SAS on solid ground

CARY -- Mike Stevens was sitting in a ballroom at Prestonwood Country Club, at a pre-tournament function for the 2008 SAS Championship, when he first heard the news.

Lehman Brothers, the leading U.S. investment bank, had filed for bankruptcy.

"None of us had any idea about the impact that would have," Stevens, the president of the Champions Tour, said Tuesday. "And not just on sports. On our lives."

The date was Sept. 14, 2008. The collapse of Lehman Brothers would help turn a tottering economy into a full-scale global economic meltdown. Its impact was, in a word, enormous.

Soon, golf would become a four-letter word, Stevens and others in the golf industry quickly learned. Chief executive officers of major corporations that sponsored golf tournaments were looking at increasingly bleak bottom lines, and many had to answer to anxious stockholders as to why such money was being "frivolously" spent in such tough times.

On the day after the Lehman Brothers collapse, an announcement was made at Prestonwood that SAS, the privately-held Cary software company, would continue as title sponsor through 2013. But the contract was never signed because of the uncertainty.

Jim Davis, senior vice president and chief marketing officer at SAS, said the contract with the Champions Tour ends after the 2010 tournament, but said negotiations are being held and another contract extension could be in the works.

"SAS has spent in excess of $5 million a year on the tournament," Davis said of an event first played in 2001. "But we have had a positive return on investment."

Those are sweet words for Stevens and others on the tour. And while the PGA Tour and certainly the LPGA Tour have struggled -- at times in vain -- to hold onto tournament sponsors, the Champions Tour has grimly held its own.

"No one has weathered the (economic) storm," said Curtis Strange, a two-time U.S. Open winner and Champions Tour player. "It has affected every person in the country.

"I can't speak for the LPGA, but I know that as far as this tour is concerned, we still might have some problems in the future. But right now we seem to be on pretty stable ground, and I think it's because the sponsors think they get a pretty good bang for their buck."

SAS, for example, uses the event to showcase the company and to help non-profits in the community such as Communities in Schools of Wake County. It uses the Wednesday and Thursday pro-am events at the SAS Championship to build and enhance business relationships.

Davis said there were concerns that because of the economic climate there might be a drop-off for the event this week. Play begins on Friday.

"We wondered if anybody would show up," he said. "But there was no impact whatsoever for this tournament. We've had the largest signup ever at the executive level of major companies, and we've got a long waiting list."

Strange said the entertainment value continues to be a strong seller to clients. A day on the course with a Strange, with a Lee Trevino or Fred Funk or others on the 50-and-older tour still can be relaxing and fun.

"They get to rub elbows and talk and have a drink with just about all the players, with a pairings party and two pro-ams," Strange said. "I think it's fit a niche. The guys out here have 'names' for 30 or 35 years that may not match the heyday of yesterday on the tour but still is on pretty solid ground, and everything I hear is pretty positive for the future."

Stevens isn't ready to proclaim the worst is over. The Greater Hickory Classic at Rock Barn, played last week in Conover, may not return to the tour schedule.

Stevens noted the PGA Tour, Champions Tour and Nationwide Tour have contributed more than $1 billion to myriad charities, saying its "far exceeds" the NFL. But there remains the public perception and criticism that sponsoring pro golf events -- especially by government-supported banks -- is money ill-used.

"It's going to a tough year," Stevens said. "I think the economy will continue to be cyclical, with some ups and downs. But I think tournaments will come out of it stronger because of the need to be more efficient."

Stevens said the Champions Tour is looking at new markets, such as South Korea. But the focus of the tour is maintaining their U.S. sponsorships.

"I'm pleased to say golf is fine, and the Champions Tour is fine, because of a lot of hard work," Stevens said. "We'll continue to keep our nose to the grindstone and help companies build relationships, build their businesses."

And to keep SAS in the fold.

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