LPGA Purses and Endorsements

[18majors]

 

There've been notable developments of LPGA purses in 2021:

1.    Cognizant committed $3.0 millions to a regular tour event
2.    AIG committed $6.8 millions for 2022 AIG Women's Open
3.    Chevron took over ANA Inspiration and raised 2022 purse to $5.0 millions
4.    USGA is negotiating with a presenting sponsor to raise the purse of 2022 USWO

These have been very healthy development; mainly because major American Corporations are the driving force.

 

When Mike Whan took over as LPGA commissioner in January, 2010; he received little support from American Corporations.  He'd no choices but signed up mostly Korean and Japanese sponsors'; that has changed.

 

I believe we're heading towards a golden period of LPGA purses in the next ten years and I plan to document it in this thread.

 

As a backgrounder, below is the history of recent LPGA purses:

Historical tour schedules and results[edit]

Year	Number of official tournaments	Countries hosting tournaments	Tournaments in United States	Tournaments in other countries	Total prize money ($)
2021	31	8	23	8	71,200,000
2020	18	3	14	4	41,300,000
2019	32	12	20	12	70,200,000
2018	33	13	19	14	66,950,000
2017	34	15	17	17	67,650,000
2016	33	14	18	15	63,000,000
2015	31	14	17	14	59,100,000
2014	32	14	17	15	57,550,000
2013	28	14	14	14	48,900,000
2012	27	12	15	12	47,000,000
2011	23	11	13	10	41,500,000
2010	24	10	14	10	41,400,000
2009	28	9	18	10	47,600,000
2008	34	8	24	10	60,300,000
2007	31	8	23	8	54,285,000
2006	33	8	25	8	50,275,000
2005	32	7	25	7	45,100,000
2004	32	6	27	5	42,875,000

 

Edited January 7, 2022 by 18majors

[18majors]

 

This is the official Chevron announcement:

 

[18majors]

 

Mollie Marcoux Samaan is off to a high flying start as the new LPGA commissioner.  To her credit, she saw a great opportunity and seized it.

[18majors]

 

Yes, Chevron is a total class act to do that:

 

 

[18majors]

 

Chevron is serious:

 

 

[ThinkingPlus]

I thought this was going to be a discussion on the relative merits of Gucci, Louis Vuitton, Brahmin, Dooney, et. al. on tour.  Very disappointed. 🤣

Edited October 5, 2021 by ThinkingPlus
Spelling correction...

[postfold]

3 hours ago, 18majors said:

When Mike Whan took over as LPGA commissioner in January, 2020; he received little support from American Corporations.  He'd no choices but signed up mostly Korean and Japanese sponsors'; that has changed.

 

I believe we're heading towards a golden period of LPGA purses in the next ten years and I plan to document it in this thread.

 

 

Whan receives both too much and too little credit for his work.  On one hand, he acquired sponsors from around the world and rebuilt the schedule after the c2008 economic crash put a big crimp into US sponsorship budgets.  On the other, he benefited from a strong long-term economic rebound that lasted right through to the start of COVID.

 

Marcoux Samaan (I'll learn how to spell her name eventually) will probably be in the same spot -- she'll have some COVID-related consequences but will also benefit from societal trends such as the willingness of corporations to pony up more money for women's sports in the name of social justice or what have you.

 

Personally I'm a little skeptical of her ability to close deals as effectively as Whan, but if she has a strong team and the global economy is stable or better it may not matter.  The Chevron deal is certainly a solid start.

 

 

 

 

[KBong]

4 hours ago, 18majors said:

When Mike Whan took over as LPGA commissioner in January, 2020; he received little support from American Corporations.  He'd no choices but signed up mostly Korean and Japanese sponsors'; that has changed.

	Number of official tournaments	Countries hosting tournaments	Tournaments in United States	Tournaments in other countries	Total prize money ($)
2021	31	8	23	8	71,200,000
2020	18	3	14	4	41,300,000
2019	32	12	20	12	70,200,000
2018	33	13	19	14	66,950,000
2017	34	15	17	17	67,650,000
2016	33	14	18	15	63,000,000
2015	31	14	17	14	59,100,000
2014	32	14	17	15	57,550,000
2013	28	14	14	14	48,900,000
2012	27	12	15	12	47,000,000
2011	23	11	13	10	41,500,000
2010	24	10	14	10	41,400,000
2009	28	9	18	10	47,600,000
2008	34	8	24	10	60,300,000
2007	31	8	23	8	54,285,000
2006	33	8	25	8	50,275,000
2005	32	7	25	7	45,100,000
2004	32	6	27	5	42,875,000

 

You have a typo...Smiley Mike took over as commish in 2010.

 

Yup...after the 2009 financial crisis....he had to see new event sponsors wherever the LPGA could source them.

 

In 2021...there still a good base of LPGA events with sponsors or event presenters.....I counted 14 events with global HQ's outside the US....and I'm not including the canceled LPGA events in Asia & Oz.

 

The LPGA is a global tour....I like it....I want to see the best women golfers no matter where they come from....golf is primarily an individual sport...so for me I root for pros I like and not based on where they were born.

 

In S. Korea and Japan...women's golf continues to be more popular than men's golf and the gals play for more money.

Supply & DEMAND.

[KBong]

3 hours ago, 18majors said:

 

Mollie Marcoux Samaan is off to a high flying start as the new LPGA commissioner.  To her credit, she saw a great opportunity and seized it.

LOL.

 

The LPGA business development team and Whan had their fingerprints on many of the changes we are seeing in the current and future (Chevron) LPGA events and purses long before Mollie stepped in.

 

On Golf Today...Beth Ann Nichols said she heard of the Chevron rumbles back in August.

 

When Damon Hack asked Beth...."what does this new move (Chevron) tell you about the new commissioner"

Beth...as usual....LAUGHS...."it tells me this was in the works long before Mollie came along and that we can't give her too much credit....good or bad"

 

Cognizant, AIG, Chevron, etc etc initiatives were all started before Mollie took over.

[KBong]

57 minutes ago, postfold said:

Personally I'm a little skeptical of her ability to close deals as effectively as Whan, but if she has a strong team and the global economy is stable or better it may not matter.  The Chevron deal is certainly a solid start.

 

I agree....time will tell.

Mollie is simply announcing info on deals that were in the works before she took over.

 

If she did negotiate a 6 year term with Chevron...then good on her...but who knows.

Typically...most sponsorships are 3 years...with maybe a renewal clause in years 4 & 5.

Maybe Chevron is a 3 year term with renewals in year 4,5 and 6 in the contract.

 

I always thought Whan was a bit cheesy in his communication style...though I do think he's a good public speaker...just a tad too fast.

Seems like customers, staff and the LPGA pros liked him...or at least respected him.

His leading the USGA is a big career move...so he had to impress to secure that role as an 'outsider'.

 

I do like that he took initiatives and risks.

e.g.) The Founders.

When sponsors were difficult to source and with fewer tournaments...Whan convinced the LPGA pros to play an event w/o a purse....HONORING the 13 LPGA founders....now it's has grown to an event with a $3M purse.

 

I also like the idea that he and the LPGA team came up with the Int'l Crown...rather than just copy the men's Prez Cup format.

It's a shame that they are having a hard time finding a sponsor.

 

The commish is just one person...it's the TEAM that counts.

[fredogolfer]

39 minutes ago, KBong said:

I agree....time will tell.

Mollie is simply announcing info on deals that were in the works before she took over.

 

If she did negotiate a 6 year term with Chevron...then good on her...but who knows.

Typically...most sponsorships are 3 years...with maybe a renewal clause in years 4 & 5.

Maybe Chevron is a 3 year term with renewals in year 4,5 and 6 in the contract.

 

I always thought Whan was a bit cheesy in his communication style...though I do think he's a good public speaker...just a tad too fast.

Seems like customers, staff and the LPGA pros liked him...or at least respected him.

His leading the USGA is a big career move...so he had to impress to secure that role as an 'outsider'.

 

I do like that he took initiatives and risks.

e.g.) The Founders.

When sponsors were difficult to source and with fewer tournaments...Whan convinced the LPGA pros to play an event w/o a purse....HONORING the 13 LPGA founders....now it's has grown to an event with a $3M purse.

 

I also like the idea that he and the LPGA team came up with the Int'l Crown...rather than just copy the men's Prez Cup format.

It's a shame that they are having a hard time finding a sponsor.

 

The commish is just one person...it's the TEAM that counts.

Yup and in 10 years the prospective event in Afghanistan will be a major.

[KBong]

1 hour ago, fredogolfer said:

Yup and in 10 years the prospective event in Afghanistan will be a major.

LMAO

Candidate for post of the year!

[KBong]

5 hours ago, ThinkingPlus said:

I thought this was going to be a discussion on the relative merits of Gucci, Louis Vuitton, Brahmin, Dooney, et. al. on tour.  Very disappointed. 🤣

What???...Coach too low class for you?

 

Let me guess....you own 25+ handbags.

 

I own one wallet.

Edited October 5, 2021 by KBong

[ThinkingPlus]

3 hours ago, KBong said:

What???...Coach too low class for you?

 

Let me guess....you own 25+ handbags.

 

I own one wallet.

I have an old Dooney that I no longer use (too large - was hurting my back) and had a Coach before that.  I use only 1 handbag (Brahmin) for daily use and I have a couple of cheap clutches for fancy dress should the occasion arise.  Coach is nice and high quality, but not very practical.  Very few pockets and dividers.  I need all the organizational help I can get.  LOL!

[KBong]

1 minute ago, ThinkingPlus said:

I have an old Dooney that I no longer use (too large - was hurting my back) and had a Coach before that.  I use only 1 handbag (Brahmin) for daily use and I have a couple of cheap clutches for fancy dress should the occasion arise.  Coach is nice and high quality, but not very practical.  Very few pockets and dividers.  I need all the organizational help I can get.  LOL!

You live in TX...but I think near San Antonio???....which Houston courses do you think are on the short list?

[fredogolfer]

15 minutes ago, KBong said:

You live in TX...but I think near San Antonio???....which Houston courses do you think are on the short list?

you didn’t ask me but i would bet on Houstonian or Golf Club of Houston. A dark horse would be Champions Golf Club. 

[ThinkingPlus]

11 minutes ago, KBong said:

You live in TX...but I think near San Antonio???....which Houston courses do you think are on the short list?

Not all that close to SA.  I'm guessing somewhere in the Woodlands.  Maybe the site of the old Houston Open.

[Lobby]

I’d like to see Chevron played on TPC Woodlands, where the Houston open was played for so many years. 

 

I played it as often as I could, and have very fond memories of it. 

 

But I doubt it will be chosen. 

 

It’ll be some new course developers want to publicize. Yuk

[grm24]

24 minutes ago, Lobby said:

I’d like to see Chevron played on TPC Woodlands, where the Houston open was played for so many years.

The Woodlands already hosts a Champions Tour event in late April/beginning of May. It's been held there since 2008. Unlikely that will change.

[Argonne69]

I'm guessing it'll be the GCoH. 

 

[18majors]

 

This movement will drive LPGA and Mollie Marcoux Samaan is savvy enough to ride it:

 

Column: Cognizant, Aon share wealth in golf sponsorship

"And the USGA is expected to announce by the end of the year a presenting sponsor to boost the U.S. Women’s Open purse, which already features the largest payout for the majors."

Edited October 12, 2021 by 18majors

[KBong]

1 hour ago, 18majors said:

 

1) This movement will drive LPGA and Mollie Marcoux Samaan is savvy enough to ride it:

 

Column: Cognizant, Aon share wealth in golf sponsorship

 

1 hour ago, 18majors said:

2) And the USGA is expected to announce by the end of the year a presenting sponsor to boost the U.S. Women’s Open purse, which already features the largest payout for the majors."

1) LMAO

 

2) That's because the USGA is tired of losing $10M on the USWO and is trying to shill another organization to share the pain.

[KBong]

1 hour ago, 18majors said:

 

Your 1 billion gal, Emma, got bounced in the rd of 64 last Friday, 6-2 & 6-4....I heard Tiffany has put a stop payment on their $20M cheque.🤣

 

Let's see if Fernandez advances to into the rd of 8 starting in approx a hour.

[18majors]

25 minutes ago, KBong said:

2) That's because the USGA is tired of losing $10M on the USWO and is trying to shill another organization to share the pain.

 

 

On the contrary!

 

USGA will continue to invest multimillions to USWO; but this will help raise the purse to $8.0-10.0 millions in the next few years.

[KBong]

1 minute ago, 18majors said:

 

 

On the contrary!

 

USGA will continue to invest multimillions to USWO; but this will help raise the purse to $8.0-10.0 millions in the next few years.

WOKE driven.

[KBong]

5 hours ago, KBong said:

Let's see if Fernandez advances to into the rd of 8 starting in approx a hour.

Da*m...our Canuck POSER got taken down...a hard fought match except for the 2nd set,

After the 1st set I thought Leylah would win.

 

I don't like Bianca A....Shapo and Felix are out too...guess I'll have to watch MLB playoffs now.

[18majors]

 

This article provides insight to why Mollie Marcoux Samaan has been so successful in a short period she's been the new commissioner:

 

LPGA Tour seizing on more sponsor interest in women’s sports

 

“I think people have also had an awakening around women’s sports,” she said. “And they said, ‘Wow, this is an undervalued asset out in the world. We need to accentuate that value.’

 

“So I think generally, because of the world’s focus on diversity, equity and inclusion, I think people have looked at women’s sports and said, ‘That’s an area in the world that there’s not a great deal of parity or a great deal of equity.’”

 

“We’re constantly looking at all levels of the tour. How do our top players do, financially, how do the middle players do, how do the bottom players do? We look at pay equity,” Marcoux Samaan said. “We look at the deltas between the PGA Tour and the LPGA Tour, and the delta gets bigger as you go down the money list.

 

“I think if we can close that delta, and also if we can make sure that the top players in the world can make a living commensurate with their talent, I think that is a real big goal of ours.”

[18majors]

 

While LPGA is intent to grow their purses, it's important to keep an eye on what PGA Tour is doing:

 

Exclusive: PGA Tour is boosting bonuses, prize money for stars; FedEx Cup jumps to $75 million

 

"The memo outlines an expected $1.522 billion in consolidated revenue for 2022, 85 percent of which comes from sponsors and the Tour’s new media rights deal, which takes effect in January. After explaining $716 million in operating expenses, the commissioner added that a $32 million draw on reserve funds for prize money increases means there will be a total of $838 million allocated to players.

Of that, $685 million comes in the form of comprehensive earnings, defined by the Tour as prize money, bonus programs and contributions to health care and pension plans. The other $153 million comes from official business partners—chiefly equipment and apparel companies—whose deals with the Tour require they spend guaranteed amounts directly with players in the form of endorsements. Monahan wrote his goal is to see that source of money double in the next two years."

 

Basically, PGA Tour will have a total purse (prize money and bonus programs) of about $490 million in 2022.  By comparison, LPGA will have about $87 million, or 18% of PGA Tour.

 

As Mollie pointed out, the mega trend of diversity, equity and inclusion will help LPGA, they're the tailwinds.  They will help LPGA to get expanded media exposures and the whole world will recognize LPGA as a fantastic product.  I'm sure Mollie has everything planned out already and will execute expediently in 2022.

 

 

 

 

 

 

 

 

 

 

Edited November 24, 2021 by 18majors

[ThinkingPlus]

22 hours ago, 18majors said:

 

While LPGA is intent to grow their purses, it's important to keep an eye on what PGA Tour is doing:

 

Exclusive: PGA Tour is boosting bonuses, prize money for stars; FedEx Cup jumps to $75 million

 

"The memo outlines an expected $1.522 billion in consolidated revenue for 2022, 85 percent of which comes from sponsors and the Tour’s new media rights deal, which takes effect in January. After explaining $716 million in operating expenses, the commissioner added that a $32 million draw on reserve funds for prize money increases means there will be a total of $838 million allocated to players.

Of that, $685 million comes in the form of comprehensive earnings, defined by the Tour as prize money, bonus programs and contributions to health care and pension plans. The other $153 million comes from official business partners—chiefly equipment and apparel companies—whose deals with the Tour require they spend guaranteed amounts directly with players in the form of endorsements. Monahan wrote his goal is to see that source of money double in the next two years."

 

Basically, PGA Tour will have a total purse (prize money and bonus programs) of about $630 million in 2022.  By comparison, LPGA will have about $87 million, or 14% of PGA Tour.

 

As Mollie pointed out, the mega trend of diversity, equity and inclusion will help LPGA, they're the tailwinds.  They will help LPGA to get expanded media exposures and the whole world will recognize LPGA as a fantastic product.  I'm sure Mollie has everything planned out already and will execute expediently in 2022.

 

 

 

 

 

 

 

 

 

 

The winds of change can blow both ways.  I worry about the eventual backlash to diversity, equity, and inclusion.

Edited November 25, 2021 by ThinkingPlus
Grammer...

[18majors]

5 minutes ago, ThinkingPlus said:

The winds of change can blow both ways.  I worry about the eventual backlash of diversity, equity, and inclusion.

 

 

Agreed, tailwinds often turn into headwinds!  It would be a good way to find out whether Mollie is up to the challenges!