PGA Tour loses title sponsor after Jon Rahm bolts for LIV Golf

The alarms are sounding at PGA Tour headquarters in Ponta Vedra Seashore, Florida.

Not solely as a result of Jon Rahm bolted for LIV Golf, but additionally as a result of the tour is dropping a big sponsor after the 2024 season.

Wells Fargo, which has sponsored the PGA Tour’s annual occasion in Charlotte, North Carolina, since 2011, will discontinue its partnership with the tour after the 2024 season, in keeping with Erik Spanberg of the Charlotte Enterprise Journal.

The Monetary Companies firm wished to remain on as a sponsor past 2024, however didn’t wish to commit to the rising monetary prices that the PGA Tour demanded, per Josh Carpenter of Sports activities Enterprise Journal.

That, after all, is a direct results of LIV Golf, and the countless sum of cash that the Saudi Public Funding Fund (PIF) has in its vaults.

The PIF has over $700 billion in belongings, whereas the PGA Tour is a $1 billion not-for-profit.

Gamers on LIV compete for extra money, with each 48-man occasion providing $20 million purses. LIV golfers additionally obtain bonuses primarily based on how their groups end at these tournaments, too, really raking it in with none company allegiances.

Photograph by David Jensen/Getty Photos

The Tour, in the meantime, depends on its company partnerships to assist fund purses and bonuses.

However to counter the rise of LIV Golf, Commissioner Jay Monahan instituted “Signature Occasions” in late 2022 for the 2023 season. With these in place, Monahan hoped extra gamers would keep loyal to the tour as an alternative of leaping to LIV Golf.

Nevertheless, like LIV, these PGA Tour occasions carry $20 million purses, have zero cuts after 36 holes, and make use of smaller fields. The concept was to have extra stars play in these eight tournaments all year long.

However the PGA Tour insists on sponsors protecting a big share of those purses, which many corporations—like Wells Fargo—are unwilling to do anymore.

Plus, these Signature Occasions will have extra facilities for gamers in 2024, equivalent to higher health areas, better lavatory accessibility, and improved meals choices. That solely will increase prices, one thing company {dollars} are usually not essentially keen to pay.

However this isn’t the primary time the tour has just lately misplaced a big sponsor.

Final yr, Honda ended its relationship with the PGA Tour following its annual occasion in Palm Seashore Gardens, Florida. Till 2023, the Japanese Auto Producer sponsored this occasion since 1982, being one of many longest-tenured companions with the PGA Tour.

Subsequent yr’s iteration of this occasion is scheduled as ‘The Basic at The Palm Seashore Gardens,” as a brand new sponsor has but to be named—a troubling signal.

However so, too, is the information of Wells Fargo ending its relationship with the PGA Tour. In any case, the Wells Fargo Championship was a Signature Occasion in 2023, and it will likely be as soon as once more in 2024.

It’s not recognized whether or not this growth has any correlation to Rahm’s departure. However one factor is definite, the timing creates poor optics for the Tour.

Jack Milko is a golf workers author for SB Nation’s Enjoying By way of. You possibly can comply with him on Twitter @jack_milko for extra golf protection. Make sure to take a look at @_PlayingThrough too.