The PGA of America and The Ryder Cup
A look at the $750 ticket into the Ryder Cup.
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Hey Golfers —
A lot has been made about the PGA of America recently announcing ticket prices for the 2025 Ryder Cup at Bethpage Black at $750.
There’s certainly justification for the chatter — there is also a chance that the announcement was a victim of the golf news cycle.
I wanted to take a slightly different look at it.
The Ryder Cup is a significant revenue generator for the PGA of America and its European counterparts — specifically the European Tour — which owns 60% when the event is held in Europe.
When the PGA of America hosted the 2021 Ryder Cup at Whistling Straits, it recognized $192 million in revenue and $143 million in tournament revenue.
And comparing the 2021 year for the PGA of America to the previous year of no Ryder Cup (take 2020 out of the equation) was 2019. The PGA of America recognized $94 million in revenue and $68 million in tournament revenue.
Before the 2021 year — the difference in revenue for the PGA of America in a Ryder Cup year vs. a non-Ryder Cup year was around $30 million.
The Ryder Cup is meaningful for the PGA of America in terms of revenue and net income.
And speaking of net income — the PGA of America lost over $18 million in its most recent form 990 filing in 2022. Expenses in 2022 vs 2021 increased by $30 million. And 2022 saw the highest level of expenses the PGA of America has seen. All of this in a year of incurring no Ryder Cup expenses.
It is challenging to understand what the increase in expenses is. The PGA of America saw an increase in ‘Other’ expenses by $21 million in 2022 vs 2021.
Did the loss of $18 million result in the charging $750 ticket prices? This is an impossible question to answer right now, but it is something to consider.
For reference, Ryder Cup ticket prices were $185 in 2021 at Whistling Straits. Bethpage Black is four times as expensive. What changed?
Here’s my analysis of this. I think golf is a bit of an anomaly with ticket prices — in a good way.
The Masters and The Open are two of golf’s largest events every year. You can argue what the best major is or even what your favorite major is. But the Masters and The Open are at the top of most lists as the most important golf events in the world.
The get-in price for each event?
Masters — $140
The Open — $130
The Masters generates the most interest in regards to TV ratings for golf. It’s golf’s game seven. It’s golf’s Super Bowl. The get-in prices offer incredible value if you win the lottery.
The Waste Management Phoenix Open is $125 for Friday and Saturday in February. Tickets cost $85 for Saturday at the Farmers Insurance Open in January.
My point is — Masters and Open tickets don’t differ a whole lot from a PGA Tour event. Solid tournaments, but not majors.
The get-in price for a World Series ticket for game one was $1,300 this year. A Super Bowl ticket was around $6,500 last year.
The average price for an LA Dodgers ticket for a regular season game was $53. So ticket prices increased by 25 times for game one of the World Series.
You can buy a ticket to a Kansas City Chiefs game against the Las Vegas Raiders for around $300. The Super Bowl increase is around 22 times.
The Ryder Cup ticket cost five times the Masters ticket and nine times the Farmers Insurance Open.
Would I pay $750 for a Ryder Cup ticket? No, I wouldn’t (I am also broke after starting Hanna Golf).
The ticket price is worth what people are willing to pay for it. So, we will see what demand translates into those Ryder Cup ticket prices.
I do wish and am hopeful the PGA of America will set aside an allotment of tickets at a lower price for locals. The fear is that the event will become too corporate and have no juice.
New York sports fans are some of the most passionate sports fans in the world. By potentially removing a portion of them, the event could lose its culture. It could lose the New York identity. And for a place like Bethpage — a public track — what a huge opportunity to make this an iconic golf event.
I do believe the PGA of America has gotten a lot right over the last few years.
Moving their headquarters to Frisco was a tremendous business decision. As a result, with help from the public and private sector, they have created their own golf mecca. With championship courses that will host majors and likely a Ryder Cup in the future.
Not only that, but they also created one of the few investment funds in golf. They are actively investing in new technology and disruptors in the space. That’s a good thing. It’s a good thing for their 30,000 members.
I believe both can be true at the same time. The PGA of America believes the Ryder Cup ticket is worth $750, and fans will pay for it. Golf fans have also not seen ticket prices this high. And are used to golf’s top events being a nominal increase compared to a PGA Tour event.
I understand how the fan feels. A lot of fans aren’t happy with the state of professional golf right now — they are turned off. They feel like the Ryder Cup ticket prices are the cherry on top of not being listened to in the last three years.
Have a great Tuesday. We will talk to you next week!
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Great informative article.
Any idea what the cost for a ticket to the Ryder Cup for the Tuesday/Wednesday practice rounds will be ? Thank you