When Mark O'Meara uttered his wisely chosen words regarding payment to players participating in the Ryder Cup - "It's not about greed, just the thing to do," he said - the general reaction was that the rich guys just wanted to line their pockets further.
In this event of all events, the world's top professionals are actually amateurs for a week. You might say, "now they know how Gaelic footballers and hurlers feel." The difference is that every golfer who plays in the Ryder Cup is a professional - but, despite the huge revenue created, O'Meara, Woods, Montgomerie and the rest don't actually get paid to play, even if there are considerable ancillary financial spin-offs in personal endorsements and the like.
In the past 15 years, the Ryder Cup has been transformed from a financial liability into a major profit making concern. As recently as 1983, the event was subsidised by the PGA - and it wasn't until the 1985 event at The Belfry that it actually made money. It is now big money. The 1989 match at The Belfry made a profit of £3/4 million and by 1993 the profits had increased to £3 million.
This year's Ryder Cup at Valderrama is expected to have a turnover in excess of £17 million with profits of at least £5 million. So, is it any wonder the players want a slice of the cake?
The money generated comes from a number of different sources: television rights, ticket sales, corporate hospitality, merchandising and sponsors/suppliers. For instance, companies like Glenmuir (shirts), ProQuip (raingear) and Oscar Jacobsen (pullovers and trousers) pay to be the official suppliers to the European team. The most surprising element is that television probably accounts for the smallest amount of revenue. The breakdown is: Corporate Hospitality £6.76m; Tickets £4m; Merchandising £3m; Sponsors/suppliers £2m; TV rights £1m (estimated).
Although both Sky and the European Tour are staying mum on the amount actually paid for live television rights, the figure is believed to be around £1 million. The price has been tied into Sky's contract to cover the European Tour until 2000. Expect a significant increase in the amount demanded after that date, however.
Tickets sales in Valderrama will bring in £4 million (grossed from 27,000 season tickets that were available at £150 each). However, the main section of hospitality is an even bigger earner and has been marketed for over two years. The various packages on offer ranged from 25 to 150 people per unit with the prices going from £60,000 to £310,000. These units alone have brought in £5.31 million, while further hospitality sections around the fourth hole took in another £1.45 million. All in all, the Ryder Cup has been transformed from a lossmaking enterprise a mere 15 years or so ago into a blue chip moneymaker.
