Golf has always been seen as a sport for the affluent, and while there is a big effort to make golf more accessible, there is no denying the fact that this is one of the wealthiest sports there is in terms of income. People also see the eye-watering deals that are given to players, with golfers paid millions just to wear a certain brand or to use a certain club. So, what are the main sources of income for the sport and how do they help to make it successful?
Sponsorship
Sponsors and sports go together like PB & J. The sponsorship industry works well, as companies can take advantage of some of the millions of people tuning in to watch their favorite golfers.
The most common golfing sponsors include the gambling industry. In all sports, gambling has helped to drive revenue to new levels, and if you look at the partnership section of a golf organization’s website, it is almost inevitable you’ll see gambling sponsors. It isn’t just sports betting either, there is a huge crossover in casino games and a demographic of people who enjoy both. Poker sponsors have been popular in the sport, and though this has traditionally involved flat currency casinos we’re now seeing brands of Bitcoin poker platforms sponsor sports and individuals involved in the sports. We know there are plenty of golf fans (and even players) who enjoy poker and table games. Some of the places where golf tournaments are held even have casinos on-site, so this is a sponsorship that makes sense.
As well as gambling brands, we see financial services, car brands, and other luxury brands sponsoring the sport as they try to increase awareness. Rolex is one of the biggest sponsors in the golf industry, which makes sense for a sport that people think of as traditionally “affluent”.
Huge Attendances
Golf is in a time of flux, you don’t need us to explain that. Without going into the huge fiasco around LIV golf and the fact some top pros are very worries about the future the PGA tour, the sport’s attendance is still strong. 109,635 spectators went to the BMW PGA Championship in the UK last year, for example. This is a sizeable increase, but there have been some mega attendances previously.
Reportedly, there have been over 700,000 different people who have attended individual golf events in the past, which puts football crowds to shame. The fact that golf courses are so big means that it is possible for loads of attendees to come and check out the action at the biggest events, but this means more money is generated, of course. The record attendance figures in golf are stunning, and of course, people are paying to go to those events. It means that the revenues are absolutely huge, but it also means that sponsors are more drawn to the sport and that people can demand more money as part of these deals.
TV Deals
Television audiences are the golden ticket for some sports, including golf, and new deals are being announced all over the world. Movistar Plus+ recently paid big bucks to have broadcast rights for the LIV Golf tournaments in Spain, and not many sports can boast this kind of global appeal that golf has. The sport is loved down under, across Asia, in America, and Europe, with millions of people playing or even going on golfing vacations. TV companies can broadcast the sport and be pretty sure that people are going to tune in and advertisers are going to pay them for prime TV spots.
Equipment Deals
Amateur golf is a thriving scene and a potentially pricey hobby and is another way that golf (particularly golf pros) make money out of the sport. Brands like Callaway, Adidas, and many other huge names are looking to become the top dogs in sports equipment. The golf equipment market alone is worth over $7 billion annually, so brands are looking to align with the top players to try and get their clubs in the spotlight.
Rory McIlroy is rumored to be on a ten-year clubs, ball, and bag deal with golf brand TaylorMade, which nets him a cool $10 million every single year. As one of the biggest names in the sport, McIlroy is a dream for equipment brands, and his use of a certain club means millions of wannabe McIlroys looking to use the same equipment he has on the course.
Conclusion
Golf is booming in so many ways, and though the internal wrangle among players about which tournament they will play in rumbles on, there’s a lot of money coming in. Sports finances are super complex, but we’ve broken down some of the ways that revenue comes into golf and continues to “drive” the sport into the next age.