The PGA Tour has sued Ginn Resorts citing breach of contract because the real estate company dropped sponsorship of the Champions Tour Ginn Championship. Ginn said late last year that it was dropping the PGA Tour's sur Mer Classic because of the ailing real estate market. PGA Tour spokesman Ty Votaw said the tour was not given advance notice Ginn was going to pull out of its Champions Tour event, which was scheduled for April, and sued to recoup money and other benefits that were included in existing agreements.
But more than an actual attempt to collect anything from Ginn, I believe the suit is more of an admonition to other companies that have sponsorship contracts for PGA Tour, Champions Tour and Nationwide Tour events. If Ginn is in the dire straits it is claiming, there may be nothing to collect. But the tour likely envisions other companies struggling in the recession will attempt to renege on their commitments to the tour in increasing numbers, and the tour wants those companies to know it will not allow them to back out of agreements without recourse. This probably won't be the last lawsuit the tour files against a company for breach of contract.
