The Masters Tournament At Augusta Is Leaving $269 Million On The Putting Green

AUGUSTA, GEORGIA – APRIL 07: Tiger Woods plays his shot from the 18th tee throughout the veryfirst round of … [+] the Masters. (Photo by Gregory Shamus/Getty Images)

Getty Images

The Masters is the most prominent competition on the PGA Tour, amassing a lot of attention from folks who generally puton’t follow golf, however when it comes to making cash, the Masters comes in a remote 2nd to the U.S. Open. This year the Masters will produce $142 million in profits, versus $160 million for the U.S. Open based on my estimations.

The breakdown of the Masters’ $141 million consistsof income from product ($69 million), badges ($39 million), worldwide tv rights ($25 million), and concessions ($8 million). Notably missingouton from Augusta’s profits are domestic television rights and sponsorship earnings. In contrast, the U.S. Open gets $93 million for its domestic television rights and north of $15 million from sponsors.

The Masters profits shortage is intentional. Says Peter Laatz, the Global Managing Director of IEG, “Augusta National desires to keep the mystique and originality surrounding the competition in location, consistingof keeping the course itself as beautiful as possible. The 4 majors are various from all other PGA Tour occasions, and within that the Masters is totally various from the other 3 majors.” Thus, the absence of on-course signs.

Augusta has simply 6 sponsors – AT&T, Delta, IBM, Mercedes Benz, Rolex, and UPS – which split a minimalistic 4 minutes of business time per hour of occasion protection. Most of the sponsorship cash goes straight to Augusta’s media partners, CBS and ESPN, to cover the expense of production, with the rest going to pay to host hospitality occasions for VIP customers. Given the U.S. Open creates at least $15 million per year in sponsorship income, it is safe to presume that the Masters might pull in at least $20 million, thanks to its much greater television viewership.

The Money Behind the Masters


The Masters produces no domestic television earnings duetothefactthat its arrangements with CBS and ESPN permit Augusta total control of the broadcast in exchange for no payment. In contrast, the USGA gets $93 million per year from NBC to air the U.S. Open. Lee Berke, who runs his own consulting company LHB Sports, Entertainment, and Media stated that Augusta might command $100 million or more if the club were ever to completely advertise and auction their domestic media rights.

Badges and concessions are likewise badly underpriced. Augusta offers practice round badges for $75, single-day competitive round badges for $115, and four-day competitive round badges for $375 – under $100 per day of competitors. Augusta is the just validated seller of Masters’ badges, however badges are readilyavailable on the secondary market. On sites like StubHub and SeatGeek, practice round badges start at $600, single-day badges average $1,700, and four-day badges about $6,000. Being conservative, if Augusta were to charge half of what secondary market costs are, its badge income would dive to $185 million.

As far as concessions at Augusta, clients can purchase any beer used for simply $5, less than what most places get for a hot petdog. Sandwiches ($1.50-$3), soft beverages ($2), and numerous treats (all $1.50) are a deal. This works out to a per cap of about $25. These rates might quickly be brought up to a per cap of about $40, increasing concessions profits to $12 million.

Add it all up and the Masters is leaving $269 million on the putting green, 35% more than it was 7 years earlier. Being the elite brandname in golf comes with a large cost tag.

Source: The Masters Tournament At Augusta Is Leaving $269 Million On The Putting Green.

ajax loader

The Masters Tournament At Augusta Is Leaving $269 Million On The Putting Green - Click To Share

Other recent press releases

*This is a free press release. All upgraded press releases are ad-free!

The Best Excel AI Tools To Become An Excel Power User

Excel is a powerful tool that helps you make quick calculations and derive insights from data gathered from various sources such as marketing data platforms. Most people see it as a spreadsheet application that stores data in tabular form, but in reality, it’s a robust computational tool that can solve complex problems.However, to be able

Stock market live news updates: Stocks mixed following latest Fed rate hike

U.S. stocks were mixed on Wednesday afternoon after the Federal Reserve announced its latest interest rate increase, a move which brought the Fed’s benchmark policy rate to the highest level since October 2007.In its statement the Fed noted inflation pressures but said inflation “remains elevated” as price pressures prove persistent across the economy.The central bank