PEPSICO HAS renewed its sponsorship of the PGA of America in a new multi-year deal announced this week.
The agreement will see the soft drinks company extend its presence at a range of PGA of America-hosted tournaments, including the PGA Championship, US-based Ryder Cup events, the Senior PGA Championship and the PGA Grand Slam of Golf.
As an official licensee to the PGA of America and a third-tier sponsor of the organisation, Frontloaded estimates Pepsico will contribute a low six-figure cash sum with much of the value of the deal likely to be in kind via the provision of beverages.
The renewed agreement will see the relationship between the two parties extend over twenty years, having first joined forces in 1993.
Interestingly, the PGA Tour – the premier golf series in the US – has a longstanding agreement with Pepsico rival brand Coca-Cola.
Despite the shared prefix, the PGA Tour broke away from the PGA of America in 1968 and, as a result of its status as a separate entity, is free to negotiate its own sponsorship deals.
Given the rapid commercial growth of the PGA Tour in recent years, it is likely the Coca-Cola deal is worth significantly more to the Tour than Pepsico’s sponsorship is to the PGA of America.
By Luke Harman
Follow Luke on Twitter: @lukeharmanSBG