Is Prize Money Realistic?

heddwyn · 12-13-2009, 10:43 AM

I was watching the men's European Tour today, the final round of the Alfred Dunhill in South Africa.

We all know the LET prie money is abysmal in comparison with the LPGA purses, but when I saw the prize money for the Dunhill I realised how little the men play for too. In this case the winner only got 150+k Euros.

The question is, with the economy as it is worldwide, is the prize money on the PGA Tour excessive? Should 91 players on that tour be able to win over $1 million in the season. Who are some of these players who'v won that kind of money? Who are Webb Simpson and Jeff Klauk who have each won more than $1.2 million?

By contrast, only 25 men on the European Tour won over ! million Eutos, and the LPGA just 11 players with no one getting to the $2 million mark. Even more depressing Sophie topped the money list for the LET at 280+ Euros.

Good on the PGA for having negotiated these purses, but are they realistic? Given the PGA have just lost their biggest drawcard, and as we know how much attendance dropped when Woods was out with the knee injury, are sponsors going to want pay out as much for less return?

NTB · 12-13-2009, 10:57 AM

Originally Posted by heddwyn

I was watching the men's European Tour today, the final round of the Alfred Dunhill in South Africa.

We all know the LET prie money is abysmal in comparison with the LPGA purses, but when I saw the prize money for the Dunhill I realised how little the men play for too. In this case the winner only got 150+k Euros.

The question is, with the economy as it is worldwide, is the prize money on the PGA Tour excessive? Should 91 players on that tour be able to win over $1 million in the season. Who are some of these players who'v won that kind of money? Who are Webb Simpson and Jeff Klauk who have each won more than $1.2 million?

By contrast, only 25 men on the European Tour won over ! million Eutos, and the LPGA just 11 players with no one getting to the $2 million mark. Even more depressing Sophie topped the money list for the LET at 280+ Euros.

Good on the PGA for having negotiated these purses, but are they realistic? Given the PGA have just lost their biggest drawcard, and as we know how much attendance dropped when Woods was out with the knee injury, are sponsors going to want pay out as much for less return?

It doesn't seem fair to me either but what ever the market will bear.

MarinePaul · 12-13-2009, 01:11 PM

I think NTB is right on point. It's what people are willing to pay to see.

neophyte · 12-13-2009, 01:44 PM

Without Tiger to sweeten the value of the pga. I wonder if purses will drop 50%.

I think the LPGA is an equal value to the Tigerless PGA.

xman5 · 12-13-2009, 02:00 PM

Originally Posted by neophyte

Without Tiger to sweeten the value of the pga. I wonder if purses will drop 50%.

I think the LPGA is an equal value to the Tigerless PGA.

I really would not expect purses to drop that much if any.

Remember Tiger actually plays so few Tournaments. He doesn't play in the majority of Tournaments. He plays maybe 20 not counting majors, and he generally plays the same tournaments.

Those tournaments should see a drop in attendance. However the big problem will be with TV ratings. His regular tournaments will take a big tv hit. Right now the PGA has the money locked in from there TV contracts. When it comes to renewal time, they may have a problem if Tiger is retired or still not playing or if he becomes a Joke.

Also isn't next year a Ryder Cup year?

I think they are hoping for Phil to have a big year. Besides Tiger and Phil are there really anyone else to care about or follow as a fan. They are all robots or non personalities.

NTB · 12-13-2009, 02:04 PM

Originally Posted by neophyte

Without Tiger to sweeten the value of the pga. I wonder if purses will drop 50%.

I think the LPGA is an equal value to the Tigerless PGA.

They might drop some over time (years) if Tiger never plays again.
This will not happen he is letting the fire burnout and that's all.
Smart move as I see it.
Like some one said he will be at the masters.
If he played in the first tournament it wouldn't make any difference to me.

Saint-Just X · 12-13-2009, 02:25 PM

The paradox is,talent-wise,the European Tour is stronger than it's ever been ; but it will always be viewed as the poor relation when compared to the PGA Tour.

As in all sports,purses are dependant on what the market will bear.It will be interesting to see what kind of financial hit the PGA Tour takes when the time comes for tournament/TV renewals.

Personally,I find the PGA Tour to be rather bland : there's a lack of young talent breaking through ; the overall product is looking stale.

It's a Ryder Cup year,and your team could be pretty much the same as it was last time around.

The tour needs new talent to maintain the interest.All too often it's the same group of late-30s to mid-40s guys at the business end of the leaderboard...

Pax Vobiscum
Saint-Just X

heddwyn · 12-13-2009, 03:12 PM

As I'm finding now I'm watching the European Tour more, StJ. I also think many of the European Tour courses make players play shots, rather than the routine drive, short iron, putt game we've become used to from the PGA.

It does surprise me they don't push for bigger purses given players now on the European Tour. Same with the LET, a few more LPGA players are also qualifying in Europe, the fields are gradually improving and a few more Euros would encourage the better players.

ctmurray · 12-13-2009, 03:27 PM

Originally Posted by notaxbill

They might drop some over time (years) if Tiger never plays again.
This will not happen he is letting the fire burnout and that's all.
Smart move as I see it.
Like some one said he will be at the masters.
If he played in the first tournament it wouldn't make any difference to me.

Maybe a Tiger-less PGA will lead people to watch the LPGA which has many young and interesting players. Maybe Wie or Ochoa can capture the imagination.

neophyte · 12-13-2009, 03:55 PM

I surf the tv channels a lot, the majority of channels are on advertisements. Either the cost of advertising is dropping or overhead and taxes are rising causing the networks to sell more advertising time to break even and make a profit.

With business being expected to pay more taxes and inflation being in double digits, depending on who you listen too. I don't see many businesses with enough profit to finance big advertising budgets. Hence a smaller and weakening market for the LPGA and PGA to sell to.

If the LPGA can deliver an equal or better product for less than the PGA. The PGA will go the way of Walmart's competition.

12-13-2009, 10:43 AM	#1
heddwyn Senior Member Join Date: Jul 2005 Posts: 1,380	Is Prize Money Realistic? I was watching the men's European Tour today, the final round of the Alfred Dunhill in South Africa. We all know the LET prie money is abysmal in comparison with the LPGA purses, but when I saw the prize money for the Dunhill I realised how little the men play for too. In this case the winner only got 150+k Euros. The question is, with the economy as it is worldwide, is the prize money on the PGA Tour excessive? Should 91 players on that tour be able to win over $1 million in the season. Who are some of these players who'v won that kind of money? Who are Webb Simpson and Jeff Klauk who have each won more than $1.2 million? By contrast, only 25 men on the European Tour won over ! million Eutos, and the LPGA just 11 players with no one getting to the $2 million mark. Even more depressing Sophie topped the money list for the LET at 280+ Euros. Good on the PGA for having negotiated these purses, but are they realistic? Given the PGA have just lost their biggest drawcard, and as we know how much attendance dropped when Woods was out with the knee injury, are sponsors going to want pay out as much for less return? Last edited by heddwyn; 12-13-2009 at 10:45 AM.

12-13-2009, 10:57 AM	#2
NTB Senior Member Join Date: Jul 2005 Location: hot springs village arkansas Posts: 2,288 Images: 4	Originally Posted by heddwyn I was watching the men's European Tour today, the final round of the Alfred Dunhill in South Africa. We all know the LET prie money is abysmal in comparison with the LPGA purses, but when I saw the prize money for the Dunhill I realised how little the men play for too. In this case the winner only got 150+k Euros. The question is, with the economy as it is worldwide, is the prize money on the PGA Tour excessive? Should 91 players on that tour be able to win over $1 million in the season. Who are some of these players who'v won that kind of money? Who are Webb Simpson and Jeff Klauk who have each won more than $1.2 million? By contrast, only 25 men on the European Tour won over ! million Eutos, and the LPGA just 11 players with no one getting to the $2 million mark. Even more depressing Sophie topped the money list for the LET at 280+ Euros. Good on the PGA for having negotiated these purses, but are they realistic? Given the PGA have just lost their biggest drawcard, and as we know how much attendance dropped when Woods was out with the knee injury, are sponsors going to want pay out as much for less return? It doesn't seem fair to me either but what ever the market will bear. __________________ God Bless America \"Those people who will not be governed by God will be ruled by tyrants.\" - William Penn

12-13-2009, 01:11 PM	#3
MarinePaul Moderator Join Date: Aug 2005 Location: Warren, Ohio Posts: 8,002	I think NTB is right on point. It's what people are willing to pay to see. __________________ Happiness isn't getting what you want, it's wanting what you have.

12-13-2009, 02:00 PM	#5
xman5 Contest Statistician Join Date: May 2006 Location: NYC Posts: 3,903	Originally Posted by neophyte Without Tiger to sweeten the value of the pga. I wonder if purses will drop 50%. I think the LPGA is an equal value to the Tigerless PGA. I really would not expect purses to drop that much if any. Remember Tiger actually plays so few Tournaments. He doesn't play in the majority of Tournaments. He plays maybe 20 not counting majors, and he generally plays the same tournaments. Those tournaments should see a drop in attendance. However the big problem will be with TV ratings. His regular tournaments will take a big tv hit. Right now the PGA has the money locked in from there TV contracts. When it comes to renewal time, they may have a problem if Tiger is retired or still not playing or if he becomes a Joke. Also isn't next year a Ryder Cup year? I think they are hoping for Phil to have a big year. Besides Tiger and Phil are there really anyone else to care about or follow as a fan. They are all robots or non personalities.

12-13-2009, 02:04 PM	#6
NTB Senior Member Join Date: Jul 2005 Location: hot springs village arkansas Posts: 2,288 Images: 4	Originally Posted by neophyte Without Tiger to sweeten the value of the pga. I wonder if purses will drop 50%. I think the LPGA is an equal value to the Tigerless PGA. They might drop some over time (years) if Tiger never plays again. This will not happen he is letting the fire burnout and that's all. Smart move as I see it. Like some one said he will be at the masters. If he played in the first tournament it wouldn't make any difference to me. __________________ God Bless America \"Those people who will not be governed by God will be ruled by tyrants.\" - William Penn

12-13-2009, 01:44 PM	#4
neophyte Senior Member Join Date: Aug 2005 Posts: 275	Without Tiger to sweeten the value of the pga. I wonder if purses will drop 50%. I think the LPGA is an equal value to the Tigerless PGA.

12-13-2009, 02:25 PM	#7
Saint-Just X Senior Member Contests: Joint 3nd place overall winner 2010 Join Date: Mar 2009 Posts: 1,675	The paradox is,talent-wise,the European Tour is stronger than it's ever been ; but it will always be viewed as the poor relation when compared to the PGA Tour. As in all sports,purses are dependant on what the market will bear.It will be interesting to see what kind of financial hit the PGA Tour takes when the time comes for tournament/TV renewals. Personally,I find the PGA Tour to be rather bland : there's a lack of young talent breaking through ; the overall product is looking stale. It's a Ryder Cup year,and your team could be pretty much the same as it was last time around. The tour needs new talent to maintain the interest.All too often it's the same group of late-30s to mid-40s guys at the business end of the leaderboard... Pax Vobiscum Saint-Just X __________________ I have sent the most relevant posts you made about Paula Creamer to her lawyers. Hope they take action against your statements - Elf

12-13-2009, 03:12 PM	#8
heddwyn Senior Member Join Date: Jul 2005 Posts: 1,380	As I'm finding now I'm watching the European Tour more, StJ. I also think many of the European Tour courses make players play shots, rather than the routine drive, short iron, putt game we've become used to from the PGA. It does surprise me they don't push for bigger purses given players now on the European Tour. Same with the LET, a few more LPGA players are also qualifying in Europe, the fields are gradually improving and a few more Euros would encourage the better players.

12-13-2009, 03:27 PM	#9
ctmurray Donating Member Contests: Joint 3rd place overall winner 2010. Join Date: Jul 2008 Location: Minnesota Posts: 1,176	Originally Posted by notaxbill They might drop some over time (years) if Tiger never plays again. This will not happen he is letting the fire burnout and that's all. Smart move as I see it. Like some one said he will be at the masters. If he played in the first tournament it wouldn't make any difference to me. Maybe a Tiger-less PGA will lead people to watch the LPGA which has many young and interesting players. Maybe Wie or Ochoa can capture the imagination.

12-13-2009, 03:55 PM	#10
neophyte Senior Member Join Date: Aug 2005 Posts: 275	I surf the tv channels a lot, the majority of channels are on advertisements. Either the cost of advertising is dropping or overhead and taxes are rising causing the networks to sell more advertising time to break even and make a profit. With business being expected to pay more taxes and inflation being in double digits, depending on who you listen too. I don't see many businesses with enough profit to finance big advertising budgets. Hence a smaller and weakening market for the LPGA and PGA to sell to. If the LPGA can deliver an equal or better product for less than the PGA. The PGA will go the way of Walmart's competition.

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