PGA TOUR Extends Deal with FedEx through 2027

The FedExCup has been one of the most exciting events on the PGA TOUR since its inception.  It provides a large payout for the winner and top finishers as well as providing an exciting end of the year tournament. And now, FedEx will be sponsoring this event for another 10 years.

With the announcement that FedEx and the PGA TOUR are partnering on a 10-year extension to their deal, it ensures that the packaging company will have naming rights for the tournament they started for all 21 years of its existence.  And with this mega deal, the PGA expects for the payout of $10 million for the FedExCup winner along with the $35 million bonus pool to increase substantially, something that will certainly please the players.

This deal seems to be one that is mutually beneficial for both sides.  For FedEx, they continue to get great exposure to the public to further their brand, something they need when competing with UPS.  The Senior Vice President of FedEx, Patrick Fitzgerald, even stated that the FedExCup has done more to bring them customers than the cameo that the company had in the movie “Castaway,” which is surprising considering golf gave them more exposure than star actor Tom Hanks.

For the PGA TOUR, this allows them to move forward with a restructured schedule that they have been trying to push in the upcoming years.  With FedEx on board for the long-term, the Tour will now look to shorten the FedExCup tournament to three final events, rather than the typical four.  This is likely why the payout for the event will be significantly larger and will allow for the PGA TOUR to end its season before it has to compete with football season.

It is important to note as well that this large extension is becoming more common practice for PGA TOUR, as they now have worked out 10-year extensions with eight tournaments that will be played each year.  This gives the Tour huge stability and flexibility to make changes to their schedule around, something they desperately needed with many players and spectators believing the people in charge are taking the sport in the wrong direction.

Overall it seems like both sides made a good deal to extend this successful partnership and it will be interesting to see the new payout numbers along with how this will shake up the PGA TOUR schedule in the future.

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