is on the way out of, another long-time PGA Tour Tournament sponsor.
Sports Business Journal reported on Thursday that Farmers Insurance will not extend its contract with the PGA Tour when its current agreement expires 2026.
SBJ reported that Farmers Insurance will send fewer executives to its Farmers Insurance Open event later this month. They have also returned some hotel rooms and plans to reduce activation. Farmers Insurance sponsors the APGA Tour at Torrey Pines.
Farmers Insurance has been reducing its presence in the world of golf. Rickie fowler confirmed last week to Golfweek that he is no longer sponsored by this company.
Fowler noted that the company had undergone a leadership change. “My contract expired, and I was informed they were not looking to extend or renew,” Fowler stated. It was a great fit for them to take over Torrey. I was very happy that they took on the tournament, which was close to my hometown and where I grew. It was great to do the commercials over the years. I enjoyed working with them.
Raul Vargas became the CEO of Farmers just over a year before. Farmers laid off about 2,400 workers in August, or 11 percent.
This is the second prominent company that has decided not to renew its contract with PGA Tour. Wells Fargo won’t renew its agreement to host the championship in Charlotte, North Carolina after it expires. SBJ reported that the company was interested in remaining a sponsor, but did not want to pay for the higher price.
Title sponsors have paid between $13 and $15 million annually for full-field events at the PGA Tour.
RBC, the title sponsor of the Canadian Open, and Heritage at Hilton Head – a signature event – signed a year-long deal for 2024, instead of a longer-term contract, to gauge the golf landscape. Could this be how many major companies think with the turmoil in golf?
