KEY POINTS:
This decade's great prize money boom on the US PGA Tour has been powered by two engines - the rise of Tiger Woods and massive TV contracts derived from his box office appeal; plus the bull run on Wall Street which this year provided 15 primary tournament sponsors
from the financial services industry.
Therefore the second half of 2008 has produced the perfect storm: Woods absent with injury and the finance industry in meltdown.
So with the markets uncertain, firms going bankrupt, bought out or bailed out by the US Government, can the purses of $US6 to 8 million a week be maintained - or, from the sponsors' perspective, justified?
The Wachovia Championship in Charlotte, North Carolina is regarded as one of the PGA Tour's best events. Each May it attracts marquee players chasing $US6.4 million.
But Wachovia, which was to sponsor the tournament for six more years, has gone belly-up and the bank is now owned by Wells Fargo. It's hoped Wells Fargo will take that deal over, but it may not be at the same level.
Regular Tour events are not the only ones hit. The Royal Bank of Scotland (RBS) is one of golf's most prolific sponsors, and has deals with the USGA, the PGA of America and the R and A. As such, it's the most prominent name at three of the four major championships and the Ryder Cup.
But it's now 60 per cent owned by British taxpayers and government appointed directors are unlikely to allow the indulgence of high-end golf sponsorship to continue.
According to tournament directors on the PGA Tour, and this applies to tournaments the world over, the biggest immediate impact is not with the title sponsors, but at the next level - the companies which buy hospitality or a hole sponsorship.
The contributions of seven or eight such companies can make up about 20 per cent of a tournament budget. Reports from the US suggest that level of support is disappearing fast and the profitability of numerous tournaments is taking a hit.
Or will promoters cut their cloth to fit the budget and decrease prize money? In a recession, there's no way athletes can expect to be immune.
When companies have to cut costs, their sport sponsorships, often linked to the favourite hobby of the chairman or CEO, are always going to be among the first expenses cut.
In the case of the US PGA Tour, many might say it's about time the excess was brought to an end anyway. There are four official events left this year and already 91 players have earned a million dollars. Top golf is hugely competitive, but is a tie for 20th place really worth $50,000?
Most telling is the fact that the official schedule for the 2009 PGA Tour hasn't been released yet. Does that mean there are serious issues with the sponsorship arrangements for some tournaments? Are some new owners of title sponsors like Wells Fargo, and Bank of America which bought Merrill Lynch, reassessing their contribution to golf?
