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Money in the Rough

Swinging for Dollars Swinging for Dollars

Top-10 golfers pull in $4 million to $5 million a year in endorsements, and top-30 players command about $1 million annually. But even a relatively unknown rookie can do better than he might on Wall Street. See All Video & Multimedia
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"Our clients become branding vehicles for these companies," Ciuba says. "Companies use the player the way they use Nascar, where they put their logo on the car."

The cost of sponsoring a golfer can range from $15,000 to several million, depending on the golfer's rank and perceived potential or history, a personal relationship, and the location of the logo. Buying placement on the front of a player's hat is the most costly, followed by the chest, and then the sleeve.

It helps lower-ranked pros that different companies have different brand needs. "A company might want a top player or a veteran or a young rookie," says Peter Webb, an agent at Gaylord Sports, the management company representing Phil Mickelson. They may be looking for a player from the company's hometown to market their brand to the world while also showing community involvement at home. Yum Brands, for example, based in Kentucky, sponsors J.B. Holmes, who is also from that state.

"They could use that player for their client-entertainment services, to play with their top executives, or to help with P.R.," Webb says.

For some sponsors, like Brooks Brothers, a lower-profile golfer makes the most sense economically and for its image. Brooks Brothers began sponsoring golfers four years ago, using them as brand ambassadors to boost awareness of their casual line. They also sponsored an L.P.G.A. tournament in April, and will sponsor the Stanford St. Jude Championship in Memphis in June.

"We don't do things in a flashy or arrogant way. We like the idea of having people who are at the beginning of their career and sticking with them," says Lou Amendola, chief merchandising officer of Brooks Brothers. "We don't want to be thought of as working with one No. 1 player and then moving to the next one. It's more about establishing this connection with our customers that whether you're on the course or off, Brooks Brothers is for you."

There are about 250 players with P.G.A. Tour status each year, and every one of them has at least one endorsement deal. Additionally, the 200 or so golfers in the Nationwide Tour are increasingly signing endorsement deals. Add to that the L.P.G.A. players, the European Tour, and up-and-coming golfers with unique stories, and there's more money floating for logos than at any time in history.

Mathias Grönberg finished 125th on the P.G.A. Tour in 2007, making him the last player on the tour to return with full P.G.A. status this year. Yet in last place, Grönberg made $785,180 in winnings, and another $300,000 or so through endorsement deals with TaylorMade-Adidas Golf, Titleist/FootJoy, and Sebonack Golf Club. His gross earnings were over $1 million—for being the last guy to make the cut.

What this means is that, in the game of golf, even the losers will continue to be big winners. "You could not win year after year and still make a good living on the P.G.A. Tour," Ciuba says. "You could just be keeping your tour card every year, and have a golf sponsor and nongolf sponsor, and that could go on forever. You're making a million or a million-one and never winning."


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