buddies and all their leaches. Are any of you PGA only fans starting to get some idea what Phil was talking about now ?
Make NO mistake.. LIV is 100% about the game of Golf and Sadly the PGA Tour hasn't been for a long time
The whole decision the PGA TOUR and DP World Tour got 100% wrong is preventing LIV Players from playing in PGA Tour and DP World Events. The PGA Tour is the players not the incompetent maroons like Monahan, the USGA, R&A and OWGR "governing" golf. If they would have let them play, and not acted like petty children and acting like a bunch of maroons, Golf would still be rolling along. Then you have the clowns at the USGA and R&A wanting to foolishly roll back the ball, the current standards are just fine, and basically lieing to the public and changing testing requirements to generate the numbers to fit their flawed, petty agenda makes them look like a bunch of incompetent clowns. This whole sustainability argument is laughable. The Sony Open Course was 7020 yards, Kapalua 7596 yards yet the winning score at Sony was 17 under and Kapalua was 29 under. Its all about the course set up not the equipment
Smart sponsors will go to the LPGA, 2.5 to 3.5million gets all the world top women players. 8.5 million gets you a nobody field on the pgatour. 9 million this week in Dubai, Rory, Tommy, Brian Harman, that's it, in fairness to the other players who are wonderful players but not needle movers ratings wise. Remember last year Rory v Patrick Reed and how compelling it was. DP World tour desperately needs LIV players
I think the finances of the PGAT should be published.
How much do the non playing Executives cream off the top?
The Games downfall started with the arrival of one Eldrick T Woods , The Corporate world was allowed to turned the Game into nothing more than a Job and by doing so removed all passion and Killed all the characters that made the game what it was. For anyone who doesn't see it can you please direct me towards the PGA Tour player who is a Lee Trevino or Seve Ballesteros or Payne Stewart or Fuzzy Zoeller or Raymond Floyd or Craig Stadler or Nick Faldo or Corey Pavin or John Daly or Phil Mickelson to name just a select few , You can't can you because these types of Golfer who showed us their passion and took us onto the course with them have been replaced with the Robotic Corporate Type and the GREED of the powers that be allowed it all to happen.
Why do you think Greg Norman selected & selects the players he does ? Because it's not all about money , It's Mostly about the Game and the Golfers who show the World what this Great Game is All About 🙂
Take Care My Friends
From what I've seen on other channels, the people who support the PGA the most don't even watch it. I've directly asked if they watched the Hero event or the one after that. They never answer. Fact is, PGA events are boring AF. And we're talking their elevated events where all the top players are supposed to be there, yet Rory isn't there and a few others aren't there. So what's going on there? If they can't even get their top events in line, why would sponsors invest? They were so used to being the only game in town and even now are still acting like it.
Think about it… half of the major winners leave PGA and they want to double, nay quadruple, the purse of their events? How does that even make sense? You have a lesser product, but charge more. See, this is why they can't give ranking points. They're still claiming they have the top players according to OWGR ranking. I don't think sponsors are that stupid.
Players need to face reality of reduced price money and income…I was watching Sony Open…seemed like a feeder tour with a bunch of no-names….
Most Golf fans don’t want drama, don’t trust the media or Jay M, TV product has gotten worse, and the PGA is now watered down. In a nutshell
LIV made the top 30 players greedy, both on PGA as on LIV side, pushing them in a direction (Elevated events, PIP…) that is not sustainable.
Golf can’t afford to pay that kind of purses.
Yes golf is a fringe sport see what happened to tennis
Golf is heading down the same road
Companies have a critical eye and ROI is key factor
No doubt this is not a short term trend
Even if PGA got another investor that investor still needs a return and its not there
kanske så enkelt att dom inte vill sponsra demokratiska saudi arabien..🤔
Simple fix. You must sell the sponsorships 45 times a year😊😮😮
The banks have no money they are broke and overleveraged.
So essentially the greed of a few already super rich players is going to kill the goose that lays the golden eggs for a whole lot more! This can only serve to contact, not grow the game at pro level. Fewer sponsors to wanting to invest in events as fragmented weaker fields are less attractive. The likely knock on effect in time will be a reduction in participation at grass roots amateur level. The vast economy of golf including equipment sales, green fees, memberships, tv money and tv subscriptions will actually get smaller effecting jobs and livelihoods for many. What the super rich stars that just want more and more forget is that ordinary people pay their wages by going to events, watching on tv and buying sponsors products and services. For me personally I love to play golf and used to love watching but it has become a much tougher watch in recent years