Keeping It to the Fairway - Harvard Business Case

Keeping to the Fairway

The Keeping to the Fairway case study is a complex situation that needs to be handled in the correct manner. At issue, is whether or not a company named Pace Sterling should proceed with their sponsorship of a Champions Tour golf tournament. The reason why their support is being questioned has to do with the host golf club’s (Dover Hill) membership policies. Dover Hill has been around for a hundred years and is a male only membership club. The WRO or Women’s Rights Organization has been pressuring the Dover Hill golf club to change their membership policies regarding women for years. Since nothing has been done they are now challenging the Champions Tour to stop holding their most prestigious golf tournament at Dover Hill. As a result, sponsors of the tournament such as Pace Sterling must decide if they want to continue their sponsorship amid this ongoing dispute. Cases can be made for both continuing and discontinuing the sponsorship and both options will be presented in the following report. Following the evaluation of both views, a recommendation will be given as to what Pace Sterling’s decision should be considering the evidence that has been presented.

Reasons Why They Should Continue to Sponsor the Tournament

• A good long lasting sponsorship of a top event is hard to find and always has its benefits. You can really build your brand with a good sponsorship through high profile recognition.

• 12 years is a long time to have a sponsorship and it will be hard to replace. The familiarity that has been gained through the two parties will be hard to rebuild with a different sponsorship.

• It’s hard to find events that offer the same ability to entertain clients. By taking clients and fellow employees to this event important relationships can be made. Personal time can be had with the client in a grandeur setting with the Pace Sterling logo taking centre stage. It is obviously a huge attraction for clients, as it was stated that each year there is a fight to get the tickets that are put aside for the company.

• The WRO is making a big deal over what many people feel is a non issue. Dover Hill was built in 1936 and has had the same membership policy regarding women the whole time. It has only now become a huge issue because some women feel slighted by the rule.

• Legally Dover Hill has done nothing wrong and its choice to be an all male golf club should be respected. It is the members own choice how the membership and the rest of the club are run and if they choose to be an all male club then so be it.

• The demographics of the tournaments viewers fits perfectly with Pace Sterling’s brand and the company could market themselves to a group with real customer potential.

• Pace Sterling have many female customers that they reach through other sports and cultural sponsorships. Many probably aren’t even aware of the problem now, except for dedicated followers of the WRO.

• To pull out now would seem hypocritical considering they have sponsored this event at Dover Hill for many years. They have always been aware of the membership rules in the past and it was never a problem. It’s hard for a company to change its focus every time a different group has another complaint.

• How fair would it be to the Champions Tour and Dover Hill to pull out now and leave them in a difficult situation? After such a long successful relationship it would be hard to cut ties so quick and without consequence.

Reasons Why They Should Discontinue the Sponsorship

• By associating themselves with what some feel is a sexist organization, Pace Sterling would basically be saying something about their own beliefs. This could alienate many customers and potential clients.

• Clients might not even want to go to an event with so much controversy built into it. Every Clients decision to attend can affect their companies or image as well.

• The company’s reputation could take a serious hit with all the media scrutiny that would surround it. It would be much easier to answer why the sponsorship was discontinued compared to why it was maintained.

• Times have changed quite drastically from the