The details
The sponsorship agreement with the city ends following the fifth year of the tournament in May 2025. Council members expressed support for an initial proposal to extend the sponsorship agreement until 2033.
The extended agreement would include an increased cost of $425,000 annually for the combined city of McKinney and McKinney Community Development Corp. sponsorship, and would include continued complimentary police and fire services, according to the presentation. If approved by its board, the annual sponsorship from the McKinney Economic Development Corp. would also increase in cost to $285,000 annually, according to the presentation.
Tournament officials also requested a total of $2.5 million in infrastructure grants that would be used on the grounds at TPC Craig Ranch, the venue for the tournament.
The sponsorship agreement is dependent on an agreement extension between the Professional Golfers' Association tour and the Salesmanship Club of Dallas, the host organization of the tournament, Assistant City Manager Steve Tilton said at the meeting. A formal sponsorship agreement is expected to be presented to council members for consideration at a future meeting, Tilton said.
How we got here
The tournament, a stop on the Professional Golfers' Association tour, has been held in McKinney since 2021.
City officials, as well as the McKinney Community Development Corp. and the McKinney Economic Development Corp., executed sponsorship agreements for the tournament in 2020. Since that time, the McKinney Economic Development Corp. has amended its sponsorship agreement twice to increase its sponsorship level, according to a presentation at the meeting.
The sponsorships include hospitality suites and tickets for city officials, as well as complimentary police and fire services for the tournament, according to a presentation at the meeting. The city and the MCDC’s combined sponsorship agreement totals $400,000 annually, while the MEDC sponsorship agreement totals $250,000 annually, according to city documents.
Also of note
The five-year sponsorship agreement for the tournament has cost the city nearly $8 million and generated about $4.1 million in direct tax revenue.
During that time, the event has generated over $136 million in economic impact, according to the presentation.
If the sponsorship agreement is extended, the eight-year agreement would cost the city about $14.2 million and would be expected to generate about $280.5 million in economic impact, according to city documents.
What they’re saying
Council member Patrick Cloutier, who represents District 2, where the event takes place, expressed support for the agreement extension.
“This seems like a very good opportunity for us to get a longer term commitment and continue to have the roots of this tournament planted here in McKinney,” he said.
Council member Geré Feltus said the tournament has allowed for city leaders to interact with businesses and individuals from across the world.
“I hate a missed opportunity, and I think [what] this tournament provides us is opportunities that are endless to make our city better,” Feltus said.
