January 9, 2006

Getting Put Into Place

Welcome to 2006 and the first 19^th Hole of the year (not that it’s important or anything).  The PGA TOUR season kicked off with this week’s Mercedes Championships.  Although seven of the world’s top 10 ranked players were eligible for the winners-only event, only 3 attended (Vijay Singh, Sergio Garcia, and Jim Furyk). 

The lack of participation among the best in the world in the TOUR’s opening event conveniently coincides with a story from USA Today.  The story suggests that the negotiations for the TOUR TV contract beginning in 2007 are very rough for the TOUR.  It has been reported and confirmed that ABC is most likely not going to air the TOUR in the next contract because TOUR fees are too high and the operation is a money and ratings loser.  Further, USA (the channel, not the newspaper) is also reported to be backing away from the TOUR.  And, oh yeah, the Worldwide Leader might also walk away starting in 2007.

Greeeeeeeeeeeeaaaaaaaaaaaatttttttttt.

Who in the hell is the negotiator for the TOUR?  It is apparent that they are not worth their salary.  With this news, it is apparent that the TOUR is essentially alienating their partners in negotiations because of their bottom line.  It can only be assumed that the TOUR would like to maintain the current annual total purse for its players.  The golf world had never seen money like it had received as a result of the last two TV contracts – first when Tiger Woods blew away the field at the ‘97 Masters, and then again when Woods has won his Tiger/Grand Slam.

Players have grown accustomed to large purses, great television exposure, and lots of incentives.  The time for that has passed, though, and almost anyone can see it.  Ratings are down, even when Tiger is winning.  The fad of golf passed in 2001, according to the National Golf Federation, because total rounds played each year have declined since that peak year.  Consequently, television is only interested in paying big bucks for events that are in high demand.  Right now, and probably forever, golf is a niche sport. 

It is better to recognize the problem rather than live in denial.  If the TOUR is able to see the writing on the wall now, it may still be able to negotiate a decent television deal.  Yes, there will be more events on cable than expected.  Yes, purses will go down in the future.  And the FedEx Cup will most likely turn out not to be the negotiating tool that Commish Tim Finchem probably thought it would be.  That’s the truth of the matter.

But, if like some of my ex-girlfriends, the TOUR doesn’t know when to compromise, then the TOUR stands to lose a whole lot.  The TOUR needs a solid backing from the broadcast networks in order to be successful.  Although there are more media outlets than ever covering golf, the broadcast networks still reach the highest masses.  The TOUR will have to give up some money and airtime in order to salvage key relationships.  In order for golf to move forward, it will have to take a few steps back.

The TOUR can still win, though, but not until probably 2010.  If the TOUR can earn attention and support for the FedEx Cup format, then the TOUR will have leverage for the next contract.  The TOUR will need for the events to be compelling, popular, and lucrative for sponsors.  Also, key players will have to be seen on TOUR more often – as I have said for over a year now (and will keep saying).  Unfortunately, the TOUR is a loser in this contract.  For the sake of the TOUR’s future though, it must begin preparing for the next contract after this one.

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Ryan Ballengee is host of The 19^th Hole Golf Show, found at The Golf Newsnet.com.  You can also get The 19^th Hole on the go through podcasting by clicking here Feedburner.com - The 19th Hole Golf Show.  Contact Ryan via e-mail at the19thholeshow@hotmail.com.