Only a matter of time before PGA Tour prize money declines

I was watching about a half hour of the Buick Invitational this afternoon before falling asleep on the couch. I’m sorry, I have a hard time getting into an event with no real big names (sorry Camilo, you’re not an A-lister yet) dueling it out, although Torrey Pines and the San Diego coastline looks splendid on HD.

Everyone hoped native Phil Mickelson would redeem himself at Torrey Pines after his U.S. open fiasco a season ago. But this week, he never threatened, finishing 42nd. Padraig Harrington was another big name to watch, but even though he’s been the best player in majors the last two years, he never really fares well at regular PGA Tour stops. The last time he won a non-major in the U.S. was the 2005 Barclays.

And despite Tim Finchem asking players to play in more events this year to appease the sponsors, some of these fields early on are just too weak still. I’m convinced after years of regular growth in purse sizes on tour, we could start seeing a decline.

Consider these staggering stats: the 1989 PLAYERS CHAMPIONSHIP winner took home $243k, the 1999 winner took home $900k and last year’s winner took $1.71 million.

That’s just crazy (and we can probably conclude Tiger-injected). According to PGATour.com, the purse size this year is exactly the same as last year (sometimes the championship raises the purse each year, in others it’s stagnant for three consecutive).

But I have a pretty hard time seeing the purse get any higher than it’s current $9.5 million cash grab, considering how much money is leaving the banking and auto sectors, two of golf’s top sponsor industries. And with government bailout money going into many of these companies, it’s being considered a frivolous waste by sponsoring events. Just look at the press and politicians last week skewering Bank of America for it’s Super Bowl Fan Fest tent - a move the bank says actually makes them money in the long haul. If that’s going to be the common public outcry so long as tax money funds these businesses, expect a little upheaval every time a bank sponsors a PGA Tour event in the coming year. I can see the headline: “Failed bank Wachovia sponsors $6.5 million golf tournament with your money, hosts posh executive parties” all over the news later this summer.

Pretty soon these companies may not even be able to advertise…

So if the PGA Tour wants to keep a full roster of sponsors (which is already proving difficult after U.S. Bank dropped it’s sponsorship of their Milwaukee event), purse sizes may need to retract. Win one event these days (not even a major even) and you’re set for life. I think purses are a bubble about to burst, and we could see more tournaments in the $3-4 million range, with winners in the $600-700k - not the $900k to over $1 million it is now. Actually, I think all pro sports may finally see salaries start to top out and even decline a little. No one’s going to be touching A-Rod’s record $250 million deal for at least another decade or two.

But when purses start to drop, after the initial shock and outcry, it might actually be a good thing in the long run for the tour, because then players might have to play in more events in order keep their wallets nice and fat - so TV and the fans win.