09 April, 2023

The Masters Tournament At Augusta Is Leaving $269 Million On The Putting Green

https://www.forbes.com/sites/justinteitelbaum/2022/04/07/the-masters-tournament-at-augusta-is-leaving-269-million-on-the-putting-green/?sh=569a142c5eb1

Augusta has just six sponsors—AT&T, Delta, IBM, Mercedes Benz, Rolex and UPS—which split a minimalistic four minutes of commercial time per hour of event coverage. Most of the sponsorship money goes directly to Augusta’s media partners, CBS and ESPN, to cover the cost of production, with the rest going to pay to host hospitality events for VIP patrons. Given that the U.S. Open generates at least $15 million per year in sponsorship revenue, it is safe to assume that the Masters could pull in at least $20 million, thanks to its much higher TV viewership.

The Masters generates no domestic TV revenue because its agreements with CBS and ESPN allow Augusta complete control of the broadcast in exchange for no compensation. In comparison, the USGA receives $93 million per year from NBC to air the U.S. Open. Lee Berke, who runs consulting firm LHB Sports, Entertainment and Media, said that Augusta could command $100 million or more if the club were ever to fully commercialize and auction its domestic media rights.