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Page last updated at 00:34 GMT, Friday, 30 October 2009
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Asia tees up golf sponsorship



By Mariko Oi
BBC Asia Business Report


Sentosa Golf Club Singapore is a key part of the lucrative Asian golf circuit

Some of the world's top golf players are in Singapore this week, as the $5m Barclays Singapore Open is played out on the beautiful greens of Sentosa Golf Club.

It is part of Asia's big money golf events, which started with India's national championship earlier this month. For that, Hero Honda Indian Open offered a record prize fund of $1.25m.

After the Singapore event, some of the players will then head to Shanghai for a World Golf Championships event, worth $7m.

"The prize money [available in Asia] has tripled to $38m in the last five years," says Kyi Hla Han, executive chairman of the Asian Tour.

"A positive thing about Asia is, we can play golf all year around. A sponsor can pick his dates and his country of choice where his market penetrates their brand strategies."

'More affordable'

Nice weather aside, there has also been an explosion in the sport.

Asia is the world's fastest-growing market with more than 25 million players and 4,500 golf courses.

"A lot of people are taking up the game," says Mr Han.



Golf is a great game for business
Tim Peat, Barclays Capital

"It has become more affordable, but also the growing economy of the region has helped people who want to play more."

Aware of the boom, the European Tour has been present in the region for a decade.

The Asian and European Tours have had a partnership since 1999, and this July they formed a joint venture - EurAsia Golf.

Under the new arrangement, the Singapore Open also became a co-sanctioned event this year. The event comprises 65 players from each tour.

"It makes the event far stronger worldwide," says Peter Downie of Sentosa Golf Club, which is hosting the event.

"With the world ranking points that European Tour players bring to the event, it is definitely the strongest event in the world this week."

'Good leverage'

The boss of the US professional golf tour is also on his way to Asia.

PGA Tour commissioner Tim Finchem will be at the HSBC Champions event in Shanghai next weekend.


Golfers practising their swing Asia is the fastest-growing market for golf

He will spend 18 days in the region, visiting five cities to meet current and potential sponsors.

Why? Because Asian companies are still willing to spend sponsorship money on sporting events despite the global downturn.

"Predominantly, a lot of the big sponsorship were coming from American and European companies," says Mr Han.

"But now, Asian companies that have not been exposed to the financial downturn are picking up interest in sponsoring golf events."

He adds: "They are just starting to realise that it is good leverage to sponsor such events."

'Great for business'

That is a stark contrast to the US, where the PGA Tour boss warned of shrinking marketing budgets being experienced at major companies.

"We certainly have been reviewing what we sponsor," said Tim Peat, who heads global marketing and sponsorship at Barclays Capital.



Golfer Phil Mickelson at the Singapore Open I think the game of golf will finally get the recognition it deserves
US golfer Phil Mickelson

Barclays is one of only a few financial firms still sponsoring sporting events.

"Barclays has been stepping in rather than stepping away in this credit crunch," says Mr Peat.

It sponsors not only the Singapore Open, but also golf tournaments in the US and Europe.

"Golf is a great game for business," observes Mr Peat.

"You can go out on a golf course with your clients, you can share a challenge, you can share the joys and the agonies of playing a round of golf."

But the increasing number of tournaments is competing for a dwindling pot of corporate sponsorship cash.

"We certainly receive many inquiries," Mr Peat says.

Olympic boost

And competition is increasing not only between golf events, but also between professional tours which back these tournaments.

A new tour - OneAsia - was founded in April, and has brought together courses from China, South Korea, and Australia.

The Asian Tour has already lost two tournaments, including the Korea Open and the Volvo China Open, to its rival.

The two tours are at loggerheads, and it appears that a golfing civil war may well be breaking out in the region.

But there was more good news for golf recently with that the announcement that in 2016 golf will return to the Olympics, and players will be able to compete not only for prize money, but also for a gold medal.

Tour officials hope that the iconic rings will make golf a more attractive sponsorship vehicle.

"It is the greatest thing that can happen to our sport," said world number two Phil Mickelson at the Singapore Open.

"It will allow the growth of the game on a global basis.

"I think the game of golf will finally get the recognition it deserves."



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