RBS ends sponsorship of The Open

The company said it arrived at a "natural break" point in its commercial ties with the R&A, the event's organisers, and stressed economic circumstances were not the main reason for the decision.

However, RBS is to continue its sponsorship of the US Open and its longstanding relationship with Jack Nicklaus, for which it pays the winner of 18 major championships an annual retainer worth a seven-figure sum.

The company said it would be "unfair" were it to be criticised for ending its deal with The Open, yet continuing to sponsor its transatlantic equivalent, pointing out that they were "separate" contracts.

The decision, reached by mutual agreement with golf's governing body, brings to an end the bank's role as patron of The Open, which began in 2002. RBS's "mutually beneficial" relationship with the R&A goes back more than a century, and it will continue to be the group's banker.

Andrew McLaughlin, head of communications at RBS, said: "It is now time for us to step aside from our involvement as a patron of The Open Championship and we wish The R&A well in the continued development of one of the world's major sporting events."

The end of the deal, the financial arrangements of which have not been disclosed, represents the latest step by RBS to downsize its sponsorship interests across major sporting fixtures and arts events, such as its decision to withdraw from F1 from the end of this season. As reported in The Scotsman yesterday, there is uncertainty over whether RBS will continue its sponsorship of free entertainment on Edinburgh's Royal Mile during the Fringe.

Its ties with golf have been a cornerstone of the bank's international brand building in recent years. In 2004, it issued a special 5 note commemorating the 250th anniversary Royal & Ancient Golf Club of St Andrews. The following year, it released a Jack Nicklaus 5 note. Last year, however, it ended its sponsorship of golfers Luke Donald and Paula Creamer, as well as scrapping its official partnership with the Professional Golf Association of America.

Elaborating on the reasons behind the bank's decision not to renew its contract with the R&A, which expired at the end of this year's Open, an RBS spokeswoman said: "The decision to end sponsorship was F1 was taken last year and was a definite marker in the sand. But this is less about a big economic decision, it's more a natural break.

Like all good sponsorships, there's a time for it to be set aside. We sat down with the R&A and decided it was time to move on."

Asked whether the decision was influenced by by the contentious ban on women members at the Royal & Ancient Golf Club of St Andrews, which became a separate body from the R&A in 2004, she said: "They have had that policy for a long, long time, and our relationship has been going for a long, long time, so it would be a leap to suggest this has become an issue for us now."

She added that all its sponsorship arrangements were under constant review, explaining: "There's nothing sacred or nor sacred about the US Open, and it would be slightly unfair to be criticised for a separate sponsorship contract ... the deal is less than three years old and was signed before the crash. Jack Nicklaus is one of the people who rediced his fee last year so we could continue our relationship but make cost savings."

Peter Dawson, chief executive of the R&A, said it was "grateful" for the past support of RBS, one of six patrons of The Open. The others are: Rolex; Lexus; Nikon; MMC; and Doosan. A spokesman for the R&A said: "The Open Championship is in good health, and we're always in discussions with numerous companies interested in becoming patrons."