Gareth Maybin has agreed a sponsorship deal with sports risk advisory Sportsrisq Capital that includes bonus payments of up to $50m.
On the face of it, it looks like a massive deal but to earn the big bucks, the 30-year old Ballyclare golfer would have to produce a series of performances worthy of Tiger Woods at the very height of his powers - multiple major wins, PGA Tour wins, money list victories and so on.
Sportsrisq Capital’s business is to insure contracts so that companies do not have to bear the full brunt of the massive add-on bonuses they could be liable to pay in the event of a sports figure or team having a bumper year.
The important bit of news is that Maybin is considered a good enough prospect that he has picked up a new sponsor at a time when many of his rivals are struggling to keep theirs.
His main ambition is to win his first European Tour event - guaranteeing him a tidy bonus from his new sponsors - in his third full season on the circuit.
He has three runner up finishes to his credit in his first two years but some recent struggles in Sicily and Spain have forced him to step back momentarily and withdraw his entry for this week’s Hassan II Trophy in Morocco.
While he was fifth in his third start of the season in the HSBC Abu Dhabi Championship and 22nd in the Avantha Masters last month, Maybin missed the cut in the inaugural Sicilian Open two weeks ago after rounds of 71 and 79 and also failed to make the weekend in the Open de Andalucia last Friday, when he added a 77 to his opening 68.
Rather than heading to Agadir, he decided it was better to head home to work on his game with his coach and recharge his batteries for the upcoming events in Asia, when the European Tour visits Malaysia, China and Korea.
As for his new sponsors, John Nagle, Managing Director at the London based company said “We’re delighted to be backing such a promising golfer as Gareth. He has the potential to be a major force on the tour for years to come and we’ll hopefully be along for the ride.”
The eye-watering bonus structure is made possible because of Sportsrisq’s expertise in pricing performance. Nagle said “We were able to leverage that to create and manage the bonus structure. All the risk is placed through our risk capacity partners so we can cheer on Gareth without worrying about the huge liabilities.” While the exact details of the structure are confidential, it is primarily based on tournament finishing positions and The Race to Dubai rankings. A cumulative effect would trigger the $50m payout.
Bonus structures are an integral part of most sports sponsorship deals. With the Maybin deal Sportsrisq was able to showcase their product in a way that was both relevant and easy to understand. “Our clients are sponsors and agencies so this is a great way to show the possibilities of what we can do. At the same time we’re demonstrating our commitment to professional sport by becoming a sponsor. We’ll continue to explore innovative sponsorship opportunities as we grow.”
Conor Ridge of Horizon Sports Management, Maybin’s management company, said “The Sportsrisq deal represents an exciting, new type of sponsorship deal that both Gareth and Horizon are proud to be involved with. Gareth doesn’t need any more motivation but the prospect of $50m certainly won’t hurt!”