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Wednesday, May 10, 2017

FedEx Staying but with Terms

Tour's FedEx extension includes exclusivity clause Rex Hoggard for The Golf Channel

According to sources, the clause will keep players from participating in the season-long race if they have endorsement deals with one of FedEx’s competitors.

As a business decision, it's easy to see why FedEx would want this clause put into their new 10-year deal. The word is that players with current deals with folks like UPS and others will be grandfathered in.

This could quickly evolve into a double-edged sword.

Might players be told not to show their competing brand's sponsorship or be refused entry to a regular tour event? Also, could sponsors begin telling their players they cannot participate in a competing brand's event?

We're not there yet, but, as funding for tournaments and sponsorship deals continues to become more competitive it isn't hard to see the future coming. The PGA Tour has raised the stakes with this deal with FedEx. Now they will have to get ahead of this before it gets worse.

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