Callaway Extends Phil Mickelson's Contract

[Tony Covey MGS]

As basically everyone in mainstream media has either reported, or depending on your perspective, repeated, Callaway and Phil Mickelson have apparently agreed to a multi-year contract extension. And so here I am becoming a further part of the problem. 

 

Moving on...

 

As you might imagine, Callaway's social media channels are treating this as the biggest news since the re-release of the Big Bertha. Not that one. Not that one either. Or that one. Right, that one.

 

Anyway, as is unfortunately the case with these sorts of endorsement deals, terms were not disclosed. Bummer right? While I certainly understand that Phil doesn't play for Callaway in exactly the same context as Tom Brady plays for the Patriots, wouldn't it make for great discussion fodder if equipment deals were a matter of public record?

 

Alas, they're not. But we can talk about it anyway.

 

The relevant questions here are:

• Exactly how long is multi-year?
• Exactly how much is he getting paid (and did it include a signing bonus...and would he be willing to defer money if Callaway wants to re-sign Patrick Reed in a few years...sorry...cap space doesn't apply here).

Actually, what I really want to know is this:

 

Did Callaway make a sensible marketing decision based on Phil's ability to win and ultimately (and realistically) impact equipment sales, or did they just pull a Jeter; ponying up the same kind of money for an aging, though well-liked veteran on the downside of his career that they'd pay a legitimate all-star?

 

It's hard to make a definitive argument without definitive details, but here are some things to consider.

 

On the plus side, Phil is probably one of the few true needle movers on Tour. While he's not Tiger, or Rory, or probably even Rickie, he's well-liked, and from my perspective, the fact that he's willing to say some things that aren't considered politically correct, is one of a few reasons why I'm a Phil fan.

 

Historically, he hasn't just won, he's won majors. And when he hasn't won, for the most part he's been competitive. 

 

He's certainly adept at making the most of every opportunity to almost shamelessly promote the Callaway products that are in his bag. In that respect he's been great for Callaway too.

 

As Jason Golf Channel's Jason Sobel Tweeted,

 

"Nobody in golf shills product better than Lefty".

 

Actually, that hasn't always been ideal for Callaway. 

 

As much as Phil is billed as the ultimate brand ambassador, lets not forget that not only did he put a TaylorMade RocketBallz fairway in his bag in Asia a couple of years back, Phil also claimed TaylorMade SLDR early adopter status when he put the driver in play during last season's Presidents Cup. Guys inside TaylorMade would probably tell you that, at times, Mickelson has been pretty good for their business as well.

 

In both cases (pre XHot, pre Alpha), Callaway didn't have anything ready that could match the TaylorMade product, and in both cases, Phil's decision to play the competitor's product highlighted the relevant shortcoming in the Callaway lineup. Here's hoping there's an explicit no TaylorMade clause this time around.

 

Phil is coming off what was inarguably a down season for him, and a reasonable mind has to believe that at as a guy who'll turn 45 in 2015, his very best years are behind him. His window as a viable pitchman is likely shrinking.

 

Maybe I'm wrong, but from what I've witnessed, the quantifiable value of a PGA Tour Pro to an equipment company is achieved largely through winning (or at least having a frequent run at it). 

 

All of that said, to a large extent, Phil Mickelson is Callaway Golf in much the same way that Tiger Woods is Nike Golf. Like Jeter, he's the guy they almost have to keep around. Hopefully, unlike the Yankees, they didn't overspend to do it.

[revkev]

You could argue whether the Yankees overpaid Jeter or not - if W/L's are the name of the game - they did - if $'s are the name then only they know the answer to the question.  I'm suspecting that Jeter was the only thing that put fannies in the seats for them this season both at home and on the road.

 

Baring some major injury Phil will be a hot commodity for at least the next two seasons because of his quest to win the Open - clearly he had a down year but he is still playing well enough to be a threat to win and so long as he's a threat and the Open is played he will be relevent.

[Kenny B]

Certainly not a year that Phil would be proud of, but I think he will be relevant for whatever the multi-year period is.  I keep hoping that he will throttle back a little on the driver and play to his strengths more.  If Tom Watson can contend in the Open Championship at 59, Lefty can pursue a few more majors if he can stay healthy.  I see him playing as long as he can.

[Tony Covey MGS]

Certainly not a year that Phil would be proud of, but I think he will be relevant for whatever the multi-year period is.  I keep hoping that he will throttle back a little on the driver and play to his strengths more.  If Tom Watson can contend in the Open Championship at 59, Lefty can pursue a few more majors if he can stay healthy.  I see him playing as long as he can.

 

The comparison to Watson is interesting. Obviously Phil is a long way from 59, but there are some parallels right? Up until a few weeks ago Watson remained one of the most popular, perhaps even beloved golfers on the planet, but I don't think he's doing much to help Adams sell clubs.

 

Arnold Palmer...Gary Player. Brand ambassadors, right? Is either really moving any Callaway product? 

 

I think winning...or at least almost winning is really what influences purchases, and for a golf company, ROI on tour spend. 

 

For me, Phil is an interesting case. I wouldn't be the least bit surprised if he won 2 or 3 more majors, but I also wouldn't be the least bit surprised if he never won another event on the PGA Tour. 

Make a list of current Tour Players you think have the ability to move product...I'd say he ranks pretty high, but I also think that short of the Top 3 on that list, it only matters if you win.

[Kenny B]

So, let's look at Adams and who are the brand ambassadors; Tom Watson, Ernie Els, Kenny Perry, Bernhard Langer + a few other younger players that haven't done much lately.  Old guys, right!  Seems like that's their market.  I think Watson is doing as much as anyone as a promoter; he's active in commercials and people still like to watch him play.  I was rooting for him 5 years ago.

 

Sure Mr. Palmer and Mr. Player may not be the best shills for a product anymore, but many people like to see what clubs the greats are using today.  It certainly doesn't hurt Callaway's image to be associated with them.

 

Winning is important, but it's not everything.  A lot has to be said for the image of person representing the company.  Phil is likable, well to most people anyway, and he is marketable.  

[GolfSpy Barbajo]

 

Make a list of current Tour Players you think have the ability to move product...I'd say he ranks pretty high, but I also think that short of the Top 3 on that list, it only matters if you win.

 

When Jack won the '86 Masters, McGregor sold a crippled of the Response ZT 6152 putters that Jack used that weekend.  By the end of '87 they sold 350,000 of them, or 344,000 more than they were expecting (Arnie & Jack by Ian O'Connor).  Being a legend is good - being a legend that wins is better...

[mbrodeur86]

It definitely helps when he wins, but Phil is still considered one of the greats still playing the game. It's always Tiger and Phil (and now Rory). His exposure is still there. The guys like us who follow the game more closely than others know more about the king and the black knight where people who just tune in will know Phil. It's good for Callaway.....Deep down though, I'd love to see Tiger say that maybe Phil's playing the inferior equipment now lol

[markb]

If he can win, all the better for Callaway.

 

But I'm sure a large part of the resigning is protective in nature.   They resigned him so others can't, which might imply that Phil bailed over performance issues.   Imagine if Taylormade signed Phil.   It would look like the chief rat was abandoning ship for the company whose clubs he has periodically used anyway.  Cally can't let that happen. 

 

For better or worse, both parties have to "dance with the guy whut brung ya" a little while longer.