The Financial Impact of The Open
The Financial Impact of The Open
Scotland and Fife will see an estimated $240 million.
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Hey Golfers —
The 150th Open at St Andrews will be a financial monster to the Scottish and Fife economies — relative to the major events this year.
More than 1.3 million people applied for the ticket ballot, leading to a record attendance of 290,000 fans. A record 58,000 fans were under the age of 25, and 20,000 children under the age of 16 were given tickets for free.
Here is a breakdown of ticket prices.
The record 290,000 fans include 80,000 fans that will attend the practice rounds. If we take that number out, it leaves us with 210,000 fans for the four-day event.
For context — here are the attendance numbers for the major events this year.
Masters — 160,000
U.S. Open — 135,000
PGA Championship — 180,000
A record-breaking capacity at The Open will lead to an incredible economic impact for Scotland and Fife.
An independent study conducted by the Sport Industry Research Centre at Sheffield Hallam University predicted a $240 million impact on the Scottish economy.
Here is the wild thing. The 2015 Open was held at St Andrews and provided a $167 million impact on Scotland. That same Open Championship had a whopping 237,000 fans. This year’s Open topped that number by 22%.
Of that $167 million — $62 million, or 37%, benefited the Fife area alone. If we apply that same percentage to the 2022 Open Championship, Fife is estimated to see $88 million directly impact their economy.
Fife is one of 32 council areas in Scotland with a population of 370,000 people located directly north of Edinburgh.
Part of the 2015 Open’s $167 million impact was $52 million worth of marketing for St Andrews and the area — as the Championship was played in over 500 million homes throughout the world. We can also expect that number to increase in the 2022 Open.
Intentionally or unintentionally — The Open Championship is a giant commercial for local tourism to the Fife and St Andrews area. In last week’s piece, I wrote about the money behind the St Andrews Links Trust — 27% of the golf rounds played at St Andrews are by visitors.
So how does this Open stack up against previous Opens? Let’s take a look.
2018 — $143 million
2019 — $120 million
2021 — $136 million
2022 — $240 million
An advantage for St Andrews is its ability to hold massive crowds — claiming three of the four largest Open Championships regarding fans.
2000 — 239,000 fans
2010 — 237,000 fans
2022 — 290,000 fans
Royal Portrush makes up the other at the 2019 Open Championship with 237,500 fans.
How does the 2022 Open Championship economic impact stack up against this year’s majors?
Masters — $120 million
U.S. Open — $120 million
PGA Championship — $143 million
The U.S. Open $120 million is a historical estimate for U.S. Opens — a study has not been completed.
It isn’t just Scotland and Fife that will see significant financial gains from The Open.
This year’s purse increased 22% to $14 million — yet, it is the smallest purse for majors.
The Open — $14 million
Masters — $15 million
PGA Championship — $15 million
U.S. Open — $17.5 million
One could argue — that the smallest purse still has the most significance in golf history.
Cameron Smith won $2.5 million — but that just scratches the surface of his earning opportunities in future endorsements.
After Justin Rose won his Open Championship — his $1.2 million TaylorMade contract doubled in value.
Phil Mickelson received a $1 million bonus from Callaway after winning The Open.
Should Cam Smith elect to receive appearance fees for certain tournaments — that number has also gone up after his win at The Open.
Regarding endorsement money — two tournaments move the needle like nothing else— The Open Championship and Masters.
Have yourself a great Monday. Talk to you next week!
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Rose won the US Open, not The Open.