Prize Money in Majors

cgasuckscgasucks Members Posts: 2,186 ✭✭
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?
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Comments

  • q-schoolq-school Members Posts: 466 ✭✭
    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.
  • MedicMedic Members Posts: 9,421 ✭✭
    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.
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  • Matt JMatt J Members Posts: 8,716 ✭✭
    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.
  • MedicMedic Members Posts: 9,421 ✭✭
    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)
    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 Members Posts: 3,536 ✭✭
    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.
  • cgasuckscgasucks Members Posts: 2,186 ✭✭
    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.
    10.5 deg Titleist 905R with stock UST Proforce V2 Shaft
    Titleist DCI 990 Irons (3-PW) with stock Dynamic Gold shafts in S300
    Taylormade ATV 54 deg & 58 deg wedges with stock KBS shafts
    Taylormade V-Steel 5W & 3W with Grafalloy Prolaunch Red shafts
    Ping Anser 2 Stainless Steel Putter
  • ShilgyShilgy Members Posts: 11,386 ✭✭
    Fox paid the USGA enough to cover expenses for all of their events pretty much.
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  • InvalidConflictInvalidConflict Members Posts: 68 ✭✭
    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.
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  • grm24grm24 Western PAMembers Posts: 3,088 ✭✭
    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
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