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Home Its just bu$ine$$

The Presidents Cup concluded for the first time in Asia and by all accounts it was a big success. Of course those are anecdotal accounts. However, it appears the PGA TOUR’s bank account is yet again a resounding success as Tim Rosaforte of Golf World and The Golf Channel fame reported the cost of doing business for the next time the biannual events are held on international turf. Rosie reported (click the hyper link above to hear from the horse’s mouth on this) South Africa had to come up with $29 million for the event but wasn’t able to do so. Instead the event is going to Royal Melbourne in Australia for $25 million! Rosie said the World Cup is being thrown in to secure the deal.

How any venue can justify this price tag is mind-boggling. Even if a foreign government, often rumored, is involved in a partial payment, it adds to the dysfunctional structure of the event. Keep in mind; the PGA TOUR is also using the event as leverage with its television “partners” for even more financial gains. Tape delayed coverage of the 2015 Presidents Cup drew a 0.9 overnight rating on NBC both Saturday and Sunday, down 18% from the comparable telecasts in 2011, which was the last time the event was held outside the United States (1.1 on both days). The 2013 event, held at Muirfield Village in Ohio, produced overnights of 2.2 on Saturday and 2.5 on Sunday action. Regardless, the domestic ratings are anemic and unlikely to ever improve significantly since it goes up against NFL football in October. However, it doesn’t require much imagination for the PGA TOUR to oversell its digital reach to dovetail with its global audience in order to justify its asking price. It begs really only one question: How much is the Ryder Cup worth??