The LPGA is in a period of sustained growth as the property over the past year steadily added title sponsors and marketing partners, banked on its international appeal, and increased its revenue.
But LPGA Commissioner Mike Whan knows there is far more room to grow for the women’s golf tour.
“The last two years have been unprecedented,” Whan said of the LPGA’s business. “But if this is as good as it gets, then shame on us.”
The LPGA won’t disclose specific numbers, but overall revenue in the past six years has increased by 88 percent while total prize money has grown some 58 percent to nearly $70 million in 2018.
Since 2017, the LPGA has added 10 new official marketing partners, with another three to four more expected this year. Additionally, the LPGA has added new title sponsors such as Diamond Resorts, which will title a new January event beginning next year.
This year’s LPGA schedule features 34 events across 14 countries, including two new events on the West Coast and a new event in Shanghai. In addition, this year’s UL International Crown will be played at the Jack Nicklaus Golf Club in South Korea.
Fueled by its global appeal, the LPGA says its overall revenue has increased by 88 percent over the past six years.getty images
It’s the LPGA’s global strategy that features top international players along with U.S. stars such as Lexi Thompson and Cristie Kerr that is drawing the increased sponsorship interest.
“Most brands want a global reach,” Whan said. “We are committed to being global. Then there is the women’s empowerment and leadership movement, and it’s an important message for brands.”
For example, the LPGA announced in January that Dow, Kia Motors America, KPMG and XL Catlin had signed on as founding partners of the newly created LPGA Women’s Network, a digital platform that looks to get more women to play golf.
LPGA players are also closely involved in sponsorship activities during the season. Consider that before every tournament, LPGA players are given a 5-by-7-inch card that briefs the players on the event’s title sponsor and objectives.
“I want the players to know what we are doing in the boardroom,” Whan said. “The athletes engage in the brands.”
The LPGA’s biggest sponsor, the CME Group, late last year renewed its deal with the LPGA through 2023 and the company pointed to the player access and engagement as one of the reasons why the deal is successful.
“The LPGA is really fantastic with customers and helping with relationship marketing,” said Anita Liskey, managing director of corporate communications and marketing for the CME Group. “The players are really involved and our customers interact with the professionals. We are global and they are global, which is a wonderful thing. It’s been a good fit both in the states and internationally.”
The LPGA still faces hurdles in growing the property. For example, while broadcast hours on the Golf Channel have doubled in the past few years, the LPGA is on network television only six to seven times each season. The LPGA must also balance the business opportunities overseas while also growing interest in the U.S.
“It’s getting the LPGA network exposure,” Whan said when asked to highlight the challenges. “Second is finding the right global balance. What is the right mix in taking care of the market demand and the players?”
Future growth also hinges on the evolution of the LPGA’s strategic alliance signed last year with the PGA Tour that calls for joint marketing programs and promotion, the potential of joint events, and the PGA Tour helping the LPGA negotiate media deals.
No joint events between LPGA and PGA Tour players have been finalized, but at least one is expected by next year.
“It will happen by 2019,” Whan said of the potential for a combined LPGA and PGA Tour event. “It may not be an official event, but it will create media and fan interest and it will be a lot of fun.”
