Report: PGA Tour agrees huge new sponsorship deal
According to a report, the PGA Tour has inked a four-year deal with piping solutions provider ISCO Industries said to be worth $8-10m a year.
The PGA Tour's Barbasol Championship is no more.
At least that is according to a report by the SBJ, which states the tournament will now be called the ISCO Championship after the North American circuit inked a four-year deal with the piping solutions provider.
Details of the financial arrangements have not been revealed, but the report suggests that it's likely the deal is worth between $8-10m a year.
The tournament is held annually in Kentucky and is played opposite the Genesis Scottish Open, which is co-sanctioned with the DP World Tour.
The deal is welcome news for the PGA Tour, given the difficulties the circuit has faced since LIV Golf arrived on the scene two years ago.
Some huge companies have severed their ties with the Tour whilst others have asked that steps be taken to stabilise men's professional golf.
Honda did not renew their contract in 2023 having been the title sponsor of the south Florida stop since 1982.
Last December, Wells Fargo also announced they were out the door after a 22-year association.
Farmers Insurance have followed suit and won't renew after their contract expires in 2026.
RBC have also stated they will take a 'wait-and-see' approach before making a decision.
According to SBJ, Truist will replace Wells Fargo as the sponsor of the signature stop held at Quail Hollow Club in Charlotte.
The latest deal means the Tour is now fully sponsored for the 2024 season and attention will now turn to 2025.
"The sponsors are starting to feel it"
PGA Tour player director Webb Simpson previously spoke of the problems facing sponsors in an interview with Golfweek.
He said the Tour has been commanding $13-15m a year from title sponsors.
"The model is broken at the purse sizes we’ve been going the last year, and the sponsors are starting to feel it," he said.
"Sponsors are pulling out. Wells Fargo, Farmers, there will probably be a couple more this year I would think, maybe one or two more.
"I hope not, but that’s a lot of money to put up for a week, considering the price of stadiums and stadium sponsorships and all kinds of stuff."
He added: "Hopefully we deliver a product where – like I’m close with the Wells Fargo people.
"They’ve been extremely happy up 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 there.”
The 2023-2024 PGA Tour schedule featues $398.9m in prize money over 27 tournaments.
There is also an extra $75m for the Tour Championship purse.
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