Wonder who will shore up the Golf Tournaments this next year? A number were sponsored by Banks either directly or indirectly (can't imagine the treasury would be thrilled with that continuing with the bail out).. Obviously GM is toast not only as far as tournaments but as an operating company... Any low interest loans will come too late for GM as they have only weeks worth of cash left, not months.. They are presently laying off people like wildfire just to survive another month.. Ford and possibly Chrysler can hold on until the government loans are available.. So goodbye to at least 3 tournaments and also Tiger's sponsorship..

As a quick aside/history lesson for people that struggle with the Government giving low interest loans (not giving bail out money to criminals otherwise known as Bank CEOs) you should realize that the Government had a great deal to do with GM's failure directly... When I started work for GM in the 1950s the government was afraid that GM was becoming a monopoly (hard to believe today uh).. They were approaching 45% of the market share so Washington started to mandate sales of various divisions to reduce GM's power.. The first I can remember being sold was the highly profitable heavy equipment division (Euclid) that made the Terex heavy construction equipment (where I started in Ohio)... After that they went after things like partial divesting of GM Locomotive (didn't know GM made Diesel locos and even Turbine locos eh??), followed by their Military divisions, and to a lesser extent things like Frigidare (who for quite a while not only made refrigerators but also the AC units for many auto companies in the world... So it does appear that the Government did their job reining in GM to today's 18-23% market share (still more than Toyota by the way) soon to be 0%.. This will mean millions out of work instantly (direct and indirect associations) as well as close to 200,000 immediately without health insurance.. Had the government not adjusted GM to their version of right market share perhaps they wouldn't be looking for low interest loans as their diversity might have carried them through tough times, so in a way maybe it is ironic that the government now needs to help them survive.. Very few analysts think that the funds can be made available in time to rescue GM because they are so cash short..

GM and Ford's worth is now less than 1/3 of Nikes and even the University of Michigan's endowment fund is larger than their net worths... Pretty sad..

Another Lesson for those that object to the Government helping the American auto industry is a little known or acknowledged fact that the Japanese government propped up Toyota, Honda, and Datsun (now Nissan) in the 1960-70s when they were about to assume room temperature... In reality today only Porsche (really VW sales) is in relative decent shape during this recession/depression.. Honda is producing the highest quality vehicles along with Ford but neither are doing well in sales... I have several friends that invested in Toyota last year as a can't miss.. They have lost 50% of their value in the last few months... (high of $120, low of $57) Toyota in 2008 has more recalls than GM, Ford, and Chrysler together, so they have now proven they can't handle the newly acquired volume and maintain quality...

In reality GM has had a succession of less than effective CEOs--none very good since Tom Murphy.. Roger Smith, Stempel, Jack Smith, and now Wagoner either spent money irresponsibly on partnerships (Fuji, EDS, Fiat, Hughes, Izusu etc. etc. etc), signed unrealistic contracts with the UAW, all the time hoping to get back to 30+% market share... But no matter how ineffective these guys were/are they aren't criminals like the Bank CEOs and the heads of Fanny and Freddy who are given a free pass and are now being given free money, which just encourages them further to cook the books so they can take huge bonuses and golden parachutes.. The sad part of the whole thing is this is probably the best top to bottom line up that GM has ever produced and the inovative Volt will never see the light of day let alone the fuel cell vehicles that they presently have in CA fleets...

Maybe it truly will be the Heading to Dubai tour next year... The other tour that has to be in deep trouble is the LPGA---where will their sponsors come from??

Economic history aside, yesterday the PGA announced its schedule for 2009 and I do remember hearing Tim Finchem say on the Golf Channel interview that the tour was "fully sponsored" for next season.

So maybe you should check there first.

Here's the link:

http://www.thegolfchannel.com/core.aspx?pa...mp;select=27796

... and the schedule...

http://www.thegolfchannel.com/core.aspx?pa...mp;select=27797

Looks like Buick and Wachovia are still there... as well as several other banks, insurance companies, car companies, etc.

Sponsoring these events falls under marketing and advertising, not wasteful spending. The millions they spend is literally petty cash.

Certainly interesting to the see the extent of the credit crisis and how it will affect thousands of everyday people - quite aside from the ramifications for the golf industry and the professional tours.

Incidentally, aside from sponsorship of sporting events, true 'wasteful spending' would probably qualify as the reported £300,000 that one failed (and recently bailed out by the taxpayer) British bank recently spent on an end-of-year Jamboree for its incompetent (and clearly somewhat shameless) executives.

You couldn't make it up.

It's hard for me to have any empathy for GM or Ford as a company. Have they made any forward thinking decisions in the last 20 years? Oooh look, oil is $60 a barrel again, time for another bloated SUV!

It's not going to be easy to find new sponsors in this economy, that we know, but golf will survive. Lucky for the PGA Tour they got Golf Channel on the hook for 15 years (13 more years left of Kelly) so selling all those TV commercials is going to be the real challenge but that's not Finchem's problem.

This recent economy is showing it's true colors of greed. Just like the poster above mentioned of the bloated suv...where is the auto that makes sense, not the one that costs to much cents? As for sponsors, there will almost allways be someone with a budget for that kind of advertising.

I think the PGA will be fine this year! Can't wait to see what the tour looks like this year with the sponsor changes etc... One thing is for certain, this economy will effect most of us, (except the homeless) even global!

Don't disagree, but as many years ago as the mid 1980s GM produced an electric vehicle and many small gas efficient vehicles chevette etc. Guess what? Nobody wanted them even after the 1970's "oil crisis"... So in many ways the market and customer drove what the companies were building... The foreign manufacturers had small cars because that was what was required in Japan etc. due to gas prices and parking spaces.. So Toyota and others could just bring them here willy nilly since there were no tariffs to speak of on their vehicles (unlike in Japan where GM and others were prevented from selling their vehicles---even the fuel efficient ones--can you say protectionist policies). Lee Iacocca spelled it all out in the 1970-80s about letting the foreign builders in without tariffs (like they all had).. Everything he told congress has come to pass.. At the time congress just sat there and did nothing and GM and Ford were so arrogant they didn't feel the need to support Lee thinking how could little toy car builders compete with them.. Not only were they small they were among the poorest quality.. But then a guy named Deming went to Japan to teach them about quality control (after the Big 3 ignored him as an eccentric fool)... The rest as they say is history..

GM and Ford by the way aren't the only companies building bloated SUVs.. Do the names Sequoia, Land Cruiser, 4Runner sound familiar... They are part of a truck line up that "boasts" the worst truck fuel economy in the industry... But Toyota never gets any abuse for that just praise for the Prius (which until recently only overstated the fuel economy by 16 miles/gallon by playing the EPA schedule, and check with the people of Sudbury, Ontario about their environment caused by the smelting of the nickel for Toyota's hybrid systems). Last I checked Daimler, Chrysler, Nissan, Lexus, Accura, etc. etc. all produced bloated SUVs----not one remotely matching GM or Ford's "fuel economy" If you still want a bloated SUV GM makes one that gets better fuel economy in the city than the Camray, Mini Cooper, Corolla etc. As good as the Smart Car and it uses regular fuel unlike the "Smart Car"... Hybrid Tahoe, Hybrid Yukon etc. etc...


I always laugh at the "auto that makes sense".. Would that be for a single person, married people, families with 1, 2, 3, 4, 5 kids... Can't really see a contractor driving up in his Smart Car to do construction work... But I'm sure there is that mystical "auto that makes sense" being hidden from the public..


Don't get me wrong--I was only offering some interesting history of when the government gets involved for whatever reason.... Personally I am totally opposed to low interest loans to the auto companies, the bail out of banks and insurance companies.... All of them should have been left to fail.. It would cause short term hardship but the economy would truly be a functioning economy instead of the socialistic mess this is headed to... Put a few of the Bank CEOs and Insurance CEOs in prison is the best way to stop this silliness, not punish them by limiting their compensation...

But as it is now we will now be responsible for buying a house for 20 million people that had no business with a loan in the first place---not to mention the 5 million illegal immigrants in that mix...

That is fine, but those tournaments haven't been played yet. I can't imagine Congress being red hot about bailout money for the banks and low interest loans for the auto companies if they are still sponsoring golf tournaments.. I, for one, hope that along with CEO pay limitation they stipulate that the loans are for salaries, fuel efficient vehicles, meeting their environmental promises, and reworking plants to build said vehicles---NOT FOR SPONSORING GOLF TOURNAMENTS (or tiger woods)>

Actually Golf is one of the most excessive sports out there. Ever been to a Pro Tourney and see all the money corporate America waste (at the consumers exspense).
I will actually enjoy viewing the coming 'readjustment' period for Golf, as it has been WAY out of control in recent years. $1.6 to win a golf tourney!!! Please.

As for future sponsors.... I suppose it could be The US Government, since they have taken over everything else (while borrowing the money from China to do so).

How cow you people are a little to biased right now. Corporate money is NEVER wated when it is spent on clients. My engineering firm spends lots of money at the Wachovia to treat clients to a nice time during the week. Wachovia spending money on tents is not hurting the consumer...it is actually helping the bank grow its most important relationships and to spread their name.

Actually, if I were the government I would feel the opposite- I would be angry if I were bailing out a commercial business and they didn't have a marketing budget. The government eventually wants its money back... if the business does not do well, they are not getting it back. Throwing out a few million bucks to run a tournament is petty marketing cash- it amounts to nothing at a multi-billion dollar corporation.

The government also does not like when companies start pulling out of this stuff because the consumer says - "ooo- things must be bad- better stop spending." Then that's when the problems really start.

If you think cars are sold on TV commercials only, I think you are sadly mistaken.

You cannot discount the value of hanging a corporate banner in a stadium, or on a player's shirt, especially when someone's favorite team plays there.

Look what Jordan and Woods have done for Nike.

[b]AND what just happened to Wachovia ?
[/b]

Then why hasn't the govenrment stopped the New Media (over who it has great influence and control) from reporting the current problems around the clock. Actually, could it actually be the government is encouraging this so to make dumbasses stop borrowing over their heads and living off credit cards even further?

Also, it's what Nike done for Jordan and Woods not the other way around as you stated.

Ummmm, no. First of all, the government can't stop any media from doing anything. In other countries, yes, but ummm, they don't have freedom of the press.

Hey, I work for a MUCH smaller company, and our advertising budget is in the tens of millions of dollars per year, and yes, we do have a golf tournament!

It is just good marketing to have your name on everything you can have your name on. Bailout or not, how a company spends its marketing dollars is looked at over and over- and if a golf tournament does not help in your overall marketing scheme, they would drop it- no doubt about it.

So you think that Nike spends millions of dollars per year on their players for their player's benefit- it doesn't help Nike at all. You have a bizzare way of looking at it. And you think Woods and Jordan became popular because they were wearing the Nike logo. OK, right.

Ya know what, this discussion goes way beyond golf and the OP's questions/comments. Have your beliefs, I have mine... I'm done. I don't want to get caught in a flame war which happens all too often.

Later.

The PGA created a monster for itself that will turn on it very soon. In the end, both the players and the fans will pay. It's not a matter of if, it's when.

Right here is all you need to know

http://www.youtube.com/watch?v=Be5Xy66cwD0