The Business of College Golf
The Business of College Golf
Considered a non-revenue sport. Millions pour into Collegiate Golf.
Every Monday, I write a newsletter breaking down the business in golf. Welcome to the 58 new Perfect Putt members who have joined us since last Monday. Join 1,131 intelligent and curious golfers by subscribing below.
Hey Golfers -
The collegiate golf season has kicked off in the United States - it’s a great time to look at the money behind the sport.
Collegiate athletics is a massive revenue generator. In 2019, NCAA athletic departments recognized revenue of $18.9 billion. The revenue was broken down into eight different buckets.
Institution & Government Supports - $6.85 billion
Media Rights - $3.44 billion
Donor Contributions - $2.87 billion
Ticket Sales - $2.01 billion
Student Fees - $1.55 billion
Royalties & Licensing - $1.10 billion
Guarantee Revenues - $.30 billion
Other - $.79 billion
It is important to note athletic departments that generate revenue doesn’t guarantee it earns a profit. In 2019, athletic departments had an average deficit of $16 million.
Collegiate golf doesn’t fit many of the eight buckets of revenue described above. In 2017, a report on 127 FBS schools detailed program revenue. While the data is a bit outdated, it paints a picture of collegiate golf compared to other collegiate sports. Football was the top revenue generator at $31.9 million, while Softball was the 15th at $697,386. Men’s or Women’s golf didn’t make the cut in the report.
Below is a look at the Top 10 Men’s golf programs in the country as of February 22nd.
Financial data is available on all ten programs, except for Pepperdine. The highest revenue program was Oklahoma State at $566,536. The lowest revenue program was Arkansas at $46,205. The program with the highest expenses was Oklahoma State at $1,833,820. The program with the lowest expenses was North Carolina at $653,757. All programs lost money - Oklahoma State lost the most at $1,267,200.
Collegiate golf coaches are paid well, but it is low compared to other NCAA Division I coaches. At least 20 football coaches make over $5 million annually, and over 80 coaches make $1 million annually. And that all makes sense. Football is king from a revenue standpoint in collegiate athletics.
Staying consistent, let’s look at the Top 10 ranked Men’s Golf coaches annual salaries.
Oklahoma Coach Ryan Hybl - $197,000
Arizona State Coach Matt Thurmond - $272,504
Oklahoma State Coach Alan Bratton - $252,500
North Carolina Coach Andrew Dibitetto - $110,000
Texas Tech Coach Greg Sands - $225,000
Arkansas Coach Brad McMakin - $225,000
Georgia Coach Chris Haack - $220,000
Tennessee Coach Brennan Webb - $180,000
Pepperdine and Stanford are private universities; their salary information isn’t readily available. Both Andrew Dibitetto and Brennan Webb recently signed new contracts that are likely higher than the figures above.
Coaches aren’t the only ones making money in collegiate golf. With the new NIL laws, players can profit off their name, image, and likeness. While the NIL money for golfers doesn’t scratch the surface of some football players; I’ve heard it isn’t insignificant.
Here is a look at a few collegiate golfers involved with NIL deals.
Preston Summerhays - Arizona State
Carson Lundell - BYU
Luke Kluver - Kansas
I spoke to a business leader involved with a NIL deal of a collegiate golfer. Here is what he said when I asked him if there was a positive ROI.
It will be unlikely to see positive return on investment during the NIL deal. I support the NIL deal because I have a passion for collegiate golfers. If collegiate golfer’s have success down the road on the PGA Tour, there would be an opportunity for a positive ROI, but there are no guarantees.
This comment is interesting because we know how long and difficult a road to the PGA Tour is. No matter how good a player is in college, there is no guarantee that a player will make it to the PGA Tour.
Even though Men’s and Women’s collegiate golf don’t bring in massive revenue, Universities still spend millions of dollars on practice facilities.
How much do Univitersies spend on golf facilities? Here’s a cost breakdown of five collegiate golf facilities.
Arizona State - $10 million
Michigan State - $6 million
Illinois - $7.2 million
Wake Forest $4.5 million
Iowa - $2 million
One of the first newsletters I wrote detailed each of these facilities. I received several emails and Twitter messages telling me to look at other facilities around the country. The investment in collegiate golf facilities is significant considering the lack of revenue.
Being a former collegiate golfer, I envy these practice facilities and the opportunity for a NIL deal. Then I remember how bad I was; I would have been lucky to earn a pack of golf tees from a company.
The investment in collegiate golf is exciting; it will continue to fill the pipeline to professional golf tours and create stars.
Have yourself a great Monday. Talk to you next week!
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Fantastic article! Love to see college golfers get involved in the NIL game.