Thursday, Sept. 9, 2004 | 9:42 a.m.
It took them two years to find one month of sponsorship, but the Las Vegas Founders hope Michelin sticks around after its cut-rate trial run as the title backer of the local PGA tour event.
The Founders announced Wednesday that Michelin will sponsor the Oct. 7-10 tour stop in Las Vegas, which will be called the Michelin Championship at Las Vegas. The deal is only for this year, but Michelin has the option to renew the agreement through 2006. The purse will remain at $4 million and the pro-am format on three courses over four days is also staying for this year.
Financial terms of the agreement were not released, but both the Founders and Michelin said that the company bought in at a pro-rated price for what amounts to a 30-day test of advertising value for the tire manufacturer.
"It's definitely not the full value of what the sponsorship would be for other years," said John Sullivan, tournament chairman, about the option for 2005 and 2006.
The reason is twofold: Michelin only gets one month of exposure as the title sponsor and the Founders have $1.5 million of Helen Morton's $5 million commitment over the coming three years to use in 2004.
"This financially doesn't change the 2004 event for us," Sullivan said.
The Founders have been looking for a title sponsor since Invensys chose not to renew its deal in 2002 after three years of backing the event. They operated the 2003 event as the Las Vegas Invitational without a title sponsor, but said they could not afford to do the same this year.
The financial gift of Morton, a retired widow from the Bay Area whose late husband was a longtime amateur player in the event, in March removed the urgency from the sponsorship search. She will continue to back the tournament through 2006, regardless of whether there is a title sponsor.
Michelin began discussing sponsorship options with the PGA tour in July, looking to branch out from its more traditional buys in motor sports. The tour began steering Michelin toward the Las Vegas event about a month ago, and an agreement was reached about 10 days ago.
"It's really been a whirlwind," Sullivan said.
The Las Vegas Convention and Visitors Authority, traditionally a visible sponsor of the event, will not have a large role this year. While some companies shied away from Las Vegas' image, Michelin is excited about the tournament both as an advertising opportunity and as a corporate gathering.
"It's a good locale for us because everyone likes Las Vegas and likes to go there," said Sheryl Henderson, director of Michelin brand for North America. "It's a very high-interest location for our customer base."
Sullivan also said Wednesday that the Founders do not expect Vijay Singh and Tiger Woods -- the top two players in the world -- to play in the Michelin Championship.
Both will play the previous week at the American Express Championship in Ireland. With back-to-back tournaments in the Southeast after Las Vegas, Woods is unlikely to attend. Singh has committed to play in the Dunhill Cup after Ireland, making him equally unlikely to come.
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