ruffin beckwith

RUFFIN BECKWITHRUFFIN BECKWITHSenior Vice PresidentSenior Vice President

World Golf FoundationWorld Golf Foundation

““80% of success is 80% of success is just showing up.”just showing up.”

- Woody Allen -- Woody Allen -

Oilfield Prayer: Lord, let Oilfield Prayer: Lord, let there be one more boom. there be one more boom. And don’t let us screw it And don’t let us screw it

up.up.- Sign in a Texas Diner -- Sign in a Texas Diner -

WORKSHOPSWORKSHOPS

• Link Up 2 Golf (2)Link Up 2 Golf (2)• Junior Golf (2)Junior Golf (2)• Retention and FrequencyRetention and Frequency• Women in GolfWomen in Golf• Emerging Fan BaseEmerging Fan Base• Alternative FacilitiesAlternative Facilities• CollegesColleges

AMERICA’S “WELCOMEAMERICA’S “WELCOMETO GOLF” PROGRAMTO GOLF” PROGRAMM.G. OrenderM.G. OrenderPresident, PGA of AmericaPresident, PGA of AmericaPresident, Hampton GolfPresident, Hampton Golf

AMERICA’S “WELCOMEAMERICA’S “WELCOMETO GOLF” PROGRAMTO GOLF” PROGRAMNancy OliverNancy OliverNational Program DirectorNational Program DirectorLink Up 2 GolfLink Up 2 Golf

AMERICA’S “WELCOMEAMERICA’S “WELCOMETO GOLF” PROGRAMTO GOLF” PROGRAMAnne LyndrupAnne LyndrupDirector Player DevelopmentDirector Player DevelopmentNational Golf Course Owner’s Assn.National Golf Course Owner’s Assn.

AMERICA’S “WELCOMEAMERICA’S “WELCOMETO GOLF” PROGRAMTO GOLF” PROGRAMMike HughesMike HughesExecutive DirectorExecutive DirectorNational Golf Course Owner’s Assn.National Golf Course Owner’s Assn.

COMMUNICATIONSCOMMUNICATIONS

THE GOLF INDUSTRY THE GOLF INDUSTRY REPORT FOR 2001REPORT FOR 2001

INDUSTRY REPORT: SourcesINDUSTRY REPORT: Sources

• ESPN Sports PollESPN Sports Poll

• National Climatic Data CenterNational Climatic Data Center

• National Golf Course Owners AssociationNational Golf Course Owners Association

• National Golf FoundationNational Golf Foundation

• Nielsen Media ResearchNielsen Media Research

• PGA of AmericaPGA of America

• PGA TOURPGA TOUR

• U.S. CensusU.S. Census

INDUSTRY REPORT: RoundsINDUSTRY REPORT: Rounds

• Information from 2,426 facilities of Information from 2,426 facilities of 15,720 (15.4%)15,720 (15.4%)

• One-time adjustment of 8%One-time adjustment of 8%

• 2000 - 518,400,0002000 - 518,400,0002001 - 518,100,0002001 - 518,100,000

INDUSTRY REPORT: INDUSTRY REPORT: ParticipationParticipation

20002000 20012001

ParticipantsParticipants 36M36M 37.1M37.1M

GolfersGolfers 25.4M25.4M 25.8M25.8M

JuniorsJuniors 4.0M4.0M 4.4M4.4M

Alternative UsersAlternative Users 1.7M1.7M 2M2M

Range UsersRange Users 4.9M4.9M 4.9M4.9M

• 20% of people over 12 in U.S.20% of people over 12 in U.S.answer “yes” to the question:answer “yes” to the question:“Do you play golf?”“Do you play golf?”

• That equates to 45 million people. That equates to 45 million people. Our study identified about 35 Our study identified about 35 million.million.

INDUSTRY REPORT: ESPN PollINDUSTRY REPORT: ESPN Poll

OccasionalOccasional CoreCore AvidAvidYearYear (1-7)(1-7) (8-24)(8-24) (25+)(25+)

19971997 10.6M10.6M 7.9M7.9M 5.6M5.6M

20002000 10.9M10.9M 7.3M7.3M 6.2M6.2M

20012001 14.2M14.2M 5.7M5.7M 5.9M5.9M

INDUSTRY REPORT: INDUSTRY REPORT: FrequencyFrequency

• Ratings of all competitive golf are down less Ratings of all competitive golf are down less than 10% since 1996, well below industry norm.than 10% since 1996, well below industry norm.

• PGA TOUR ratings are up 20% in same time PGA TOUR ratings are up 20% in same time period; only other sport that increased was period; only other sport that increased was NASCAR (+5.8%)NASCAR (+5.8%)

• Percentage of respondents claiming to be fans Percentage of respondents claiming to be fans of professional golf is up from 32% to 40% since of professional golf is up from 32% to 40% since 1995, far bigger increase than any other sport.1995, far bigger increase than any other sport.

INDUSTRY REPORT: InterestINDUSTRY REPORT: Interest

• Increase in new courses from high of Increase in new courses from high of 3.2% in 2000 to 2.3% in 2001 to 3.2% in 2000 to 2.3% in 2001 to projected 1.8% this year.projected 1.8% this year.

• Average rounds per course:Average rounds per course:20002000 33,73733,73720012001 33,00033,000

INDUSTRY REPORT: INDUSTRY REPORT: Course Course DevelopmentDevelopment

If new courses increase by 1.5% per If new courses increase by 1.5% per year…year…

Total Courses Total Courses TotalTotal Rounds/Rounds/20202020 RoundsRounds CourseCourse

20,90820,908 690 million690 million 33,00033,000

836 million836 million 40,00040,000

1 billion1 billion 47,80047,800

INDUSTRY REPORT: INDUSTRY REPORT: Course Course DevelopmentDevelopment

JESSICA TURNWALDJESSICA TURNWALDUSGA FoundationUSGA FoundationCoordinator, Fellowship & GrantsCoordinator, Fellowship & Grants

GOLF 20/20 Junior InitiativeGOLF 20/20 Junior Initiative

• Quantify the scope of junior golf Quantify the scope of junior golf in this countryin this country

• Establish communication Establish communication mechanisms that will enable and mechanisms that will enable and engage kids, their parents, and engage kids, their parents, and program administratorsprogram administrators

• Impact more kids through golfImpact more kids through golf

Objectives:Objectives:


• Develop and maintain a global junior golf Develop and maintain a global junior golf website hosting a searchable database of website hosting a searchable database of junior initiatives and featuring content for junior initiatives and featuring content for kids, parents and program administratorskids, parents and program administrators

Strategies:Strategies:JuniorLinks.comJuniorLinks.com

SummitsSummits

• Empower local communities to assess junior Empower local communities to assess junior golf needs and serve as a catalyst for the golf needs and serve as a catalyst for the exchange of best practices.exchange of best practices.

Summit Operations Summit Operations ManualManual


• Timelines, Tools and Templates for organizing Timelines, Tools and Templates for organizing a Junior Golf Summita Junior Golf Summit

• New Jersey (Far Hills): May 10thNew Jersey (Far Hills): May 10th• Florida (Orlando): May 18Florida (Orlando): May 18thth

• Southern California (Los Angeles): October Southern California (Los Angeles): October 88thth

• Colorado (Denver): October 12Colorado (Denver): October 12thth

• Northern Virginia (Reson): November 5Northern Virginia (Reson): November 5thth

• Indiana - MidWest (): December 3Indiana - MidWest (): December 3rdrd

2002 Junior Summits2002 Junior Summits


• Quantify the scope of junior golf Quantify the scope of junior golf in this countryin this country

– Nearly 1,000 junior programs Nearly 1,000 junior programs

– Participation from all 50 statesParticipation from all 50 states

– Active solicitation and promotion from Active solicitation and promotion from existing junior initiativesexisting junior initiatives

– ““Register a Program” print ads ran in Register a Program” print ads ran in industry publicationsindustry publications

– Streamlined online registration processStreamlined online registration process


• Engaging and impacting more kids, Engaging and impacting more kids, parents, and program directorsparents, and program directors

– More dynamic visuals on homepageMore dynamic visuals on homepage

– More call to actions and opportunity for More call to actions and opportunity for user participationuser participation

– Tailoring content to audiencesTailoring content to audiences

– Animated Greeting CardsAnimated Greeting Cards

– Trivia ChallengeTrivia Challenge

GOLF 20/20 Junior InitiativeGOLF 20/20 Junior InitiativeGOLF 20/20 Junior InitiativeGOLF 20/20 Junior Initiative

Animated GreetingsAnimated Greetings

• Birthday GreetingBirthday Greeting

• Register a ProgramRegister a Program Greeting Greeting

• General GreetingGeneral Greeting

Promotions:Promotions:

• Build program database through online Build program database through online registration processregistration process

• Drive kids, parents and program directors Drive kids, parents and program directors to a informative, fun and safe site on junior to a informative, fun and safe site on junior golf.golf.

• Key Message: The Ultimate Junior Golf Key Message: The Ultimate Junior Golf Website!Website!


Promotional Strategies:Promotional Strategies:

• Word of Mouth!Word of Mouth!

• Print Ads/FlyersPrint Ads/Flyers

• LinksLinks

• Industry PublicationsIndustry Publications

• Trade Shows/Conferences Trade Shows/Conferences

• 30-second PSA30-second PSA


THE FIRST TEE:THE FIRST TEE:MORE THAN A GAMEMORE THAN A GAMEJoe Louis Barrow, Jr.Joe Louis Barrow, Jr.Senior Vice PresidentSenior Vice PresidentWord Golf Foundation, Inc.Word Golf Foundation, Inc.

Jim L. AwtreyJim L. Awtrey Judy BellJudy BellTimothy W. FinchemTimothy W. FinchemJames H. ArmstrongJames H. Armstrong Ty M. VotawTy M. Votaw

THE FIRST TEETHE FIRST TEE

Honorary Chairman Honorary Chairman

Former President George BushFormer President George Bush

Oversight CommitteeOversight Committee

Public Sector PartnershipsPublic Sector Partnerships

• National Association of County OfficialsNational Association of County Officials• National League of CitiesNational League of Cities• National Recreation & Park AssociationNational Recreation & Park Association• US Bureau of Land ManagementUS Bureau of Land Management• US Conference of MayorsUS Conference of Mayors• US Department of Housing & Urban DevelopmentUS Department of Housing & Urban Development• US Drug Enforcement AdministrationUS Drug Enforcement Administration• White House Office of Drug PolicyWhite House Office of Drug Policy• Local Housing AuthoritiesLocal Housing Authorities• Local School DistrictsLocal School Districts

Allied PartnershipsAllied Partnerships

• American Junior Golf Association American Junior Golf Association • American Society of Golf Course ArchitectsAmerican Society of Golf Course Architects• Golf Course Builders Association of AmericaGolf Course Builders Association of America• Golf Course Superintendents Golf Course Superintendents

Association of AmericaAssociation of America• National Golf Course Owners National Golf Course Owners

Association of AmericaAssociation of America• National Golf FoundationNational Golf Foundation• National Minority Golf FoundationNational Minority Golf Foundation• National Minority Junior Golf Scholarship FoundationNational Minority Junior Golf Scholarship Foundation• Nationwide TourNationwide Tour• PGA TOUR Tournaments AssociationPGA TOUR Tournaments Association• Tiger Woods FoundationTiger Woods Foundation

Industry Related PartnershipsIndustry Related Partnerships

• Ahead HeadgearAhead Headgear• Callaway GolfCallaway Golf• Cayman Golf CompanyCayman Golf Company• Club Car Inc.Club Car Inc.• Coastal Netting and Steel Pole Coastal Netting and Steel Pole

CompanyCompany• Delta GolfDelta Golf• Eagle One Golf ProductsEagle One Golf Products• Electronic ArtsElectronic Arts• GreensmixGreensmix• Kohler CompanyKohler Company• Lesco, Inc.Lesco, Inc.• PGA TOUR Design Services, Inc.PGA TOUR Design Services, Inc.• Pignato GroupPignato Group• Pro-ShopkeeperPro-Shopkeeper

• Pursell TechnologiesPursell Technologies• Redden NetsRedden Nets• Simplot Turf and HorticultureSimplot Turf and Horticulture• Spalding WorldwideSpalding Worldwide• Standard Golf CompanyStandard Golf Company• SynchroFloSynchroFlo• TaylorMade-adidasTaylorMade-adidas• The St. Paul CompaniesThe St. Paul Companies• The Toro CompanyThe Toro Company• THOR GUARD Inc.THOR GUARD Inc.• Titleist Footjoy WorldwideTitleist Footjoy Worldwide• TourTurfTourTurf• VGMVGM• Wittek Golf Supply CompanyWittek Golf Supply Company

(904) 940 - 4300(904) 940 - 4300

Youth Service PartnershipsYouth Service Partnerships

• Police Athletic League Police Athletic League

• Boys & Girls Clubs of AmericaBoys & Girls Clubs of America

• YMCA of the U.S.A.YMCA of the U.S.A.

• Goodwill IndustriesGoodwill Industries

• Numerous Local Youth Service AgenciesNumerous Local Youth Service Agencies

Phase IIPhase II

January 2001 through January 2001 through

December 2005December 2005

Mission StatementMission Statement

To impact the lives of young people To impact the lives of young people

around the world by creating around the world by creating

affordable and accessible golf affordable and accessible golf

facilities primarily to serve those who facilities primarily to serve those who

have not previously had exposure to have not previously had exposure to

the game and its positive values.the game and its positive values.

Phase II - Phase II - (January 2001 – December 2005)(January 2001 – December 2005)

• 500,000 young people participate in500,000 young people participate inThe First TeeThe First Tee

• 250 Dedicated The First Tee Learning 250 Dedicated The First Tee Learning FacilitiesFacilities– (Development of 5 international(Development of 5 international

Learning Facilities)Learning Facilities)

• 500 affiliate relationships500 affiliate relationships

GoalsGoals

6090

140180

3060

10090

180

320

500

160

0

100

200

300

400

500

Annual Goal Actual ParticipantsCumulative Projected Total Cumulative Actual Total

6090

140180

3060

10090

180

320

500

160

0

100

200

300

400

500

Annual Goal Actual ParticipantsCumulative Projected Total Cumulative Actual Total

20012001 20022002 20032003 20042004 20052005

(Thousa

nds)

(Thousa

nds)

Youth Participation (2005)Youth Participation (2005)As of 10/15/02As of 10/15/02

40 40 45 45 404030*4441

250

210

165

120

80115

85

0

50

100

150

200

250

Annual Goal Actual Facilities OpenedCumulative Projected Total Cumulative Facilities Open

40 40 45 45 404030*4441

250

210

165

120

80115

85

0

50

100

150

200

250

Annual Goal Actual Facilities OpenedCumulative Projected Total Cumulative Facilities Open

20002000 20022002 20032003 20042004 2005200520012001

**19 of the 30 facilities are projected through 12/31/0219 of the 30 facilities are projected through 12/31/02

Facility Development (2005)Facility Development (2005)As of 10/15/02As of 10/15/02

488706

1100

0

200

400

600

800

1000

1200

Number of Participants

488706

1100

0

200

400

600

800

1000

1200

Number of Participants

20002000 20012001 20022002

Youth Participation Per Facility Youth Participation Per Facility (2005)(2005)As of 10/15/02As of 10/15/02

Annual GoalActual Affiliations

Cumulative Projected TotalCumulative Actual Total

As of 10/15/02As of 10/15/02Affiliates (2005)Affiliates (2005)

20002000 20022002 20032003 20042004 2005200520012001

WA

OR

CA

NV

MT ND

SD

WY

UT

NE

CO KS

AZ

NM

TX

OK

LA

AR

MO

IA

MN (8)

WI

IL (12)

MI

IN OH

PA

NY

ME

WV

KY

TN

MSAL

GA

FL

SC

NC

VA

VT

NH

CT

DE

MD (2)

West Region

Mountain Region

Midwest Region

Northeast Region

Southeast Region

ID

NJ

MARI

Montreal

98 OPEN FACILITIES98 OPEN FACILITIES

WA

CA

NV

ID

MT ND

SD

WY

UT

NE

CO

KS

AZNM

TX

OK

LA

AR

MO

IA

MN WI MI

INOH

PA

NY

ME

WV

KY

TN

MS ALGA

FL

SC

NC

VA

VT

MARI

CT

NJ (2)

DL

MD (2)

OR

IL

NH

45 FACILITIES IN 45 FACILITIES IN DEVELOPMENTDEVELOPMENT

West Region

Mountain Region

Midwest Region

Northeast Region

Southeast Region

Snapshot of InformationSnapshot of Information

Facility ConfigurationFacility Configuration

• Breakdown of the 98 open facilitiesBreakdown of the 98 open facilities

– 36% are 3 – 6 hole36% are 3 – 6 hole

– 38% are 9 hole38% are 9 hole

– 17% are 9+ hole17% are 9+ hole

– 9% are other9% are other


Facility ConfigurationFacility Configuration

• Breakdown of the 98 open facilitiesBreakdown of the 98 open facilities

– 24% are Financially Independent24% are Financially Independent

– 21% are Partially Integrated21% are Partially Integrated

– 47% are Fully Integrated47% are Fully Integrated

– 8% are programming at a8% are programming at atemporary sitetemporary site

All ofAll of20012001 20022002 Golf*Golf*

MaleMale 66%66% 64%64% 75%75%

FemaleFemale 34%34% 36%36% 25%25%

* National Golf Foundation* National Golf Foundation

Participant Database & Profile - 2002Participant Database & Profile - 2002


100,000 young people were exposed100,000 young people were exposedto the game through The First Teeto the game through The First Tee

Snapshot of InformationSnapshot of InformationAge StatisticsAge Statistics

20012001 20022002

Ages 5-8Ages 5-8 17%17% 20%20%

Ages 9-13Ages 9-13 61%61% 60%60%

Ages 14-18Ages 14-18 22%22% 20%20%

CaucasianCaucasian 52%52% 54%54% 90%90%

African AmericanAfrican American 22%22% 30%30% 3% 3%

Hispanic AmericanHispanic American 13%13% 8%8% 4% 4%

Asian AmericanAsian American 9%9% 5%5% 3% 3%

OtherOther 4%4% 3%3% N/A N/A

Ethnicity StatisticsEthnicity StatisticsSnapshot of InformationSnapshot of Information

* National Golf Foundation

All ofAll of20012001 20022002 Golf*Golf*

Registered Participants - 30,500Registered Participants - 30,500


20012001 20022002

Pre-parPre-par 80%80% 43%43%

ParPar 18%18% 45%45%

BirdieBirdie 1.5%1.5% 10%10%

EagleEagle .5%.5% 2%2%

Life Skills ObjectiveLife Skills Objective

To impact the lives of young people by To impact the lives of young people by

creating fun, golf–related opportunities creating fun, golf–related opportunities

to learn valuable life skills that can be to learn valuable life skills that can be

applied on and off the golf course. applied on and off the golf course.

Life Skills & Golf ExperienceLife Skills & Golf Experience

The three levels of Life Skills The three levels of Life Skills achievement:achievement:

• Par – focuses on communication skills Par – focuses on communication skills and behavior managementand behavior management

• Birdie – teaches realistic goal settingBirdie – teaches realistic goal setting

• Eagle – teaches problem solving and Eagle – teaches problem solving and planning for the futureplanning for the future

Life Skills Experience SurveyLife Skills Experience Survey

The First Tee surveyed 27 of the 59The First Tee surveyed 27 of the 592001-opened Chapters and received 2001-opened Chapters and received

feedback from:feedback from:

• 327 Participants327 Participants

• 290 Parents/guardians290 Parents/guardians

• 107 Instructors107 Instructors

Life Skills Experience SurveyLife Skills Experience Survey

• 97% of youth participants responded 97% of youth participants responded that they will continue Life Skills trainingthat they will continue Life Skills training

• 99% of parents/guardians agreed that 99% of parents/guardians agreed that they would like to see their children they would like to see their children continue with Life Skills trainingcontinue with Life Skills training

• 96% of instructors indicated a desire to 96% of instructors indicated a desire to continue using Life Skills as a teaching continue using Life Skills as a teaching vehiclevehicle

www.thefirsttee.org

• Petition with 15,000 signatures requiredPetition with 15,000 signatures required

• Florida Sports Foundation overseesFlorida Sports Foundation oversees

• Signed into law August 27; available Nov. 1Signed into law August 27; available Nov. 1

• Marketing efforts will include billboards, Marketing efforts will include billboards, toll-free number to purchase (1-877-toll-free number to purchase (1-877-GOLFTAG) and car dealer cross GOLFTAG) and car dealer cross promotions.promotions.

Mission StatementMission Statement

The new tag will provide funding and The new tag will provide funding and

accessibility to the sport of golf for all accessibility to the sport of golf for all

children without regard for children without regard for

socioeconomic status, physical disability socioeconomic status, physical disability

or skill level.or skill level.

ALTERNATIVE ALTERNATIVE FACILITIESFACILITIES

COLLEGESCOLLEGES

RESEARCHRESEARCH

Research is formalized Research is formalized curiosity.curiosity.

--Zora Neale HurstonZora Neale Hurston

ESTIMATING THE CHARITABLE IMPACT OF ESTIMATING THE CHARITABLE IMPACT OF GOLF THROUGH LOCAL FUNDRAISING GOLF THROUGH LOCAL FUNDRAISING EVENTS IN THE UNITED STATESEVENTS IN THE UNITED STATESJames F. O’HaraJames F. O’Hara

Vice President of ResearchVice President of Research

National Golf FoundationNational Golf Foundation

Research Overview - Research Overview - FacilitiesFacilities• Interviewed balanced sample ofInterviewed balanced sample of

1,000 facilities 1,000 facilities

• Each facility provided:Each facility provided:– Number of charitable outings hostedNumber of charitable outings hosted– Organization sponsorsOrganization sponsors– Number of participantsNumber of participants– Charitable revenue raisedCharitable revenue raised– Fees and services donated Fees and services donated

Research Overview - Research Overview - CharitiesCharities• Validated facility interviews withValidated facility interviews with

nearly 500 charities nearly 500 charities

• Each charity confirmed:Each charity confirmed:– Charitable revenue raisedCharitable revenue raised– Fees and services donated Fees and services donated

Research Overview - Research Overview - EstimationEstimation• Calculated averages across key facility Calculated averages across key facility

designations:designations:

– Number of charitable outingsNumber of charitable outingsper yearper year

– Revenue generated per eventRevenue generated per event

– Averages calculated for Premium, Averages calculated for Premium, Standard, and Value facilitiesStandard, and Value facilities

Research Overview - Research Overview - EstimationEstimation• Averages applied to universe of Averages applied to universe of

facilities in the United States:facilities in the United States:

Key Findings

• The annual impact of golf on charitable The annual impact of golf on charitable giving is dramatic!giving is dramatic!

– The majority of facilities averageThe majority of facilities average10+ charitable outings10+ charitable outings

– 140,000+ charitable golf outings140,000+ charitable golf outingsare held in the United Statesare held in the United States

– 15,000,000+ participants play golf15,000,000+ participants play golfin a charitable outingin a charitable outing

Total Revenue Exceeds $2.9 Billion!

Key Findings (cont.)

• Most charitable events are conducted to Most charitable events are conducted to benefit local community causes:benefit local community causes:

– Monique Burr Foundation for Children Monique Burr Foundation for Children ($223,000)($223,000)

– Roanoke Island Historical Society Roanoke Island Historical Society ($70,000)($70,000)

– 11stst Presbyterian Church of Belmont Presbyterian Church of Belmont ($5,000)($5,000)


• National organizations also use golf National organizations also use golf outings as a primary source of revenue:outings as a primary source of revenue:

– American Cancer SocietyAmerican Cancer Society– National Multiple Sclerosis SocietyNational Multiple Sclerosis Society– Kidney FoundationKidney Foundation– Special Olympics Special Olympics

• Local chapters of these national charities Local chapters of these national charities spearhead the effortsspearhead the efforts


• Facilities regularly donate fees and Facilities regularly donate fees and services to the charitable organizations services to the charitable organizations holding the events:holding the events:

– Discounted green feesDiscounted green fees– Discounted food and beverages Discounted food and beverages – Discounts on other services (e.g. Discounts on other services (e.g.

lessons, range use, etc.) lessons, range use, etc.)

Facilities donate almost $250 Million annually!


• Charitable giving is an integral part of Charitable giving is an integral part of professional golf professional golf

• Each and every PGA TOUR event raises Each and every PGA TOUR event raises money for charitable organizationsmoney for charitable organizations

The PGA TOUR raisesover $75 Million annually!

15,000,000+ 15,000,000+ ParticipantsParticipants

$3.2+ Billion!$3.2+ Billion!

The Charitable Impact of Golf The Charitable Impact of Golf Is:Is:

140,000+ 140,000+ EventsEvents

Facility Facility DonationsDonations

PGA PGA TOURTOUR

THE GOLF ECONOMYTHE GOLF ECONOMYTHE GOLF ECONOMYTHE GOLF ECONOMY

• Who benefits, and to what degree?Who benefits, and to what degree?

• Get perspective on benefits to travel, Get perspective on benefits to travel, tourism and real estate industriestourism and real estate industries

• Improve Wall Street’s perspectiveImprove Wall Street’s perspective

• Elevate golf’s status vis-à-vis other sports Elevate golf’s status vis-à-vis other sports and industriesand industries

• To measure our progressTo measure our progress

• To measure the value of a single golfer to To measure the value of a single golfer to the industry the industry

THE GOLF ECONOMYTHE GOLF ECONOMYPeter Ryan, Ph.D., DirectorPeter Ryan, Ph.D., Director

Center for Organizational DevelopmentCenter for Organizational Developmentand Training, SRI Internationaland Training, SRI International

Study ObjectiveStudy Objective

• Many economic studies have been Many economic studies have been conducted:conducted:– State level State level – National level (specific segments/National level (specific segments/

perspectives of golf economy)perspectives of golf economy)

• Develop a framework that captures the Develop a framework that captures the many dimensions of golf.many dimensions of golf.

This analysis estimates the size of the overall golf This analysis estimates the size of the overall golf economy, building up from golf’s components.economy, building up from golf’s components.

Analytical ApproachAnalytical Approach

• Economies are typically measured in terms of Economies are typically measured in terms of GNP.GNP.– Overly restrictiveOverly restrictive– Doesn’t capture the true dimensions and contributions Doesn’t capture the true dimensions and contributions

of golfof golf

• Our approach is based on GNP analysis, but Our approach is based on GNP analysis, but extends beyond GNP to build a more extends beyond GNP to build a more comprehensive picture of the golf economy, comprehensive picture of the golf economy, including:including:– Charitable fundraisingCharitable fundraising– Real-estate premiumsReal-estate premiums

Methodology EmployedMethodology Employed

• Model of the Golf Industry “Cluster”Model of the Golf Industry “Cluster”• Analysis of existing studies and data sources:Analysis of existing studies and data sources:

– Government statistics (Census Bureau, BLS)Government statistics (Census Bureau, BLS)– State-level golf impact studiesState-level golf impact studies– NGF surveys and reportsNGF surveys and reports– Annual reports (Firms, Associations)Annual reports (Firms, Associations)– Association reportsAssociation reports– Academic and general media articlesAcademic and general media articles

• Inputs from industry experts and stakeholdersInputs from industry experts and stakeholders

Core IndustriesCore Industries

Golf Course Capital Investment

Infrastructure Improvements

Course Renovations Clubhouse

Renovations

New Course Construction

Equipment / Golf Car Purchases

IrrigationInstallation

EnabledEnabledIndustriesIndustries

The Golf ClusterThe Golf Cluster

Tournaments

MEDIA, TOURNAMENTS,& ASSOCIATIONS

CharitiesPlayer Endorsements

Television

Player Endorsements

Associations

GOLF COURSECAPITAL INVESTMENT


Course Renovations

Clubhouse Renovation

s


Equipment/Golf Car Purchases


GOLFER SUPPLIES (on and off course)

Soft GoodsHard Goods

ApparelBooks &

Magazines

HOSPITALITY/TOURISM

Air Travel

Entertainment

LodgingFood &

Beverages

Car Rental

REAL ESTATE

Related ResidentialConstruction

Real Estate “Premiums”

•Green fees, member dues•Food & beverage•Lessons, schools, camps•Rentals

GOLF FACILITY OPERATIONS

Core Industries: Golf Facility Core Industries: Golf Facility OperationsOperations

• Does NOT include:Does NOT include:– Capital investmentCapital investment– Equipment and Equipment and

merchandise salesmerchandise sales $20,496 TOTAL

$323 Non-traditional Facilities

$662 Driving Ranges

$2,156 Resort Facilities

$17,354 Golf Courses (non-resort)

Golf Facilities Revenues Golf Facilities Revenues ($ millions)($ millions)

GOLF FACILITY OPERATIONS

•Green fees, member dues•Food & beverage•Lessons, schools, camps•Rentals

Core Industries: Golf Facility Core Industries: Golf Facility Capital InvestmentCapital Investment

$7,812 TOTAL

$2,166 New Golf Course Construction

$5,646 Existing Facilities Capital Investment

Golf Course Capital Investments Golf Course Capital Investments ($ millions)($ millions)

GOLF FACILITYCAPITAL INVESTMENT


Course Renovations

Clubhouse Renovations


Equipment/Golf Car Purchases


$4,096 EquipmentGOLFER SUPPLIES (on and off course)

Soft Goods Hard Goods

ApparelBooks &

Magazines$5,982 Total

$897 Books, Magazines

$989 Apparel

Consumer SpendingConsumer Spendingon Golfer Supplieson Golfer Supplies

($ millions)($ millions)

Core Industries: Golfer Core Industries: Golfer SuppliesSupplies

Total


Core Industries: Media, Core Industries: Media, Charities, Tournaments & Charities, Tournaments & AssociationsAssociations

Tournaments

MEDIA, CHARITIES,TOURNAMENTS & ASSOCIATIONS

CharitiesPlayer Endorsements

Television

Player Endorsements

Associations Charities

$871 Major Tournaments

$3,200

$167Associations

$255Player Endorsements

$4,493

Enabled Industries: Real Enabled Industries: Real Estate & Hospitality/TourismEstate & Hospitality/Tourism

HOSPITALITY/TOURISM

Air Travel

Entertainment

LodgingFood &

Beverages

Car Rental

$9,904 Total Real Estate

$1,504 Real Estate “Premium”

$8,400Golf-related Residential Construction


$13,480Total Hospitality/Tourism

$13,044 Golf Travel

$435Tournament-related Travel



REAL ESTATE

Related ResidentialConstruction


Enabled Industry EstimatesEnabled Industry Estimates

• The number of new homes in “golf” The number of new homes in “golf” communities is estimated from a variety communities is estimated from a variety of sources.of sources.

• Average building costs for residential Average building costs for residential construction varies greatly by region.construction varies greatly by region.

• Golf premiums capture the higher value Golf premiums capture the higher value of homes in golf communities.of homes in golf communities.

Real EstateReal Estate

Enabled Industry EstimatesEnabled Industry Estimates

• Golf travel includes both primary and Golf travel includes both primary and incidental activities/expenses.incidental activities/expenses.

• Golf travel expenditures per trip are Golf travel expenditures per trip are based on consumer surveys.based on consumer surveys.

• Estimates conservatively prorated Estimates conservatively prorated spending attributable to golf.spending attributable to golf.

Hospitality/TourismHospitality/Tourism

Estimate of the Golf EconomyEstimate of the Golf Economy

$62,167 TOTAL

$23,384

$13,480 Hospitality/Tourism

$9,904 Real Estate

Enabled Industries

$38,783

$4,493 Media, Tournaments, Charities, and Associations

$5,982 Golfer Supplies

$7,812 Golf Facility Capital Investment

$20,496 Golf Facility Operations

Core Industries

Overall Size of the Golf Economy in 2000 by Segment ($ millions)

Implications of the Golf Implications of the Golf EconomyEconomy• Growth through the Growth through the

1990’s was consistent 1990’s was consistent with the “most optimistic with the “most optimistic scenario” envisioned in scenario” envisioned in the late 1980’s.the late 1980’s.

• A previous study* A previous study* projected the golf projected the golf industry to be between industry to be between $25.2 billion and $57.8 $25.2 billion and $57.8 billion (most optimistic) billion (most optimistic) by the year 2000. by the year 2000. $74.

1 Furniture and home furnishings (retail)

$70.2

Electronics and appliances (retail)

$62.2

Golf (including core and enabled industries)

$57.8

Motion pictures and sound recording

$55.9

Amusement, gambling, and recreation

$51.6

Mining (except oil and gas)

The Golf Economy Compared with The Golf Economy Compared with Other Industries’ SalesOther Industries’ Sales

($ billions)($ billions)

* McKinsey & Co. and NGF.

$4,355 $36,057 Avid (25+rounds/yr)

$2,276 $18,028 Core (8-24 rounds/yr)

$409 $8,082 Occasional (1-7 rounds/yr)

Contribution Per Participant

($ per participant per

year)

Segment Contribution

($ million)

Implications of the Golf Implications of the Golf EconomyEconomy• Occasional Participants:Occasional Participants:

– Largest segmentLargest segment– Smallest spending per Smallest spending per

player per yearplayer per year– Smallest total Smallest total

expenditures; $8,163 expenditures; $8,163 (20 year spend)(20 year spend)

• Avid Participants:Avid Participants:– Much smaller segmentMuch smaller segment– Highest per player Highest per player

spendingspending– Largest spending Largest spending

segment; $87,094 (20 segment; $87,094 (20 year spend)year spend)

• The size & scope of the golf industry The size & scope of the golf industry clearly confirm its importance to the U.S. clearly confirm its importance to the U.S. economy.economy.

• Determining the economic “stake” of Determining the economic “stake” of stakeholders can promote effective stakeholders can promote effective investment strategies.investment strategies.

• A mechanism to achieve industry-level A mechanism to achieve industry-level collaboration and growth-oriented collaboration and growth-oriented investment will benefit all stakeholders.investment will benefit all stakeholders.

Implications of the Golf Implications of the Golf EconomyEconomy

Next Steps – Action ItemsNext Steps – Action Items

• Refine estimates (Hospitality/Tourism, Real Refine estimates (Hospitality/Tourism, Real Estate) of certain components.Estate) of certain components.

• Calculate economic impacts of golf.Calculate economic impacts of golf.

• Identifying golf’s benefits (jobs, tax revenues, Identifying golf’s benefits (jobs, tax revenues, tourism, etc.) can highlight the game’s tourism, etc.) can highlight the game’s importance to communities and policymakers.importance to communities and policymakers.

• This information can influence policy This information can influence policy decisions affecting the industry.decisions affecting the industry.

The Final ReportThe Final Report

• The Final Report contains:The Final Report contains:– Specific methodologies usedSpecific methodologies used– Component (and sub-component) estimatesComponent (and sub-component) estimates– Detailed referencesDetailed references

• The report will soon be available on the The report will soon be available on the GOLF 20/20 website: www.golf2020.com GOLF 20/20 website: www.golf2020.com

TIMOTHY W. FINCHEMTIMOTHY W. FINCHEMCommissioner, PGA TOURCommissioner, PGA TOUR

Chairman, World Golf FoundationChairman, World Golf Foundation

CATTLEMAN’S BEEF BOARDCATTLEMAN’S BEEF BOARDCATTLEMAN’S BEEF BOARDCATTLEMAN’S BEEF BOARD

• Established in 1985 as part ofEstablished in 1985 as part ofThe Farm BillThe Farm Bill

• Participation is mandated by lawParticipation is mandated by law

• General goal: Increase industry’s General goal: Increase industry’s potential for profitabilitypotential for profitability

• Specific goal: Increase consumer Specific goal: Increase consumer demand by 6% by 2004demand by 6% by 2004

BEEF: SOURCES OF FUNDSBEEF: SOURCES OF FUNDS

• Producers contribute $1.00 per Producers contribute $1.00 per headhead

• 50% to states where programs50% to states where programsare certifiedare certified

• Annual revenue to The Beef Annual revenue to The Beef Board: $90 millionBoard: $90 million

BEEF: USES OF FUNDSBEEF: USES OF FUNDS

• Legislation that helps build Legislation that helps build demand for beefdemand for beef

• New product development (i.e., New product development (i.e., “fast track items for families on the “fast track items for families on the go”).go”).

• Consumer advertisingConsumer advertising

• Cooperative marketing effortsCooperative marketing efforts

• Youth educationYouth education

BEEF: USES OF FUNDS (cont.)BEEF: USES OF FUNDS (cont.)

• Industry communicationIndustry communication

• ResearchResearch

• International marketingInternational marketing

• The Beef Board (110 members) The Beef Board (110 members) makes the decisionsmakes the decisions

BEEF: RESULTSBEEF: RESULTS

• Increase in demand in 12 of theIncrease in demand in 12 of thelast 14 quarters after 20 years of last 14 quarters after 20 years of declining demanddeclining demand

NATIONAL PORK BOARDNATIONAL PORK BOARD

• ““The Pork Act” enacted in 1985, and The Pork Act” enacted in 1985, and participation became mandatory in 1988participation became mandatory in 1988

• Pork producers pay $.45 per $100 in value of Pork producers pay $.45 per $100 in value of each animaleach animal

• Percentage (20%) is returned to state pork Percentage (20%) is returned to state pork producer associations for work overseen by producer associations for work overseen by Pork Board membersPork Board members

• Generates $50 million per year forGenerates $50 million per year forPork BoardPork Board

PORK: USES OF FUNDSPORK: USES OF FUNDS

• Communication ToolsCommunication Tools– MagazineMagazine– Radio services with farm broadcastersRadio services with farm broadcasters– WebsiteWebsite– NewslettersNewsletters

• AdvertisingAdvertising– ““The Other White Meat”The Other White Meat”

PORK: RESULTSPORK: RESULTS

• Production has increased 37%Production has increased 37%

• Per capita consumption has Per capita consumption has increased 3.6%increased 3.6%

• U.S. has gone from being a U.S. has gone from being a pork importer to a net exporter pork importer to a net exporter of pork productsof pork products

NATIONAL DAIRY NATIONAL DAIRY PROMOTION AND RESEARCH PROMOTION AND RESEARCH BOARDBOARD• Established as a mandatory checkoff in Established as a mandatory checkoff in

19841984

• Objective:Objective:

– To carry out a coordinated program of To carry out a coordinated program of promotion and research to strengthen the promotion and research to strengthen the dairy industry’s position in the marketplace dairy industry’s position in the marketplace and to maintain and expand domestic and and to maintain and expand domestic and foreign markets and uses for milk and dairy foreign markets and uses for milk and dairy products produced in the U.S.products produced in the U.S.

NATIONAL DAIRY NATIONAL DAIRY PROMOTION AND RESEARCH PROMOTION AND RESEARCH BOARD (cont.)BOARD (cont.)• Producers contribute $.15 per Producers contribute $.15 per

hundred weight of all milk hundred weight of all milk produced and can direct portion to produced and can direct portion to state and regional programsstate and regional programs

• Total revenue is about $230 millionTotal revenue is about $230 million

DAIRY: USES OF FUNDSDAIRY: USES OF FUNDS

• 69% Advertising and promotion69% Advertising and promotion

• 16% Nutrition education, public and industry 16% Nutrition education, public and industry communicationcommunication

• 15% Product research, export enhancement, 15% Product research, export enhancement, administrationadministration

• Secretary of Agriculture delegates oversight Secretary of Agriculture delegates oversight responsibility to the Promotion and Research responsibility to the Promotion and Research Staff, which reports to a 36-member BoardStaff, which reports to a 36-member Board

DAIRY: RESULTSDAIRY: RESULTS

• Per capita consumption is up Per capita consumption is up 11.5% since 198411.5% since 1984

• Fluid milk sales are up 29%Fluid milk sales are up 29%

• Cheese consumption per capita is Cheese consumption per capita is up 37% to 30.3 lbs per person per up 37% to 30.3 lbs per person per yearyear

FOOTBALLFOOTBALL

The NFL and its players association The NFL and its players association

are expected to create an are expected to create an

organization that in the next five organization that in the next five

years will pump $130 million from years will pump $130 million from

league revenues into grassroots league revenues into grassroots

youth football programs around the youth football programs around the

country.country.

BOWLINGBOWLING

In the process of generating aIn the process of generating a

$35 million annual fund from a $35 million annual fund from a

voluntary donation per lane rental voluntary donation per lane rental

to be used for advertising and to be used for advertising and

promotion, research and promotion, research and

education.education.

TENNISTENNIS

• Tennis Industry AssociationTennis Industry Association

• Manufacturer driven, not facility drivenManufacturer driven, not facility drivenlike bowling; all racquet makers participate like bowling; all racquet makers participate except oneexcept one

• An independent company handles collection of An independent company handles collection of 1% of net revenue1% of net revenue

• USTA contributes 60% of the $8-10 million USTA contributes 60% of the $8-10 million totaltotal

• 85% go to player development programs and 85% go to player development programs and 15% to administration15% to administration

POSSIBLE USESPOSSIBLE USES

• Link Up 2 GolfLink Up 2 Golf

• Junior Golf (Schools)Junior Golf (Schools)

• Targeted PromotionsTargeted Promotions

• Statewide 20/20 RepresentationStatewide 20/20 Representation

• ResearchResearch

““In the history of the In the history of the world, no one has ever world, no one has ever washed a rented car.”washed a rented car.”

Lawrence SummersLawrence SummersPresident, Harvard President, Harvard

UniversityUniversity

ruffin beckwith

Documents

scope of junior golf

competitive golf

junior golf needs

global junior golf website

fans of professional

junior initiativequantify

junior initiativetimelines

junior initiativedevelop