April 2003 - Cherish Heritage by Wendy Scott Walking alongside your favorite professional golfers as they traverse the meticulously manicured fairways of Harbour Town Golf Links this month may be a stroll in the park for spectators, but for some it will be the first chance in nearly a year to let out a sigh of relief and begin the descent from an uphill battle that kept The Heritage golf tournament alive on Hilton Head Island. The battle began last July when the Heritage Classic Foundation, the charitable organization that hosts the tournament under the auspices of the PGA TOUR, made the painstaking decision to drop WorldCom as its longtime title sponsor just two days before the telecommunications giant filed for bankruptcy.

The decision left tournament officials scrambling for a new sponsor and little time to regroup. But with help from the community, and almost $2 million from the Town of Hilton Head Island, the tournament will go on as scheduled, April 14-20. The tournament matters One of 45 tournaments on the PGA TOUR, The Heritage, previously dubbed the WorldCom Classic – The Heritage of Golf, has been held at Sea Pines since 1969 and attracts some of the world’s top golfers. It also attracts tens of thousands of visitors to the island for the week-long event, brings more than $60 million in revenue to the area, and creates about 1,000 local jobs and 1,000 statewide jobs. The foundation already had four-year contracts in place with CBS, Sea Pines, and the TOUR to continue to host the tournament through 2006, so losing a title sponsor late last year put the tournament’s future here in jeopardy. “The PGA TOUR could reasonably cancel the tournament and never have it here again. There are plenty more golf courses out there,” said Tournament Director Steve Wilmot about facing the foundation’s unsettling reality. The foundation was forced to restrict its charitable contributions last year, keeping $500,000 in a reserve account to help get through this year. Although donations last year totaled more than $600,000, the amount was significantly less than the previous year’s record amount of more than $1 million. In all, the foundation has donated more than $8 million since it was formed in 1987. “Our goal this year is to get back on track,” Wilmot said. “This is our bottom line. It’s why I do what I do and why the foundation does what it does: charity.”The community steps up Mayor Tom Peeples heard about the problems and devised a plan that would provide $1.8 million for the tournament, rally the community’s support and relieve some of the pressure on the foundation. “The town’s decision to step in was the most important thing that has happened to the tournament since WorldCom,” said Joseph B. Fraser, chairman of the foundation. “Mayor Peeples literally saved the day.” The mayor announced his plan last August, and an ordinance to provide the funds was unanimously approved by Town Council within a month. The ordinance increases the town’s tax on prepared foods and beverages from one percent to two percent, or two cents per dollar. With the state’s five percent sales tax and the new fee in place, the overall tax on a meal will increase from six percent to seven on the island. The state allows a hospitality fee to be imposed up to two percent to promote tourism or service tourists while they are visiting. The Town of Hilton Head enacted half of the allotted tax four years ago as a public safety fee that provided emergency services needed to keep up with increases in tourism. Until now, there was no need to ask for another one percent. Monies from the tax were not to be collected until April 1, giving the foundation time to get a title sponsor for this year’s tournament with a secure back-up plan in place. The mayor’s plan to mobilize the community resulted in an extensive list of local businesses large and small, as well as volunteers, pitching in to help. “It’s our whole community coming together,” Peeples said. More companies than Wilmot could name offered free services and reduced pricing for countless tasks like printing programs, entertaining and housing guests, and helping with logistics. An outpouring of volunteers agreed to help reduce tournament costs by paying $65 for their uniforms in exchange for their time and a few perks. “We can’t do it without the volunteers, Wilmot said. “It’s nice to know they’re out there for us.” And the charities are glad the foundation is there for them. Each year the foundation awards about $140,000 in scholarships for 11 Beaufort County high school seniors. They also have donated funds to Boys & Girls Clubs, Volunteers in Medicine of Hilton Head, Hilton Head Hospital, the Self Family Arts Center of Hilton Head (Arts Center of Coastal Carolina), the Medical University of South Carolina College of Nursing in Charleston and the Technical College of the Lowcountry. Rich rewards The town agreed to give $1 million to the foundation for the purse and other tournament operations and to purchase $800,000 in TV spots that will showcase the island to national and international viewers during 10 hours of coverage. The town will receive extensive television exposure. Its Chamber of Commerce tourism logo will flood homes in hopes visitors will soon flock to the island, providing sizable returns on the initial investment. Wilmot said returns previously exceeded $3 million. Although undoubtedly helpful, the town’s gesture falls short of its predecessor’s commitment. Tournament officials agreed that dropping WorldCom was a good business decision, but realized that the sponsor of 16 years would not be easily replaced. Because of the tournament’s worldly exposure, the list of qualified corporate sponsors is limited to those with a vast base of products and services that appeal to a wide audience. Otherwise, spending more than $3 million in advertising would be futile, Fraser explained. Although he called WorldCom an “ideal” sponsor, Fraser noted companies like Coca-Cola and Sprint would also be apt candidates. With the economy on a downward slope and the market flooded with major corporations recovering from bankruptcies and corporate fraud last summer, the foundation faced further road blocks. Big spending was being keenly guarded, and even stable corporations seemed unlikely sponsor candidates because it was too late in the fiscal year to ask for such a large commitment. The threat of war looming also has hindered the opportunity to secure a title sponsor, both for this year and for the future. “Major companies are on hold right now with the cloud of war in Iraq over our heads,” Fraser said. Of more than 100 companies contacted through telephone calls and networking with clients, Wilmot said only six corporations– including some international companies– have shown serious interest in sponsoring The Heritage tournament, but none secured the role until last month. Hope on the horizon. On March 10, the foundation signed a four-year contract with a new title sponsor,which at the time of this writing had not yet been identified by tournament officials.The foundation was in negotiation with the corporation for “quite a while” before signing the contract, according to Wilmot.Local news media reported on March 8th at rumors circulating around the island business community indicated that MCI was making a comeback as title sponsor,but Wilmot declined to confirm the rumor.He previously said the foundation would consider rekindling its relationship with MCI but not without proper assurances that the company is back on solid ground. Wilmot added that the new title sponsor originally was interested in being a hospitality sponsor, but through negotiations, the deal escalated into a full contract with a commitment of $20-25 million over the next four years.“We’re looking forward to working with this company for the next four years and hopefully much longer than that,” he said“This is a company who wants to come here and entertain clients. That’s what we’re looking for.”While the title sponsor will be taking over financing the tournament,the town’s presence will be kept prominent throughout the next four years. The town’s logo will get as much exposure at the tournament as originally promised, including television commercials to be broadcast this year through 2006 at no charge to thetown. At the time of this writing, the foundation planned to thank Town Council for the hospitality fee that was instrumental in moving forward with this year’s tournament and explain that the tax would no longer be needed.“The town will reap the benefits all the way,” Wilmot said.“The economic impact is going to be significant, and we’re excited about it.” Tee time, at last The tournament kicks off with a parade and opening ceremonies Monday, April 14, at noon at Harbour Town. Spectators can expect to see what Tournament Information Director Arnie Burdick calls a “sprinkling of the top shot makers from all over the world.” The total purse is set at $4.5 million, with a winner’s share of $810,000, according to the website. Tournament badges are currently on sale at The Heritage headquarters in Sea Pines Center. Individual tickets range from $40 for access to the practice rounds and Pro-Am tournament to $150 for clubhouse and Heritage pavilion access. The tournament will be broadcast live Thurs.-Fri. On USA from 4-6 p.m. and Saturday and Sunday on CBS from 3-6 p.m. For more information, call 1-800-234-1107 or (843) 671-2448.