FedEx Cup

The Professional Golfer's Association (PGA), in an effort to crown a Champion golfer each year, has partnered with Federal Express to award the FedEx Cup at the end of each season. The PGA was one of the few remaining organized sports that did not have a clearly defined way to determine the "Best" of their sport. (College football may be the last remaining holdout). Previous number ones were determined by rankings using various statistics for the year. The FedEx Cup is modeled after Nascar's Nextel Cup, in which players earn points each week depending on their finish in a given tournament. At the end of the season the top 144 point earners compete in four tournaments with points awarded for their respective finishes. At the end of these four tournaments, the player with the most points will be awarded the FedEx Cup, along with a check for $10M. The FedEx Cup represents the World's Greatest Golfer for that particular year. The payout is the largest single bonus awarded in all of sports ( and nearly double what Jack Nicklaus earned in his entire career).

The PGA is hoping to build upon its brand image and continue to revive an audience that continues to decline. In 2006 viewership for PGA tournaments was consistently lower than the previous years by over 10%. In fact the first three tournaments of the year, saw declines of over 50%, and the Master's viewership was down by 14%. Even the Tiger Woods effect has had less of an impact than in previous years.

Although this initiative seems to result from a dissatisfaction from Sponsors and viewers with the consistency of the fields from week to week, this prize may not be the solution. With tournaments running virtually every weekend from January - November, the top players need to choose the tournaments they participate in. When several of the top players are absent, ratings, and therefore advertising revenues are greatly diminished. Does Tiger Woods, Jim Furyk, Phil Michelson, or Vijay Singh need the money so badly that they will play every week?

Will this point system be the answer, or is there a more inherent issue driving the tour's popularity. There are those of the opinion that this will not save the PGA's ratings and that FedEx will not receive its bang for its buck. The top five players in the world know who they are, and a point system is not needed to separate them. In fact, if this system had been in place for 2006, the top ten ranked players in the world would have kept their rankings (although their prize money would have changed substantially).http://www.pgatour.com/fedexcup/weekly/

Perhaps the PGA should look at limiting the commercials and commentaries during the tournaments, and show what most fans want to see; great golf shots. Perhaps shortening the season may also help to create a more competitive environment on a weekly basis. (No other league has a season that lasts this long). An over saturated market does not create more demand for a product and financial incentives to the players may not be the answer that the PGA is looking for.

If the first two tournaments of the year are any indication, the PGA, FedEx and the other sponsors may be in for a long season. Their saving grace may be the 4 playoff tournaments, held at a time when baseball is over and football has not yet begun. Only then will we know if this new initiative has paid off. Until then, I for one, will enjoy the weekly battles and look forward to the presentation of the FedEx Cup.