The PGA Tour’s Championship Management division will soon take over one of the tour’s tournaments. It might not be its last, as the PGA Tour enters a new era where it will have more for-profit ventures.
Golfweek learned that the Tour informed employees at the tournament previously known as the Honda Classic (which has been tentatively named The Classic in The Palm Beaches) that it was taking ownership of this event. Employees would remain on until at least the end of the current tournament, but become Tour employees. The Tour will likely announce Cognizant, a new title sponsorship to replace the Japanese carmaker once the contract is signed.
IGP Sports & Entertainment Group, which manages the Tour, has been at PGA National Golf Club for the past seven years. They have also brought Barbara and Jack Nicklaus to the fold, and Children’s Healthcare Charity Inc. is the host organisation. IMG Worldwide purchased IGP in 2013 and has been running the event since then. The Honda Classic began in 1972, when Jackie Gleason hosted the Inverrary Classic.
Honda was the title sponsor of the Tour in 1982 . However, Golfweek reported that 2023 would be the last year for Honda to hold this position. It was at the time the longest-running Tour sponsor. According to an anonymous tournament director, Honda was willing and able to pay $13,000,000 per year for the title sponsorship but refused when the Tour demanded $15,000,000.
The source added that “The Tour believed it had a substitute waiting in the wings who was willing to pay 15 (millions) dollars as they asked, but they backed away.”
Eric Cole tees-off at the 17th green during the third round at the 2023 Honda Classic in Palm Beach Gardens. (Photo: AndresLeiva/Palm Beach Post).
The Tour told staff that it had taken over management of the event because they couldn’t find a title sponsor who would pay for the costs. Sources tell Golfweek T-Mobile had been set to sign a contract late last year for the title sponsorship as early as 2023, but the deal was scuttled by AT&T. AT&T is the Tour’s official marketing partner in the telecommunications sector and has long sponsored the AT&T Pebble Beach Pro-Am. AT&T sponsored the AT&T Byron Nelson at the same time.
A PGA Tour spokeswoman confirmed that the event was close to securing a sponsor.
The future of The Classic is secured for fans and community. It’s one of the most prestigious sports and entertainment events of the region. The PGA Tour has secured a title sponsor for the event and is transitioning to new operators. This will ensure that the event’s long-standing commitment to charitable work – in partnership with Children’s Healthcare Charity, Inc. – remains a pillar. “We look forward to presenting a better version of the PGA Tour South Florida event in 2020,” a Tour representative sent golfweek via text message.
Other recent suitors have also shown interest. Carrier Co. of South Florida, best known for its air conditioning units and other products, had been in talks to sponsor the South Florida Tour, but those discussions fell apart when they were unable to obtain a “signature events” designation. After the framework agreement was announced between the Tour, Saudi Arabia’s Public Investment Fund in June, there were rumors that Aramco would step in as title sponsor. The Tour regularly conducts discussions with potential sponsors.
In less than a ten-year period, the Honda Classic had one of its best fields. However, in recent years this event has struggled with attracting a top-notch field. In 2021, there were only five players in the top 50 and two top 20. This year’s tournament had 12 top 50 players, but four of those who lived in northern Palm Beach County did not play.
A long-time Honda Classic contractor who knew the latest deals said, “You can’t continue selling steaks if you give them corn dogs.”
The Tour has announced that it will underwrite the tournament for 2024 without a title sponsor. The Tour will pay the difference if the tournament organizers do not contribute the $3 million.
(Photo: Andres Leiva/Palm Beach Post) Fans attend the Honda Classic 2023 at PGA National, Palm Beach Gardens in Florida. (Photo by Andres Leiva/Palm Beach Post).
In its first year, the Honda Classic donated $7.2 million and has distributed more than $60,000,000 to South Florida’s philanthropic groups. The Tour also reached an agreement that guarantees the Nicklaus Children’s Health Care Foundation – the primary charity beneficiary of the tournament – a grant of $2 million per year over the next five.
One former tournament director who was aware of the changes that would be made said, “If the Tour is moving into a world of more profit-driven activities that is against the Tour’s original genesis.” “That’s troubling.”
Sources familiar with the matter said that the total amount of 2023 was the result of the net proceeds from the event, combined with the tournament’s successful Birdies for Children Program. The new arrangement may have a similar effect on the charity market, but this is not guaranteed.
The news that a new sponsor has been announced is less worrying. Cognizant is a company that provides information technology consulting and services. Cognizant is already a global sponsor of the Presidents Cup. The relationship began in 2022, and will last until 2026. They are also the title sponsor of the LPGA Tour Founders Cup.
Multiple sources claim that the Tour has been close to signing a contract with the company for a multi-year deal, which includes a “discounted price” for the first season. However, it is still waiting for the contract to dry before it takes over the management of the event. “This will allow it to look like it saved the tournament when it announces its new title.”
Ryan Gerard watches the action at the 18th green of the Honda Classic, held in Palm Beach Gardens by PGA National Resort & Spa. (Photo by Andres Leiva for the Palm Beach Post).
According to a tournament manager, the Tour may not take over the Florida Swing as the first event. The Tour may decide to move some of its weaker events into its for-profit business. The contract between the host organization and title sponsor is usually linked. The Tour will be able to take over management as other contracts expire. Sources claim that the Tour has told former Honda employees that it would like to manage 15 tournaments by 2025.
Will 2,000 volunteers continue to spend hundreds of dollars on uniforms and donate their time in order to help a for-profit organization, particularly if the Tour continues its partnership with Saudi-backed PIF.
It’s difficult to find the volunteers you need in an environment post-Covid. “How many people do you think will sign up, if millions of dollars are not staying in the local community?” asked a tournament director.
The Tour’s annual South Florida stop may be the first tournament to experience the brave new world.
