Economics, Sponsor Questions Ultimately Prompt 2020 John Deere Classic Cancellation

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While the PGA Tour cited gallery restrictions in announcing the John Deere Classic’s cancellation, a few stories quoting tournament director Clair Peterson flesh out why the sponsor pulled the plug.

While the economics of a fan-free event were part of the decision for one of golf’s greatest charity fundraisers, the early sponsor and guest surveying also suggested fans were not looking to party it up in the COVID-19 era.

Peterson, from Adam Schupak’s Golfweek story:

“We’ll probably do $10 million in charitable impact in a year that more than any I can remember will be critically important,” said Peterson, who added that the JDC gave $13.8 million to 543 charities last year.

Financial considerations were part of the decision. The loss of pro-am income amounts to over $1 million, Peterson said, and all of the tournament’s corporate hospitality sponsors respectfully have said they didn’t feel comfortable participating this year.

“We had one sponsor say that 90 percent of the guests they surveyed said they wouldn’t even come if they were invited,” Peterson said. “So, all that income is gone.”

Speaking to ESPN.com’s Bob Harig, Peterson mentions how John Deere’s corporate culture proved incompatible with a return to tournament golf featuring crowd.

"We have a small clubhouse, small parking lot. It's very difficult to get everything established from a social distancing standpoint, including locker rooms and everything else. Our title sponsor (John Deere) has been incredibly supportive, and during this pandemic they have been very cautious with their employees. So when all those things come into play, whatever version of the tournament we put on, we wouldn't be able to pull off with fans part of it. And that's a a money losing proposition. How much money can we afford to lose? How does our reserve fund look?"

And regarding the sponsor, Brian Wacker noted this from his story on Deere’s cancellation.

Last month, John Deere announced it was laying off more than 260 employees from its Dubuque facility with 159 employees being placed on indefinite layoff beginning June 1.

Given the PGA Tour’s huge coffers, not making up the economic difference for a tournament that has done so much contributing to the annual tour charitable fundraising seems like a headscratcher.

As Schupak’s story notes, the Deere is still going to contribute $10 million to 542 local charities this year without a tournament. So while the safety of fans is a legitimate reason for cancellation, the tournament opting to cancel over losing money is not a good look for the Tour, particularly when the difference between profit and loss was not close to a significant figure. And especially for an event that does so much for to help the Tour enjoy non-profit tax status.

The Deere’s annual contributions since the company started sponsoring in 1999:

2019 - $13.82M

2018 - $13.45M

2017 - $12.27M

2016 - $10.45M

2015 ` $8.73M

2014 - $6.33M

2013 - $6.32M

2012 - $6.79M

2011 - $5.29M

2010 - $4.34M

2009 - $4.63M