Global economic setbacks have left PGA tournaments struggling for sponsorship, but US PGA Tour commissioner Tim Finchem said on Wednesday his circuit is ahead of financial expectations.
"This is very hard, but comparatively I think we're performing very well. We are better off than we thought we would be by a good margin," Finchem said.
"We have actually had some weeks where we are up in revenue. It varies from market to market. In general, though, it's soft and we're off a bit."
On the eve of the six million-dollar National at Congressional Country Club, Finchem blamed the slide on cutbacks in corporate entertaining and advertising.
"It's largely a reduction of budgets, companies saving dollars," Finchem said. "Two areas you can save dollars without firing anybody are reduce entertainment and reduce advertising. And both of those things hurt us."
Television networks that pay huge sums for tournaments but draw top ratings mainly when Tiger Woods is playing are finding it harder to sell advertising time for broadcasts. And hospitality tents are fewer alongside PGA courses.
"Our big two struggles right now are at the tournament level selling hospitality because of shrinking budgets and then our television product, like every other sport, selling," Finchem said.
The PGA Tour will be down from last year's record 124 million dollars in charity contributions.
"We don't think it's precipitous," Finchem said. "It is hurtful."
The National, with Woods playing and hosting, will bring 30 million dollars to the US capital area, Finchem estimates. Some US lawmakers have criticised golf sponsorship but Finchem has pushed to show the benefits of events on areas.
"We did a better job of communicating the economic impact," he said. "Hotel and hospitality sectors lost 400,000 jobs in the last two years. We need people to travel, companies to invite customers to do business and spend money."
Finchem is also pressing ahead with groove changes to irons for PGA players starting next year that will reduce the amount of spin out of the rough, putting a greater premium on finding the fairway.
Some equipment manufacturers have complained about the cost but Finchem notes the average player will not have to conform until 2024 and most would be buying new clubs before then anyway. Many clubmakers already have new irons.
"We have no data that it is onerous to a company," Finchem said.
The move might help keep technological advancements from making current courses obsolete and preclude other future moves.
"It's going to have some impact, in our view, on distance. I do think it stems the tide on more length for a time," Finchem said.
"I don't see the need for more regulatory action for the forseeable future. I hope this stuff is behind us for a while."
Copyright 2009  AFP American Edition
