Will the Houston Open survive without a title sponsor?

The Houston Open is the latest PGA TOUR event to lose its title sponsor. Will the tournament continue its 70-plus year run going forward?

The Houston Open is one of the longest-tenured events on the PGA TOUR schedule. However, there’s something missing this year. It’s not lacking for stars, with the likes of Phil Mickelson and Jordan Spieth teeing it up ahead of the Masters. It’s the sponsor – formerly the Shell corporation – and, unfortunately, the finances that come with it.

Now, with the 2018 event underway, the question is simple. What will happen in 2019, and beyond?

The good news is that, for the moment at least, there isn’t a sense of impending doom, at least to outside observers. According to Houston Golf Association Steve Timms, tournament director and CEO of the Houston Open, they used Shell’s advance departure notice to get their accounts in order.

"“We’ve been smart with our funds,” Timms told the Houston Chronicle. “We’ve built up our reserves. We can get through a rough patch, weather the storm. These are times when you’re really proud of fact you’ve been fiscally responsible and have a strong board of directors, and a strong, experience staff. We’re optimistic and determined.”"

As much as that helps, the fact remains that Houston’s economy still hasn’t fully recovered from the damage that Hurricane Harvey wrought on the area last August. Timms understands that as well as anybody, but he also knows that Houston’s energy-centric business base will need time to get back into spending mode.

The Houston Open isn’t alone in its sponsorship woes

While Timms and the rest of the organizing board remain confident in Houston’s ability to survive without a title sponsor, at least in the short term, they aren’t the only ones looking for corporate backing.

The Fort Worth Invitational at Colonial just lost Dean & Deluca two years into a six-year agreement. In addition, Tiger Woods’s event, currently known simply as The National, lost the backing of mortgage giant Quicken Loans.

Colonial has received sponsorship money from several Dallas-Fort Worth area companies, including American Airlines, but none have committed the capital to pay for name rights. The National, thanks to its affiliation with the Tiger Woods Foundation and TGR Live, won’t likely hurt for sponsor dollars for long. Still, even Tiger can’t keep things going forever by himself.

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While I certainly wouldn’t expect any of these events to fall into extinction, the golf business is finicky. There has to be a return on investment, and sponsorship is a luxury many companies can’t justify right now.

"“Sponsorship changes are inherent on the Tour,” Timms said. “They’ve almost always had several tournaments looking for title sponsors. We didn’t have to deal with it for a long time. We were fortunate with Shell. Now, we remain confident we’ll find a replacement. Conversations are ongoing. But this is big decision for a company to make.”"

The PGA TOUR, of course, doesn’t want that to happen, either, but there doesn’t seem to be much they can do, at least in an active sense. The TOUR has always made it clear that they’re little more than an organizing board. While that can mean big bucks for successful events, it’s a huge risk. Secure a big sponsor and a star-studded field, you’re good to go. Fail to do either, and you face a tough road forward.

Next: Breaking down the Masters betting odds

The PGA TOUR has prided itself on the legacy of long-lasting events, and few can stand up to Houston in that respect. It’s too good of an event, even if it loses its place as the Masters lead-in, to go away. With any luck, corporate sponsors see it the same way as the rest of us, saving a classic event for years to come.