Why there is so much money involved in Golf?

[gwengordon]

Golf continues to be the most lucrative and revenue generating game. Can anyone tell me why this is?

 

[flog2424]

I think from a sport prospective it has the most identity with corporate America. Sure a company can put money into a sponsorship or a stadium but is there any other sport where you can put your money into it as well as spend time with your clients on the actual playing field?? Plus I think golfers are more genuine and real than any other athlete


Proud Member of #TeamParadise

 

[EaglevsFalcon]

IMO, golf can be a pretty cheap game too if you don't get into the shiny new toy aspect of it. Once you have a set, there is low end golf to be had, just depends on your expectations and aspirations.

 

[mark blanchard]

The alignment between the demographic of those who play or watch the game and the companies who would like to reach that demographic is the closest and most direct of any major sport. That demographic also has more money per capita than the followers of any other major sport. Money chases money, that's all you need to know.

 

[blugold]

Is it the most lucrative? Are there statistics to support that claim?

 

[SkiBumGolfer]

IMO, golf can be a pretty cheap game too if you don't get into the shiny new toy aspect of it. Once you have a set, there is low end golf to be had, just depends on your expectations and aspirations.

There was a time when this was me. A time before THP :bulgy-eyes:

 

[TapInBirdie]

Is it the most lucrative? Are there statistics to support that claim?

When you see Cabrera get a $200 mil. contract its gotta be close.

 

[Castor Hades]

A few years old stat, but I think we're roughly in the same ball park in 2014.

Americans buy golf equipment with 3.5-4.5 billion dollars a year. There's a lot to be shared. Green fees are bought with 20 billion, and apparel with 1 billion.

http://www.bloomberg.com/news/2012-...et-rides-economy-to-gain-on-woods-return.html

There's around 30 million golfers in the US, and quite many watch PGA Tour etc, so there's a good potential target group of millions watching every weekend, during majors even more, and majority of golfers can be considered as potential customers within those companies that put their money in endorsements, advertising etc.

+ the rest of the world.

 

[EaglevsFalcon]

There was a time when this was me. A time before THP :bulgy-eyes:

Yup. Me too. I must pull upon my jedi training to resist these urges, lol

 

[UVaWahoo]

Perhaps, because of some of the following reasons:

In other professional sports, amateurs (or their corportate affilitations) don't pay several thousand dollars to play in a pro-am.

A pro golf tounament can be somewhat of an elitist venue. There are those with the $30 grounds ticket and those with the passes to the rather expensive corporate tents and the clubhouse.

Those that participate in other sports, don't pay $400 for driver that costs $50 to make, in order to pay the endorsements to the pros.

The perceived technological advances to equipment each year entices golfers to become "equipment ho's" hoping to find the magic club. In baseball for example, a bat is a bat and a glove is a glove.

In other sports, local governances tend to supply free public use venues, such as baseball diamonds and tennis courts. I have yet to find a free muni golf course. There are some rather inexpensive ones, but still requires a fee.

That said, golf can be a reasonably affordable activity, if one plays the less exclusive private and public venues and are willing to play the same clubs for some period of time.

 

[Golf Ghost]

A few years old stat, but I think we're roughly in the same ball park in 2014.

Americans buy golf equipment with 3.5-4.5 billion dollars a year. There's a lot to be shared. Green fees are bought with 20 billion, and apparel with 1 billion.

http://www.bloomberg.com/news/2012-...et-rides-economy-to-gain-on-woods-return.html

There's around 30 million golfers in the US, and quite many watch PGA Tour etc, so there's a good potential target group of millions watching every weekend, during majors even more, and majority of golfers can be considered as potential customers within those companies that put their money in endorsements, advertising etc.

+ the rest of the world.

Wow. Those are some pretty insane numbers.

Perhaps, because of some of the following reasons:

In other professional sports, amateurs (or their corportate affilitations) don't pay several thousand dollars to play in a pro-am.

A pro golf tounament can be somewhat of an elitist venue. There are those with the $30 grounds ticket and those with the passes to the rather expensive corporate tents and the clubhouse.

Those that participate in other sports, don't pay $400 for driver that costs $50 to make, in order to pay the endorsements to the pros.

The perceived technological advances to equipment each year entices golfers to become "equipment ho's" hoping to find the magic club. In baseball for example, a bat is a bat and a glove is a glove.

In other sports, local governances tend to supply free public use venues, such as baseball diamonds and tennis courts. I have yet to find a free muni golf course. There are some rather inexpensive ones, but still requires a fee.

That said, golf can be a reasonably affordable activity, if one plays the less exclusive private and public venues and are willing to play the same clubs for some period of time.

Not sure I would agree with this as golf being the only sport where this happens. Maybe not quite to the level of golf because of the numbers that play the sport, but hockey would surprise you, especially on the equipment front. As for endorsements, soccer and basketball are pretty high when it comes to profit margins based on putting someone's name associated with a boot or shoe. Not to mention, the mark up on stuff is not to pay endorsements, these are profit turning companies.

 

[blugold]

Those that participate in other sports, don't pay $400 for driver that costs $50 to make, in order to pay the endorsements to the pros.

The perceived technological advances to equipment each year entices golfers to become "equipment ho's" hoping to find the magic club. In baseball for example, a bat is a bat and a glove is a glove.

Any support for either of those claims?

 

[apriliamille]

interesting first post.
the prices for equipment seems to be a little extreme in my opinion. (i look at what prior year and 2 year old brand new equipment goes for in the current market compared to when it first came out) but prices are set to what the market will bare
i think green fees are fair market value. private clubs with their dues i dont think rely on county tax revenue funds so yes with droughts it would cost a lot to keep the greens nice. muni i also think have fair prices for what is provided

 

[Trout Bum]

I don't think golf is as nearly profitable as many think, courses are closing at an alarming rate due to lack of profits, club company costs are rising regularly weather due to accelerated material costs, labor costs, and rising R&D costs, advertising costs are at an all time high too. It looks like a ton of money is made but in the end they make a profit but it's not exceptional for everyone.

 

[JB]

While I am sure all the answers are accurate to the individual, I am not sure the question, without being less broad is accurate. Unless of course it is altered to eliminate the financial generation of pro leagues, tv deals, etc. Even then I am not sure how accurate it can be.

Can the OP clarify or check to see if that is in fact a fact? It can be a great topic with more detail.

 

[Erky]

The perceived technological advances to equipment each year entices golfers to become "equipment ho's" hoping to find the magic club. In baseball for example, a bat is a bat and a glove is a glove.

That was once the case. Now, you go to a local baseball diamond, and each kid has two of his own bats ($300-$500 apiece) in a fancy backpack.

 

[Blazer]

A few years back I bought a Bushnell Bullseye range finder for $50 less than the golf model. Other than the labeling they were virtually the same product.

IMO that's an example of the premium golfers pay.

 

[UVaWahoo]

That was once the case. Now, you go to a local baseball diamond, and each kid has two of his own bats ($300-$500 apiece) in a fancy backpack.

Well, with yours and some other posts, I guess I must stand to be corrected, times have definitely changed since I did anything but play golf. I seems ain't nothing cheap any longer. I trust you will forgive an old man that seems to have let the world pass by him.

 

[JB]

A few years back I bought a Bushnell Bullseye range finder for $50 less than the golf model. Other than the labeling they were virtually the same product.

IMO that's an example of the premium golfers pay.

Are you sure about that? We have both the hunting version (although we dont hunt) and the golfing version and one has pinseeker mode and one doesnt. I would say that is a pretty big difference.

 

[huhhh]

That was once the case. Now, you go to a local baseball diamond, and each kid has two of his own bats ($300-$500 apiece) in a fancy backpack.

That's why there will never be wood bats in any league under college...even there it will be very tough to change. (unless someone gets killed)

 

[TheDoctor]

Perhaps, because of some of the following reasons:

In other professional sports, amateurs (or their corportate affilitations) don't pay several thousand dollars to play in a pro-am.

A pro golf tounament can be somewhat of an elitist venue. There are those with the $30 grounds ticket and those with the passes to the rather expensive corporate tents and the clubhouse.

Those that participate in other sports, don't pay $400 for driver that costs $50 to make, in order to pay the endorsements to the pros.

The perceived technological advances to equipment each year entices golfers to become "equipment ho's" hoping to find the magic club. In baseball for example, a bat is a bat and a glove is a glove.

In other sports, local governances tend to supply free public use venues, such as baseball diamonds and tennis courts. I have yet to find a free muni golf course. There are some rather inexpensive ones, but still requires a fee.

That said, golf can be a reasonably affordable activity, if one plays the less exclusive private and public venues and are willing to play the same clubs for some period of time.

When you say the local governance supplies free use public venues, they may be free for anyone to turn up and use them, but I highly doubt they are free - who maintains them? Does the general public keep them maintained by volunteering? This may be true for some venues but I would be very surprised if this applied to all of them

As a tax-paying citizen, you will be paying for the venues through your taxes as this goes towards the maintenance of the venues, so they are not actually 'free'

 

[Mulligan9111]

Perhaps, because of some of the following reasons:

Those that participate in other sports, don't pay $400 for driver that costs $50 to make, in order to pay the endorsements to the pros.

The perceived technological advances to equipment each year entices golfers to become "equipment ho's" hoping to find the magic club. In baseball for example, a bat is a bat and a glove is a glove.

Pretty sure that companies that make sporting equipment do so in order to make money. They are not non-profit organizations. I'm guessing that the shoes you are wearing right now have a higher mark up than golf clubs.

And the technological advances are there. While you might not feel that the advancement is enough for you to upgrade every year, pretending that there isn't an advancement is very naive in my opinion.

Also, I don't know how much you know about baseball, but a bat isn't just a bat and a glove isn't just a glove. At the college level and down they use aluminum bats, which are very expensive and very different from one another (size, weight, etc.). Gloves have a variety of different webbing, lengths, etc. that all depend on which position you play and that players preference.

Sorry I just wanted to point out these facts as it's not even close to being as cut and dry as you make it out to be for other sports.

*edit* it appears I should read the entire thread next time before posting as this was already brought up, that's my bad.

 

[staticline]

I can't tell if the OP is talking about average joe golf or pgatour golf.

 

[kevincgolf]

If you are talking about the PGA Tour I don't really think it is that much. Last year Tiger made $8.6M in winnings, small compared to top performers in other sports. The minimum NFL salary is around $400k. 151 guys made more than $400k on the PGA Tour last year. The NFL has almost 1800 people making at least that much. Some of the endorsements that guys like Tiger and Phil get are crazy high, but I can't imagine a guy like Erik Compton brings in much.

If you are talking about playing golf you need a number of things to be able to play golf, more so than most sports. You need a large piece of land, which in a larger metro would be worth a lot of money. You need a number of people to take care of that land every single day. You need multiple pieces of equipment vs. other sports that require a single ball and maybe a few other items. At the high level trying to compare golf to most other sports is apples and oranges.

 

[Wicked Cool Bearded Man]

If you are talking about the PGA Tour I don't really think it is that much. Last year Tiger made $8.6M in winnings, small compared to top performers in other sports. The minimum NFL salary is around $400k. 151 guys made more than $400k on the PGA Tour last year. The NFL has almost 1800 people making at least that much. Some of the endorsements that guys like Tiger and Phil get are crazy high, but I can't imagine a guy like Erik Compton brings in much.

If you are talking about playing golf you need a number of things to be able to play golf, more so than most sports. You need a large piece of land, which in a larger metro would be worth a lot of money. You need a number of people to take care of that land every single day. You need multiple pieces of equipment vs. other sports that require a single ball and maybe a few other items. At the high level trying to compare golf to most other sports is apples and oranges.

This is worded beautifully. And totally true in all aspects. % wise, golf is much less lucrative than other sports.