Seth Waugh was CEO of Deutsche Bank and managing director at Silver Lake before becoming PGA of America CEO.Courtesy of the PGA of America
Seth Waugh replaced Pete Bevacqua as chief executive officer of the PGA of America last August, beginning a busy tenure for the former Deutsche Bank Americas top executive.
In the past eight months, the organization announced a massive real estate development effort as part of its relocation from Florida to Frisco, Texas; renewed its long-standing TV deal with CBS; and signed a new deal with ESPN. New sponsors in the past year include Cadillac, AIG, Michelob Ultra and BMW, which signed on as a worldwide Ryder Cup partner.
The rush of new business comes as the PGA Championship this year moves to May from August as part of golf’s shifting calendar designed to drive interest in the game. Waugh spoke to Sports Business Journal’s John Lombardo about the changes and what lies ahead.
What has the transition in your new post been like?
WAUGH: I am really busy. I underestimated how hard I’d be working and there is a lot going on. You go home every Friday and you think of the 20 things you didn’t get done and the list is long and growing. The place is in great shape and there is so much opportunity to do more. I am trying to let the organization think differently. There is a lot of energy, and I have been encouraged by the people we have working here. There are a lot of ideas and I think letting the place breathe and think differently is absolutely right.
PGA of America's moves under CEO Seth Waugh
October 2018: 11-year deal with CBS and ESPN for the television, digital and OTT rights with live, full-field 72-hole coverage of the PGA Championship beginning in 2020. The ESPN agreement ends a 29-year TV deal with Turner.
November 2018: BMW signs a deal with the PGA of America that makes the automaker a worldwide Ryder Cup partner in 2020 and 2022. BMW is the second worldwide partner of the Ryder Cup, joining Aberdeen Standard Investments.
December 2018: The relocation of its headquarters from Palm Beach Gardens, Fla., to Frisco, Texas, as part of a $500 million, 600-acre development, which includes a 100,000-square-foot new home base, two championship golf courses and a 500-room hotel and resort.
January 2019: Three-year sponsorship with Cadillac as the official vehicle of the PGA of America, PGA Championship, KitchenAid Senior PGA Championship and KPMG Women’s PGA Championship.
What has the learning curve been like? What has been your approach?
WAUGH: We will be taking some risks. We’ve been promoting our parents’ game and running a zero-risk philosophy, and what we need to do is evolve toward our kids’ kids game, and doing that means we will try to do some different ideas about things. We appointed a new chief innovation officer [Arjun Chowdri]. We are going to invest in different ideas and in companies in different forms.
We may partner with some, we may put equity in some. Some may fail. We hope we are investing to make money, but we are about doing what is in the best interest of golf. That is our true north.
You’ve already made a flurry of moves. What has been the biggest in your mind?
WAUGH: The TV deal allows us to serve our members and grow the game. That is our engine, that is the fuel. The brand is in great shape. The most emotional decision certainly has been the headquarters. We have loved being in Florida and we are talking about changing people’s lives. It’s wrenching, and real estate is a personal thing for people. We thought hard about it and what we can do in Frisco. I’ve gotten more excited since we inked the deal than I was beforehand. It is what we can build and dream about. We have 600 acres of raw clay to invest in our brand and it’s an obligation to deliver there.
What are your expectations for the TV deal and why the decision to move from Turner Sports to ESPN?
WAUGH: Some of this is economics, and we feel we have the best of all worlds. We’ve been with CBS for 30 years and they are as good or better than anyone. We are also partners with NBC with Ryder Cup, and now we have new entry for us. The fact that we have broadcast partners back to back [with the Masters this month followed by the PGA Championship in May] is terrific leverage. They can surf off each and work closely to go from the Masters to us. With ESPN, we believe they can bring a whole new audience to the game. Bring sports fans as opposed to golf fans. We also love the other properties they are picking up such as the PGA Junior League. Think Little League World Series for golf.
Speaking of the PGA Championship and its move to May, what are your expectations and concerns?
WAUGH: The concern is a little bit of weather this year. At Bethpage in New York, the weather could be beautiful or not.
In terms of the value to the fan, there is a much better cadence to the year. We think it is going to have great viewership for us. … It feeds into our mission to make our members’ lives better through promotion of the game.
What are golf’s biggest issues?
WAUGH: We can all worry about what’s wrong with golf or we can celebrate what is going on. We are not at an existential moment in the game at all. Participation is up. Like baseball, we are facing demographics issues. I don’t think we’ve been as welcoming as we should. Our game has been intimidating; where you play, what the rules are, and how hard the game is. The thing you love are also the barriers. It’s about making it look more like the country, and then maybe the country will look more like the game.
