Even Tiger is feeling the credit crunch

Just when you thought that the credit crunch couldn't get any worse, Tiger Woods, the richest sports star on the planet and the most sought-after marketing asset, is now feeling the pinch like the rest of us!

Tiger's endorsement deal with Buick has come to an end after nine beautiful years (for Tiger anyway), ending one year short of the 10-year deal.

It's no secret that Buick's parent company General Motors has been one of the major losers in the economic meltdown, registering a whopping $73 billion loss in 2008. Although more than many of us will earn in a lifetime, the $7 million loss that Tiger will endure won't make too much of a dent in his 2008 earnings of $122 million – not bad seeing as he only played golf up to the US Open in June. So OK, if Tiger's not immune what does it mean for others on tours and for the tours themselves?

Tough times ahead it seems.

Golfers seldom appreciate the costs endured by tour professionals, and when you're watching a tour event play out on a Sunday afternoon – why should you?

After all, these guys are walking away with fairly hefty cheques, right? Well almost. It is commonly underestimated what it takes to cut it on one of the major tours. For the regular 170 or so competitors on each tour, a position outside the top 90 will see many of the guys turn a loss.

It is crucial for the fringe players or the upcoming generation to secure endorsement deals in order to survive the early years and cope with the financial drain of flights, hotel rooms, caddies and other expenses.

In times of economic downturn we all know that marketing budgets are the first to go which will provide challenges ahead for the new tour crop.

For the tours themselves the road is long and arduous. The USPGA Tour has 11 title sponsors and three presenting sponsors coming from the financial services industry, all of whom pay between $6 million and $12 million.

Although no crisis has been declared, there have been many rumours of poor sponsorship sales at 2009 events including the Mercedes-Benz Championship, The Sony Open and The Arnold Palmer Invitational to name but a few.

The LPGA Tour is more exposed with sponsorship linked to the real estate and financial services sectors.

The Fields Open and the Gin Tribute were lost earlier in the year. A number of sponsors that headlined two events have consolidated into one.

Closer to home, our Dubai Desert Classic and Dubai Ladies Masters are showing no signs of struggling – preparation at Emirates Golf Club is in full swing.

The European Tour is the most global of all and maybe in the strongest position, with its exposure spanning across many economies. I am sure they are smiling to themselves right now having landed Leisurecorp as a strategic partner – a pretty smart move in hindsight.