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‘Smart people, in smart places’: Golf’s future in good hands

“It’s as collaborative an environment as I have seen in my 20 years in the game of golf,” said Billy McGriff, co-head of CAA Golf.

“You’re seeing organizations really work collectively and collaborate to grow the game in a good way,” said Octagon’s longtime golf executive, Scott Seymour.

“There are really good business people around the game of golf today,” said Wasserman’s Barry Hyde, who has spent more than two decades in golf marketing.

Coming at the end of the PGA Tour’s FedEx Cup playoffs that I felt got swallowed up — again — by the NFL, I wasn’t sure what to expect when I reached out to people about the state of pro golf.

The sport is a fascinating business study, mixing a high-end niche audience with premium sponsorship, a year-round global calendar and international stars in a sport rooted in tradition. It can dominate the media landscape, as it does around Augusta, or disappear, as it does too often around its playoffs in the fall. Ratings can be a challenge, and the game’s participation numbers and course closings lead to headlines in the mainstream media such as “The Death of Golf” (Men’s Journal, June 2015) and “Americans Want To Play Golf — Until They Try It” (The Wall Street Journal, March 2016).

But between the depth on the men’s game, the arrival of Canada’s Brooke Henderson, the Olympic success in Rio and the wild American win at the Ryder Cup, it is easy to see why there were no Chicken Littles among the dozen leaders in or around the game that I spoke to. To them, the sky is certainly not falling, and instead, they point to encouraging themes of collaboration, a willingness to think differently and progressive leadership that has golf in a good position for the future.

Next gen leadership

I believe PGA Tour Commissioner Tim Finchem is one of the most underrated sports leaders of the modern century for his astute and steady hand in growing the game. I’ve seen him work a room, and it’s uncanny — he barely moves, everyone comes to him. Perhaps when the 69-year-old steps down soon, after 22 years running the game, his leadership will be fully appreciated and recognized.

“Style is not part of his story,” said longtime IMG golf agent Alastair Johnston. “He likely has been underappreciated. He probably hasn’t been given the due he should be given.”

PGA Tour Commissioner Tim Finchem (right) and his successor, Jay Monahan.
Photo by: AP IMAGES
Finchem will be replaced by the well-regarded Jay Monahan, 46, who has been at the PGA Tour for eight years, most recently as deputy commissioner and COO. He will join 44-year-old Pete Bevacqua of the PGA of America and 51-year-old Michael Whan of the LPGA Tour in taking a game that traditionally has seen very little transition to new levels.

They had the good fortune in working with, and learning from, one of the best.

“Tim has been an amazing, fantastic business operator,” Seymour said. “He will still be a senior adviser. But with Jay, you’re going to see more of a marketing approach to the PGA Tour, which will be welcome. In addition, Pete has done an amazing job. [And PGA of America Chief Commercial Officer] Jeff Price brings different skills, and they really complement each other well.”

“Tim Finchem has done an unbelievable job,” Hyde said. “And there is no downside for Jay being trained on the job for a year by Tim. Pete has made some great hires, including Jeff Price, who is a real sports marketer and very creative. In addition, Michael Whan and the LPGA have just killed it. I’m excited not only by the leaders of the game — Jay, Pete, Michael — but excited by the people at the next level.”

“What’s been nice is to see this long transition for Jay,” said Engine Shop’s Jennifer Carper. “I’m glad it’s gone this way, as Jay is being given the time to figure out his path without drinking from a firehose.

“Pete and Jay want to make this work, and their intentions are very good.”

“With Jay and Pete, you have two leaders who have hit virtually every key area of golf. They know events, they both worked in agencies. They know the businesses around the game very well, and that helps everyone,” McGriff said.

Other leaders get props as well, including the U.S. Golf Association’s Sarah Hirshland; Will Jones, who handles the day-to-day operations at Augusta National for Billy Payne; and the PGA of America’s first female officer, Suzy Whaley, who is in line to become the organization’s president in 2018.

“Suzy is a huge addition to the sport’s leadership,” Carper said. “She loves the game and has great personality.”

“The people who work in the golf business right now are smart,” said Colvin Sports’ Bill Colvin, who handles golf events and hospitality. “Sure, I’d like to see the base get bigger. But we have smart people, in smart places, doing smart things, so that should help grow the game of golf.”

Cooperation and collaboration

In 2011, the leaders of the various golf organizations saw a problem. While trying to jump-start participation, they realized that between the PGA Tour, LPGA, PGA of America, USGA and Augusta National, there were 88 different initiatives led by the groups. In what many call a pivotal turning point for collaboration, leaders focused on reducing the unwieldy number, and two years ago, successfully — and amazingly — narrowed it to five grassroots efforts: Drive, Chip and Putt; Get Golf Ready; LPGA-USGA Girls Golf; PGA Junior League Golf; and The First Tee.

The individual organizations agreed to cross-promote each of the programs throughout the year, and the results have been growth across the five programs the past two years.

Recent National Golf Foundation data shows the number of junior golfers, ages 6-17, in the U.S. continuing to climb, with a total of 3 million juniors playing in 2015, up from 2.5 million in 2010.

“Unlike the early Tiger years, golf has a much better infrastructure to get young people into the game, especially with the buzz of today’s players,” one association insider said. “The structure is much better organized to get kids other than country club kids playing golf.”

Many say this effort was the most important move to collectively grow the game in years, and stress it was driven by the new generation of leaders and a change in mindset.

“The groups saw what was happening — having so many programs in the marketplace diluted any effectiveness. It was hurting, not helping, the game. They finally stopped worrying about their own territories,” said one golf insider who requested anonymity because of connections across organizations. The efforts continued long past the grassroots programs.

“They are very collaborative and are doing more and more together,” McGriff said. “If someone comes up with a good idea, they are supportive of that idea, even if it’s not their idea. It’s just really refreshing.”

“To me, the PGA Tour is driving the collaboration,” IMG’s Johnston said. “The collaboration is more that it’s better to join then fight. The days when you can challenge the PGA Tour is over. They have the best players from all over the world playing in this country.”

Whether it’s the introduction of golf in the Olympics or the work between the PGA Tour and the LPGA Tour, there are encouraging signs.

“There was a really healthy competition before, but now, you see the groups taking a broader view than just their respective tours,” Carper said. “The new leaders across golf are going to be leaders taking the game to the next level, not just growing it in the U.S., but globally.”

Games without frontiers

Golf’s growing global footprint may be one of the most intriguing stories surrounding the sport. In the past few weeks, the PGA Tour announced a Champions Tour event in Japan and a main tour event in South Korea to go along with others in China and Malaysia. The tour recently opened a full-time office in Tokyo, joining its office in Beijing.

All of this is driven from Finchem’s global vision.

“Tim’s made it very clear that the whole business model for the PGA Tour is to recruit the best players in the world so they come here and play,” Johnston said. “That was behind his plan for PGA Tour Canada, PGA Tour China, Latin America, so that there is a pathway to get all these players on the Web.com tour, which launches them on the PGA Tour. In time, you will see different flags from countries around the world on the leaderboard and that’s the strength of the PGA Tour.”

“They are creating a path for stars from around the world to get to the PGA Tour,” Octagon’s Seymour said. “What would it mean to the PGA Tour if Rory Mcllroy was Chinese? That’s the endgame. You open up the TV rights in China and the value with Chinese players goes through the roof.”

“Finchem deserves all the credit for developing these sub-tours that all feed into the PGA Tour,” one said, “and don’t forget how he single-handedly got the game in the Olympics.”

Despite the early negative story lines around Olympic golf, it proved to be a hit and it’s compared to the early days of the NBA’s Dream Team for its potential on the game.

“The Olympics will change golf in the countries that put resources behind Olympic sports, and that’s where the game needs it,” one insider said, believing the game will grow signficantly from the Olympics.

On-course branding and dominant red stood out during the Ryder Cup.
Photo by: GETTY IMAGES
In the U.S., there are still concerns about the PGA Tour schedule — especially finishing the FedEx Cup on Labor Day so it doesn’t go up against the NFL. Another issue is possibly moving the PGA Championship to May so it doesn’t go up against the Olympics every four years, and move The Players Championship back to March.

Finchem hinted at possible schedule changes at this year’s Tour Championship and said they may come with a new TV deal.

“I wouldn’t rule out changes,” he said. “But at this point in time, I wouldn’t assume changes either.”

“The playoff is a sound concept, you have the best players playing against each other. But the playoffs are at the wrong time,” Seymour said. “Have the season end on Labor Day.”

IMG’s Johnston believes the PGA Championship will be moved to May and The Players back to March, where it was for years before moving to May.

“In many ways, it was really good in March,” he said. “It opened the season. I think the Players could be the first big event of the year.”

Along with a schedule change were calls for more clearly identifiable events, outside the crown jewel of Augusta.

“You know where the Masters is going to be every year and everyone knows the course so well,” Colvin said. “It’s the perfect time of year for people in the Northeast and Midwest, and they are energized by it. It’s extremely well-promoted and there is a sense of intrigue about what’s new at the Masters. They make it like a spring awakening.”

But after Augusta and the R&A, there is room for better differentiation of events.

“I feel like everyone is trying to find their own identity,” one longtime agency executive said, asking for anonymity as not wanting to demean events. “Augusta knows who they are. They have their identity, maintaining balance yet moving forward.”

Another added, “Most just steal from Augusta. The other majors in the U.S. still need to find their own identity, their own DNA. Look at the U.S. Tennis Open. It embraces its commercialism. It’s as commercial and loud as possible. Where is that in golf?”

A few noted the PGA of America’s efforts this year to bring on-course branding to the Ryder Cup for the first time at Hazeltine, and cited its use of red as the dominant color along the course, as a potential breakthrough.

That feeds into strong early buzz around the PGA Championship at the Quail Hollow Club in Charlotte, which already largely sold out. Organizers expect up to 50,000 spectators on the grounds each day, and only practice round tickets and some premium hospitality remain. “The Carolinas love golf and embrace the game,” said Quail Hollow President Johnny Harris. Word is it could go down as the most successful PGA Championship in history.

Where are the challenges?

Throughout my discussions, I stressed that challenges remain on the television front and the high price of event sponsorship. But there was surprisingly little concern.

“Ratings will remain strong,” Johnston said. “Maybe not the same numbers, but the audience is being distracted and fragmented. Ratings have become less important. It’s about total and active audience. The tour may be dealing with overexposure like other sports, but I never hear concerns about ratings.”

Carper said her clients live with the peaks and valleys of golf’s ratings as long as the sport delivers its high-end demo.

“If you’re aiming to reach that uber-luxury audience, you don’t need big ratings to reach who you want to and be effective,” she said.

But a longtime TV insider cited ESPN’s decision to move away from the British Open last year and acknowledged golf is “a delicacy that not all the networks can afford or make work.”

Critics counter with the cachet of the game.

“The PGA Tour delivers a lot of hours and brings the ad revenue and marketing partners with them,” one said. “For CBS, it’s a really good business operation to have that kind of audience, same for NBC. It’s a good complement to what they are doing.”

Many also believe the depth of talent on the men’s and women’s game will help grow viewership.

“You have a lot of different players that are socially active and promoting the game across so many platforms, so that will expand the base,” Colvin said. “I love how so many players across the PGA Tour are prominent on social media and doing things with players on and off the course. They are really promoting golf.”

“These players are really, truly global stars,” Hyde said. “But they are really good people. I have been around the game a long time, but all these young guys are all accommodating and kind in the way they treat the public.”

What’s next?

A consensus was that golf’s new leaders will continue to experiment.

Some cited how the PGA Tour has aggressively pushed forward on the media front, with its PGA Tour Live OTT offering and live streaming events with Twitter and Facebook this past fall.

Keep a close eye on the PGA Tour’s media talks — not necessarily in 2018 when it can opt out of its current deals with CBS and NBC. But keep an eye focused on 2021, when all of its rights, including its Golf Channel deal, come up. Will the Tour try to launch its own channel? Will it go over the top? Will it find new partners? And if it leaves Golf Channel, what will happen to that NBC Sports-owned network? These questions have no answers in 2016.

Some also have speculated that the partnership between the PGA Tour and the LPGA could lead to new formats.

“The strongest events in tennis are the combined events. Is there something to learn from that?” Carper asked.

“There could be combined events, but the challenge is the schedule,” Seymour said. “Where is there room for a combined event? How would it work? What is the approach to what is good for the game there? There are a lot of questions.”

“I don’t think the women need the guys,” Johnston said. “The one thing the LPGA Tour can truly be is a global tour. The PGA Tour is trying to get there, but the LPGA has it right now.”

Others stressed new formats, new technology and just plain old imagination.

Former PGA of America Chair Joe Steranka was not the only one who stressed the impressive success of Topgolf and also said “other new fun formats” will grow interest in the game, citing a Fortress Investment Group-TaylorMade venture called Drive Shack.

“The days of four-day, 72-hole events are tiresome,” said one agency head. “Golf is meant to be fun. We need to see more fun brought back. The Skins Game was fun! The concept of players beating their heads in day in and day out has to give.”

“This past Ryder Cup may have been one of the greatest events ever, the enthusiasm, the respect, the fun,” Carper said. “We need to capture more of that and that kind of momentum, that’s a huge win for the game.”

So despite the headlines indicating headwinds facing golf, most are optimistic.

“As much negative that has been written about the game, I’ve never seen it more collegial and collaborative and set to grow,” one source said.

“The bones of the game and business of golf are strong,” Steranka said.

Longtime veteran McGriff feels good about where things are, but said the future of the sport’s fortunes is really quite simple: “We just need to keep getting people’s attention.”

Abraham D. Madkour can be reached at amadkour@sportsbusinessjournal.com.

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