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Golf by the Numbers

April 22, 2011 | By Pete Girotto | 1 Comment

What really fuels the golf market and keeps courses up and running? Pro’s? Scratch golfers? Avid golfers? The answer is quite simple – the average or moderate golfer. If there are 27 million or so golfer’s in the U.S. and less than 1% are pro or scratch golfers, count them out.

Ironically, a lot of pro’s who can afford the game rarely pay for it or get great deals. As for avid golfers (25+ rounds per year), they only account for roughly 3-5% of the market, which leaves the average and beginners (less than 7 rounds per year).

The average golfer is statistically a mid to upper-mid working class person playing around 20 rounds a year. Funny thing is if it wasn’t for this demographic, 80% of golf courses would probably shut their doors. Here’s a reality check: average golfers use more golf balls, period. They or we go through 3-5 balls (or more) a round.

Let’s do the math; say an average golf ball costs $1.00 times 4 balls a round times 20 rounds a year. That comes out to $80 dollars in golf balls per average golfer per season. Now multiply that times the roughly 20 million average golfers and there you have 1.6 billion dollars spent a year on golf balls. Sounds crazy, huh…how about those greens fees?

These numbers represent a driving but unheard voice in the golf community. We can take these stats and apply them to other commodities in the golf industry like clubs, apparel and accessories and get a good idea of the revenue we spill into this game we love.

What’s in store for the future? I guess only time will tell…but as long as average golfers keep losing balls on the course, the golf economy will continue to drive forward…

Hit’em long…yell FORE!!! Love your balls.

Filed Under: Uncategorized Tagged With: economics, economy, golf, golf course, golf stinks, golfstinks, Money list

The Golf Channel’s Newest Offering is Really Nothing New

April 19, 2010 | By Chris Chirico | 3 Comments

Should Donald Trump have his own golf show? (photo by  Michael Vadon / CC BY-SA 3.0)
Should Donald Trump have his own golf show? (photo by
Michael Vadon / CC BY-SA 2.0)

It can be argued in many different ways, but the simple fact is, golf is NOT a growing sport. The statistics show it. Even though there are currently about 450 more courses in the U.S. than existed in the year 2000, over the past several years, more courses have closed than opened. What’s more alarming is, despite these additional 450 courses, fewer rounds are being played every year.

According to reports from the National Golf Foundation, 2009 marked the fourth consecutive year in which total rounds of golf decreased from the previous year. As a matter of fact, it was the eighth year out of the past nine in which a decrease was shown. In 2000, roughly 518.4 million rounds of golf were played in the U.S. But by 2009, that number had dropped to 481.5. That’s almost 37 million fewer rounds (a little over 7%) per year. So where is this growth?

Yeah, you can blame some of it on the economy. But that’s really only that past two years. What about the seven years previous? That is another topic which can be debated. But I have my opinions – several of them (greens fees continuing to rise, cost of equipment, etc…). But right at the top of the list is simply the old golf stereotype – it’s a rich man’s game. For too many golfers in the new generation, as well as your average weekend hack, this decreases their overall interest. They see the game as too expensive and too serious. What they don’t see, and are sometimes never introduced to, is simply the fun of the game. But what is the golf industry in general doing to fix this? Apparently, nothing.

Example, The Golf Channel’s latest offering – Donald Trump’s Fabulous World of Golf. In a time where interest in the sport continues to decrease, the belief in the stereotype continues to rise, the biggest star in the game has lost some of his shine, golf courses are closing and people aren’t playing because they can’t afford to play…The Golf Channel gives us…Donald Trump.

As if we haven’t seen enough already, this show gives us more celebrities, more excess and more outrageously priced and/or private courses. Yeah, just what the sport needs right now. Fuel the stereotype why don’t ya? Do the good people at The Golf Channel think this is helping? Are they in the dark and don’t understand this is not what the sport needs? Maybe they don’t care and they’re just hoping for ratings.

Speaking of ratings, one of the funniest things I had seen and heard was on a promo video on the show’s website. If you can find it, there was a clip of The Donald sarcastically stating this show was going to raise The Golf Channel’s ratings. Isn’t that great? Even The Donald knows this channel needs help!

See, we’ve said it before, and we’ll continue to say it. This sport needs a shot in the arm. It needs a change. It needs to make itself relate to the average guy and girl who play the sport for no reason other than the fun of the game. It does NOT need more celebrities. It does NOT need to promote more private courses. It does NOT need to promote more rich guys playing the game in a place 99.9% of us (if not more) will never see.

As entertaining as I occasionally find him to be….the sport does NOT need Donald Trump right now.

Filed Under: Golf Growth & Diversity Tagged With: #growgolf, Donald Trump, economy, national golf foundation, rounds of golf per year, The Golf Channel, weekend golfer

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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