Apr 12, 2010 at 07:44 PM
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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.