Another longtime PGA Tour tournament sponsor seems to be on its way out.
Farmers Insurance, which has been the title sponsor of the San Diego event at Torrey Pines since 2010, will not renew its agreement with the PGA Tour after its current contract expires in 2026, Sports Business Journal reported Thursday.
Farmers is sending fewer executives to the Farmers Insurance Open later this month and returned a number of hotel rooms to the tour, along with plans for less activation, SBJ reported. Farmers Insurance also sponsors the APGA Tour event at Torrey Pines.
The decision comes at a time when it seems as if Farmers Insurance is scaling back its space in the golf world. Last week, Rickie Fowler confirmed to Golfweek he was no longer sponsored by the company.
“My contract was up, and I was told they weren’t looking to renew or extend,” Fowler said, noting the company has undergone a change in leadership at the top. “It was a good fit with them taking over at Torrey, a tournament I loved and was closest to where I grew up. I loved doing the fun commercials with them over the years, it was a great partnership, and it was their decision to scale back.”
Raul Vargas took over as CEO of Farmers a little more than a year ago. In August, Farmers laid off 11 percent of its workforce, about 2,400 employees.
It’s also the second notable company to not renew its contract with the PGA Tour. Wells Fargo will not renew its agreement after it expires this year to host the championship at Quail Hollow Club in Charlotte, North Carolina. SBJ reported the company wanted to remain a sponsor but didn’t want to pay the higher asking price.
Full-field events on the PGA Tour have been commanding between $13 million to $15 million per year from title sponsors.
RBC, which is the title sponsor for the Canadian Open and the Heritage at Hilton Head, a signature event, signed a one-year deal for 2024 instead of a long-term extension to get a feel of the changing golf landscape. Could this be the way many major companies are thinking with the tumultuousness in golf?