Hard times force sponsor cutbacks

Hospitality at the Buick Invitational tournament was scaled down in one of several cuts made by the tournament's sponsor.

"We know we still need advertising to promote our products but we've taken out everything that's really not contractual," Larry Peck, promotions manager for GM's Buick and Pontiac divisions, told Reuters.

"We've downgraded our hospitality area from a trophy suite that was quite lavish in years past to some seating by the 18th green with dry snacks and soft drinks," Peck added.

"No food buffets or anything. We've even cut back on the big signage to save money in transportation out here.

"The hospitality venues, bringing dealers out as a result of sales contests -- things we have typically done in the past we haven't done this year.

"We had 25 dealers who did come out, our larger dealers from this area who drove in or flew in on their own dime. They paid for their hotel and they played in the pro-am in the spots that we get as a part of the contract."

The tournament at Torrey Pines, which was ending on Sunday, had already been hit by the absence of four-times defending champion Tiger Woods through injury.

"Television ratings are significantly higher when Tiger plays so we have missed him this week," said Peck.

GM and fellow automaker Chrysler were beneficiaries of a $17.4-billion bailout by the US government in December.

TELEVISION RATINGS

Turmoil in the auto industry has left golf vulnerable to the loss of marketing and advertising dollars but Peck was confident that this week's television spectacle had not been diminished by the budget cuts.

"One of the primary reasons a title sponsor does an event is for the television ratings so the cuts for this week have been more on-site and back-of-house items," he said.

"We are hoping that what has come through on television has been relatively seamless for the viewer around the country."

The event has been backed by Buick since 1996 and is one of two on the PGA Tour that the carmaker sponsors, the other being the Buick Open from July 30 to Aug. 2.

Both tournaments are locked into contracts until the end of next year.

"It's really too early to talk about the future, certainly past 2010, but plans are to still engage in these two events," Peck said.

In November, GM's Buick brand ended its endorsement deal with Woods, worth an estimated $8 million annually, a year early in a move to cut costs.

"Timing's everything," Peck said. "We've had a great nine-year run with Tiger and I've got nothing but great things to say about him. We continue to be friends. I just don't have the formal business relationship."

Six events on the 2009 PGA Tour have automakers as title sponsors and, although the US circuit is fully sponsored for this season, uncertainty abounds for the future.

"It would be imprudent for us just to assume that everything is going to be fine and dandy in this environment," Tour Commissioner Tim Finchem told Reuters at the end of last year.

"We have to assume that we are going to take some hits and that we're going to have some turnover.

"In preparation for that possibility, we have been talking to a range of companies in other industry sectors. We'll just have to see how it goes."