How come golf prizes are so high?

Question

And how come golf superstars like Tiger Woods and Michelle Wie get so much money from endorsements? Other sports (football [soccer], basketball, tennis) are much more popular compared to golf but superstar golfers seem to be richer.

I guess the question is really - why do companies agree to pay so much money to sponsor golf tournaments?

Answer 1

From a marketing perspective, golf is a business sport, so the audience on TV gives you a critical demographic of decision makers in the business world. If you notice, most of the sponsors are business-to-business type companies. The other part is that as it was mentioned before, title sponsors (the people who put up most of the prize money) get their names mentioned a lot, and for long stretches of time.

From the individual sponsorship point of view, golfers are independent contractors and the company logo gets plenty of TV time when a golfer does well. And that's why a spot on Tiger's clothing  (Nike) is worth 100 mil a year, a spot on Phil Mickelson's hat, or Ernie Els' shirt are prized possesions for companies that are looking to market in golf. Notice that TV stations do not cover or blur any logo on the golf course, and have no reservations in mentioning by name...it is a wonderful marketing maching, and with the appeal of the sport growing, it's only going to get bigger.

Answer 2

Golfs the bestest sport in the world

and its dam expensive to join a compitition.

Answer 3

You can think that golfers dont deserve the money they get, but golf is probably one of the hardest sports to do.  Look at players like Arod, he makes a TON of money, but he has never won anything but MVP's.  Tiger has won everything there is to win.  And if you look, the 200th best golfer in the world onlyl made about 750,000 dollars last year, whereas the 200th best football player in the world still made over 1 million on average.  Endorsements are simply based on personalitiy.  You cant fault that...

Answer 4

Golf is more popular than you think, because of Tiger Woods, more people know who Tiger is than Kobe, because Tiger dominates more than Kobe. And having the Nike logo on your hat and shirt when your Tiger is easier to see the Having a logo on your shoes.

Answer 5

it is the same as nascar - lots of people drive, and anyone can play golf - you can, as an individual, connect with these people - hey, you can chip one in, or hit one or two good shots a round - make a snake putt.

since people are connected, they listen to the celeb/athlete.  you can play the same ball, hit the same clubs, play by the same rules.

now on the other side, companies pay to have their name repeated over-and-over - that is why arenas are names after companies, the event is named after the company, and you pay for the "forever" of hey, tiger won the fedex cup in 2007 - they will say that "forever"  and since he is going to win a couple of them, there will be a record - "nobody will top tiger's 6 fedex cups"  

you remember when there was something called the nike tour?  do you remember what it was called before then?  do you know what it is called now?  it is all because of the tiger factor.  

Marketing is a wonderful thing - and hey, if the athletes/celebs don't get paid, and there is a willingness to pay for something, then the slop gets taken care of by capitalism (either someone will do it cheaper (less margin) or someone will hold out for more!!!!!

one more thought - golf is now a sport of the masses, not just the wealthy.  kids want to play, it is cool to hit it long.  youngsters like Miss Wie, bring in the youth - and it is a sport you can play until you cann't move (i know, i play in florida a couple times a year!)  if you net-present-value that revenue stream, then the value is quantifiable (probably a good masters thesis in sports management)

Answer 6

Tiger Woods is about to become the first athlete to reach 1 billion $$$.  Basketball is easy.  You buy a ball for $5 and go to a public court and you got it made.  Football and soccer are slightly more expensive because of the land usage.  But in golf you can pay $400 for a driver and their are miles of land on a course (7000 yards excluding walk between holes).  Plus it takes so much more skill and practice in golf than those sports.

Answer 7

Golf is far more popular than you're giving it credit.  It certainly is more popular in this country than tennis and soccer.  And more people PLAY golf than any other sport.  And equipment is a big deal in golf unlike other sports.  Players have options as to their equipment which makes golf unique to other sports.

Answer 8

Corporate sponsors, television contracts.  Big business gets done on the golf course, not at soccer or football games.  Besides LeBron James, Kobe Bryant, Carmello Anthony have plenty of endorsements.  Other than Tiger, Phil, Annika, and Michelle Wie, no other golfer has many endorsements.  Maybe Sergio.