NZ Open stuck in rough
Dana Johanssen investigates the demise of the $2m global drawcard
It was billed as an ‘‘unprecedented opportunity’’ for golf in this country.
In late 2016 NZ Golf, together with event promoters The Clubhouse, announced to great fanfare the NZ Women’s Open had been added to LPGA calendar.
With a total prize purse of nearly $2 million, it would be the richest women’s sporting event in New Zealand and feature top international talent, including our own golfing superstar Lydia Ko.
The lure of a global TV audience and the prospect of showcasing Auckland to ‘‘wider high-value tourism markets’’ like China, Japan, South Korea and the US, saw Major Events New Zealand and ATEED chip in significant sums to support the event, while Korean-based company McKayson signed on as the naming rights sponsor for three years.
But after its first appearance on the LPGA Tour in 2017, the event has not been seen since.
A change to the timing of the tournament, then the loss of McKayson as their major sponsor, killed off the 2018 and 2019 events. Organisers are now searching for a new global naming rights sponsor as they shoot for a return to the LPGA tour in 2020.
Representatives of The Clubhouse and NZ Golf say the event’s hiatus was unavoidable due to withdrawal of McKayson, an ambitious start-up apparel company that has struggled to match its growth projections.
But critics have suggested a questionable business model and over capitalisation also contributed to The Clubhouse getting itself into the rough.
In the meantime, New Zealand’s top female golfers are left without a premier event.
One member of the golf community, who did not want to be named, said the collapse of the event after years of strong growth for the tournament, which was previously an ALPG/European Tour co-sanctioned event, is a setback for women’s golf in this
country. ‘‘The thing is, the NZ Women’s Open was already a really good event. Lydia Ko went there every year, they had some other big names attend over the years and it got decent attendance. Then these big shots took over and promised the world and we’re left with nothing,’’ she said.
She added at a time when NZ Golf is spruiking women’s golf through the ‘She Loves Golf’ campaign, fronted by celebrities and influencers like Toni Street, Laura McGoldrick and Matilda Rice, the absence of a showpiece event featuring genuine women’s golfing talent rankles.
Susan Farron, a professional golf coach and former president of the NZPGA, is more understanding of the challenges organisers have faced.
‘‘I’m coaching it every day, and women’s golf is just booming in terms of women and girls wanting to take up the sport. It is busy, busy with a new breed of golfers. I think the fact that the Open is not on is not hurting participation numbers for women, but what is sad is that there’s no momentum that could arise from it for the professional players and for our best players through the amateur ranks.’’
NZ Golf chief executive Dean Murphy said it is ‘‘regrettable’’ the NZ Women’s Open had to be axed for 2019, but felt it was important the organisation concentrated on a return to the tour in 2020.
‘‘It’s disappointing that we couldn’t keep that momentum up, but we’re realistic that we have to do it in a sustainable way,’’ Murphy says.
‘‘Our intention currently is to be with the LPGA and they’re pretty firm partners of ours and we believe that we want to keep the event to a level that is of a significant international standing, so our efforts at the moment are to keep the event going on the LPGA Tour.’’
Organisers did not expect to be on the hunt for a new major sponsor after just one year.
The agreement with McKayson, who also came on board as Ko’s clothing supplier, was set down for three years. Michael Goldstein, managing director of The Clubhouse, said the unravelling of the deal happened gradually and did not come as an ‘‘overnight shock’’, but it was nevertheless a hammer blow to the tournament, when the call was made to cut ties.
‘‘The situation with McKayson is they had to pull out of the sponsorship, not for any reason related to us. They’re a start-up business and they probably invested a bit too aggressively in their marketing, so they’re not able to continue the sponsorship,’’ he says.
Asked how McKayson were able to get out of the three-year
. . . we’re realistic that we have to do it in a sustainable way.
NZ Golf CEO Dean Murphy
agreement, Goldstein said: ‘‘They’re not, I suppose everything beyond that is commercial in-confidence. But yeah, it’s not the best situation.’’ The major challenge for promoters is the limited sponsorship dollars on offer in the New Zealand market. To pull off an event of such magnitude, the tournament needs to partner with a genuine global brand, with Murphy putting the cost of staging the event at five to six million dollars – a major commercial undertaking.
We spoke with a sports industry executive and prominent golf identity, both had questions over the business model of the tournament, with one describing it as ‘‘ludicrous’’.
‘‘The challenge for me with that event is it is over-capitalised. I genuinely believe in the value of women’s sport and believe there is a market for it, but I don’t think they have got the model right yet,’’ he said.
There were also rumours of significant cost over-runs, but Goldstein denied this. He said the tournament ‘‘almost’’ broke even and any losses were covered by ‘‘private supporters, including myself’’.
Despite the difficulties encountered in the first year, Goldstein believes The Clubhouse has the right blueprint for a successful event.
‘‘We were really happy with how the event went from a commercial perspective. We had over 30,000 spectators, we achieved all our KPIs for the government and for ATEED, and it was the first time doing an event of this kind in New Zealand and it had great outcomes,’’ he said.
‘‘By joining the LPGA Tour it changed the business model to very much a global one, and meant that we needed global funding. I think we did the right thing. It was ambitious for New Zealand and we put on an event bigger than the country has ever seen.’’
The LPGA will announce its Tour calendar for 2020 towards the end of next year, but Murphy said realistically NZ Golf will need to have a major sponsor lined up mid-year to be able to proceed with staging an event in early 2020.
‘‘Am I confident? Yeah, I am confident. The LPGA is a great platform, the NZ Women’s Open is a great product. But corporate sponsorship in any sport, in any endeavour, is very difficult and we’re doing our very best and hope it all comes through.’’