Refund Money Monday at Golfsmith
Just because The Masters only has three official sponsors, doesn't mean brands can't find a way to tap into Augusta with a clever promotion. It might cost them, however.
Golfsmith and Callaway which ran the "If Phil Wins, You Win" campaign will pay out more than $1 Million in free drivers thanks to Phil Mickelson's efforts this past weekend. The promotion: anyone who bought a driver in March or April leading up to the event gets their money back if Mickelson, which Golfsmith sponsors, wins at The Masters.
For a company like Golfsmith which expects to do $63.8 mil in rev last Quarter, one might think that this would be a big hit to the bottom line, but the company had insurance for the promotion which means they will like end up paying less than $50K according to CNBC's Darren Rovell.
Despite the payout, investors seem to approve of the campaign. The small cap stock, which has already doubled since January, is up 6% on the day.
Golfsmith CEO Marty Hanaka says they're already looking at a similar promotion for the U.S. Open in June.