A Diversified Life : Palmer Is Into About Every Business That Interests Him--and Fits His Image
Keeping up with golfer-business executive Arnold Palmer today is like trying to catch Carl Lewis from behind. Even Palmer’s closest associates can’t keep up all the time and they travel with him on his private jet. Alastair Johnston has a bigger handicap. He’s based in Cleveland and flies commercial.
Johnston, 36, is senior vice president of Arnold Palmer Enterprises and, at the same time, a senior vice president of Mark McCormack’s International Management Group (IMG). Understandably, the two jobs complicate his life.
Simply put, Arnold Palmer Enterprises is the umbrella company responsible for every commercial use of Palmer’s name and IMG is paid a percentage of its income for managing it as an independent company. McCormack is an Arnold Palmer Enterprises stockholder.
While he has other IMG responsibilities, Johnston said, “Arnold Palmer Enterprises takes up 120% of my time.”
Such companies as the Palmer Course Design Co. and Arnold Palmer Golf Management Co. are divisions of Arnold Palmer Enterprises, but others such as Palmer’s aviation and real estate companies and his automobile dealerships are not. “He has lots of business entities established independently,” Johnston said.
Here is a partial list of Palmer’s interests:
--The Palmer Course Design Co. designs, builds and manages golf courses all over the world, including South Korea, Japan, Ireland and China. Currently, the company has 53 contracts to construct new courses or redesign old ones. The Palmer name is on courses in 21 states, and he is building one for himself in Orlando, Fla.
--Arnold Palmer Motors operates three dealerships--in Orlando, Charlotte, N. C., and Latrobe, Pa. He sells Cadillacs, Pontiacs, Buicks, Oldsmobiles, Mercedes-Benzes and Jaguars.
--He is the sole owner of the Latrobe Country Club and a part owner of the Bay Hill Country Club and Lodge in Orlando, where he also owns several condominiums and is building some new ones.
--He is the largest stockholder in the Arnold Palmer ProGroup, a golf-equipment company.
--He has clothing contracts with Sears and Robert Bruce in the United States and two major companies in Japan.
--Through the Arnold Palmer Aviation Co., based in Latrobe, he operates three planes for owners in Utica, N. Y., Atlanta and Akron, hiring the pilots and crews and handling all schedules, service and insurance. He also owns a fixed-base operation, the Arnold Palmer Air Service, in Latrobe.
--He endorses products, or is a corporate spokesman, for such major companies as Pennzoil, Paine Webber, Hertz, United Airlines, Lanier business products, Toro golf-course equipment (his golden retriever, Riley, assists him in one Toro commercial), Rolex watches and Sears.
--He is now in the banking business, having recently acquired one in Carmel, Ind.
With his business interests and tournament schedule of 20 to 25 a year taking so much of his time, Palmer has cut back on VIP outings. A day with Arnold Palmer--”If you can get one,” said Doc Giffin, his administrative assistant--would cost about $25,000 to $30,000. For that amount he will hold a press conference, attend a luncheon, give a clinic and play nine holes with a couple of foursomes.
Johnston’s job is to try to make some sense out of all these things and fit them into his schedule which, of course, is the hardest part. “It is a major exercise to schedule his time,” Johnston said.
Palmer has been building golf courses for 20 years and estimates that he has built about 100. “I enjoy building them,” he said, “and I’m getting more involved all the time.”
The average fee for a Palmer course is $325,000. “We get $25,000 up front,” he said. “For that they get the plans, then we build them a course.”
If Palmer has second thoughts while building a course, he said, “I change things now. I don’t like to rebuild a course after it is finished.”
Ed Bignon, director of operations for Palmer’s course management company, said: “I tell our clients if Arnold makes changes, we eat the expense; if you make changes, you eat it.”
Tax and legal implications of contracts aside, the thing Johnston and Palmer worry about the most is the Arnold Palmer image. “We have to keep that in mind at all times,” Johnston said. “He is very much concerned about his image. We turn down things that he feels do not suit his style.”
Palmer has a hearing problem and wears contact lenses, but Johnston said he doesn’t endorse hearing aides or lenses because he doesn’t think they fit his image. One product he does endorse and use: Rolex watches. “They fit his image,” Johnston said.
Palmer merely lends his name to some products, endorses others and serves as corporate spokesman for some companies, such as Paine Webber. The Palmer logo, a golf umbrella, has become famous as a symbol of value and quality, Johnston said.
Palmer, by all accounts, is enormously wealthy, but Johnston rejected requests to estimate it. “We try to downplay his income,” Johnston said. “It has a negative connotation.”
The truth is, Palmer is a conservative fellow with conservative tastes. He does not flaunt his wealth. His offices and homes are rather modest considering his income, and he can defend the use of a company jet or helicopter or limousine as a necessary business tool as credibly as Lee Iacocca. Few executives have more demands on their time.
To Johnston, Palmer’s modest style is one of the unappreciated secrets of why he is so popular. Besides, to focus on how much money he makes would not fit Arnold Palmer’s image.
KEEPING UP WITH ARNIE
To keep up with Arnold Palmer, one needs a private jet, a helicopter, a pair of track shoes, the stamina of a marathon runner and the ability to go long hours without eating or sleeping. Asked to describe a typical Palmer schedule, Doc Giffin, his administrative assistant, submitted one that did not leave Palmer time to mow the lawn or carry out the garbage. Here’s how it went:
MONDAY, SEPT. 10--Flew to Charlotte, N. C., from Latrobe, Pa., to play in, and serve as host for, the World Seniors tournament. Was guest at dinner party that evening.
SEPT. 11--Did promotional work most of morning for the March of Dimes. Practiced in afternoon.
SEPT. 12--Practiced.
SEPT. 13-16--Played in tournament and visited with guests of Pennzoil, one of his commercial sponsors, and Arnold Palmer Cadillac, one of his auto dealerships.
SEPT. 17--Worked in Latrobe office until 10 a.m. Attended press conference to publicize plight of a local youngster who required a kidney transplant. In afternoon and evening, played golf and attended reception and dinner for Arnold Palmer Motors Day, a charity affair to raise funds for the Community Chest.
SEPT. 18--Flew from Latrobe to Charlottesville, Va., to discuss new golf project. At 1 p.m., stopped in Williamsburg, Va., to inspect new course. At 3:30, discussed new nine-hole addition at the Gainesville Country Club in Florida. Held evening meeting in Orlando to discuss Isleworth, a course he is building near his Bay Hill club.
SEPT. 19--Worked on general business in Bay Hill Country Club office. In afternoon, flew to Wichita to meet with Russell W. Meyer, chairman of Cessna Aircraft Co. Flew to Denver later in the day.
SEPT. 20--Using helicopter, visited three courses he is building in the Denver area. Then flew to Phoenix to review 36-hole project in Glendale, Ariz. Stay overnight in Phoenix.
SEPT. 21--After breakfast meeting in Glendale, flew to St. George, Utah, then to Palm Springs to visit two more of his courses. Stayed overnight in Palm Springs.
SEPT. 22--Did photo session for Hertz in Los Angeles, then played 18 holes at the Bel-Air Country Club with Jack Lemmon.
SEPT. 23--Held two meetings at L.A. airport hotel to discuss Rancho California-Waker Basin golf project.
SEPT. 24--Flew out of LAX for Tokyo.
In Japan for a senior tournament, he also did two days of photo sessions for Renown, his biggest Japanese licensee, attended a private business dinner, did a major television interview and played in a pro-amateur event for the U.S. military. Leaving Tokyo on Sept. 25, he returned to Latrobe for one day before flying to Maine for another senior tournament.
