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The Economics of Golf

How is the golf industry doing financially? Who's investing? Is the game growing? Are Millennials playing enough? This section is about the overall health of the golf industry.

Do Golf Retail Prices Fuel The "Rich Man’s Sport" Stereotype?

August 22, 2011 | By Chris Chirico | 10 Comments

golf apparelIt was at the start of a recent round that Stinky Golfer Greg and I were poking a little fun at the foursome in front us. “Hey, who do you think is winning, the red team or blue team?” I asked Greg this referring to the foursome in front of us in which two were wearing red shirts and two were in blue. Greg responded that his money was on the blue team.

This brought up further joking regarding how, several times, one member of our foursome would have to head back inside their house and change their shirt so we don’t show up to the course looking like we’re on a team. It’s actually almost come to the point where we’ll have to be on the phone with each other before our round like a couple of school girls – “What color shirt are you wearing today?” “I’m going to wear the red one so wear a different color.” It’s pathetic really.

But further conversation regarding our shirts lead to a simple comment regarding a common stereotype of the sport. On the subject of the shirts, Greg mentions to me that he paid only $20 or so for his moisture-wicking Champion polo. I tell him that I paid the same for the Reebok shirt I was wearing at the time. He then tells me; “If this same shirt had a Nike logo on it, it would cost $50.” I agreed with him, and that led to his comment – “See, that’s why some people think golf is a rich man’s sport and don’t take it up to begin with.” I gotta say, he’s got a good point.

Every golf publication, and most golf products advertised, are for the priciest apparel and products available. Think about it. When was the last time you saw a review on a new set of $150 golf clubs? When was the last time you saw a feature on the season’s newest golf apparel, and in it was a $15 polo?

For further proof, I’ve just popped open a recent issue of Golf Magazine. Of the first ten advertisements, six of them are for golf equipment. Of the six, three of the ads are for drivers costing between $400-$500, a $700 set of clubs, a $200 fairway wood and another driver costing $300. As a matter of fact, it isn’t until you are 90-plus pages in before an “affordable” set of clubs is advertised.

Do you see what I mean? What is someone new to the sport, or just getting involved supposed to do? They are bombarded with the idea that they have to pay a lot of money to play this sport. And all you have to do to for proof of this is pick up a golf magazine.

Thankfully, my buddies who got me involved in this sport years ago had steered me in the right direction. I paid $150 for my first set of golf clubs, woods included! And I carried them for twelve or thirteen years. Now that may sound ridiculous to many of you, but even more ridiculous is that I still carry one of the clubs from that set! And it’s quite possibly the most consistent club in my bag!

I don’t think I’ve ever purchased a polo specifically for golf, and I don’t recall any of them having been one of those $50-$60 type. Had it not been for my buddies, I may have been one of those that was sucked in by the ads. And that makes me wonder how many golfers do get sucked in and feel they need to have that Tiger Woods or Ashworth polo. How many golfers go out buy a $600 set of irons, a $300 driver and $100 putter when they’re just taking up the game and aren’t even sure if they like it or not yet?

Even worse, and the real question that fuels the stereotype is, how many people never take up the game because everything they see is so damn expensive? The clubs, the apparel, the courses…everything highlighted by the golf publications (both magazines and television) is the most expensive of what’s available. It makes potential players feel that if they don’t spend more money, they will be using inferior equipment, wearing the wrong apparel and playing poor courses. But in reality, nothing could be further from the truth.

In my opinion, this is just another problem facing the golf industry. Not only is there very little going on for the average hack like myself and my golfing buddies, but there is also very little for beginners. How do you expect to attract new players to the game, when you price most of them out of it right from the start?

I hope that anyone who may be new to the game is being guided by friends like mine. Because honestly, if I had to rely on the golf publications and fell victim to the “rich man’s sport” stereotype, I would have quit the game long ago. And that’s if I ever took it up to begin with.

Swing ’til you’re happy…you can afford to if you do it right!

Filed Under: Golf Life, The Economics of Golf Tagged With: apparel, Ashworth, Champion, golf, Golf Magazine, nike reebok, The Price of Golf, tiger woods

Oh, it’s Your Birthday? Here’s a Free Round of Golf.

November 3, 2010 | By Greg D'Andrea | 6 Comments

Can you get free birthday golf?
Can you get free birthday golf?

My birthday was yesterday. I like Halloween, so I can appreciate my birthday being two days later. But in reality, my birthday is mostly associated with election day.

More presidents, senators and governors have been voted into office on the day of my birth than I care to remember. And I hate to say it, but it’s always a bit annoying to drag myself down to the polls and stand in line to vote on my birthday – but hey, that’s what being an American is all about.

I’ll tell you what wouldn’t be annoying to do on my birthday though – play golf! I know, it’s already 38 degrees in the morning here in the Constitution State and it’s topping off at around 53 in the afternoon, but I would still enjoy to get out there and play – especially for free.

Well, free golf on your birthday isn’t out of the question, no sir. I was perusing through our Twitter followers the other day (twitter.com/golfstinks) and came across a Twitter handle entitled twitter.com/FreeRoundofGolf. A few clicks later and I was on freebirthdaygolf.com – a site run by (it appears) a guy named Mark Hainsworth.

Mr. Hainsworth has compiled a list of 320 golf courses that will give you a free round of golf on your birthday. Sound too good to be true? I thought so too…There had to be a catch. But so far, I haven’t found one.

I signed up on freebirthdaygolf.com (requires only a first name and email address) and waited for my confirmation email, which I received promptly. I then was able to download a PDF document listing the 320 courses (complete with working links to the birthday specials).

The courses are listed alphabetically by state (most courses are in the US, with a few in Canada) and I scrolled down to Connecticut. Turns out my state has only one course listed: Eastwood Country Club, a 9-hole, regulation sized golf course in Torrington, CT. I clicked on the link and sure enough, I was taken to a page on Eastwood’s website that explains you get a free round of golf to be used within one week on either side of your birthday.

So, what did I have to do to take advantage of Eastwood’s generosity? You can see for yourself HERE. But basically, I filled out a form (this time I had to provide my address and phone #, but still no credit card) and immediately was taken to a page where I could print my free birthday golf voucher! What’s more, since my birthday falls between October and March, I am able to redeem my free round through April 30 2011!

OK, I know out of all the courses in CT, only one is on this list – and it’s only a 9-holer. But I don’t think I care – free golf is free golf! My second home state (where my wife is from) is New Mexico, where there are three courses listed and two of which I know are awesome 18-hole tracks. Go ahead and check if there are courses in your area. Or, if you know of a course not on the list, I’m sure Mr. Hainsworth would like to know.

Perhaps if there’s enough interest, more courses will start offering little incentives like free golf on your birthday – which should hopefully entice more people to play golf in the first place. So hats off to Mr. Hainsworth for compiling this list – I plan on using my free golf voucher next spring.

Filed Under: The Economics of Golf Tagged With: birthday, birthday golf, eastwood country club, free golf, freebirthdaygolf.com

Digging for Gold on the Golf Course

June 9, 2010 | By Greg D'Andrea | Leave a Comment

Do you profit from golf? (photo by Jeremy Schultz / CC BY 2.0)
Do you profit from golf? (photo by Jeremy Schultz / CC BY 2.0)

They’re out there and you may even know one. The phrase “for the love of the game” means as much to them as a barber means to the Dalai Lama. They own golf clubs for one reason and one reason only: Networking at golf tournaments.

They’re Tourney Golfers and the summer months on their calendars are spattered with local charity golf events: Shotguns, Best Balls, Scrambles – it doesn’t mean a thing to them – as long as they get to mingle after the round while bellied-up to the raw bar.

They’re not there to grip-it and rip-it, they’re there to grip and grin; and market themselves or their product. Think I’m crazy? Let’s look at one such person (for the sake of anonymity, we’ll call him Tourney Golfer Bob).

Anyway, Bob and I (along with two others) are paired up at this golf tournament a few years ago. Throughout the front 9, Bob’s yacking away about his law firm. It started out innocent enough: “Have you got any kids?” Me: “No, not yet.” Bob: “We’ll you know, my wife and I just revised our will to include our youngest.” Me: “Oh?” Bob: “Yep. It’s something to think about, you know – it happens to all of us.” Me: “What does?” Bob: “Death.”

Me: “PLUNK” (that was my next shot, smack-dab in the middle of a pond).

Around the 15th hole, Bob opened up his bag to fetch more tees and that’s when I notice it. His bag pocket was stuffed with dozens of those little tee/marker/divot tool packs you receive on the first tee of most tournaments. Then I realized all his golf balls (he blew through his complimentary sleeve of three Pro V1’s in as many holes) were ALL logo balls. My eyes darted to his golf towel: “12th Annual Volunteer Fireman’s Scramble.” Umbrella: I couldn’t make it out completely, but it had the Marine Corps. logo and I could read the word “tournament.”

Me: “So Bob, you were in the Marines?” Bob: “What’s that?” Me: “The Marines. Your umbrella has the Marine Corps. logo.” Bob: “Oh that! No. I won that in the raffle after I played in their local tournament last year.”

Yep, I had the pleasure of being Bob’s 6th playing partner that summer. Coincidentally, it was also Bob’s sixth golf tournament that summer. By the time we were driving up to the 18th green, I had the whole story:

“Yeah, I never really played this game until I joined my present firm. One day I was talking to one of the partners who was telling me about this big client he just got. Turns out he met the guy at a golf tournament, so I figured; Hey, that’s not a bad idea. Here it is three years later and nearly 30 percent of my clients stem in some way, shape or form from someone I met playing in a golf tournament!”

Bob’s not alone. He knew of a few others that were doing the same thing. Suddenly, I was whisked back to California in 1849 – There’s Golf in Them Thar Hills! Wait, I meant “Gold” – no, I guess I actually meant “Golf.” Bob is a modern-day 49er – He recognized potential clientele and got out his pick, er, clubs and started digging.

At the raffle after the round, guess who won the box of balls with the course’s logo on them? Last I saw Bob, he was slurping down a clam on the half shell while talking about product liability with the owner of a paint-ball complex.

God, I love this game…

Filed Under: The Economics of Golf Tagged With: gold, golf tournament, networking

The Economics of Golf

January 6, 2010 | By Greg D'Andrea | 4 Comments


5ThingsWrongWithGolf
Now that the public has been formally introduced to mortgage-backed securities and collateralized debt obligations, I thought our readers would like to know golf is doing its part to help the economy.

It may surprise you that PGA players (and the pro tours in general) contribute just a small amount to golf’s total economic impact. Instead, it’s average golfers like the majority of us that help drive golf-related revenue and subsequently stoke the economy.

According to the most recent study by Golf2020 (conducted in 2007 for the year 2005), golf’s total economic impact is nearly $76 billion annually. Of that figure, all the pro tours combined (PGA, LPGA, Champions, etc.) contributed just $954 million (or about 1% of the total).

Compare that to what we spend to play golf each year (around $27 billion), or on golf-related travel ($18 billion), or on golf equipment ($3.7 billion), or golf apparel ($1.5 billion) – Heck, we even collectively spend a billion dollars at the driving range annually! Actually, we must really want to improve – not only do we spend at the range, but we also plunk down nearly as much ($925 million) on golf-related magazines and books.

Beyond its sport and recreational value, golf is at the heart of a major industry cluster that generates jobs, commerce, economic development, and tax revenues for communities throughout the country. – Golf2020

Golf2020’s methodology extrapolates additional economic impact from the golf industry to include the golf-related jobs and wage incomes surrounding all the aforementioned golf products and services. Furthermore, golf real estate was included in the mix (nearly 64,000 golf course homes were constructed in 2005). Taken as a whole, Golf2020 estimates that golf contributes more than $195 billion annually to the US economy (see chart below). Now that’s allot of green to spend on the greens!


While it would be interesting to see more recent data given the spending decline of the last two years, the 2005 study still suggests golf’s economic importance in the US. Golf2020 notes the golf industry seems to be “staying ahead” of inflation, and golf outperforms industries including other spectator sports and motion pictures.

The full magnitude of every round you play or every golf-related purchase you make rarely comes into perspective, but its nice to know we’re contributing to the health of the overall economy – especially these days. So get out there and keep playing!

Golf2020’s full report can be found HERE.

Filed Under: The Economics of Golf Tagged With: economics, economy, golf, golf 20/20, golf2020, PGA, real estate

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