Deep-Rooted PGA Tour Problem Gets $25M Resolution as Jay Monahan’s Exit Is Announced

Was Jay Monahan holding the Tour back? You be the judge of that. Recently, the PGA Tour introduced its new CEO, and things have started taking shape for the better. “Brian is the perfect choice for the next chapter of the PGA TOUR. His arrival strengthens our leadership team and reflects our shared commitment to the TOUR’s continued evolution,” said Jay Monahan. And it seems Brian Rolapp’s arrival has indeed brought new momentum, and the golf world is taking notice.

In a surprising move, the PGA Tour and AT&T have announced a significant deal, renewing AT&T’s title sponsorship of the AT&T Pebble Beach Pro-Am through a multi-year agreement worth $25 million. As the longest-running title sponsor, AT&T has been associated with the tournament since 1986, supporting the Monterey Peninsula Foundation and Pebble Beach Company in their charitable efforts.

The AT&T Pebble Beach Pro-Am is a revered event on the PGA Tour schedule, with a rich history dating back to 1937. AT&T’s continued support will ensure the tournament’s success, with millions of dollars generated for charity annually. The partnership is a testament to the event’s impact, with over $250 million in lifetime charitable giving awarded to the region. This move comes as a welcome relief for the PGA Tour, given the recent uncertainty surrounding sponsorships in the golf world.

• Wells Fargo: Ended title sponsorship of the Wells Fargo Championship in 2024, after 20 years, due to increasing purse costs and reassessing sponsorship strategy.
• Honda: Dropped 40-year sponsorship of the Honda Classic in 2023 following the emergence of LIV Golf.
• Farmers Insurance: Won’t renew title sponsorship of the Farmers Insurance Open after 2026.

That’s the reason, Monahan praised the extension, saying, “We are honored to extend with our longest-running title sponsor in AT&T.” AT&T’s chairman and CEO, John Stankey, added, “For four decades, this tournament has been a cornerstone of our commitment to excellence and community impact blending the beauty of golf with a purpose that extends far beyond the course. We look forward to creating unforgettable moments for fans, players, and the communities we serve, in one of golf’s most iconic tournaments, played on one of the world’s best courses.”

Well, while AT&T’s decision to stay with the Tour is indeed a relief, don’t think the new CEO can rest anytime soon because this sponsorship solution is just one of many more.

The PGA Tour’s sponsorship saga: Can they keep RBC on board?

The PGA Tour is facing another potential sponsorship crisis, with RBC hesitant to commit to a multi-year extension due to the tour’s uncertain business model. Despite paying $25 million for the RBC Heritage and RBC Canadian Open title sponsorships, RBC’s executive vice-president and chief marketing officer, Mary DePaoli, expressed frustration with the tour’s current state, likening it to “flying the plane and building it at the same time”. RBC has been a long-time partner of the PGA Tour, saving the Canadian Open from possible oblivion in 2008 and adding the RBC Heritage to its portfolio in 2012.

DePaoli emphasized the need for the PGA Tour to stabilize and re-engage with fans, sponsors, and players, citing declining TV viewership and a fractured narrative around men’s professional golf. With Wells Fargo and Honda already abandoning ship, the loss of RBC would be a significant blow to the tour. As DePaoli puts it, “If the fans are happy, we’re happy. If the players are happy, we’re happy, but right now there’s some flux there.” Can the PGA Tour figure out its business model and retain RBC’s support, or will they lose another major sponsor? Well, that is something only time can tell.