The Golf Recession
The continued recession is unrelentingly hampering Golf across the globe. The economic global meltdown that took place a couple of years ago has affected golf more than any other sport. The golf industry started observing a recession in 2008, during which,
140 golf courses were shut down in the United States. Over 500 courses are still struggling to survive. Similar closures are taking place in the United Kingdom and across Europe. Loch Lomond, the proud host of the Scottish Open for 15 years, refused to host
the prestigious golf event in Scotland this year due to financial difficulties. Golf clubs around the world have resorted to offering attractive concessions in order to attract new members but have been unsuccessful so far. Ironically, in spite of attracting
new members, many clubs lost their old members. In the United Kingdom, 2,500 golf clubs lost their existing members in 2009. Golf, which was a $67 billion industry in the Middle East and Africa, is also experiencing a similar slump.
According to an estimate, the number of golfers in the US was reduced by four-percent in 2008 alone. This trend continued over the following years and in 2010 the figure was estimated to be a little over two-percent. With the reduction in players there has
been considerable loss in the viewership of live broadcasts. The viewership of the Open Championship has suffered a drop of six million in the last two years. The cumulative loss of audience in the Professional Golf Association (PGA) Tour stands at 309 million
for the last couple of years. With the viewership on TV, the number of spectators at the courses is also shrinking. As a result, organizers have started to reduce ticket costs to vow audiences. Most tickets were available at the half the price of their previous
highs in 2009.Tickets for the US Masters, which used to cost $3,390 for a four day pass, fell to $1,944. The Sunday Final round that averaged at $1,045 in 2008 was $370 the next year.
The recession stretches from golf courses and clubs in to the boardrooms of equipment manufacturing companies as well. Callaway, arguably the largest golf related manufacturer, has posted a loss of $29.3 million for the 2010 fiscal year. This was preceded
by a $20.9 million loss the year before.
The introduction of inaugural events has become routine but many of these new tournaments are experiencing losses. Three of the events in the PGA Tour are without a title sponsor this year. The PGA European Tour is constantly looking for new courses because
of closures. The change in location of the Scottish Open to Castle Stuart and the introduction of the Volvo Golf Champions in Bahrain, serve as recent examples.
2009 was considered by many to be the worst financial year for the golfing industry in the. 2010 is no better and is regarded as having the slowest growth rate in golf’s history. A majority of golf courses and clubs are expecting the recession to continue
until 2012.
The PGA TOUR and the PGA European Tour must consider making some drastic changes and upgrades to save the game. Former golfers have proposed reducing the number of holes on courses and the time allotted for play. The suggestion makes sense if organizers
observer other struggling sports. Twenty20 has become a very popular format of cricket. The new format has not replaced Test or One Day Internationals but has become an important fixture for fans and players. It has also created millions of dollars in revenue
for organizers. Other popular games, including Football and Rugby, are played within hours while Golf takes days to complete. A reduction in the number of holes in order to save time can become a decision which can help in returning fans to golf. Golf needs
all the help it can get right now and any decision that organizers make to save the game should be welcomed.
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