Making Big Bucks, Spending Big Bucks How the Masters turns a $29 million profit [GD]

Still, the bottom line is impressive. Though domestic TV is a break-even deal and concessions also break even, at best, there is the $34.75 million from tickets sales and that $25 million in broadcast rights to 190 overseas territories. There is also the $47.5 million in merchandise and $7.75 million in concessions. That gets us to $115 million before expenses.

And what are those expenses? An apparel-industry source says Augusta National operates on a 65 percent mark-up in the merchandise pavilion, cutting the overall net revenue to about $98.4 million. There is also about $9 million in prize money and expenses for security, salaries, maintenance, year-round operations, player hospitality, and food and beverages provided for the public and corporate-entertainment packages. Experts in sports marketing and tournament management say that totals about $50 million.

Those estimates would bring net revenue to $48.4 million. Even if Augusta National paid the highest tax rate of 39.6 percent, the tax bill would be $19.2 million, leaving a profit of $29.2 million (versus $7 million in the 1997 Golf Digest report).