SBJ Marketing: What will it take for brands to enter LIV Golf?

2022-10-02 15:09:22 By : Mr. Allen Bao

“The most difficult thing is the decision to act. The rest is merely tenacity.” -- Amelia Earhardt.

With reports today that LIV Golf is close to a time-buy deal on FS1, next steps are for the maverick golf property to convince advertisers that buying time on air and sponsorship rights isn’t the marketing equivalent of drinking hemlock.

At this point, any American advertiser or sponsor demonstrating support for the Saudi-backed tour risks alienating the rest of the golf industry. As a career journalist, I'm generally not kindly disposed toward regimes that dismember our fourth-estate brethren. Still, I thought it would be instructive to ask some leading agency advisers how they would counsel a brand client with an unwavering conviction to sponsor LIV.

Of course, any agency worth its retainer would tell you to prioritize objectives long before settling on a property or platform. Still, as has been the case in my three-plus decades covering sponsorships and marketing, sponsorships continue to be purchased without the aid of professional advice. Normally, that means that if and when an agency or consultant comes on board, the first thing they learn is how much they overpaid for the wrong rights.

“We’d ask the same question about any property,” said 160over90 SVP/Sponsorships and Partnerships Justin Zambuto. “What are your objectives and what would success look like. If they are really sold on LIV, is there an actual organic fit?”

It’s a case of weighing the benefits and baggage of associating with a disruptor brand like LIV with the reduced costs and reach. The only risk brands that have traditionally sponsored golf are interested in is demonstrating that that they are averse to it.

“Very few brands will go headlong into a partnership with sensitive geopolitical issues,” said Matt Manning, MKTG CEO and global president of Dentsu Sports, whose clients include longtime PGA Tour sponsor FedEx. “I get the spotlight on this, but globally there are sports-industry deals being done all the time with nations that have questionable human rights backgrounds. So it fits for a brand without much awareness and an appetite for risk. That might mean a crypto brand you haven't heard of yet. But I know this (LIV) isn't going away and everyone keeps asking about it; from clients to my grandfather -- and everyone in between.”

Momentum Chairman and CEO Chris Weil sees potential commercial success for LIV offshore. ARAMCO, the Saudi’s stye petrochemical giant, is already one of F1's biggest sponsors, and also sponsors six LPGA European tourneys with little, if any, pushback.

“Clients are asking about it, but in the U.S., it’s too hot to touch right now," said Weil, whose agency roster includes brands like AmEx, Walmart and Coca-Cola. “From a property perspective, my question is: will they be able to attract brands other than the luxury autos and insurance brands you’d expect.”

An analogous situation: Monster Energy sponsoring Tiger Woods' golf bag when he returned to the PGA Tour in 2016.

Would LIV make sense for "edgier" or newer categories, like legal sports betting, CBDs, spirits or even a chain of marijuana dispensaries located in the same state as a LIV tourney? Would the Saudis allow any of those categories? One thing is certain -- every competitor brand of a PGA Tour sponsor has already been approached.

“If your brand has a competitor that’s a PGA Tour official (sponsor) then it could be a smart move,” said Rick Jones, who heads marketing consultancy Fishbait Solutions. “If you have long-term aspirations of wanting to be engaged with the PGA Tour, it’s a death wish.”

That notion that an LIV affiliation means alienating your brand from the rest of the golf business is widespread. So, which brands will take the risk? “Generally, I would tell any brand 'no,'” said Scott Seymour, SVP and managing director of golf at Octagon. “I could see opportunity for brands that maybe aren’t mainstream, or those doing direct business with the Saudis. They would need to have their eyes wide open and know that they are walking into .. the dark side of the current golf infrastructure."

Would an upstart brand take the risk of connecting with LIV Golf?

Beyond the political and moral implications of doing business with LIV, there are a raft of commercial complexities.

“If your brand is marketing to women, LIV just isn’t a fit," said Elizabeth Lindsey, president of brands and properties at Wasserman. “We also always tell clients to be mindful of any property where most of the news won’t be about you. It’s one thing to be competing with fellow sponsors for attention, but if you have to compete with the property itself, that makes it challenging.”

There’s at least disagreement about LIV’s utility as a marketing platform. Like most interviewed for this newsletter, Source Communications President Larry Rothstein would advise “any client to stay far away. The complications just aren't worth the upside and the money can be used better.”

Countered Ideaquest founder and President Eric Bechtel: “They’ll get challenger brands that can’t compete on a bigger scale. Those brands are going to come when they get a TV deal, and they are going to get a TV deal.”

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