One of the PGA Tour’s longest-serving title sponsors will not be renewing its deal.
When its title sponsorship of the Farmers Insurance Open expires in 2026, Farmers will not be renewing it, according to Sports Business Journal (SBJ).
In addition, the company is severing its connection with Rickie Fowler after ten years of collaboration with the well-liked PGA Tour player.
Sources close to the insurance company have told SBJ that Farmers will also be cutting back on the number of executives it sends to this month’s Farmers Insurance Open.
The company is said to have already returned a number of hotel rooms to the PGA Tour, along with plans for less activation.
The 2024 Farmers Insurance Open takes place from January 24-27.
Farmers will remain the title sponsor of the annual San Diego event at famed Torrey Pines for three more years to see out their seven-year extension that was signed back in 2018.
The company also sponsors the Advocates Pro Golf Association (APGA) Tour event at Torrey Pines prior its PGA Tour event.
Farmers has worked with the PGA Tour ever since sponsoring its first event in 2010.
However, the business is ending its involvement in the professional golf scene, particularly since title sponsors on the PGA Tour demand an annual fee of about $14 million.
It was confirmed last week that Farmers had severed ties with one of the most well-liked players on the PGA Tour, Fowler, 35.
The company has sponsored the six-time PGA Tour winner since 2013.
Eagle-eyed golf fans realised Fowler was without his customary Farmers logo on the side of his PUMA cap at The Sentry in Hawaii, which marked the first event of the new 2024 PGA Tour season.
Fowler then revealed the deal had come to an end and was not being renewed.
It was a leadership decision by Farmers’ new CEO Raul Vargas, said Fowler:
“My contract was up and I was told they weren’t looking to renew or extend.
“It was a good fit with them taking over at Torrey, a tournament I loved and was closest to where I grew up.
“I loved doing the fun commercials with them over the years, it was a great partnership, and it was their decision to scale back.”
As a result of losing the sponsorship, Fowler had to fend off rumour he was set to move to LIV Golf.
In August, Farmers laid off 11% of its workforce in an effort it said was to protect long-term profitability.
The latest update about Farmers marks the second big title sponsor to pull the plug with the PGA Tour.
Wells Fargo has also decided not to renew its deal to title sponsor the Wells Fargo Championship after this year’s event from May 9-12.
Many other companies currently working with the PGA Tour are said to be “taking a wait-and see approach as negotiations with the PGA Tour, PIF and DP World Tour continue to try and reach a deal that would potentially invest billions into the Tour,” writes SBJ.
RBC is said to be one of those companies playing the waiting game as their RBC Canadian Open and RBC Heritage are both on one-year deals in 2024.
Keith Pelley is leaving his position as CEO of the DP World Tour to become a member of the Canadian sports company Maple Leaf Sports Entertainment, the tour announced this morning.
Early in April 2024, right before The Masters, Guy Kinnings will take over as CEO of the DP World Tour.
Martin Slumbers’ departure from his position as CEO at the end of the season was also confirmed by R&A.
The DP World Tour confirmed this morning that Keith Pelley is stepping down from his role of CEO to join Canadian-based sports company Maple Leaf Sports Entertainment.
Guy Kinnings will assume the position of CEO at the DP World Tour just before The Masters in early April 2024.
The R&A also confirmed Martin Slumbers is going to leave his role of CEO at the end of the season.