GOLF WORLD FROM TEE TO GREEN - Nielsen Sports
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
1
xxxxxxxxx
WORLD
GOLF FROM
TEE TO GREEN
The state
of play in golf
today.
Insights by Repucom
3
WORLD GOLF2015
WORLD GOLF INDUSTRY SURVEY 2015 – WHO TOOK PART?
In collaboration with IMG and the HSBC Golf Business Forum, Repucom up. Respondents were predominantly male – 84 per cent
carried out a survey of the global golf community – the golf industry and who versus 16 per cent female – and nearly a quarter each
subscribe to the Golf Business Community – during August and September to came from the United States and United Kingdom, where
gain an insight into the current state of the game, its tournaments, the sponsor- the golf industry is most established and mature. 39 per
ship landscape, the spectator experience and how the sport’s future is shaping cent of respondents said they play golf themselves.
Golf today is a sport that transcends entertainment, lifestyle, health and
community. It is a multi-billion dollar industry that is experiencing some of its
most tumultuous times.
A beacon in these difficult times, professional golf is arguably at its zenith;
WHAT DOES THE INDUSTRY THINK ABOUT ITSELF?
a new generation of players with diverse personalities are congregating at the
top of leaderboards around the world, providing an enticing new dynamic for
fans, broadcasters and sponsors. THE STATE OF THE GAME CONSUMPTION SPONSORS
Golf fans are now able to watch these rivalries develop in new ways, as the Asked to use one word to describe Clear differences emerged amongst the three age Underlining that the respondents were
major tours and broadcasters deploy new technologies and platforms to meet the current state of golf, significant groups when the industry was asked about how largely members of the golf industry,
the demands of a social and digital age. Tournaments, sponsors and players, Paul Smith differences in sentiment emerged they consume media, particularly around use of the unprompted brands awareness
meanwhile, are increasingly building a platform in social media as a way to Founder and CEO, amongst age groups. social media and television. scores were high. BMW, Nike, Titleist,
engage with fans and promote themselves. Repucom Rolex and HSBC achieved the higher
The younger respondents tend to be scores in this survey, suggesting that
Geographically, too, changes are afoot. The traditional heartlands of golf, hold a more positive view of golf; im- Social Media < 29 78% these sponsors are achieving a high
North America and Europe, remain at the top of the rankings in terms of view- portantly, fewer under-29s believe (e.g. Facebook, level of cut-through amongst the
ers, interest and, at mass participation level, even number of golf courses, but the sport is declining than the older Twitter,
30 ‒ 49 76% keenest followers of the game.
other markets, primarily Asia, are joining the party. The growth of the game in the age groups. The use of words such YouTube) 50+ 39%
emerging markets highlights the global context of golf, particularly the profes- as ‘stagnant’, ‘stale’ and ‘steady’,
sional game. For a long time, The European Tour has pioneered these regions particularly from the older two age
Specific
< 29 69%
and has built a global framework that has delivered new fans and revenues. categories, point to a perception of a TV Broadcasts 30 ‒ 49 84% HOW IMPORTANT IS THE
lack of progress. Some of the most- (live, replay) OLYMPICS TO THE PROFILE
Despite all these positives the underlying challenges for golf, declining play used words included: 50+ 88% OF DIFFERENT SPORT?
and associated consumption, remain. The 2016 Olympics will put golf back
into a very historical sporting context, but it is no quick fix. The traditional con- Golf sport
< 29 25%
fines of golf will need to be challenged from within to create an openness to Multiple responses Journals Print 30 ‒ 49 49% Higher importance
change; a concerted effort to engage former and future players in an innovative over
50+ 61%
way is the pathway to growth.
Up to 29 years 80%
Changing, Competitive,
72% Athletics
of respondents say new
Crossroads, Declining, Swimming/Aquatics
media platforms would have a positive
Democratisation, Depleting, Cycling
impact on golf, while
Elitist, Expansion, Triathlon
Expensive, Fragile, Good,
Growing, Healthy, Hopeful,
79% medium importance
would like to see improvements
Improving, Old, Optimistic,
over
CONTENTS
in broadcast coverage using
Rebounding, Slow,
04 I F
ANS
Interest by market and
Stagnant, Struggling,
Technical, Underachieving,
technology, such as better replay
systems and other innovations
50%
what golf fans are buying. such as those demonstrated by Fox,
Underplayed, Youthful. Basketball
CBS and Sky Sports during
10 I S
PONSORSHIP golf coverage in 2015. Boxing
30-49 years
The major brands and Golf
how they activate. Shooting
Challenging, Changing,
Declining, Exciting, Fun, Global, SPECTATOR EXPERIENCE Equestrian
14 I E
VENTS
Rising, Stagnant, Stale,
A multitude of options less importance
Steady, Struggling. Asked what would improve the spectator experi-
for brands and fans. below
ence at tournaments, there was a strong response,
18 I P
LAYERS
50+ regardless of age group or gender, for more player
interaction – it is a unifying theme. Those under 29
50%
The impact of winning and
Challenging, Declining, also want more hype and social interaction; those
the relationship with brands. Badminton
Elitist, Exclusive, Good, aged 30 – 49 are keen for stadium course designs,
Pressure, Rising, Stable, more seating and better viewing opportunities; those Taekwondo
Stagnant, Struggling. over 50 expressed a desire for cheaper tickets. Rugby
©2015 Repucom Insights by Repucom
4 5
Fans Fans
FANS
GOLF FANS IN 2015
The average age of the golf fan differs significantly by market, as the se- ing markets is below 35. This demonstrates that in new
lected list below shows. While established golf markets such as Canada, the golf markets, the sport is attracting a younger audience
UK and the USA each have a fan average age of above 40, the other end of and, as the second table on this page shows, often posi-
the spectrum features a cluster of growing and developing golf markets – the tioning itself as a more gender-neutral sport, as opposed
average age of the golf fan in Turkey and the United Arab Emirates, two grow- to some of the more traditional golfing nations.
Average age of golf fans by market
In markets where golf is emerging, there is
an opportunity to promote golf as a more gender- 45.7 44.8 43.6 41.7
neutral sport to a younger group of fans.
40.5 39.9 39.4 39.4 38.9 38.3 38.2 37.8 37.8
35.7 35.5 34.3 33.2
South Korea
Singapore
Australia
Malaysia
Thailand
Germany
Austria
canada
France
Turkey
Mexico
Japan
spain
Italy
USA
UAE
UK
Source: Sports DNA (May 2015)
Male/Female interest in golf by %
Despite being a sport traditionally dominated by male interest, the gender gap
has dropped to around 60:40 in many major markets around the world. In a
market like South Korea, a country which has enjoyed much success in the
women’s game thanks to the likes of Se Ri Pak and now Inbee Park, female in-
terest has reached 40 per cent. Although the gender gap is wider in some mar-
kets such as France and particularly Australia, where men make up over 70 per
cent of the golf fanbase, the picture is different in some of the developing golf
nations. There is nearly an even gender split in interest in Turkey, for example,
while the gender split in Italy is particularly striking for a country in one of golf’s
traditional heartlands, Europe.
85.5
70.9
65.4 65.5 64.6 63.8 66.4 65.6
61 60.4 60.7 59.9 58.9
57.2 55.6
50.5 49.5 52.1
47.9
42.8 44.4
39 39.6 39.3 40.1 41.1
34.6 34.5 35.4 36.2 33.6 34.4
29.1
14.5
SportsDNA is the world’s larg-
est multi-client study in sports,
based on more than 30,000
interviews in over 30 countries.
Australia
Austria
Canada
France
Germany
Italy
Japan
Malaysia
Mexico
Singapore
South korea
Spain
Thailand
Turkey
UAE
UK
USA
Research is conducted twice
Photo: Getty Images
yearly amongst 16 – 69 year
olds and a nationally repre-
sentative sample. Source: Sports DNA (May 2015)
©2015 Repucom Insights by Repucom
6 7
Fans Fans
GLOBAL INTEREST IN GOLF GOLF FANS: WHAT ARE THEY BUYING?
North America and Europe are golf’s traditional heartlands, in terms of inter- population has an interest in golf in five markets: South Ko- Historically, golf has enjoyed tremendous support from the financial services of the game. The link between the professional and partici-
est, watching the professional game and participation. But interest, amongst rea, Thailand, USA, Turkey and the United Kingdom. By industry and the value of the sport to that sector is clear: golf fans are far more pation strands of the game has been a major topic of de-
16–69 year olds, is growing in other regions; indeed, across Asia and Oceania population, the United States and China dominate, fol- likely than the average person to use or purchase credit cards and insurance. bate for many years. Nearly eight per cent of the Americans
and the Middle East, interest levels in golf are now higher than across Europe. lowed by Japan and Mexico. Just over 10 per cent of the Golf fans are also far more likely than the average person to purchase sports- who actively play sport, play golf along with around seven
Drilling down into individual markets, however, shows that over a quarter of the population in Brazil currently have an interest in the sport. wear – unsurprising given the links between professional golf and the leisure side per cent of Britons and one in ten Japanese adults.
% interest by selected markets Top 5 by % Top 5 by %
25
SERVICES AND USAGE INTENTION INTENDED PRODUCT PURCHASES
30 UK 20 24
17 33 What they currently use or intend to purchase in the next 12 months What they currently use or intend to purchase in the next 12 months
USA spain Italy Japan
South Korea golf fan average person golf fan average person
8
21 69 Banking/
financial services 68 73 Soft drinks/
beverages 76
Southafrica
Source: Repucom SportsDNA (May 2015)
Australia
68 Mobile network/
wireless service 70 65 Mobile devices
65
Interest by market (top 2 box)
65 Quick service
restaurants (fast food) 64 63 Healthcare
Products 63
MARKET South Korea
Thailand
33
33 MARKET USA
China
68
54.7
63 Credit card
53 60 Sportswear
48
INTEREST USA
Turkey
30
25
MILLIONS Japan
Mexico
20.5
17.3 62 Insurance
57 60 Consumer Electronics
58
in percent
United Kingdom
Singapore
25
24
OF PEOPLE Thailand
Brazil
16.9
13.3
Consumer Electronics
Japan 24 United Kingdom 12.3 Golf fans are also more likely to buy a subscription TV package,
Malaysia 23 South Korea 10.2 take flights for business and leisure and are twice as likely to use
Canada 23 Turkey 9.6 sports betting services than the average person. Source: Repucom SportsDNA (May 2015)
Mexico 22 Germany 8.8
Australia 21 Italy 8.3
Italy 20 Russia 7.9 Participation
United Arab Emirates 19 France 7.4
New Zealand 18 Canada 5.7
Spain 17 Spain 5.7 OF THOSE WHO ACTIVELY PARTICIPATE IN SPORT, HOW MANY PLAY GOLF?
France 17 Malaysia 4.7
12.6%
9.3% 9.9%
Austria 16 Argentina 4.2
6.9% 7.7%
Germany 16 Australia 3.4
Argentina
Sweden
15
14
Poland
Indonesia
2.7
2.3
5.7% 3.4%
Brazil 11 South Africa 1.7
China 10 India 1.6
Russia 10 Singapore 1.1
GLOBAL TOTAL
South africans
South koreans
Poland 10 Netherlands 1.1
Australians
americans
291.06
canadians
AVERAGE Netherlands 9
8 9
Fans Fans
MEDIA COVERAGE AND CONSUMPTION Key market interest in Major championships
Golf has been a television sport for decades – the 1947 US Open was golf fans use television as a sports information resource,
broadcast locally in St Louis, the BBC in the UK broadcast its first Open compared to 90 per cent of the average population.
Championship in 1955, while the first Masters broadcast, an hour per day, was
provided by CBS to the United States in 1956. Increasingly sophisticated and But golf fans are also major users of social media and Interest levels in golf’s four an-
blanket coverage of tournaments and tours has followed, complemented in mobile devices, utilising the platforms far more than the av- nual Majors differs significantly USA UK japan south korea
recent years by interactive coverage, additional streaming and dedicated apps erage person to find and consume information about sport by market. In the USA, where
offering statistics, alternative camera angles and other content. Television, – over 85 per cent use social media compared to 66 per three of the four tournaments Masters Augusta National
though, remains the dominant medium for golf fans to find out information cent of the total population, while nearly 87 per cent of golf are held, the Open Champion- 22.6% 16.5% 19% 12.7%
about their favourite player or news about a tournament: over 97 per cent of fans are using mobile devices to read or watch sports news. ship unsurprisingly has the low-
est interest levels. But despite a US PGA PGA of america 21.3% 12.8% 6.4% 21.8%
similar timezone there are strik-
ing differences in interest levels Open championShip R&A
for both the US PGA Champi- 17.8% 19.4% 18.7% 9.8%
Media used for sports information (%)
onship and the Open between
Japan and South Korea.
US Open USGA 21.8% 17.1% 15.3% 23.1%
87 85
Source: Repucom SportsDNA (May 2015)
65
average person golf fan
66
average person golf fan
PGA Tour coverage is split between CBS and NBC in the United States,
with the most recent contracts, signed in 2011, running to 2021. In addition,
In the United States, Fox replaced NBC this year as the
broadcaster of United States Golf Association events, in-
Mobile devices Social media the tour has a cable broadcast rights contract in place with Golf Channel, which
also runs until 2021. In 2014, UK broadcaster Sky Sports signed a new seven-
cluding the US Open, after agreeing a 12-year deal. NBC,
meanwhile, is to replace ESPN as the US broadcaster of
year deal to broadcast PGA Tour events live until 2022, in a deal including more The Open from 2016 after signing its own 12-year deal.
on-site coverage. Sky Sports also has the live UK rights to the European Tour, NBC also has a contract with the PGA of America to
plus the Ryder Cup. broadcast every Ryder Cup until 2030.
In 2016 the broadcaster will provide live coverage of all four Major tourna- Alongside state broadcaster CCTV, online broadcaster
95 87
ments for the first time, after picking up the exclusive live rights to The Open LeTV – Leshi Internet Information & Technology – has
79
average person golf fan
62
average person golf fan
Championship after the BBC pulled out of its deal a year early. The BBC will
continue to broadcast free-to-air highlights of each round, and also has live
weekend coverage of the Masters until 2017.
picked up the Chinese rights to a slew of international golf
tours and tournaments over the past year as it rolls out its
sports service.
Internet Magazines/
sport magazines CASE STUDY
EMBRACING DIGITAL: PGA TOUR LIVE
92 88
In April the PGA Tour announced a multi-year partnership with Major of delivering the digital hybrid our fans want most – a
74
average person golf fan
69
average person golf fan
League Baseball Advanced Media (MLBAM) to create and produce a new
OTT subscription service, providing additional live coverage of its events.
live HD broadcast with world-class technology distri-
bution. ”MLBAM has established itself as a class
leader in developing OTT solutions and platforms. It
Designed as a complement to existing tournament television broad- has previously worked on streaming service projects
casts, the service, PGA Tour Live, debuted at July’s Quicken Loans Na- for HBO, Playstation, ESPN and the WWE.
Daily newspapers Radio tional PGA Tour event, with coverage of the morning groups during the first
two rounds and, when the Golf Channel’s US television coverage began,
featured holes.
As it debuted the service was priced at $4.99, with initial availability in
selected
Venuesmarkets including the US, aCanada, Australia
tenant areand
in bold. United King-
81 98
with a strong focus on music events and without sports team as anchor
53 90
R dom. Source:
In all,Repucom
the Market
service has been trialled at seven 2015 PGA Tour events,
Intelligence
LETTE
NEWS before a broader rollout next year.
average person golf fan average person golf fan “PGA Tour Live is an important development for golf fans, as it will
bring live action to the devices they use most, while building great momen-
Email Newsletter tv tum and viewership for the ensuing broadcast coverage each weekday
afternoon and into the weekend,” said Tim Finchem, commissioner of the
Photo: Getty Images
PGA Tour, as the new service was announced. “Working with MLBAM was
a natural fit, as it was a top priority to find a partner to meet the challenge
Source: Repucom SportsDNA (May 2015)
©2015 Repucom Insights by Repucom
10 11
Sponsorship Sponsorship
SPONSORSHIP
GOLF’S GLOBAL SPONSORSHIP SPEND
Professional golf in all its forms offers a variety of sponsorship platforms and have opened up opportunities for new sponsors and cat-
levels of investment, from entire tours to individual tournaments, players to egories, while new funding models, including from govern-
teams and governing bodies. The sport boasts some of the longest standing ment and tourism agencies, have also proved successful
sponsorship agreements in sport and retained brands from traditional catego- for tournaments around the world. These agreements
ries like watches, cars and financial institutions, such as Rolex, BMW and hinge on the direct and indirect economic impact a major
HSBC, through the global financial crisis. But despite these challenges the ex- golf tournament, with all the attendant media attention and
pansion of calendars, implementation of new formats and geographical shifts spectator spend, can bring to a region.
Golf attracts significant sponsorship for its major tours, tournaments
$
and players, with format changes including the European Tour’s Race
to Dubai and the PGA Tour’s FedEx Cup recently presenting new 1.45BN
2013
options for brands.
1.55BN
2014
1.6BN
2015
The global spend on golf
sponsorship 2013‒2015
Source: Repucom Market Intelligence
CASE STUDY
PATRICK FITZGERALD – SENIOR VICE PRESIDENT
OF INTEGRATED MARKETING AND COMMUNICATIONS, FEDEX
“We recognised a lot of connections between our brand and the at-
tributes of golf and the PGA Tour – things like reliability, global focus, a
diverse workforce. We got into conversations with the tour about the con-
cept of the FedEx Cup, which really has transformed the sport in terms of
the calendar. It has an intensity and drama that attracts the best golfers
and fans around the world.
“Having somewhat of a blank slate to create that was more attractive
for us than just taking over an existing sponsorship or system that was
already in place. We are in our ninth year of our FedEx Cup sponsorship
and to see how quickly it’s grown and how firmly established it is now
really demonstrates that the need was there.
“Clearly with events happening year-round, globally, it does give us an
opportunity to host and allow our team members to connect at local
events, but the other very strong connection that we have is that we con-
nect the
VenuesFedEx
with a strongCup
focus onwith ourand
music events FedEx Cares
without a sports programmes,
team as our charitable
anchor tenant are in bold.
focusSource:
andRepucom
community-based
Market Intelligence
activities, where we have thousands of vol-
Photos: AFP (left); 2015 Chris Condon/PGA TOUR
unteer hours around the globe and tens of millions of dollars in support
and in-kind shipping that we provide to communities where we do busi-
ness around the world.
“We have great familiarity with the various sports and sponsorship
opportunities and how they connect with our customers; we are very
impressed and pleased with the connection that we have through golf
World number one Jordan Spieth celebrates his 2015 FedEx Cup victory.
and the PGA Tour.”
©2015 Repucom Insights by Repucom
12 13
Sponsorship Sponsorship
THE HEAD-TO-TOE MODEL
Sponsorship sector analysis
Sportwear giant Nike continues to be the largest corporate spender on golf clubs,” explains Carlos Fleming, who as Senior Vice Presi-
around the world, not least through its head-to-toe sponsorship of Tiger Woods dent of Talent Marketing for IMG represents another Nike
over the past 20 years and, more recently, a similarly all-encompassing deal with ‘clean apparel athlete’, US star Michelle Wie. But whilst golf
Northern Ireland’s Rory McIlroy. The head-to-toe model, which restricts players has a number of rising talents and a new generation of HSBC’s recent renewal of its global
from wearing other logos whilst on-course, has also been adopted by Under established, top-level players, it is the major sponsors of TOURISM golf sponsorship programme, a port-
Armour, which has Jordan Spieth under contract until 2025. “You work from the Woods and his old rival Phil Mickelson which continue to
FREIGHT AND LOGISTICS folio including the World Golf Cham-
endemics and work your way out – apparel, shoes, playing equipment, golf dominate the list of largest player sponsorship agreements.
5% 5% pionship-HSBC Champions, HSBC
REMAINING CATEGORIES Women’s Champions, The Open and
the Abu Dhabi HSBC Golf Champi-
IT – SOFTWARE & HARDWARE
28% onship, underlines the continuing im-
7% portance of the banking and finance
sector to professional golf. It remains
the largest sector in terms of spend,
ahead of apparel companies such as
CONSUMER GOODS Nike, Adidas and Callaway, and car
manufacturers, including Mercedes-
9% Benz, BMW Group and General Mo-
tors. Just under a fifth of the global
spending on golf sponsorship rights
fees comes from the consumer
BANKING & FINANCE goods market. The tourism sector,
AUTOMOBILE
13% 18% made up of government agencies
and hotel groups, is a relatively new
category, a reflection of the attrac-
tiveness of hosting a professional
APPAREL tournament and golf’s global status.
15%
Source: Repucom Market Intelligence based on analysis of over 700 deals globally
Top 5 player sponsorship deals
Nike
Nike
Hero
MotoCorp
KPMG
Callaw
Tiger Woods
ay
Phil Mickelson
Rory Mc Ilroy
Photos: AFP
Source: Repucom Market Intelligence
Under Armour have signed Jordan Spieth, seen here at the 2015 Open Championship, to an exclusive head-to-toe sponsorship agreement until 2025.
©2015 Repucom Insights by Repucom
14 15
Events Events
EVENTS
THE PROFESSIONAL GOLF CALENDAR
Like all major sports, golf’s sponsorship landscape is diverse, United Arab Emirates, Malaysia, Thailand, India, China, Mauritius and
with various governing bodies, tours, promoters, tournaments and Morocco. In August, the European Tour announced an ‘innovative joint
players all presenting commercial opportunities for brands. vision for the future of professional golf’, with the Asian Tour.
The men’s professional golf season is dominated by the four ma- Every two years room is found in the crowded calendar for team
jor championships – the Masters, US Open, Open Championship matchplay events – the Ryder Cup, between the United States and
and PGA Championship. Europe, and the President’s Cup, between the US and a team
comprised of the best non-Europeans from elsewhere in the world.
Although there are several other tours, such as the Asian Tour,
Professional golf tournaments generate major economic two dominate the golf landscape at the highest professional level.
America’s PGA Tour and the European Tour are in constant competi-
Senior tours and second-tier competitions, such as America’s
Web.com Tour (formerly the Nationwide Tour) and Europe’s Chal-
impacts for host regions, while on the participation side tion for players and eyeballs, but both manage to co-exist, not least
in recent times by tweaking formats to help retain interest and attract
lenge Tour, and their affiliated tournaments open up other commer-
cial possibilities.
Asia is becoming a major force alongside North America or retain the best talent.
Women’s golf is structured in similar fashion: the LPGA Tour
The FedEx Cup, introduced by the PGA Tour in 2007, concludes and Ladies European Tour are the major seasonal contests, but
and Europe. with four play-off events – in 2015 they were The Barclays, the each year is also peppered with major tournaments. For the past
Deutsche Bank Championship, the BMW Championship and the three years, women’s golf has had five major tournaments
Tour Championship. The winner per season – in 2015 they were
claims a US$10 million prize, California’s ANA Inspiration (for-
part of a total US$35 million merly the Kraft Nabisco Cham-
prize fund. pionship), the KMPG Women’s
PGA Championship, the US
The European Tour, mean- Women’s Open, Ricoh British
while, has introduced its own Women’s Open and France’s
seasonal narrative device over Evian Championship. The Sol-
the last decade. Since 2009 the heim Cup, held every two years,
Race to Dubai has run through- is the Ryder Cup-equivalent for
out the season, culminating in the women’s game.
the DP World Tour Champion-
ship at Jumeirah Golf Estates – In 2016, every top-level tour
DP World is a Dubai-based will be punctuated by a trip to
shipping logistics company. Rio de Janeiro for the return of
golf to the Olympic Games, at
The European Tour has also an under-construction course in
broken free of the continent’s Barra da Tijuca. The men’s and
borders, running tournaments women’s tournaments will fea-
David Horsey, the winner of the European Tour’s Made In Denmark tournament in 2015.
successfully in South Africa, the ture 60 players.
CASE STUDY
THE MAJOR: THE MASTERS
Professional golf’s most traditional and romantic tournament, the
Masters, held each April at Augusta National Golf Club in Georgia and
organised by the club’s committee, plays largely by its own commercial
Venues with a strong focus on music events and without a sports team as anchor tenant are in bold.
Source: Repucom Market Intelligence
rules. The Masters brand is fiercely protected by the organising commit-
tee, so much so that live television coverage is still restricted to a set
number of hours per day. CBS, host broadcaster in the United States,
Photos: Getty Images (left and right at the bottom); AFP
has shown the Masters every year since 1956, although its deal is be-
lieved to be renewed every year. Along with other broadcasters around
the world, such as Sky Sports and the BBC in the UK, CBS is restricted
in what it can broadcast live. The 2015 tournament had just five sponsors:
IBM, AT&T and Mercedes-Benz were the three global partners, with
Rolex and UPS designated as ‘international partners’. With branding
rights so limited, the sponsors are collectively granted four minutes of
advertising time per hour during live broadcasts on CBS across the US in
return for a multi-million dollar spend.
©2015 Repucom Insights by Repucom
16 17
Events Events
CASE STUDY CASE STUDY BEYOND PROFESSIONAL GOLF: TOURISM, LEISURE AND DESTINATIONS
Professional golf is inextricably linked to the leisure side of the game inso- golf’s governing body, earlier this year, there are over
THE TOUR EVENT: JOHN DEERE CLASSIC THE MATCHPLAY: SOLHEIM CUP far as golf courses, even those built and promoted as championship courses, 34,000 golf facilities in the world, spread over 206 coun-
need to exist as businesses beyond their annual PGA Tour, European Tour or tries, with nearly 700 others currently under construction
The John Deere Classic was one of 47 FedEx Cup tour- Now following the same format as the Ryder Cup, the Asian Tour events. The global market is a multi-billion dollar industry, which or at the planning stage. Of the 34,011 existing courses
naments on the PGA Tour’s 2015 schedule. The tournament, first Solheim Cup took place in 1990 and the most recent has touchpoints with real estate and tourism, comprises private and public identified, just under 80 per cent are located in ten coun-
won in this year by Jordan Spieth, has a prize purse of $4.7 edition, played in September, saw the US regain the trophy facilities, and which has spawned a multitude of course architects, designers, tries: the USA, England, Japan, Canada, Australia, Ger-
million. Traditionally it is been played the week before the following a dramatic comeback against the European team. maintenance firms and other services and suppliers. According to data from many, Scotland, France, South Africa and Sweden. 2016
Open Championship (organisers invest in a Sunday evening The matchplay and team formats are popular on TV and in- the National Golf Foundation, published in a report commissioned by the R&A, Olympic host Brazil currently has 123 courses.
charter flight across the Atlantic in order to encourage as ject a dose of tribalism into what is mostly an individual sport.
many of the world’s elite players as possible to compete) but The Solheim Cup is co-sanctioned by the Ladies European
next year’s edition will take place in August to accommodate Tour (LET) and the Ladies Professional Golf Association
the return of golf to the Olympic Games. Staged since 2000 (LPGA). Germany hosted the competition for the first time in Number of courses by nation
in Silvis, Illinois, the tournament has been sponsored by Illi- 2015, while the Des Moines Golf and Country Club will stage
nois-headquartered construction equipment manufacturer the 2017 edition back on US soil. In 2015, SAP and Allianz
John Deere since 1999. In July, the company signed an ex- joined the Solheim Cup sponsorship roster, alongside exist-
tension to its title sponsorship deal and to its wider market- ing global partners Ping and Rolex. Aside from traditional 15,372 2,383 2,363 2,084 1,628 747 648 572 512 491 473 472 447 437 418
ing relationship with the PGA Tour. The tournament will now broadcast agreements, the 2015 event was the first to also
be known as the John Deere Classic until at least 2023. be made available live via YouTube.
USA
Japan
canada
England
Australia
Germany
France
Scotland
South Africa
Sweden
China
Ireland
South korea
Spain
New Zeeland
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Source: R&A Golf Around the World 2015 report
New and planned courses
Although there are a sizeable number of new and
planned projects in North America and Europe,
the sport’s traditional heartlands, the growth in
Asia (including the Middle East) and to new re-
gions, such as eastern Europe, is clear – there are, Planning Under Total
construction projects
for example, new golf projects planned or under-
way in no fewer than 27 Asian countries. Accord-
ing to the R&A report, there were 185 new course Asia 115 92 207
openings in Asia between 2010 and 2014 com- North America 124 76 200
pared to 155 in Europe and 58 in North America. Europe 119 40 159
Over the past five to ten years, meanwhile, some
110 courses have closed across Europe, 108 in Africa 34 31 65
North America and 73 in Asia. South America 12 18 30
Jordan Spieth reflects on another PGA Tour victory, at the 2015 John Deere Classic The Solheim Cup was staged in Germany for the first time in 2015
Oceania 23 12 35
Source: R&A Golf Around the World 2015 report
CASE STUDY The economic impact of a major event
THE WORLD GOLF CHAMPIONSHIP: WGC – HSBC CHAMPIONS RYDER CUP 2010: CELTIC MANOR, WALES
The HSBC Champions has been played each season in China since Asian Tour, European Tour, Japan Golf Tour, PGA The 2010 Ryder Cup, held at the Celtic Manor resort near Newport in The direct economic impact figure for Wales
2005 and from 2009 became one of four tournaments per year played Tour, PGA Tour of Australasia and the Sunshine Tour) Wales, offers a prime example of the local, regional and national eco- was created predominantly by spectators (68%),
underVenues
thewithWorld Golf
a strong focus Championships
on music (WGC)
events and without a sports team as anchorbanner. The group of
tenant are in bold. and the China Golf Association. The tournament, nomic impact value a major golf event can deliver. followed by contractors (17%),
events, which also feature the Cadillac Championship, Cadillac Match
Source: Repucom Market Intelligence
widely regarded as the closest event to a Major in hospitality (11%) and volunteers (4%)
Play Championship (which will be renamed the Dell Match Play from Asia, is played for an overall purse of $8.5 million and » Total Direct Economic Impact for Newport: £28.3 million
Photos: Getty Images
2016) and Bridgestone Invitational, was created in 2009 and are sanc- is promoted by IMG. HSBC has been title sponsor » Total Direct Economic Impact for South East Wales: £74.6 million
tioned by the International Federation of PGA Tours (made up of the since the tournament’s inception. » Total Direct Economic Impact for Wales: £82.4 million
Source: Repucom Market Intelligence
©2015 Repucom Insights by Repucom18 19
Players Players
PLAYERS
ENDORSEMENT POTENTIAL
Celebrity Davie Brown Index (DBI) is Repucom’s tool to measure the pub- of that person’s marketability, including the extent to
lic’s perceptions of over 8,000 personalities across 15 markets around the which people regard the celebrity as a trend-setter.
world, (including Argentina, Australia, Brazil, China, France, Germany, India,
Italy, Japan, Mexico, Russia, Spain, Turkey, the UK and the USA), represent- Taking the world’s top ten male golfers as a guide
ing the views of over 1.5 billion people. and using the USA as an example market, Repucom ex-
amined the awareness and then, for those that are aware
It can look at specific demographics, including age groups and income of them, the trend-setter score of the sport’s leading
groups, to give a clear identification of how audiences consider a personality players to create a new 2015 ranking. Although Rory
or sportsperson. It enables users to compare specific markets and show the McIlroy is the most recognisable of the top ten in the
A new generation of social media-savvy leading players changes in the perceptions over time, critical considerations for brands un-
locking the power of celebrity endorsements. These perceptions are meas-
United States, it is Rickie Fowler who tops the list: of the
one in five Americans aware of him, 81 per cent regard
have emerged in the both the men’s and women’s game, ured against eight key attributes which when combined provide an overview him as a trend-setter.
playing around the world and helping to drive new
audiences to the sport. The world’s top ten by trend-setter Celebrity DBI score
US awareness Trend-setter
1. Rickie Fowler (world ranking 5) 20% 81%
2. Jordan Spieth (1) 37% 80%
3. Jason Day (2) 25% 80%
4. Bubba Watson (4) 39% 78%
5. Rory McIlroy (3) 42% 75% Trend-setter
6.
7.
Dustin Johnson (8)
Zach Johnson (10)
21% 73%
23% 70% 81%
8. Henrik Stenson (6) 15% 70%
9. Justin Rose (7) 19% 64%
10. Jim Furyk (9) 23% 59% Rickie Fowler
Official World Golf ranking as of 11th October 2015. / Source: Celebrity DBI
THE IMPACT OF WINNING ON AWARENESS
There are many successful professional golfers and the world ranking list is had heard of him. Following his victory, that number had
filled with effective and proven brand endorsers from across Europe, Asia, jumped to over 48 per cent of the total population.
South Africa, Australia and the United States. But winning still matters most and
over the past two years or so golf has been undergoing a generational shift, with While Tiger Woods, through his years of domination,
a new group of players establishing themselves at the very top of the game. remains by far and away the best known golfer, his declin-
ing form and injury has allowed a new generation to pros-
Five of the last six Major Championships up to the end of 2015 have been per. There is, though, much to be said for enduring appeal,
won by Rory McIlroy, Jordan Spieth and Jason Day (only Zach Johnson’s play- particularly in a sport which places such a value on history
off victory at the 2015 Open Championship prevented a clean sweep by the top and tradition.
three in the world rankings). McIlroy, who has four career Majors currently to his
name, won the final two Majors of 2014, while Spieth won the first two of 2015. The career of a professional golfer tends to be longer
Day, a perennial challenger, recorded his first Major victory in August, winning than that of the average sportsman; the decline in competi-
the US PGA Championship. tiveness can be gradual, often culminating in a slot on one
of the lucrative senior tours on either side of the Atlantic.
The impact and importance of winning is underlined by Repucom’s Celeb-
Photos: Getty Images (left); AFP
rity DBI tool, which shows that between March, prior to his victory at the Mas- For players who have reached the twilight of their ca-
ters, and July, by which time he had also won the US Open, awareness of reers, there can also often be broadcast analyst jobs avail-
Spieth in the United States had jumped from 19 per cent to 37 per cent. Simi- able, while many players, including several of those still
larly, awareness of Australia’s Jason Day in the United States moved from 19 active, have embarked on golf course design projects. It is
per cent in April to nearly 25 per cent in August, following his Major win. In not uncommon for golfers to remain highly visible to the
2011, ahead of McIlroy’s US Open victory only 17 per cent of the US population public long after their trophy-winning days are over.
©2015 Repucom Insights by Repucom20 21
Players Future
CASE STUDY GOLF AND THE OLYMPIC GAMES
Golf returns to the Olympics next year in Rio de Janeiro for what will be jor opportunity to develop and promote the sport around
THE LPGA TOUR’S MICHELLE WIE the sport’s first appearance at the Games since 1904. The return was con- the world, and attract and retain a younger, more gen-
firmed by the International Olympic Committee in 2009 and represents a ma- der-neutral audience.
26-year old Michelle Wie has been a professional for a decade and is now an LPGA and Solheim Cup regular. She won her first Major
in 2014 at the US Women’s Open. She is represented by Carlos Fleming, Senior Vice President of Talent Marketing, at IMG.
Venues with a strong focus on music events and without a sports team as anchor tenant are in bold.
Source: Repucom Market Intelligence
The impacts of golf’s Olympic return
Carlos Fleming on the agent’s role because they learn more about the demographics of
“I represent athletes both domestically in the United States, but also the fans through the data that Repucom can provide,
globally, such as athletes like Michelle Wie in golf, and international tennis in terms of the likeability scores and so forth.”
players. My job is to do all of their brand development, endorsement and
marketing work outside of the playing field – for example, with US sports On the commercial prowess of women’s golf
we don’t negotiate the team contracts but we negotiate all the endorse- “With Michelle, I just think she finds unique op-
ment deals, we put together their whole marketing strategy. That could portunities that might not be available to other LPGA
include publishing deals, television deals, you name it.” golfers just because of who she is, what she repre-
sents – having such a high profile at a young age,
On golf versus other sports as a commercial platform
“I think the biggest differences are between global individual sports
going to Stanford and graduating from there, the fact
she is interesting, attractive, an artist, she’s not afraid GREATER FUNDING RIO
like tennis and golf and sports that are more popular in domestic markets to take risks in the fashion space, she’s multi-cultural.
2016
like American football and basketball. With the Major League sports that
are more domestically focused, a lot of our marketing and endorsement
All of those things make her unique, and a non-tradi-
tional golf type. She’s willing to put herself out there
FOR NATIONAL GOLF
opportunities are coming from league partners because you find often-
times that it’s a pretty high priority for companies to partner with the
on social media. When fans and brands and the me-
dia look at her, it’s a lot harder to put her in a box.” ASSOCIATIONS
leagues and then form partnerships with some of the athletes. In individ-
ual sports, brands have first to be convinced to invest in the sport on a On managing a player’s time Golf will be one of 28 sports at Rio
global basis and then they look at the athletes which make the most sense “You have to look at the key levers, which are the 2016 and each international federa-
for them to invest in. You’re oftentimes not just selling the sport, but your
individual athlete and some of their unique attributes – and that might
amount of money they want to pay and the number
of service days. Sometimes we’ve got down to one GREATER GLOBAL tion receives a slice of the IOC’s rev-
enues – in London the IOC distribut-
even convince a brand that’s not interested in golf to invest in a golfer, day – one four-hour appearance day – in a negotiation
and she’s had to say no sometimes because adding EXPOSURE ed $520 million to this group. A
similar amount is expected to be ear- GREATER SHOWCASE
that one day next to four or five other sponsors, the marked for international federations
days they need, and the amount of time you get in the
off-season and for training, that really leaves you
The Olympics offers sports, even
those as well established as golf, a
following Rio 2016. Sports are tiered,
with athletics, gymnastics and swim-
FOR PLAYERS – AND
about 30 or so days during the course of a year to
service your sponsors outside of tournaments. A lot of
platform for exposure like no other
event and beyond a sport’s usual
ming making up Group A, which will
receive the largest slice. Although
BRANDS
these sponsors want access during tournament fan base. FedEx’s Patrick FitzGerald golf has been placed alongside mod-
weeks as well, when the core audience is there and points to basketball’s impact at the ern pentathlon and rugby sevens in For both players in developing golf
you can’t really commit to doing that too often or you 1992 Olympics as an example of the fifth and final group, it still ensures markets and established players in
won’t be ready to play. We have to be very mindful of what could follow. “You could make the International Golf Federation more traditional golf markets, a suc-
the services and matching that up to the price point a a comparison with what the 1992 (IGF) will receive a multi-million dollar cessful showing at an Olympic Games
sponsor is offering and having a balance.” US ‘Dream Team’ did internation- sum which will ultimately filter down offers exposure to a potentially new
ally, following those Olympics,” he to national golf associations to help audience. “As someone who covers
On engaging a younger audience says. “Hopefully the sport will have an further develop the game. both the Olympic and golf space I be-
“My experience in sport is that you have to take infusion of excitement and a growth lieve the potential for athletes to reach
the sport to where the people are and without diluting spurt with future generations, espe- a wider audience through Rio 2016 is
the core following you have to come up with ideas cially in non-traditional golf countries. profound,” says Michael Pask, Senior
that engage younger people, whether it’s clinics, When you look at the NBA and the Vice President of IMG Golf. “Similarly
whether it’s player appearances, visibility with that international players there now, 20- the opportunity to work with some of
audience. You’re never going to change the way the plus years after the 1992 Olympic the most sophisticated marketing pro-
game is played and how expensive it can be for some Games, plus the NBA’s international grammes in sport will be both exciting
people and you’re never going to change where peo- shift in general, it’s clear what hap- and financially rewarding. Rio presents
ple are playing golf, typically, on more of a local level pened following those Games. You an amazing opportunity for any golfer
– it is more of an elite sport so I think you have to can expect some similar growth to make history and it is fundamentally
make it feel more accessible to people who aren’t coming from golf.” why both interest and investment is
typically thinking about playing golf. drawn to the unique nature and scale
of the Olympics. Golf as it progress-
es in the Olympic space can as
such learn a lot from how tennis
has truly embraced the Games”.
Michelle Wie hits an iron during the LPGA Malaysia tournament in October.
Photo: AFP
©2015 Repucom Insights by Repucom22
Future
Trends, challenges and opportunities facing the golf industry in 2015 and beyond, as identified by Repucom.
18 … But new sponsors and alter-
17 In spite of the financial 2
crisis, major, high-end … But ensuring that
native sponsorship models and
sponsors – the likes the traditions that
categories – government tour-
of Rolex, HSBC and make the sport great
ism agencies, for example –
BMW – have been – the Masters, the
have been created and honed
retained, demonstrat- Open, the game’s
in recent years, and expansion
into further categories (social ing the power of
golf as a sponsorship
1 Making the sport as
etiquette, for exam-
ple – are protected.
media and technology) and
platform ... accessible as pos-
partnerships with ‘edgier and
sible, to remove the
more youth-driven’ sponsors
(e.g. Under Armour) needs to
perception it is elitist
and bound by tradi-
3 Olympic inclusion, starting at
happen to drive future growth. Rio 2016, offers a major devel-
tion …
opment and promotional plat-
form, with increased funding in
more markets.
15 The role of the wider golf indus- 16 The European Tour spreading
far beyond its geographical
try: the influence of equipment
manufacturers, course design- boundaries; strengthening links 4 The need, like all sports, to em-
ers, real estate owners and with the Asian Tour and the brace the digital world – the
other stakeholders. ‘Race to Dubai’ format. PGA Tour’s new OTT service is a
prime example of how golf is
tackling this; there is a need to
engage the younger demo-
14 Strengthening of the Women’s
graphic through effective use
Tours and major women’s golf 12 … And in Jordan Spieth v Rory
and then monetisation of social
media channels.
properties like the Solheim Cup McIlroy, with others like Jason
(last year’s Turkish Ladies Open 13 Like all sports, the Day and Rickie Fowler thrown
trialled a Sunday-Wednesday
format, as opposed to the usual
onus remains on golf in, golf can now point to a genu-
ine rivalry at the very top of the
5 Further establishing
to draw in new fans, and strengthening the
Thursday-Sunday – a good ex- game; a different dynamic
particularly Millenni- link between the pro-
ample of such innovation). following the era of Tiger
als with whom golf fessional and leisure
currently has limited Woods’ domination.
sides of the sport –
relevance – urban does the professional
golf, shorter, punchi- game drive partici- Copyright © 2015 Repucom.
er tournament for- pation? – and main- All rights reserved. Repucom and
mats, wi-fi availability
for spectators on-
11 The world’s top players tend to taining tournament the Repucom logo are registered
quality where tours trademarks. Other product and
course. be strong ambassadors for the
game and are generally spon-
7 The new leadership rely on promoters to service names are trademarks or
sor-friendly; pro-ams offer a in place at the top host and organise registered trademarks.
(nearly) money-can’t-buy expe- of the sport – Martin their events.
rience for sponsors or guests Slumbers at the R&A, All content herein is copyrighted.
and gives great access to the Keith Pelley at the
Any reproduction must contain a
10 Aside from the major tours –
star players. European Tour and
(Deputy Commis-
credit to Repucom.
notably the PGA and European sioner) Jay Mona-
Tours – golf has established ghan at the PGA All pictures copyright of
and well-supported development Tour; new thinking at Getty Images pages: 4, 9, 11, 14,
and seniors tours around the
world. These can also be valua-
9 The matchplay mod- the top of the sport?
6 15 (at the bottom), 16, 18.
Golf offers a multi-
ble sponsorship opportunities, el: popular on TV,
tude of sponsorship The Front cover is provided
although these tours face a chal- injecting a dose of
options and proper- by AFP also all pictures on pages,
lenge in attracting audiences. tribalism into what is ties – from entire
usually an individual 10, 12, 13, 15 (at the top), 19.
tours, to individual
Back cover: Shutterstock/Yellowj
sport, the Ryder Cup
model has been rep-
8 Slow play and the length of the
events, teams, play-
ers and golf broad-
game have potential implica-
licated with events casters.
tions for television and partici-
like the Solheim Cup, pation rates, especially in the
Presidents Cup and current ultra-competitive sports
the EurAsia Cup. and entertainment market.
©2015 Repucom Insights by Repucom24
xxxxxxxxx
As the trusted partner in sports and entertainment intelligence,
we offer a single source of industry leading research,
monitoring, analysis and consultancy.
With over 30 years’ experience our global network and
connected solutions support you in maximising your revenues.
Let’s get connected.
FOLLOW US!
@Repucom
repucom.net
©2015 RepucomYou can also read
