Wie Does Not Win; LPGA Still Reinforces Its Price Value

I'm sure I wasn't the only one who recorded the LPGA event Saturday and watched it, albeit flipping through the same four promos the Golf Channel runs. The Brand Lady, who made a brief appearance during the telecast and talked about the great "price value" her tour delivers, can point to the many fans who otherwise would not be watching. All thanks to Michelle Wie.

Here's the AP story on Angela Stanford's impressive win in the rain and wind at Turtle Bay. Granted, Wie hasn't won since she was 13, but her swing looks great and overall game appears closer to greatness than ever before.

By the way, does anyone else think that the LPGA should end more events on a Saturday to avoid competing with the regular tour? I thought it was nice to see a winner crowned tonight.

"And while we're on a roll, how about losing the cryptic jargon."

Bad day for the Brand Lady Carolyn Bivens as Ron Sirak reveals the name she gave her project to shed the LPGA Tour of all those pesky longtime sponsors in favor of new ones who spoke her language: "Vision 2010."

And in this week's SI, Dottie Pepper all but explains how the Commish has messed up. Somehow the vision of Paula Creamer picking up the phone to try and repair the ADT relationship may just mark an all-time low for Bivens:

The LPGA players are a tremendous asset when it comes to drumming up new business and trying to save sponsor relationships. Paula Creamer, for example, called ADT when it was announced that the company would no longer sponsor the year-ending tour championship. She did it because she had a personal connection with company executives and wanted to do whatever she could do to save the business relationship. The tour needs to use players in this manner and be thankful for their commitment.

And while we're on a roll, how about losing the cryptic jargon. For example, the LPGA's announcement said that it hoped to create "economic empowerment opportunities" and "to establish executional excellence as standard." How about "provide our members with as many business opportunities as possible" and "do the very best job we can"? Putting a human touch on the sport starts with the way you talk about it.

Brand Lady Does What She Does Best: Layoffs!

Beth Ann Baldry reports and includes this quote from the LPGA Commish Carolyn Bivens on the "realignment":

Commissioner Carolyn Bivens, speaking with Golfweek in response to the tour’s Jan. 7 news release announcing the changes, would only confirm that chief operating officer Chris Higgs was among those who were let go.

“I don’t want to pretend for a second that the economy didn’t impact (the decision); it certainly did,” Bivens said. “(But) it was not the motivating factor for the realignment.”

 For a refresher on some past firings, you can go here and here.

Brand Lady Takes Pay Dip Just Like Finchem...

Of course, he lost $400k on a salary that peaked at a ridiculous $5.2 million, whereas CB dropped to only raking in six-figures. Let the weeping begin!

Jon Show reports:

Carolyn Bivens took home $500,000 as commissioner of the LPGA in 2007, a decrease of 28 percent from the previous year despite having what most consider to be her best year on the job.

Bivens was paid $690,000 for a full year of work in 2006 and $238,782 in 2005, when she joined the LPGA midway through the year. Earlier this year, Bivens received a three-year extension that concludes in 2011, but she was still working under her original three-year contract in 2007.

All figures are listed on the IRS form that the tour is required to file as a tax-exempt, nonprofit organization. The only other executive salary listed on the form is that of Deputy Commissioner Libba Galloway, whose compensation increased from $204,720 to $228,912.

Brand Lady Rakes In More Than Some Of Us Thought

Okay, it's not Finchem money, but based on reporting that I thought she was languishing at $500,000 a year. Nope.

From Doug Ferguson's weekly notes column:

According to the most recent IRS forms available for the LPGA Tour, commissioner Carolyn Bivens earned $710,812 in salary and benefits in 2006. Two years earlier, in his final full year as LPGA commissioner, Votaw was paid $478,897.

With all of the great stuff she's done since 2006, I would hope she's reached the $1 million mark by now. Heck, she might even be making more more than the PGA Tour's EVP of Market Deliverables and Bandwidth Disintermediation.

 

Bivens On Crutches; Writers Revel In The Metaphoric Possibilities

Beth Ann Baldry reports on the standing-room only setup at LPGA Commish Bivens' state of the tour address. Considering how few golf writers are left, that must be one tiny interview room.

Baldry also featured this quote addressing the absurdity of starting the season with a million dollar first place prize event.

“Whoever ends up winning the first event is 99.9 percent guaranteed to be in the top 10 on the money list,” said Christina Kim. “They could play that one event and be like, peace for the entire year, go to Aruba or something.”

Jay Coffin gives Bivens a rave review and pounces on the crutches metaphor.

Larry Dorman shares a few Bivens quotes not in the transcript.

Steve Elling wonders how you can have a pro golf tour not playing in Florida.

Next year, South Florida will be without an event for the first time this decade. At this stage, after the contract for the Ginn Open in Orlando expires in April, the entire state will be without an event in 2010. Eleven events next year are overseas, scattered in nine different countries, many of them in Asia, which remains a strong market.

"In this economy," she said, "it's like having a balanced portfolio."

Yeah, that's what we savvy investors thought our 401(k) mutual-fund accounts assured us, right? Even the Asian markets, which produce one of the tour's top revenue streams, are wobbling. Bivens bemoaned the fact that even abroad, the trickle-down effect of the U.S. economy is already being felt with full force.

Randell Mell reports that The Donald hints at talks resuming with ADT about salvaging the event. But it still would be in the opening season slot...

Some good news for Bivens: no photographer seems to have captured her limping into the session. The brand remains strong!

Brand Lady Goes Entire Gabfest Without Saying Brand; But She Does Drop A Value Proposition

The Value Proposition Lady? How am I supposed to work with that?

Well, there was the rest of the press conference today at the ADT (RIP) Championship...

Equity is the next pillar. We're a member organization, and we will continue to expand the menu and the value of the benefits provided to our members. Moving closer to the equity they deserve and they need.

I wish this economic downturn had waited one more year. I wish we'd had one more year, but I'm grateful that we had the past three.

Oh, why's that?

Our 2009 budget plans for a solidly profitable year. A continued high level of contributions to our member benefits, including a 25% increase in the pension fund contributions.

If we had not undertaken the substantive changes to the business model of the LPGA during the previous three years, our picture would be decidedly less hopeful.

Scribblers in attendance: did she actually just pat herself on the back at this point? The transcriber did not note any form of petting, heavy or otherwise.

On the wacky notion of starting the year with a $1 million first place prize event, instead of ending the season that way:

CAROLYN BIVENS: For several reasons. But it effects the money list as much as having it at the end of the year. Somebody wins a million dollars. And frankly, I hope five to ten years from now, somebody's standing up to you and talking about $9 or $10 million events, and that this event would have a purse of $2 million.

I know that people say you shouldn't compare the LPGA to the PGA. I actually believe these girls really do rock. I believe these girls are great, and I believe this is a great value proposition, and that's where we're growing.

Sigh. I can't stand it when she makes Finchem look good.

Q. Can you just update us on what are your pursuing TV rights fees? And how this economic climate effects that plan?

CAROLYN BIVENS: You can't negotiate television in the media, but I will tell you this, it's a very important part of -- it's an important aspect of women's sports. It's incredibly important to the LPGA.

We can have the very best players in the world, the most dynamic, charismatic players and the people don't see them. You don't increase the value. It's also very difficult for an organization to operate and for -- there's a phrase that's been thrown around a lot this week, a price-value equation. It's very hard to have price-value equation when you're underwriting all of the costs of the television time as well as of the production.

Wait, price-value equation wasn't on my bingo board...that's not fair CB.

Q. If I recall correctly, think there were going to be some serious tweaks to the English proficiency policy. Is there anything can you update on that or when we can expect to hear some something?

CAROLYN BIVENS: Let me go back and reprise a few of my remarks and say performance at the LPGA, and frankly, the survival and ability to succeed here is more than performing on the golf course. The international nature of our tour offers us great opportunities and it also offers us challenges.

As we went to benchmark best practices in this area, there is no other program that exists like this in a sports or an entertainment world. What's come out of all of that is offers in some cases for some pro bone owe work from some pretty impressive groups and organizations, and we're taking them up on it.

So we're actually going to make this more extensive than we'd ever intended to in the very first place. And our goal is to come out of this a year to 18 months from now and have a model program.

See, wankers. The horrible PR disaster turned into a positive. Pro-bono (Pro bone owe) English training!

"Given what could have been the potential negative economic impact on our schedule, we view this as a barometer of stability, appeal and value for our players and our property"

That's what the LPGA Commish said in describing the new schedule, which is missing three events and has the players making some pretty long treks from week-to-week. Tim Reynolds, writing for AP:

Next year's LPGA schedule begins in Hawaii, then heads to Thailand, Singapore and Mexico, not returning to the U.S. until the Phoenix event from March 26-29, details of which have yet to be released.

Some events shifted slots from the 2008 schedule, others changed sponsors and details are still being finalized about the Samsung World Championship, which was in Cleveland this year.

One quirk to the 2009 schedule: The U.S. Women's Open starts July 9, followed by the Evian Masters, the British Open and the Solheim Cup. So it's possible that a player who isn't qualified for those events wouldn't play between the Jamie Farr Owens Corning Classic (which ends July 5) and the Safeway Classic (which starts Aug. 28).

"Given what could have been the potential negative economic impact on our schedule, we view this as a barometer of stability, appeal and value for our players and our property," Bivens said.

Safe To Say: "Value Proposition" A Must On Any MBA-Speak Bingo Board

Here I was just getting comfortable with value modulations when I come to learn it all comes down to value propositions.

Randell Mell reports that ADT actually might have liked to have stayed on as the sponsor of a year-end, must see, ultra cool event on the LPGA Tour. But the LPGA's increased asking price is the real culprit.

I think the countdown clock just started ticking for the Brand Lady.

Tour pros were informed by the LPGA one month ago that ADT chose not to renew because the company was pursuing different marketing objectives.

"The explanation ADT gave us for not renewing was that its marketing objectives and means of going about attracting customers was changing and the ADT Championship didn't fit into its future plans," said Mike Nichols, LPGA vice president of tournament business affairs.

ADT President John Koch said there was more to the decision.

"Basically, the change in the renewal pricing caused us to re-evaluate the value proposition of the overall program," Koch said. "You will hear various takes on that, but it is inaccurate for anyone to state that our decision was based on any form of cost cutting by our company. In fact, we have increased our marketing budget."

The LPGA made various proposals to ADT, including making ADT the umbrella sponsor of a series of LPGA events. The proposal the LPGA favored most was moving the event to the start of the 2010 season, where it would no longer compete against football and would be more appealing to TV as part of a potential package that the LPGA could sell to networks.

While ADT officials expressed concern about altering the nature of the event with a big payoff at season's start, Koch said it wasn't an overriding factor in his company's decision not to renew.

Koch would not reveal what ADT paid for its title sponsorship in the latest two-year contract extension that ends this year, but industry insiders estimate the company paid $3 million per year. While Koch also would not divulge the LPGA's asking prices, an industry expert said the tour was asking a substantial increase, prices beyond what adding weekend network TV coverage would require.

Koch said his company enjoyed a "great relationship" with the LPGA, a "good dialogue" and carefully considered all the LPGA's proposals, but ultimately decided not to accept.

"At the end of the day, there wasn't any reason other than value proposition," Koch said. "They have the right to think what the value of their tournament is. We respect them for that."

But just think, they won't have to compete with football now! Oh wait, there's no sponsor. Or course. Or date set.

Why take an established attention-getter--albeit one in November running up against the NFL--and exchange that with a year-starting $1 million event (?!?) that might happen?

And even the master negotiator himself isn't expressing much admiration for the Commissioner's work.

Donald Trump, who has been an unofficial host of the event for its entire eight-year run as owner of Trump International, was disappointed the LPGA didn't make ADT a better offer.

"Outside the U.S. Open, this has been the most important event on the ladies' tour," Trump said. "It is sad it has to end, and perhaps the tour should have made some concessions."

Perhaps? Who said The Donald isn't a kind soul?

And this from Juli Inkster:

"ADT and their people have been nothing but very supportive of the LPGA Tour and its players," said Hall of Famer Juli Inkster, a member of the LPGA's Board of Directors once sponsored by ADT. "They've done so much for us, and I was just very disappointed to hear we were losing them.

"But I don't want to point fingers. I don't know the ins and outs of what happened or what went wrong, but something went wrong. If it didn't, we would still have ADT as a sponsor. Hopefully the tour knows what it's doing and this will work out for the best."

And if they don't?

But back to value propositions. Larry Dorman takes a look at all sectors of the golf industry and frankly, I came away less bummed out than I thought I might based on his talks with various retailers. Of course, the PGA Tour's $5 million man stayed on message...nearly verbatim to previous statements. Though this value proposition business has thrown me for a loop.

Finchem runs the organization of players that many golfers aspire to become, or at least to emulate. As such, he knows the importance of sustaining what he calls the PGA Tour’s “value proposition.” That, he said, is the formula for success that includes “the demographic of decision makers that we reach, the quality of the branding we deliver, the quality of our TV platform, the business-to-business opportunities, and our long-term relationships with our customers.”

 

"Bivens' remaking of this season-ending event and the break with ADT will tell us so much about the wisdom of her overall plan."

Randell Mell on this week's final ADT Championship and the Commissioner's state of the LPGA Tour address:

ADT, the Fields Open, the Ginn Tribute and Safeway International are losing their title sponsors. Kapalua has been looking for a sponsor for more than a year. These issues affect Bivens' larger strategic TV plan for 2010. She needs good partners to realize this plan, and that means being a good partner in turn.

Really, the break with ADT offers a telling microcosm for us to judge Bivens' larger approach.

Tour pros ought to scrutinize what's happening to this event very closely to see if the changes are really for the better or if something special's being damaged.

Bivens' remaking of this season-ending event and the break with ADT will tell us so much about the wisdom of her overall plan.

If she unveils a future to this championship that sounds convincingly better than the eight-year run ADT gave us, players should be encouraged. If she doesn't, they ought to be worried, and they ought to be asking hard questions of their commissioner. This has been a terrific event with a wonderful run. Players are sure to measure future events against it.

Stay tuned, as they say, the commissioner steps up to the tee Wednesday.

"When someone says 'Lorena' I think of the way she opens up all her press conferences with a 'hello everybody.'"

Kevin Baxter profiles Lorena Ochoa for the L.A. Times and focuses on her humility. Naturally, The Brand Lady offered a profound insight:

Adds LPGA Commissioner Carolyn Bivens: "When someone says 'Lorena' I think of the way she opens up all her press conferences with a 'hello everybody.' I would say that's pretty unusual for a world's No. 1 athlete in any sport. It's one thing to do it as part of a public persona. It's another thing to be a very authentic role model."

Saying "hello everybody" in the press room makes her an authentic role model?

“If they don’t even know survival English, they’re totally dependent on the dad.”

Karen Crouse of the New York Times went to some LPGA Tour events and got to know Korean players. She also talked to the Brand Lady (from what I can gather), and it seems the Commish said something unusual and upsetting to some players. (Shocking, I know.)

First, Crouse summarizes:

Although language has become a primary talking point on the tour, the cultural gap may be wider than any English-speaking policy can bridge. Bivens has since strained relations more by indicating that her plan was also meant to help the South Korean players shake their omnipresent fathers. By singling out the South Koreans, Bivens has reduced them to one-dimensional stock characters, which is like reading no break in a putt on a contoured green.

There's a resume quote for ya CB!

Bivens’s motivation extends beyond the fiscal health of the tour. In a recent interview, she said her goal was to help assimilate the South Korean players into a culture starkly different from their own and to emancipate them from what she characterized as overbearing fathers. Forcing the players to learn English and threatening their livelihoods was the best way she saw to accomplish that.

“The language is part of the control the parents have over their young daughters,” Bivens said. “If they don’t even know survival English, they’re totally dependent on the dad.”

Seon Hwa Lee, the L.P.G.A. rookie of the year in 2006 and a two-time winner this year, is considered one of the quieter South Koreans, but she was outspoken about Bivens’s emancipation proclamation.

“I don’t think that’s her job,” Lee said.

You mean to be the tour's in-house, strict Freudian?

Of course, considering that the NY Times ran four player capsules in the print version, including one of Mi Hyun Kim. There it's revealed her parents wouldn't let her marry a guy until she won a major. Maybe the Commish isn't so far off?

The meat of Crouse's excellent reporting:

In Korean culture, parents will do whatever is necessary to help their children’s prospects. They have a name for it, child farming, and cultivating successful sons and daughters confers great prestige on the parents. For golfers, that means fathers leave their jobs to travel the circuit and serve their daughters in many unofficial roles: coach, caddie, chauffeur, counselor, critic and cook.

At night during the Danville tournament, the halls of an Extended Stay America Hotel smelled of garlic and kimchi as parents of the South Korean players made dinner. Filial obedience and financial independence are not mutually exclusive to the South Koreans, who see nothing contradictory about taking home the bulgogi (barbecue beef) and letting their mothers or fathers fry it up in a pan.

Some of the fathers turn up the heat, pushing their daughters to practice and berating them when they do not play well. Three caddies who work for them said there were a handful of South Korean players on the Tour who have been ostracized by their compatriots because of their overzealous fathers.

Christina Kim said: “I can understand and appreciate what Carolyn is trying to do in regards to emancipating Korean players from their fathers. However, it is my firm belief that just like in any other culture, one has to go and reclaim their independence, learn who they are as humans in this world, of their own volition. If someone is not ready to leave the comforts of the nest, or they haven’t got the strength to do it, I feel that it is their own choice.” 

"The penalty wasn’t something that was decided overnight. There was lots of feedback and lots of reasons."

You have to give Carolyn Bivens big points for sitting down with Beth Ann Baldry since it was Baldry who broke the LPGA's learn-corporatespeak-or-else provision. And credit Baldry for asking tough questions.

GW: Looking back on the way everything developed, is there anything you would do differently? Is there anything the LPGA has learned from this?

CB: We learn from everything.

GW: Would you care to expand on that?

CB: The only thing I would expand on there is that this was not an announcement and it was not a policy. Unfortunately that is the way that it was portrayed.
In her defense, the media did blow that. Check out this L.A. Times front page story.  But isn't this kind of overblown reporting typically a consequence when word gets out about a boneheaded, insensitive policy?
GW: But it was a rule. There was a very strict penalty.

CB: I said it wasn’t a policy. It was a small part of a program. There was feedback from lots of different groups, just as Rae Evans told you. . . . On Sunday I was in Albany, and we have 10 new members of the LPGA. Half of those are international players. The list for Qualifying School was released this morning; we have almost 70 international players. That provides both challenges and opportunities for us. . . . What we were doing is looking down the pipeline and saying this is the perfect time of year to be looking at what’s coming to the LPGA over the next couple years and make sure we’ve got the resources and support to be able to handle that.

GW: So it wasn’t so much the current players on tour as it was looking ahead.

CB: Correct.
Are we now putting lipstick on a pig? Wait, don't accuse me of calling the Commissioner a pig!
GW: Looking at it now, do you realize or recognize that the penalty portion was a mistake?

CB: The penalty wasn’t something that was decided overnight. There was lots of feedback and lots of reasons.
Would that last sentence be allowed on the LPGA's English exam?
GW: Looking back on it now, do you wish you have discussed the penalty portion with more sponsors or...

CB: Sponsors never want to be part of these decisions.

Huh, she told Tommy Hicks the same day that "we were addressing sponsors' needs and requirements."
GW: Whom will you consult now, going forward? Will you include more people on this?
CB: What do they say . . . a camel is a horse built by a committee?

Good animal metaphor, much better than lipstick on a pig. I have a lot to learn.

What we need to be able to do is include enough for a cross-cultural group and to be able to control and announce. And not have something play in primetime way before it was ready. It was never intended as an announcement.
Got that Beth Ann. It's all your fault!

Speaking of fault, Ron Sirak says that the LPGA's triple-bogey could impact the Olympic golf push.
Fathers are angrier than their daughters at a perceived cultural insult, and the jury is still out on the mood of Korean companies who pour millions into the LPGA and have great national pride. The issue also may impact next year's vote on whether to add golf to the 2016 Olympics. It's the kind of insult the IOC remembers, such as when the Atlanta games proposed Augusta National as the golf venue.