What if the PGA Tour Went Extinct?

Remember the old philosophical question: If a tree falls in the forest and no one is around to hear it, would it make a sound? Well ponder this: If the PGA Tour were to disappear tomorrow, would anyone really care?

A couple years ago, I wrote about the economics of golf, and how the pro tours only contribute a measly 1% to golf's total economic impact.

So from a financial standpoint, the PGA Tour could dissolve overnight without much monetary backlash to the golf industry. The golf equipment and apparel machine would still be cranking-out merchandise to supply millions of weekend hacks throughout the world.

But for how long? With the tour defunct, wouldn't the average golfer begin to dwindle in numbers? Well, I guess that depends on how popular the tour is with the golfing masses to begin with. For example, a decade ago I would have been laughed at for even suggesting a post like this one - after all, the hero on tour was one of the most recognizable athletes in all of sports.

Ah, but today he's barley the shell of his former self and as a result, the PGA Tour has taken one giant leap back into obscurity. Perhaps more detrimental is that no one has taken his place. Want proof? Turn on ESPN any given Sunday an you'll see them lead the golf segment talking about Tiger's third-place finish, rather than the poor schlep who actually took home the trophy.

With no face to the organization and television ratings that are basically nonexistent, it makes you wonder if it's all worth the effort? Rolling into a new city every week and setting up shop on some corporate sponsor's dime (could have donated that money to build a new cancer wing at the local hospital or something); trotting out a B-list of tour pros to go through the motions in front of a sparse gallery of spectators; turning on the HD cameras that broadcast to an equally paltry television audience. One has to ask themselves: Does the ends justify the means?

Sure, if the PGA Tour were no longer, some diehard fans would be disappointed (not to mention some of our fellow golf bloggers) and local establishments near tour stops would miss the boost in sales. But the top pros would head over to the European Tour (which would subsequently be broadcast more frequently here in the U.S.) and golf life for you and me would pretty much remain unchanged.

Not many golfers I know are quitting because they stink - no sir, we just keep on playing no matter what the game throws at us. And perhaps that's the most fundamental point - We don't play this game because the PGA Tour is so great, we play it because golf is great (if anything, watching the scratch players gives us more of a complex).

So, what if the PGA Tour went extinct? As long as the European Tour added a stop at The Masters, I'd be happy. So perhaps I should re-phrase my question: If the PGA Tour went extinct, so what?

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Golf by the Numbers

What really fuels the golf market and keeps courses up and running? Pro's? Scratch golfers? Avid golfers? The answer is quite simple - the average or moderate golfer. If there are 27 million or so golfer's in the U.S. and less than 1% are pro or scratch golfers, count them out.

Ironically, a lot of pro's who can afford the game rarely pay for it or get great deals. As for avid golfers (25+ rounds per year), they only account for roughly 3-5% of the market, which leaves the average and beginners (less than 7 rounds per year).

The average golfer is statistically a mid to upper-mid working class person playing around 20 rounds a year. Funny thing is if it wasn't for this demographic, 80% of golf courses would probably shut their doors. Here's a reality check: average golfers use more golf balls, period. They or we go through 3-5 balls (or more) a round.

Let's do the math; say an average golf ball costs $1.00 times 4 balls a round times 20 rounds a year. That comes out to $80 dollars in golf balls per average golfer per season. Now multiply that times the roughly 20 million average golfers and there you have 1.6 billion dollars spent a year on golf balls. Sounds crazy, huh...how about those greens fees?

These numbers represent a driving but unheard voice in the golf community. We can take these stats and apply them to other commodities in the golf industry like clubs, apparel and accessories and get a good idea of the revenue we spill into this game we love.

What's in store for the future? I guess only time will tell...but as long as average golfers keep losing balls on the course, the golf economy will continue to drive forward...

Hit'em long...yell FORE!!! Love your balls.

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Golf Course Bankrupt? Blame Tiger Woods

In this recent recession, some big investment banks were rescued from a mess that company spokespeople claimed they didn't need to be rescued from. Nevertheless, they were labeled as "too big to fail" and were pulled to safety on the public's dime.

Meanwhile, golf courses have been buckling under current economic conditions those aforementioned banks had a hand in creating. The last five years have not been kind to courses in the United States. But recent data from the National Golf Foundation (NGF) suggests golf facilities in general are holding their ground fairly well.

A preview of The NGF's Golf Facilities in the U.S. report, 2011 edition (which will be released in February) reveals course closures from 2006-2010 represent just 1.5 percent of courses overall. In 2010, the figure was less than half of one percent. These statistics prompted the NGF to state the following: "Considering the severity of the recession, one could argue that golf has held its ground reasonably well."

However, despite NGF's positive spin, the raw numbers still reveal a glaring issue: Every year since 2006, more golf courses have closed in the U.S. than have opened. For example, last year saw 107 18-hole courses bite the dust, while only 46 were born. But does the recession deserve all the blame?

Remember the days (late 1990's and early 2000's) when new courses were sprouting up like daisies? And these weren't shabby municipal tracks either - many were high-end daily fee courses that featured sharp grooming and sweet facilities. I remember one such place in my area - Pistol Creek Golf Club. It was a great course (see photo at top) with a good layout, awesome grooming and a dandy club house. It opened in 2001 and closed in 2005. Why?

If you're observant, you'll note that the year it closed (2005) is well before the current recession even started. Even 2006, which is when course closures began outpacing course openings in the U.S., was a full year before the effects of the subprime market started taking hold. So it's obvious golf courses have been suffering for a while - certainly longer than the current recession.

The NGF gives a clue as to why in the headline of their press release: "NGF 2010 Openings/Closures Summary - Market Correction of Supply/Demand Imbalance Continue." Simply put, they built too many damn courses for the number of golfers out there! So the next appropriate question would be; why?

I'm going to go out on a limb here and say it has something to do with Tiger Woods. Now I don't have any data to back this up, but imagine it's 1999 and you want to build a golf course. I'd give good odds that Tiger would be mentioned somewhere in your business plan or your pitch to the city council: "It's this Tiger Woods, man! He's changing the game!"

But did the golf industry over-estimate the impact of the Tiger phenomenon? Sure, he was good for the game, but perhaps his presence caused too many investors, architects and designers to jump on the bandwagon and simply overdo-it. Of course, this is all just speculation, but it seems entirely plausible.

So if the juggernaut that Tiger Woods once was compelled shiny new golf courses to be stacked upon the proverbial camel's back, then the recession was only the proverbial straw. Golf, after all, is a luxury. And luxurious things are usually the first to go when money gets tight. Still, losing only 1.5 percent of courses over the past 5 years isn't terrible. But it sends a clear message: "Market Correction of Supply/Demand Imbalance" is just a nice way of saying the golf industry is shrinking, not growing.

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The Top Golf Stinks Posts of 2010!

We don't know about you, but 2010 seemed to go by faster than a ball headed for OB! Nevertheless, here we are at the end of December - a time to reflect back on all the fun times during the year. And that's precisely what we're going to do here - list our top 10 blog posts of 2010 (based on page hits)!

So enjoy re-reading these (or if you're new to our blog, enjoy reading them for the first time)! And don't forget about our giveaway at 11:59 tonight on our Facebook page - hey you never know...you could win a $50 gift card to Golf Galaxy!

OK, here we go...from #10 all the way down to our most frequently read post of the year at #1:

Number 10

Stinky Golfer's Wives; We Do Exist - Back in July, Stinky Golfer Chris' wife commandeered his laptop and penned her own blog post about life as the wife of a stinky golfer!

Number 9

Why I Love Taking 5 Hours to Play Golf - Last month, Stinky Golfer Greg got both cheered and jeered after explaining he thinks it's OK to play a round of golf in 5 hours!

Number 8

These Raisins Put it Down the Middle Every Time... - In August, Stinky Golfer Greg shared his favorite new commercial with us!

Number 7

Pimp My Golf Cart (Redux) - Continuing on the success of his first post about tricked-out golf carts, Stinky Golfer Pete revisited the world of pimped EZ-Go's and this time included a couple of video clips!

Number 6

Throw, Throw, Throw your Club like an A-Hole on the Green... - Earlier this month, Stinky Golfer Greg offered his thoughts on golf club throwing...and conducted a poll to see how you felt about it too! There's still time to add your opinion on the not-so-graceful art of golf club tossing!

Number 5

When is it Too Hot to Play Golf? - In July, Stinky Golfer Chris explained that some people will play in any heat...But not him!

Number 4

The Truth About Walking the Golf Course - October is a great month to walk the golf course - and Stinky Golfer Greg highlights a study that proves golf can equal exercise!

Number 3

The Economics of Golf - In this eye-opening breakdown of golf's contribution to the U.S. economy, Stinky Golfer Greg examines a study that shows how and where the golf industry makes its money...and you may be surprised!

Number 2

Custom Fitting Golf Clubs: Worth It? - In June, Stinky Golfer Chris was approaching a golf milestone - he was about to be custom fit for new clubs! In this candid post, he ponders if it will all be worth it.






and finally...

Number 1

Is USGA Membership Worth It? - After years of trashing his annual membership form, Stinky Golfer Greg explains why 2010 may be the year he finally joins the USGA!


So here's looking forward to another year of stinking at golf! Bring on 2011!
-Golfstinks Team

Related Posts: The Top Golf Stinks Posts of 2009!

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