Prize Money in Majors

 cgasucks ·  
cgasuckscgasucks  2451WRX Points: 362Members Posts: 2,451 Platinum Tees
Joined:  in Tour Talk #1
Hi! I don't post to this forum a lot since I usually post in the Equipment forum. So if this is in the wrong forum I apologize and have this put in the correct forum.



With regards to prize money in regular PGA tournaments (Barclay's, AT&T Invitational) it is obvious that the main sponsor is fronting the money for the tournaments. With regards to the majors (Masters, PGA, US Open, British Open), how do they come up with the money for their signature tournaments? To me, Augusta National, the PGA, USGA, and R&A are borderline non-profit organizations and the prize money for this year's US Open is $12M (with $2M to the winner). Where did the USGA come up with the money with no corporate sponsorship ties?
Posted:
10.5 deg Titleist 905R with stock UST Proforce V2 Shaft
1999 Ben Hogan Apex Blades (3-PW) with stock Apex 4 Steel Shafts
Taylormade V-Steel 5W & 3W with Grafalloy Prolaunch Red shafts
Taylormade ATV wedges in 54 and 58 degrees with stock steel shafts
Rife Island Series Aruba Blade Putter
1

Comments

  • q-schoolq-school  481WRX Points: 96Members Posts: 481 Greens
    Joined:  edited Jun 17, 2017 #2
    There was a recent article. Clubs come up with some of the money for the usga tournaments. Except for the big ones money losers

    Usga coughs up relatively small amounts but reportedly going to give more. Big fat tv contracts. Big bank account.

    https://www.linksmagazine.com/real-cost-hosting-usga-event/



    Augusta private and everyone suspects they are swimming in money



    I believe the conventional wisdom is that the r&a basically gets money from the Ryder cup enough to make it through he next few years but is nowhere near the shape that the PGA is in.



    PGA is distinct from the tour.
    Posted:
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • MedicMedic  9423WRX Points: 173Handicap: 9.1Members Posts: 9,423 Titanium Tees
    Joined:  #3
    q-school wrote:


    There was a recent article. Clubs come up with some of the money for the usga tournaments. Except for the big ones money losers

    Usga coughs up relatively small amounts but reportedly going to give more. Big fat tv contracts. Big bank account.

    https://www.linksmag...ing-usga-event/



    Augusta private and everyone suspects they are swimming in money



    I believe the conventional wisdom is that the r&a basically gets money from the Ryder cup enough to make it through he next few years but is nowhere near the shape that the PGA is in.



    PGA is distinct from the tour.




    So basically if even a tourney lacks a title sponsor there are so many other ads being sold during the broadcast that the money pool is still there, correct?



    Which would also explain why the LPGA is struggling. Well, one of the reasons anyway.
    Posted:
    Callaway Epic with Fujikura 62s in 45.25 set at 12.5*
    Taylormade Rbz FW (17*)
    Callaway X-Hot Pro 20* Hybrid
    Callaway Steelhead 4-PW w/KBS 90s
    Titleist Vokey 50*
    Titleist Vokey SM-6 56*
    Titleist Vokey SM-6 60-08 M
    Tad Moore TM-1 35"
    Callaway Chrome Soft
  • Matt JMatt J  8735WRX Points: 337Members Posts: 8,735 Titanium Tees
    Joined:  #4
    Well, the USGA has a huge budget, so I'm sure the prize money comes from a lot of different sources. TV contract, entry fees into the qualifiers, concessions, sponsors, the Pro Am., member's dues, etc. etc.



    I'd guess it's always a drop in the bucket compared to the entire budget for the event.
    Posted:
  • MedicMedic  9423WRX Points: 173Handicap: 9.1Members Posts: 9,423 Titanium Tees
    Joined:  #5
    Matt J wrote:


    Well, the USGA has a huge budget, so I'm sure the prize money comes from a lot of different sources. TV contract, entry fees into the qualifiers, concessions, sponsors, the Pro Am., member's dues, etc. etc.



    I'd guess it's always a drop in the bucket compared to the entire budget for the event.




    Can you imagine all of the expenses that aren't so obvious. (Insurance, accommodations, food, etc)
    Posted:
    Callaway Epic with Fujikura 62s in 45.25 set at 12.5*
    Taylormade Rbz FW (17*)
    Callaway X-Hot Pro 20* Hybrid
    Callaway Steelhead 4-PW w/KBS 90s
    Titleist Vokey 50*
    Titleist Vokey SM-6 56*
    Titleist Vokey SM-6 60-08 M
    Tad Moore TM-1 35"
    Callaway Chrome Soft
  • raynorfan1raynorfan1  3825WRX Points: 347Members Posts: 3,825 Titanium Tees
    Joined:  #6
    Fox is paying ~$90M for the broadcast rights ($1.1B over 12 years) to the US Open. On top of that, the USGA gets gate revenue, hospitality sales, and branded merchandise sales. It's a big event to put on, but also a huge profit maker for the USGA.
    Posted:
  • cgasuckscgasucks  2451WRX Points: 362Members Posts: 2,451 Platinum Tees
    Joined:  edited Jun 18, 2017 #7
    raynorfan1 wrote:


    Fox is paying ~$90M for the broadcast rights ($1.1B over 12 years) to the US Open. On top of that, the USGA gets gate revenue, hospitality sales, and branded merchandise sales. It's a big event to put on, but also a huge profit maker for the USGA.




    Oh yeah...that's right...Fox did pay them an arm and a leg for the TV rights for the US Open...that really helps in paying the prize money pool for the US Open.
    Posted:
    10.5 deg Titleist 905R with stock UST Proforce V2 Shaft
    1999 Ben Hogan Apex Blades (3-PW) with stock Apex 4 Steel Shafts
    Taylormade V-Steel 5W & 3W with Grafalloy Prolaunch Red shafts
    Taylormade ATV wedges in 54 and 58 degrees with stock steel shafts
    Rife Island Series Aruba Blade Putter
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • ShilgyShilgy Phoenix 12223WRX Points: 1,357Handicap: 3.2Members Posts: 12,223 Titanium Tees
    Joined:  #8
    Fox paid the USGA enough to cover expenses for all of their events pretty much.
    Posted:
    WITB
    Tools for the job!

    To paraphrase Dr Seuss: Don't cry because the round of golf is over-smile because it happened . :)

    Game is recovering from total ankle replacement. Getting there and glad to be pain free!
  • InvalidConflictInvalidConflict  68WRX Points: 10Handicap: 13.0Members Posts: 68 Bunkers
    Joined:  #9
    Also, the volunteers literally have to pay to be a volunteer. It's like $175 per volunteer or something silly. So that pays for all the volunteer merch and im sure much more. 175$ x 4000 volunteers = $700,000.
    Posted:
    WITB
    Titleist 915D2
    Titleist 915F
    Titleist 913H
    588 CB 3-PW
    Vokey SM4 52*
    Vokey SM4 58*
    Odyssey Black Series Tour #2
  • grm24grm24 Western PA 4144WRX Points: 1,287Members Posts: 4,144 Titanium Tees
    Joined:  #10
    cgasucks wrote:


    Where did the USGA come up with the money with no corporate sponsorship ties?
    The USGA has AMEX, Deloitte, Lexus and Rolex as primary/major sponsors. To say nothing of the extra large bank

    that Fox Sports is paying them along with other revenue streams they have including smaller sponsors, donations, merchandise,

    membership fees, etc. IBM has been a long time sponsor of the USGA as well.



    http://www.usga.org/articles/2016/01/usga-and-deloitte-announce-multiyear-strategic-partnership.html



    http://www.sportsbusinessdaily.com/Journal/Issues/2015/08/24/Marketing-and-Sponsorship/Lexus-USGA.aspx



    http://www.foxbusiness.com/features/2016/01/19/usga-deloitte-team-up-to-energize-golf-industry.html
    Posted:

Leave a Comment

Rich Text Editor. To edit a paragraph's style, hit tab to get to the paragraph menu. From there you will be able to pick one style. Nothing defaults to paragraph. An inline formatting menu will show up when you select text. Hit tab to get into that menu. Some elements, such as rich link embeds, images, loading indicators, and error messages may get inserted into the editor. You may navigate to these using the arrow keys inside of the editor and delete them with the delete or backspace key.