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Where does the money on the PGA Tour come from?

post #1 of 19
Thread Starter 
The prize money has increased a lot over the last 10 years, but where do they come from? Why is there so much money in golf? I understand football and american football where you've got tens of thousands spectators every week, but there aren't that many people at a golf tournament. Is the sponsors an important piece in golf? Do they generate so much money from equipment that it's almost granted they sponsor the game?
post #2 of 19

Re: Where does the money on the PGA Tour come from?

Originally Posted by Zeph View Post
The prize money has increased a lot over the last 10 years, but where do they come from? Why is there so much money in golf?
Thee are important clues in the names of the tournaments:

HP Byron Nelson
AT&T National
U.S. Bank Milwaukee
Shell Houston Open
WGC-Bridgestone Invitational
The Barclays
Travelers Championship
Crowne Plaza Invitational
BMW Championship
Deutsche Bank Championship
Zurich Classic

etc. etc.
post #3 of 19

Re: Where does the money on the PGA Tour come from?

Other than the majors, I can't think of a golf tournament that doesn't have it's major sponser listed in the title--unfortunately, it's probably just a matter of time until you see the Chik-Fil-A Masters. I predict massive drops in TV revenue as more people obtain their video media from other sources.

And on the LPGA, the sponser is listed (except for the US Open). Weetabix or RICOH British Open. Kraft-Nabisco. McDonald's LPGA Championship.
post #4 of 19

Re: Where does the money on the PGA Tour come from?

Originally Posted by Shorty View Post
Thee are important clues in the names of the tournaments:

HP Byron Nelson
AT&T National
U.S. Bank Milwaukee
Shell Houston Open
WGC-Bridgestone Invitational
The Barclays
Travelers Championship
Crowne Plaza Invitational
BMW Championship
Deutsche Bank Championship
Zurich Classic

etc. etc.


LMAO

When will they hold the stimulus OPEN?>


Purse? Nothing!
post #5 of 19

Re: Where does the money on the PGA Tour come from?

Originally Posted by TheNatural View Post
LMAO

When will they hold the stimulus OPEN?>


Purse? Nothing!
No, you and your children have to pay for it later.
post #6 of 19

Re: Where does the money on the PGA Tour come from?

Originally Posted by Zeph View Post
The prize money has increased a lot over the last 10 years, but where do they come from? Why is there so much money in golf? I understand football and american football where you've got tens of thousands spectators every week, but there aren't that many people at a golf tournament. Is the sponsors an important piece in golf? Do they generate so much money from equipment that it's almost granted they sponsor the game?
The television contract is the main reason the prize money has increased over the years. It's the Tiger Woods effect. The sponsors of the tournament then contribute a significant portion. The gate is mostly used to donate money to a local charity at each weeks tour stop. Equipment companies have no effect on tournament prizes, they pay players directly for using their products then buy advertising time from the broadcast networks.

The Masters and US Open generate a lot of their money from merchandise sales.
post #7 of 19

Re: Where does the money on the PGA Tour come from?

Originally Posted by zeph View Post
i understand football and american football where you've got tens of thousands spectators every week, but there aren't that many people at a golf tournament.
Here is the explination. Golf has a higher percentage of higher income households, so even though it doesn't attract as many fans it is a good vehicle for advertisers targeting higher income customers. There is a reason Beer companies sponser football games, and premium liquor companies sponser golf tournaments.

Code:
household income - men's golf fans 
 
< $25k        12% ---- 100%  
$25k-$40k     17% ---- 88%  
$40k-$50k     12% ---- 71%  
$50k-$75kk    19% ---- 59%  
$75k-$100k    17% ---- 40%  
$100k-$150k   14% ---- 23%  
$150k+         9% ----  9%  
    
household income - nfl fans
<$25,000       16.0% ---- 100%  
$25k-$40k      22.0% ---- 84%  
$40k-$50k      13.0% ---- 62%  
$50k-$75k      19.0% ---- 49%  
$75k-$100k     14.0% ---- 30% 
$100k-$150k    10.0% ---- 16%  
$150k+          6.0% ----  6%
post #8 of 19

Re: Where does the money on the PGA Tour come from?

Referring to the jolt in revenue I agree with Remy it's because of Tiger Woods. A lot of companies wanted to buy into the hype.
post #9 of 19

Re: Where does the money on the PGA Tour come from?

Ah that would be my luck. I'd win just one PGA tournament in my entire life and the trophy would say "Preparation H Cup champion".
post #10 of 19

I will make a wild guess based upon your spelling: You are not a golf fan, but instead are inclined to football and beer.  I'm correct, right?

post #11 of 19
Quote:
Originally Posted by Dr Mikey View Post

I will make a wild guess based upon your spelling: You are not a golf fan, but instead are inclined to football and beer.  I'm correct, right?

 

Nice first post. e3_rolleyes.gif

post #12 of 19
Quote:
Originally Posted by Dr Mikey View Post

I will make a wild guess based upon your spelling: You are not a golf fan, but instead are inclined to football and beer.  I'm correct, right?

 

Your first post to the Sand Trap and this is what you decided to contribute?   Welcome to the forum.....I think.   

post #13 of 19

At least he posted to a thread that was only 3 1/2 years old, so he's got that working for him...a2_wink.gif

post #14 of 19
I can't wait to see if his second post is as thoughtful as the first......b3_huh.gif
post #15 of 19
Quote:
Originally Posted by David in FL View Post

I can't wait to see if his second post is as thoughtful as the first......b3_huh.gif

 

I hope his second post includes an explanation of how the heck he decided to post on that thread.

What...did he end up here as a result of some odd Google search and actually go to the trouble of creating an ID just to say that?

 

And please tell me he's not really in the medical field.

I may have to stop telling people I was in the medical field if this is happens much more.  :-)

post #16 of 19
Quote:
Originally Posted by Zeph View Post

The prize money has increased a lot over the last 10 years, but where do they come from? Why is there so much money in golf? I understand football and american football where you've got tens of thousands spectators every week, but there aren't that many people at a golf tournament. Is the sponsors an important piece in golf? Do they generate so much money from equipment that it's almost granted they sponsor the game?

 

Every stop on Tour has to have a "naming" sponsor which foots much of the bill.  Any tournament which loses their primary sponsor is required to shop for another one or lose the tournament.  That happened to the International at Castle Pines when Sprint dropped it's sponsorship.  They tried for 2 years to replace them without success, and the PGA Tour dropped the tournament like a hot potato.  

post #17 of 19
Quote:
Originally Posted by Harmonious View Post

At least he posted to a thread that was only 3 1/2 years old, so he's got that working for him...a2_wink.gif

 

Which is nice...

post #18 of 19
Quote:
Originally Posted by Fourputt View Post

 

Every stop on Tour has to have a "naming" sponsor which foots much of the bill.  Any tournament which loses their primary sponsor is required to shop for another one or lose the tournament.  That happened to the International at Castle Pines when Sprint dropped it's sponsorship.  They tried for 2 years to replace them without success, and the PGA Tour dropped the tournament like a hot potato.  

 

Tampa lost its sponsorship for the event in March. Transition Lenses was the sponsor for the last couple of years.   We just lost our Champions Tour event (April). It would suck to lose this PGA event as well.  At least we know that Arnie's event over in Orlando won't be cancelled (MasterCard) - gotta get my fix of seeing golf in person at least once or twice a year.

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