US Markets
Wednesday, November 22nd, 2023 7:37 pm EDT
Key Points
- Sponsorship Deal Details: Goldman Sachs had a three-year sponsorship deal with professional golfer Patrick Cantlay, signed in 2020, paying him a minimum of $1.1 million annually. The contract included performance bonuses for major victories and maintaining a top ranking. The bank opted not to renew Cantlay’s sponsorship in 2023, aligning with its broader retrenchment from retail banking activities, which included shutting down a personal loan unit, abandoning a planned checking account, and divesting businesses.
- Change in Branding and Financials: Initially, Cantlay wore a cap featuring the bank’s Marcus brand, which was later replaced by the Goldman Sachs name, reportedly influenced by the bank’s president, John Waldron. The initial deal was considered relatively modest for a Top-10 ranked PGA golfer, reflecting Cantlay’s rising brand value at the time of signing. However, the renewal in 2023 saw Cantlay receive a significantly higher payment. Although financial details were not disclosed, CNBC sources indicated that Cantlay earned over $1 million annually under the sponsorship. Cantlay has earned more than $42 million in official competitions since turning professional in 2012, according to the PGA Tour.
- Goldman Sachs’ Sponsorship Strategy and Retrenchment: The decision not to renew Cantlay’s sponsorship aligns with Goldman Sachs’ broader strategic shift away from retail banking initiatives. The bank, under CEO David Solomon, responded to pressure by ending its money-losing retail banking effort, shutting down specific units, and selling off businesses. Despite the end of the sponsorship on Cantlay’s headwear, he continues to appear as a brand ambassador on Goldman Sachs’ website, alongside other athletes and teams, such as LGPA golfer Nelly Korda and McLaren’s Formula 1 racing team. Goldman Sachs declined to comment on the financial aspects of the sponsorship.
Goldman Sachs paid professional golfer Patrick Cantlay over $1 million annually as part of a sponsorship deal linked to the bank’s consumer-banking efforts, according to CNBC sources. The three-year deal, signed in 2020, included a minimum annual payment of $1.1 million, with additional performance bonuses for major victories and maintaining a top ranking. However, Goldman chose not to renew Cantlay’s sponsorship this year, aligning with the bank’s retrenchment from its retail banking push. After discontinuing its money-losing consumer banking efforts, Goldman closed a personal loan unit, canceled a planned checking account, and divested businesses.
The sponsorship deal initially featured Cantlay wearing a cap with the bank’s Marcus brand. Subsequently, the cap was changed to feature the Goldman Sachs name, reportedly due to the bank’s president, John Waldron, being a fan of the sport. While the first deal was considered relatively modest for a Top-10 ranked PGA golfer, the renewal in 2023 saw Cantlay receive a significantly higher payment, reflecting his increased brand value as his career progressed. Since turning professional in 2012, Cantlay has earned over $42 million in official competitions, according to the PGA Tour.
Goldman Sachs declined to comment on the financial details of the sponsorship deal, and Cantlay’s representative Molly Levinson also refrained from providing comments. The bank’s spokesman, Tony Fratto, mentioned that the firm constantly evaluates partnerships and confirmed that Goldman’s logo would no longer appear on Cantlay’s hat. Despite the end of the sponsorship on his headwear, Cantlay still appears on Goldman’s website as a brand ambassador, alongside LGPA golfer Nelly Korda and McLaren’s Formula 1 racing team.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/22/goldman-sachs-patrick-cantlay-pay.html
