Finchem said the Tour has cut travel, entertainment and other costs in trying to add to its reserves during a tough economy.
Layoffs, weve been able to avoid to date, he said at the Chevron World Challenge after having lunch with host Tiger Woods.
Weve stopped short of saying, One of the ways were going to tighten our belt is to take some percentage of people and rationalize why they shouldnt be part of the organization, he said. At least at this moment, were protecting ourselves financially.
If there are to be job cuts, Finchem suggested it might be through attrition.
Our strategy is to look carefully at people, he said. If theres an opportunity here or an opportunity there to combine jobs, well do that. Were not going to take a Lets cut 10 percent of our work force attitude.
Finchem said he sent a five-minute video to players and their agents, asking them to consider playing a few more tournaments and taking an extra step to make sure the sponsors get their value. He referred to it as a reminder, saying most players already do that.
But he was concerned about the automakers crisis, particularly in the United States, because Buick sponsors two PGA Tour events and Chrysler is a sponsor of another. Buick already has agreed to end its endorsement with Woods one year early.
The Tour is fully sponsored for next year, with a slight increase in purses, although Finchem expects charity donations to drop next year. He said the tour has planned for such economic times, which he said any U.S. business can expect every four to five years.
Were not just focused on how we deal with next year, Finchem said. Were focused on coming out of this cycle in a very strong position to take advantage of the up cycle, and weve got to be careful that we dont do things just to make us feel good about the way were cutting costs.
Finchem said the Tour will add some $3 million to its operating reserves through reduced spending, and he referred to the 2008 season as a solid financial performance.
He would not have guessed that with Woods not playing after the U.S. Open because of season-ending knee surgery, or going up against the Olympics in August. Even so, I doubt well sustain that in 2009.
Well take our hits. Theres no question about that, Finchem said. Hopefully, those hits wont derail us from delivering the product to the public and maintaining our charitable base.