Where does the money on the PGA Tour come from?

[Zeph]

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?

[Shorty]

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.

[uttexas]

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.

[TheNatural]

Thee are important clues in the names of the tournaments:

LMAO When will they hold the stimulus OPEN?> Purse? Nothing!

[alf174]

LMAO

No, you and your children have to pay for it later.

[RemyM]

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.

[HytrewQasdfg]

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.

None

[Dominic]

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.

[Smarf]

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".

[Dr Mikey]

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?

[smellysell]

Originally Posted by Dr Mikey

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.

[Clambake]

Originally Posted by Dr Mikey

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.

[Harmonious]

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

[David in FL]

I can't wait to see if his second post is as thoughtful as the first......:-\

[dave67az]

Originally Posted by David in FL

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

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.  :-)

[Fourputt]

Originally Posted by Zeph

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.

[mtsalmela80]

Originally Posted by Harmonious

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

Which is nice...

[Rick Martin]

Originally Posted by Fourputt

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.