No fans at the US Open changes Golf's earnings photo
As I walked up the 18th hole of Winged Foot's West Course in early September, it was hard to believe the United States Open in 2020 was only a few weeks away.
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Some things were the same. The rough was US Open thick – over two inches at the time, with plans to reach three inches by Sunday's final round. The fairways were pristine. The undulating greens rolled slightly slower than during the championships. And the venerable gothic clubhouse, with its blue and white patio roof, loomed above the track.
But there was no grandstand, concession tent, merchandise pavilion, or corporate suite.
With strict New York State protocols due to the coronavirus, the championship will be played at Mamaroneck, NY, without fans of course. Instead of 45,000 people taking the course and spending money, only 430 will be admitted on site, with each expected to work there, according to the state.
The absence of the infrastructure that defines a typical US Open is good for the condition of the club's second track, which is used to stage much of what is being built, but it is bad for it Income-generating potential of an event that accounts for 75 percent of the annual budget of the United States Golf Association, the governing body of golf in America.
Simply put, no fans on the track means less money to give to the scores of nonprofits that rely on the USGA
In any given year, this one championship generates about $ 165 million, and about $ 70 million of that will go towards supporting the game of golf, including all other USGA championships, as well as youth golf programs, regional golf chapters, and agronomics research. It is the only one of the 14 championships to make a profit.
(The USGA's annual budget is $ 210 million, with additional money coming from fees the USGA charges for things like maintaining a golf handicap and participating in the championships.)
And all that revenue was at risk as the coronavirus paralyzed New York in the months leading up to June, when the US Open is always played. The coronavirus devastated the Winged Foot area. Golf events were canceled. A nearby town was a hot zone. It seemed there might not be a US Open.
"If we didn't have it, we would have to rethink the support provided to other great areas aimed at growing the game," said Craig Annis, chief brand officer for the USGA. should have made sacrifices. "
It was no secret that the U.S.G.A. wanted the U.S. Organize openly on other courses, such as the Oakmont Country Club near Pittsburgh, a course considered a tough test of golf every day; Pinehurst Resort in North Carolina; and Riviera Country Club, in Los Angeles. The goal of the association was to find a way to hold the championship this year.
"We considered other locations and different dates," said Mr. Annis. "Winged foot has always been our priority, and frankly it made sense to have it in what was the epicenter of the pandemic, to be a rallying cry for a community hardest hit in the country."
Still, money won't be what it normally is. Mr. Annis said the organization was able to cut costs by hosting just four of the 14 championships: the US Amateur and the US Women's Amateur and the US and Women's US Opens.
The association expects lower revenues, and the money saved by not building tents and stands will not make up for it.
"There is still a prospect of a financial impact on the organization in the future," he said. “Our goal was to safely build a U.S. Organize openly, with health and safety first. We have not come to the situation from a financial perspective. "
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Sports and the Virus
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This is what is happening as the sports world slowly Life Comes:
Fans can argue whether this season's baseball records really count. But MLB's official historian insists the performance is as real as any other. The Superdome in New Orleans had a dystopian feel when football returned without one of the most loyal congregations of fans. Oh, and Tom Brady flopped when the Saints beat the Buccaneers. The United States Tennis Association has no regrets holding a US Open without fans, Roger Federer or Rafael Nadal.
Although funding now looks safer for host organizations, there was no assurance that this year's grants would take place.
"From a fundraising standpoint, there was no guarantee that this year's rt and april so much uncertainty that everyone was nervous, ”said Greg McLaughlin, CEO of First Tee, which combines golf instruction with mentorship. It has received more than $ 26 million from the U.S.G.A. since its founding in 1997.
Each year, the U.S.G.A. grants grants to First Tee chapters in areas where the U.S.G.A. organizes championships. This year, 51 chapters qualified for the $ 325,000 grant, but 10 of those championships were canceled, meaning the link to those areas was gone.
"That support is really essential for us and our chapters to continue to thrive in a very challenging economic environment," said Mr. McLaughlin. "No. 1, funding is needed in an otherwise difficult year. But No. 2, getting a grant from the USGA is a bit of a gold star when you go out and ask for other grants.
The chapters where championships were canceled still received their funding, but the organization will lose an opportunity to raise awareness and donations by attending the US Open.
Last year at the Open in Pebble Beach, California, Mr. McLaughlin, the USGA set up a First Tee tent in a prime location near one of the entrances.
Girls Golf, which teams up with girls to teach them golf and life skills, took a double whammy in March. It will receive $ 1 million from the U.S.G.A. and the L.P.G.A., the governing body for women's golf, which closed the season in March.
"We didn't really know what was going to happen," said Nancy Henderson, chief teaching officer and president of the L.P.G.A. Foundation. "Our initial focus was that our Girls Golf sites were not capable of in-person programming, so we moved a lot online."
As grants came in from both organizations, Ms. Henderson continues to worry about the following year. "That's the big question," she said. "You don't know if you will return to a new normal."
Organizations like this one, which focus on increasing the game of golf, are sharing $ 25 million from the US Open, the same amount that will fund the other 13 championships. The remaining $ 20 million is divided equally between agricultural research and the organization's governance, rules, and disability systems.
For Winged Foot, the lack of fans is a mixed bag. Clubs that have a U.S. Organizing openly does this for several reasons. In Pebble Beach, Pinehurst or Torrey Pines in California, which will host next year, the Open acts as a four-day marketing brochure for these resorts.
But at some private clubs in the rotation, such as Winged Foot, Oakmont and the Country Club in Brookline, Massachusetts, where the 2022 Open will be held, hosting a US Open is part of the club's identity . It's a hassle that membership tolerates in return for a fee and a lot more prestige in the golf world.
This year, Winged Foot membership accepts that things will change, just like other organizations in the area. New York affected by the corona virus.
Bryan Marsal, a member of Winged Foot and the president of this Open, said all sides needed to adjust their expectations. Two years of planning was dropped in March, and then a plan for a reduced championship was dropped again when the U.S.G.A. announced there would be no fans.
"Our compensation was based on the number of fans who came to watch the tournament, plus the amount of merchandise sold in the merchandise tent, plus the corporate tents sold and the rental of the property, & # 39, he said, "We have a 90 percent reduction in the income that goes to the club."
But he thought for a long time. "When you do business with someone, it's a partnership." he said. "You win, they win. You lose, they lose, ”
And because there is a U.S. Open, with the television revenue and some advertising dollars from sponsors, the U.S.G.A. can continue to fund its non-profit partners and hope for better next year.
