How are Pro Tourneys Funded, Financed?

[wannabe]

Was watching the Justin Timberlake Shriner's Children's Hospital Tournament, and the questions in the room were, "Did JT pay for this tourney? Shriners? Is it JT's course? How are these tourneys paid for? Who pays the winners?" Who gets the money from ticket sales, merchandise, & concessions?


Related to this, the Champions Tour tourney this week is the AT&T; Championship presented by Alcatel-Lucent. Does this mean Alcatel-Lucent is paying for the event?

Thanks, TST Experts!

[jamo]

The sponsors, ticket prices, the PGA Tour's TV and other advertising deals. That's just off the top of my head.

[wannabe]

Thanks. So if JT is the host for the tournament, is he considered a sponsor, does he help pay for it, just lend his name & time to it, other?

[kpaulhus]

I sell groceries to Winn Dixie. In order to make up the Winn Dixie Jacksonville Open Nationwide Tour winnings and TV fees, Winn Dixie charged $30,000 per vendor. I believe WD raised an upwards of 2 or 3 million. Out of that money they gave 1.5 mil to charities and the rest was for TV and players winnings.

[jamo]

Thanks. So if JT is the host for the tournament, is he considered a sponsor, does he help pay for it, just lend his name & time to it, other?

I'm not positive, but I don't think he pays anything. FWIW, they have a list of sponsors on their site, and he is not listed as one of them:

http://www.jtshrinersopen.com/2010-sponsors If anything, he might be under contract to be sponsored by Shriners, and they would be paying him.

[sacm3bill]

Is it JT's course?

No, his course is

Mirimichi , in Tennessee.

[michaeljames92]

Doesn't he usually do a concert to raise charity for the shriners? well i think he has in the past anyway

[DocWu1948]

Bottom line - customers and employees of the sponsors organizations pay. Where else does a business get its money. And sometimes they squeeze vendors like kpaulhus mentioned.

Take Fedex, for example. Assume the Fedex Cup costs them $18M to run, including the prize money. Fedex ships 7 million packages a day. Figure a 5 day week and 52 weeks, that's 1820 millions packages a year. The Cup expense is like a 1 cent tax on each package.

A lot does go to charities, but I wish it were more.

[joepro23]

Doesn't he usually do a concert to raise charity for the shriners? well i think he has in the past anyway

Yep. The concert was Saturday.

http://idolator.com/5664902/justin-t...stina-aguilera

[RC]

Raising the money for a PGA tour event is a big undertaking with many sources of funds involved. Sponsors of many levels, TV, ticket sales, and even pro-am events may add to the total. A pro am spot is not a minor cost. I've played in three or four and was surprised at the cost.