Arnold Palmer was one of the best golfers of all time. But he was also one of the best marketers of all time.
In his lifetime, he earned nearly $7 million on the golf course. Off of it? He made at least 50 times that.
Without Arnold, and his agent Mark McCormack, Michael Jordan — who often gets credit for being the father of modern day sports marketing — would never had been Michael Jordan.
Corporate America was ready to turn MJ into what he became because 30 years before Arnie was doing it.
It was because Arnold was so good — his smile in print, his convincing tone in commercials — that companies continued to align with athletes.
The ultimate testament to Palmer being the best? When his deals were up, competitors would pay more. A deal for Quantas airlines turned into a new one for United. A deal with Holiday Inn morphed into a bigger deal with upscale Westin. A tractor deal with a brand Bolens wasn’t renewed because Ford Motor Company paid him more to endorse their cars and didn’t want him competing with their tractor division.
In 1967, Arnold Palmer’s appearance fee was $7,500 and his deal with Coca-Cola was $15,000.
Palmer deftly navigated the world of appearances and endorsements so well that his rates went up — and they were pushed by McCormack, who founded the agency IMG — the guys that followed him had a greater starting point. Just like on the golf course.
Today, when athletes turn pro, they — or their agents — trademark their name. Palmer trademarked his name, and that umbrella, in 1968.
His versality also gave companies in almost every sector that sports marketing could do wonders for them. He endorsed Heinz ketchup on a steak, L&M filter cigarettes, Allstate insurance, Pennzoil motor oil, cardigans, dinner jackets and even Japanese robes.
That confidence didn’t exactly exist when Palmer signed a deal in 1959 with Wilson that provided that should Arnie give up golf, he’d actually have to return the clubs they gave him.
Arnold Palmer didn’t just pave the way and yield to today’s stars. He never stopped marketing.
In the past 16 years, the value of his name was proven once again, as he was able to capitalize on the iced tea/lemonade combination that bears his name.
Palmer’s name had been attached to the concoction since the late 1960s, but through a partnership with a company called Innovative Flavors and Arizona Beverage Company, Palmer capitalized on the drink.
In 2010, it hit $100 million in annual sales. In 2015, it hit $200 million, singlehandedly eclipsing sales of the diet version of behemoth Snapple.
In the coming hours and days, it will be impossible for many to downplay Palmer’s contribution on the golf course. What’s remarkable is that his contribution off of it might be more of a lasting legacy that what he ever did with a club and a golf ball.