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Old 12-19-2009, 09:12 AM   #1
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Expensive Golf Sponsorships - Worth The Money?

A discussion arose in the Ji Yai Shin folder about her sponsorships, which I found interesting and informative. I have often wondered if golf sponsorships were worth the money they pay out. Not the normal contracts, mind you. I realize everybody gets some sort of sponsorship. What I am talking about are the Tiger Woods, Michelle Wie, Annika level sponsorships. I am not suggesting they are not great players...I haven't lost my senses overnight...two of those players are considered the best to ever play and the other shows tremendous potential which in 2009 started to fully blossom.

Reading the following Barrons article, I have some statements and questions to make...please correct or illuminate me on how golf sponsorships of this size turn into big money for corporations.

1) I actually see paying Jay-Z 3 million as being equally prudent as paying Michelle 4 million. Shoes are so huge in the urban community that there is actually a hip hop magazine devoted to sneakers. The sports apparel is also very big and sells well. I guess Michelle and Tiger sell golf shoes to fans...but you don't walk around in golf shoes...is there that much of a market for apparel? I assume the big payoff would be clubs, balls, tees, etc.

2) For those who actively play golf here, does what your favorite player uses or wears affect your purchasing (I sound like a marketing survey) or do you play what feels right for you...or both?

3) Beyond apparel and equipment, would you make a large money purchase, like buying a Buick or any other model of car, because your favorite player endorsed that brand?

4) Do you think all athletes, not just golfers, are way overpaid for the money they bring their sponsors...or are they justly compensated for making Phil Knight and the rest of the power brokers tons of cash?

the article: 2010 Musings; Will Tiger's Loss Be Nike's Gain? - Streetwise - M. Santoli and A. Bary - Barrons.com

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Old 12-19-2009, 01:42 PM   #2
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Originally Posted by bangkokbobby View Post
A discussion arose in the Ji Yai Shin folder about her sponsorships, which I found interesting and informative. I have often wondered if golf sponsorships were worth the money they pay out. Not the normal contracts, mind you. I realize everybody gets some sort of sponsorship. What I am talking about are the Tiger Woods, Michelle Wie, Annika level sponsorships. I am not suggesting they are not great players...I haven't lost my senses overnight...two of those players are considered the best to ever play and the other shows tremendous potential which in 2009 started to fully blossom.

Reading the following Barrons article, I have some statements and questions to make...please correct or illuminate me on how golf sponsorships of this size turn into big money for corporations.

1) I actually see paying Jay-Z 3 million as being equally prudent as paying Michelle 4 million. Shoes are so huge in the urban community that there is actually a hip hop magazine devoted to sneakers. The sports apparel is also very big and sells well. I guess Michelle and Tiger sell golf shoes to fans...but you don't walk around in golf shoes...is there that much of a market for apparel? I assume the big payoff would be clubs, balls, tees, etc.

2) For those who actively play golf here, does what your favorite player uses or wears affect your purchasing (I sound like a marketing survey) or do you play what feels right for you...or both?

3) Beyond apparel and equipment, would you make a large money purchase, like buying a Buick or any other model of car, because your favorite player endorsed that brand?

4) Do you think all athletes, not just golfers, are way overpaid for the money they bring their sponsors...or are they justly compensated for making Phil Knight and the rest of the power brokers tons of cash?
Nike is a pure marketing company. Just put a logo on something and sell it. For them to spend 5% on endorsements is like a manufacturing company putting 5% of sales into capital improvements. A key to their success is getting their brand well known.

Having said that, I don't pay attention to what the stars endorse. Nothing they do affects my buying. My clubs are custom made (Golfsmith) and I normally play re-load balls (used). Golf shoes were just what happened to fit and not too expensive (so probably not a major brand). Regarding larger items, I also pay no attention to athletes. I go with Consumer Reports and my own research. I also thought it was funny that Buick sponsored Tiger, I wonder if they forced him to drive one?

I suspect younger people are more influenced. The stuff in the golf stores tend to be name brand and endorsed by someone. You have to go out of your way to find lesser brands and reasonable prices.

I like golf in that some of the earnings depend upon how well you play in each tournament. Endorsements for some golfers overwhelm the prize money, but it is not the majority. There are no "team" owners demanding stadiums in golf, nor team owners that bid up the salaries of players way beyond reason.
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Old 12-19-2009, 05:00 PM   #3
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I don't buy anything based on endorsements by "celebrities"....sports celebrities or otherwise...golf equipment or otherwise.

There are some companies, like Nike, who I would deliberately avoid because I don't like some of the athletes they endorse. I think Nike is as scummy as some of those who are on "staff."

Having said that, I did buy a Nike driver a coupla years ago....not because of Tiger or Wie, et al....but because golfers will sell their soul for a few more yards distance.

The only other Nike product I own is a pair of Nike golf shoes like the ones Annika wore when she won the Nabisco Dinah Shore back in '02. They were ruby red patent leather slip ons and I loved the look. I don't wear them often, but when I do they're show-stoppers. haha

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Old 12-19-2009, 05:56 PM   #4
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Originally Posted by LoJo View Post

The only other Nike product I own is a pair of Nike golf shoes like the ones Annika wore when she won the Nabisco Dinah Shore back in '02. They were ruby red patent leather slip ons and I loved the look. I don't wear them often, but when I do they're show-stoppers. haha

As good a reason to get a specific pair of shoes. I use to have a walking pair (comfy) and a riding pair (not as comfy, but good to give the comfy pair a rest day). Then the comfy pair resulted in me injuring my achilles tendon. They were too loose really. Got a new pair and wear shoe inserts now.
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Old 12-19-2009, 06:10 PM   #5
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Originally Posted by bangkokbobby View Post
1) I actually see paying Jay-Z 3 million as being equally prudent as paying Michelle 4 million. Shoes are so huge in the urban community that there is actually a hip hop magazine devoted to sneakers. The sports apparel is also very big and sells well. I guess Michelle and Tiger sell golf shoes to fans...but you don't walk around in golf shoes...is there that much of a market for apparel? I assume the big payoff would be clubs, balls, tees, etc.
I don't think it's comparable. Jay-Z is far more well-known. Jay-Z is a star at the top of his game. And his game is one where clothes are an integral part of the appeal and are worn as street wear by tens of millions of of Americans. Michelle plays a niche sport and is not yet at the top of the game. She may never be. Certainly she was not when Nike signed her. She wears the same exact clothes that Suzann Pettersen and Amanda Blumenherst wear and I've never seen any of them in any ads, at least not in the states.

Originally Posted by bangkokbobby View Post
2) For those who actively play golf here, does what your favorite player uses or wears affect your purchasing (I sound like a marketing survey) or do you play what feels right for you...or both?
What my favorite player wears or uses makes no difference on what I wear or use. However, if an endorser (cough - Michael Vick - cough) does something vile, I will stay away from the companies associated with him. Nike has given me plenty of reasons lately. Mostly I just buy what I like.

Originally Posted by bangkokbobby View Post
3) Beyond apparel and equipment, would you make a large money purchase, like buying a Buick or any other model of car, because your favorite player endorsed that brand?
No.

Originally Posted by bangkokbobby View Post
4) Do you think all athletes, not just golfers, are way overpaid for the money they bring their sponsors...or are they justly compensated for making Phil Knight and the rest of the power brokers tons of cash?
It's not a matter of balancing justifiying their pay with what they bring Phil Knight et al. Phil Knight made tons of cash long before Tiger Woods, Kobe Bryant and the French Soccer Team were seen seen wearing his shoes. In fact, he had tons of cash before they were even born, and all he did was outfit regular people like you and me who wore his waffle soled shoes to the job around the neighborhood or walk across their college campus. Back then golfers were wearing no name shoes and NBA stars were wearing Converse All-Stars. Nike has a personality-based advertising strategy and it's not a big gamble or expenditure on their part to throw millions at a athletes. In some cases, like with Tiger Woods, they pay off. In others, like with Michelle Wie, not so much.
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Old 12-19-2009, 06:52 PM   #6
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Originally Posted by Blue View Post
I don't think it's comparable. Jay-Z is far more well-known. Jay-Z is a star at the top of his game. And his game is one where clothes are an integral part of the appeal and are worn as street wear by tens of millions of of Americans. Michelle plays a niche sport and is not yet at the top of the game. She may never be. Certainly she was not when Nike signed her. She wears the same exact clothes that Suzann Pettersen and Amanda Blumenherst wear and I've never seen any of them in any ads, at least not in the states.


What my favorite player wears or uses makes no difference on what I wear or use. However, if an endorser (cough - Michael Vick - cough) does something vile, I will stay away from the companies associated with him. Nike has given me plenty of reasons lately. Mostly I just buy what I like.


No.


It's not a matter of balancing justifiying their pay with what they bring Phil Knight et al. Phil Knight made tons of cash long before Tiger Woods, Kobe Bryant and the French Soccer Team were seen seen wearing his shoes. In fact, he had tons of cash before they were even born, and all he did was outfit regular people like you and me who wore his waffle soled shoes to the job around the neighborhood or walk across their college campus. Back then golfers were wearing no name shoes and NBA stars were wearing Converse All-Stars. Nike has a personality-based advertising strategy and it's not a big gamble or expenditure on their part to throw millions at a athletes. In some cases, like with Tiger Woods, they pay off. In others, like with Michelle Wie, not so much.
Converse All-Stars!! You brought back fond memories!

And yes, in retrospect the Jay-Z and Michelle comparison is not really apt.
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Old 12-20-2009, 09:41 AM   #7
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When I was a young pup,I bought a pack of Rothmans king size because some singer I liked smoked 'em.

Since then,the endorsement,or otherwise,of celebrities hasn't played any part in my purchasing habits...

Pax Vobiscum
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Old 12-20-2009, 12:01 PM   #8
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Originally Posted by Saint-Just X View Post
When I was a young pup,I bought a pack of Rothmans king size because some singer I liked smoked 'em.

Since then,the endorsement,or otherwise,of celebrities hasn't played any part in my purchasing habits...

Pax Vobiscum
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Saint, I love all the beer commercials. When I buy Beer I buy the nastiest
cheapest beer I can find.
Ah, for a hot day out on my deck drinking cold beer with a couple of my
neighbor ladies, Kathy and Susie. People hate to see us together as
they know trouble is a brewing.
Susie drinks tequila on the rocks Kathy Bloody Mary.
It's in the 30's today but the sun is out.
I tried to post a picture of us wouldn't take.

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Old 12-20-2009, 02:49 PM   #9
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Originally Posted by notaxbill View Post
Saint, I love all the beer commercials. When I buy Beer I buy the nastiest
cheapest beer I can find.
Ah, for a hot day out on my deck drinking cold beer with a couple of my
neighbor ladies, Kathy and Susie. People hate to see us together as
they know trouble is a brewing.
Susie drinks tequila on the rocks Kathy Bloody Mary.
It's in the 30's today but the sun is out.
I tried to post a picture of us wouldn't take.

You may invite my Canadian twin brother, Greentee. He needs a few drink to post! Haha!
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Old 12-20-2009, 03:02 PM   #10
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