The USGA'S Investment In Pinehurst
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Hey Golfers —
Golf organizations have made multi-million dollar investments in its facilities in recent years.
The PGA Tour spent $65 million on its 187,000-square-foot headquarters.
The PGA of America spent $33.5 million on its 106,000-square-foot facility.
The R&A recently purchased land to build a new facility.
The PGA of America’s investment and move to Frisco, Texas, two years ago were logical business decisions — they outgrew their office space in Palm Beach Gardens and needed an upgrade. Frisco came calling with an incredible plan and healthy financial incentives.
Now, the PGA of America has two world-class facilities within a driver of their headquarters.
According to economic impact studies — the project is expected to bring $2.5 billion to the community over the next 20 years, or $125 million per year.
While that may be a crazy number — it might make sense.
Several high-profile golf events have been played or scheduled at PGA Frisco — six major championships over 12 years.
2023 — Senior PGA Championship
2025 — Women’s PGA Championship
2027 — PGA Championship
2029 — Senior PGA Championship
2031 — Women’s PGA Championship
2034 — PGA Championship
And while nothing is official — the Ryder Cup will likely visit PGA Frisco in 2037 or 2041.
The last men’s major championship held in Texas was the 1969 U.S. Open, which is remarkable for a state with a long golf history.
Call it an anchor site, or call it whatever you’d like. The PGA of America’s new facility can host championships — something it hadn’t had in the past.
The USGA has a similar plan with Pinehurst — although not quite as dramatic.
Pinehurst has hosted several professional USGA-related events in the past.
U.S. Senior Open — 1994
U.S. Open — 1999
U.S. Open — 2005
U.S. Open — 2014
U.S. Women’s Open — 2014
Separately — Pinehurst hosted a PGA Championship and Ryder Cup in 1936 and 1951, respectively.
Now, the USGA has selected Pinehurst to host the U.S. Open five times in the next 23 years and the U.S. Women’s Open in 2029.
U.S. Open — 2024
U.S. Open — 2029
U.S. Women’s Open — 2029
U.S. Open — 2035
U.S. Open — 2041
U.S. Open — 2047
Pinehurst leads the way with future U.S. Opens. Meanwhile, Oakmont and Pebble Beach each have four future U.S. Opens on the schedule.
Here is what the USGA investment in Pinehurst looks like.
The USGA invested $25 million in what it is calling Golf House Pinehurst, a six-acre campus with two buildings that include.
USGA Administration and Test Center
USGA Experience and World Golf Hall of Fame
The combined square footage of the buildings is 46,000 square feet.
The USGA did not move its corporate headquarters from New Jersey — the Pinehurst location complements its New Jersey location. There are 70 full-time USGA employees — around one-third of all USGA employees—at the Pinehurst location.
The USGA signed a 150-year land lease with Pinehurst Resort and Country Club.
Moving part of the USGA’s operations to Pinehurst will result in an economic impact of two different forms.
USGA business-related economic impact
USGA championship-related economic impact
The USGA estimates the annual economic impact of its operations in Pinehurst to be $18 million. This includes both the museum and the research, science, and innovation center. The museum expects to see 24,000 visitors annually and bring in $46,000 in tax dollars, while the research, science, and innovation center will create 190 new jobs.
The future U.S. Men’s and Women’s Opens are expected to have a combined economic impact of $585 million.
The USGA is expected to bring $800 million in economic activity to the state over the next ten years. Studies expect the long-term impact to be around $2 billion for the state of North Carolina.
But it isn’t just money.
The USGA is partnering with local colleges. They invested $1 million into Sandhills Community College to create the Greenkeeper Apprentice Program. Students will receive tuition-free learning for one year and paid on-the-job training at partner golf courses.
The USGA's move to Pinehurst makes perfect sense for all parties. The USGA gets an anchor site they can build around for upcoming championships, and the area will receive an increase in economic activity.
There is obviously only one major championship at the same site every year. However, the PGA of America and USGA are making a concerted effort to have a home that includes more than a headquarters. It includes championship golf courses to host major tournaments.
Have a great Monday. We will talk to you next week!
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