Undoubtedly the Irish Open is now challenged given the mitigating circumstances of the Irish economy - which may be also affecting the mobile operator “3” - given they launched a four year sponsorship deal with the Football Association of Ireland worth €7.5m just after the Irish Open – and have in the past twenty four hours elected to terminate their third year option to sponsor the Irish Open.
The decision was not a complete surprise as over recent weeks the mood music from the telecommunications company had not been encouraging - despite their request for a time extension to further evaluate the commercial benefits from this year’s event. Although understandable that such time request be allowed the risk was always that it would slow the positive momentum that immediately followed the event last August in Killarney and any of the potential commercial feel-good factor.
In the end the decision was only communicated officially on Friday to all related parties and has left a challenging timeline for those who still cherish the event - namely Failte Ireland - with the minimum of notice to find an alternate partner of significance. As it has the European Tour, who were cajoled and harried into surrendering the July weekend for the 2010 event in order to support the needs of the sponsor - and the long term re-positioning of the Irish Open.
Now it all must seem worthless effort with the Irish Open once again sponsor less - hopefully not homeless - with only eight months left on the clock to piece the parts together again just when everyone in golf thought the wandering days of the Irish Open were well and truly over.
Whatever good intentions 3 may have brought to the Irish Open in County Louth Golf Club in 2008 and then to Killarney Golf and Fishing Club last August the short notice of their immediate evacuation from the Irish golf scene may undo some of the goodwill at a sporting and human level.
Failte Ireland and Tourism Ireland, both desperate to reverse the rapid decline in visitor numbers to the country, must now wonder about the nature of the partnership given there was a third year option left as earlier notice would have been of material help to them. As it would have been to the European Tour, who were cajoled and harried into surrendering the July weekend for the 2010 event in order to support the needs of 3 and the long term positioning of the Irish Open at a prime summer date.
Now it all must seem to have been a worthless effort with the Irish Open once again sponsor less - hopefully not homeless - with only eight months left on the clock.
Given the recent Government announcements on the €15 billion cuts over the next four years the major fear is that such draconian measures may deprive the sector of vital funds that can be set aside for the 2011 event – and beyond. From a sporting perspective golf is extremely valuable, as is the Irish Open, and to see the event disappear - as has been touted by some commentators - from the calendar would be a strategic error.
More seriously, the Irish Open has also just been reinvented in Killarney and is now in a better place than it has been for many a year – thanks to 3 – and the support of others too at grassroots level, the Department of Tourism, Culture and Sport through ownership of Killarney Golf Club, Failte Ireland and the European Tour- all carrying the commercial support for the event in the post Ryder Cup vacuum.
The main error though in 2010 may have been the focus on increasing the prize fund to €3M as the way to magic some of the big name players to the event. If so, such thinking was somewhat naive as the world's top golfer’s travel to few venues for a winner’s cheque of five hundred thousand euro - or would even consider a schedule change – even in a Ryder Cup year – as dates are planned 24 months in advance.
With no global sponsor involved in the Irish Open the playing obligations of Tiger Woods, Phil Mickelson, Ernie Els, Dustin Johnson and Sergio Garcia are weighted very much elsewhere during the peak of the season. In the end the field next year - with one third of the three million prize fund - would vary little from the Irish Open of this year as the Irish players always support the national event – as do many of the Europeans who always love playing in Ireland.
What is more the location and hospitality in Killarney this year was widely reported as being exceptional.
At the time of the launch of 3’s commitment to the Irish Open Robert Finnegan, the Chief Executive, understood that positioning and explained his delight “to be supporting such a prestigious event” which he understood was “a real sleeping giant and we’re [3] looking forward to bringing it back to its rightful place as one of the strongest tournaments in Europe.” Having awakened it somewhat, with good effect, 3 unfortunately have left the scene earlier than would have been ideal from a golfing perspective
In TV terms the values of $63.6 million were recorded in 2010 for “3 Irish Open”, with $34.1 million for “3” and $32million for “Golf Ireland” according to the Repucom Report. Even allowing for discounted values using the Repucom RBA method, the numbers are still significant.
From a Government perspective the economic values of golf shows the country welcomes 150,000 visitors annually in the sport with a contribution of €110 million to the economy. The spectacular images of the Irish Open last summer, given the good weather, provided some of the more attractive images of Ireland in recent golf events – potentially impacting millions watching around the world to come and visit.
With Friday’s decision the reality that falls on Irish golf is whether the European Tour – who are always under pressure for events and key calendar dates – are able to support the July Bank Holiday date in an already cluttered season now that the event has no tile sponsor and the underwriting of the event is unclear.
Failte Ireland remain the most interested party and the continuation of the Irish Open following the success in Killarney places them in the unenviable position of having "ownership” at a time when budgets are being slashed all around Government departments.
Indeed, the negative backdrop Failte Ireland or Tourism Ireland are reporting – where total overseas visitor numbers fell by 12% in 2009 and foreign exchange earnings declined by 19% to €3.9 billion – could be the major positive for the Government to make the decision to supporting the event at a time when it has just been orphaned.
With Failte Ireland having just launched a new marketing platform “Golf in Ireland - A time to Play” it would not be the time either to abandon sponsorship or marketing in the golf sector as the nation desperately needs to re-float hotels, golf courses and hospitality businesses nationally. To do that we need overseas visitors - as well as "Staycationers".
Based on assumption that the Irish Open fits the needs of Irish tourism – in all its guises – the decision to support the event next year should be easier. With the main sponsor deciding to relinquish their option the event can still take place but with different assumptions.
i. Reduce prize money – €3m not required for the event as it will not improve or lessen the quality of the field. All the Irish players – who are the draw for most local fans – will normally support their national event anyway.
ii. Funding – Failte Ireland need to maintain as a minimum their financial commitment from 2010 to the Irish Open and the Irish Seniors Open – but eliminate the Senior event. The addition of the 2011 Solheim Cup will easily fill the void that the Irish Senior Open leaves.
iii. Venue – It makes sense that Killarney Golf and Fishing Club remain the chosen venue and with all the refurbishment costs required last year to the club house and other areas already spent - so these costs would not recur in 2011.
iv. Location – Killarney Lakes and town are a natural tourist destination and a clear fit with the overall thrust of any tourism initiatives underway. Failte Ireland and Tourism Ireland already know the premium value of the TV images released last summer in places like the USA and Canada.
v. Other opportunities – Given the Killarney Conference Centre there is also an opportunity to host a scaled down version of the Farmleigh Think Tank – but focused only on tourism during the preceding weekend allowing other government agencies to support the event.
The Irish Open is an event that delivers for the country and the success of 2010 in particular means that the global tourism value should not be lost in our own negativity – or the loss of the main sponsor to football.
It is an event in the Irish sporting calendar that speaks directly to the demographic for golf - across all markets - and remains a vital link with those sectors that traditionally visit Ireland. So to switch off now would be wrong.
It’s really just time to find a new service provider because The Irish Open is now bigger than ever.
