The State Of The Golf Industry For 2019 - Forbes

Tiger Woods celebrates after winning the 2019 Masters Tournament at Augusta National Golf Club on April 14. (Photo by Kevin C. Cox/Getty Images)

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With the golf season getting into full swing in just about all parts of the country, it’s the perfect time to delve into the state of the $84 billion golf industry.

May 1 also just happens to be National Golf Day, a day when hundreds of golf industry leaders visit Washington D.C. to meet with members of Congress and celebrate the economic, charitable, environmental, health and societal benefits of one of the nation’s top participation sports.

Even the most casual golf fan surely sensed the excitement generated by the recent Masters Tournament, where Tiger Woods won his first major title in almost 11 years, a victory that transcended sports and became mainstream news. But what is the overall state of the game?

The National Golf Foundation recently released its 2019 Golf Industry Report, an annual research report that consolidates key data points to help assess golf’s health and vitality. More than one-third (36%) of the U.S. population – over 107 million people in total – have played, watched or read about golf. Traditional participation has stabilized in recent years, with a healthy 24 million on-course golfers, and there are now almost as many who play increasingly popular off-course forms of the game (from Topgolf and Drive Shack to indoor simulators).

In conjunction with National Golf Day, five of golf's leaders participated in an industry roundtable to share their thoughts about the current state of the game, it’s continued evolution, as well as the wealth of benefits that it provides for participants of all ages. Taking time to weigh in were:

• Mike Davis – USGA CEO
• Greg McLaughlin – World Golf Foundation CEO and President of The First Tee
• Jay Monahan – PGA TOUR Commissioner
• Suzy Whaley – PGA of America President
• Mike Whan – LPGA Commissioner

In your opinion, what is the 'State of the golf industry'?

USGA CEO Mike Davis . (Photo by Andrew Redington/Getty Images)

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Davis: As a whole, it’s strong. You can feel that at any one of the USGA’s 14 national championships and internationally in particular where we’re seeing the game grow at an encouraging rate. Golfers are extremely passionate about their sport which means they’re emotionally invested – and we wouldn’t want it any other way. It’s inspiring to know that so many share such a deep love for the game as we do at the USGA. That’s not to say, however, that there aren’t challenges we need to overcome for the game to be successful long-term. Particularly, we need to help golf courses identify and proactively address issues common in the game such as rising operational costs, the time it takes to play the game and improving the golfer experience at green-grass facilities. It’s also imperative that we continue to invest in research to make golf courses more sustainable both financially and environmentally, and we need to think of more ways to make golf accessible for all.

Golf has been around for more than 600 years and its evolution is ongoing. As the world changes at a rapid pace it’s up to us to make sure that the game maintains that pace. We’re all in this together, united by our love for the game.

Greg McLaughlin in November took over as World Golf Foundation CEO and president of The First Tee in a consolidated position that includes management of the World Golf Hall of Fame. (Photo by Lester Cohen/WireImage)

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McLaughlin: I’m optimistic about the state of the game and excited about how the face of golf is changing. About 20 years ago, one in 12 U.S. juniors were ethnically diverse; today, that number is one in four. Also, two decades ago, one in six U.S. juniors were girls and today it is one in three. The game is evolving and beginning to look more like America looks.

Perceptions about golf are changing too. It’s moving away from the long-held view that it’s a game for only a certain status of our society, and people are perceiving it now as a game for all. We have the facts to back this up: 76% of the golf facilities in the U.S. are open to the public, 80% of the people who play golf in the U.S. do so primarily on facilities open to the public and the average cost of an 18-hole round is $35.

There are several goals that the World Golf Foundation, through its WE ARE GOLF initiative, is working towards achieving and we are doing this by bringing groups together from within the industry to focus on areas such as diversity and inclusion, outreach to millennials and encouraging more women and juniors to participate in the game.

PGA TOUR Commissioner Jay Monahan at The PLAYERS Championship. (Photo by Gregory Shamus/Getty Images)

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Monahan: I’m very optimistic on where golf is and where it is headed. From a PGA TOUR perspective, we have had a tremendously strong year beyond compelling competition, from increases in fan engagement across all platforms, to our business successes, to the record $190 million generated for charity as we draw closer to $3 billion in all-time giving.

We’ve continued to have success in signing long-term sponsorship agreements, and likewise when an international powerhouse like Discovery enters a multi-billion partnership with the TOUR that includes establishing GOLFTV as a global OTT service, it reflects not only on the strength and future of the TOUR, but our sport as a whole. In addition to GOLFTV, we continue to expand viewing options for fans through other partnerships, including our new relationships with NBC Sports Gold and Amazon to house PGA TOUR LIVE in the U.S. We also see tremendous opportunity to further engage existing and new fans as regulated sports betting becomes a reality.

From an industry-wide viewpoint, there continues to be strong collaboration between organizations on a variety of fronts, particularly in regard to growing interest and participation in the game and furthering the positive impact it has on lives through charitable impact and character development. WE ARE GOLF continues to be a strong unifying force in communicating all the positives of that golf provides, from economic impact to the lasting benefits that programs like The First Tee have on young people who are introduced to the game.

PGA President Suzy Whaley. (Photo by Stacy Revere/Getty Images)

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Whaley: I am excited about the future of the golf industry! Golf is an $84 billion economic engine that drives nearly 2 million jobs and contributes more to charity than any other major sports industry. While we face many of the same challenges that every sector of the economy—and every major brand does at a time when consumers have so many choices on how to spend their recreational time and discretionary income—there are many reasons for optimism.

This starts with the fact that our participation numbers are up in key categories—beginners, avid golfers and those who experience the game at off-course options. A record-tying 2.6 million golfers played for the first time in 2018 – matching the all-time high set in 2017, which was the fourth consecutive year that number increased.

These new golfers are more diverse and younger than the overall golf population: 31% are women, 26% are non-Caucasian. There could be more new golfers on the way: 47.4 million say they are “somewhat” or “very” interested in trying golf, an increase of 6%.  The number of women playing golf has grown approximately 7% over the past six years. Of note, 36% of junior golfers are girls, as compared to 23% of all golfers.

Total on-course participation increased to 24.2 million golfers last year. When factoring in off-course participation options, such as Topgolf, total participation climbed to 33.5 million in 2018, up 4% from 32.1 million in 2017.

Combine all of that with Tiger Woods’ historic victory at the Masters, which is driving incredible interest in the PGA Championship’s move to May as the Next Major, and the opportunity we have now is impressive.  This new cadence of majors will only heighten the focus on the programs, services and accomplishments of our nearly 29,000 PGA Professionals and the entire golf industry.

LPGA Commissioner Mike Whan. (Photo by Scott Halleran/Getty Images )

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Whan: I know that many people in our industry focus only on rounds played or on the specific number of active golfers each year, but one thing is clear to me – more and more people are watching, caring and becoming engaged in the sport than ever before. In the United States and around the world, we've seen consistent increases in TV viewership, hours of coverage and the number of fans that attend tournaments. Around the globe, I've witnessed first-hand how the sport has received heightened interest from countries, media and fans who were driven by golf's return to the Olympic Games in 2016.

It's also exciting to see the spread of the female game at grassroots level with girls under the age of 18 representing the fastest growing sector in the U.S. golf population since 2010. Here at the LPGA, the number of girls taking part in the LPGA*USGA Girls Golf program has soared from 4,500 per year in 2010 to 80,000 in 2018, a 1,700% growth in participation.

Considering today's evolving media landscape, how has your organization's communication with golf fans changed over time? What lies ahead?

Davis: The rapid expansion of digital communication affords us the ability to speak directly to golf fans in a way that wasn’t possible years ago. Golf is uniquely positioned to elicit passionate interest from a wide range of people, and it’s up to us to innovate ways to reach that diverse fanbase in different ways. This year, we are launching an OTT platform, to provide live and on-demand content that shares the entire depth of our USGA Golf Museum’s extensive historic video library, and championship moments.

Earlier this year, in March, we used Facebook Live to live-stream both our fifth Golf Innovation Symposium in Japan and our USGA Annual Meeting. We invested in our own USGA studio at our headquarters so we can produce live discussions on YouTube and Twitter on matters of importance to the game, such as education of golf’s new Rules, and other on-demand programming. And, this year, we’ll also begin a new podcast series to help share our wealth of knowledge in innovation, history, technology and more. Whether it’s through comprehensive visual or editorial storytelling on our digital platforms, we’re proud to serve as a chief facilitator of the game’s greatest stories.

The evolution of digital communication has also opened a two-way dialogue where we’re able to directly interact with fans on issues that are most important to them. We believe we’re at our best when we have the interest and input of golfers from every skill level in mind. Having that all-encompassing perspective is part of what makes the USGA a special organization.

Given what we’ve seen over just the last 5-10 years, I think it’s safe to say that the ways in which we communicate with golf fans will continue to evolve at a rapid pace. We, as well as our peers, will need to continue to be nimble for the benefit of golf fans everywhere.

McLaughlin: Examining the state of the game today in 2019, there are positive signs that a whole new generation is getting excited about the sport, both from a fan and a participation perspective. People are watching exciting professional golfers and are wanting to try the sport. The industry communicates to this group in countless ways, always looking to reach them where they are most comfortable finding their news, therefore we put a heavy focus on sharing industry highlights through our social media channels.

Fan engagement in the game is at an all-time high, due, in part, to the myriad of vehicles in which fans may interact with the sport.

This outreach is showing results. There are more than 24 million “traditional” golfers in the United States, and another 15 million have said they are very interested in playing, which is an all-time high. Last year, 2.6 million people tried golf for the first time. Off-course participation continues to grow at a rapid pace with another 23 million experiencing the game at off-course venues.

Total golf participation in the U.S.

National Golf Foundation

Monahan: The landscape obviously is ever-changing with the prevalence of social media, growth of digital platforms and seemingly constant introduction of new innovations. For instance, PGA TOUR LIVE, an OTT platform that did not exist in 2015, will distribute more than 900 hours of live PGA TOUR golf in 2019 as well as ancillary programming. In turn, these have become integral avenues for the PGA TOUR and our players to communicate with fans; and the increase in engagement has been dramatic, even within the last year.

In fact, our first new major brand campaign in 20 years that was introduced last year, Live Under Par, invites fans to engage with the TOUR and share their experiences and love for the game via social channels. It’s already proven to be very successful in helping to broaden our fan base by driving double-digit content consumption growth across both core and non-core fan segments. Additionally, we’ve actively worked with our players, providing custom content, to help increase their own social channel content and engagements.

As for the future, we will continue to prioritize a Fans First mentality, but I’m not going to try to speculate on what the next big thing might be – who could have predicted all the changes and innovations we’ve seen over the past decade? Whatever it is, though, we need to be agile enough as an organization to take full advantage.

Billy Horschel signs a "Live Under Par" pin flag for fans. (Photo by Tracy Wilcox/PGA TOUR)

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Whaley: Technology is making a tremendous impact on the golf industry, and social media has been a game changer. The ability to communicate with golfers and fans is instantaneous and impactful.

Delivering better coaching resources to the consumer through technology, including the type of experience today’s consumer is looking for, is in our best interest. This approach gives us the best chance to develop players who will play golf for the rest of their lives.

Today’s consumer understands the value of working with a highly trained PGA Professional, but they want more than the traditional approach. They also want to engage with us via technology, scheduling apps and video. It’s about engaging the consumer, at the right age, during the right time in their golf development.

Whan: With people placing so much focus on social media in today's world, this has become our main avenue to communicate with our fans. Whether via LPGA Facebook, Twitter or Instagram, we have a two-way dialogue with our fans while ensuring they are kept up-to-date with all the latest news from the LPGA as a whole and the LPGA Tour specifically. We also engage with our fans through some of our other platforms, such as the LPGA Women's Network and the LPGA Amateur Golf Association.

At the LPGA, we know fans follow our players first, and the overall Tour second. Over five years ago, we started adding the players' Twitter handles to our caddie bibs. We want fans to follow our players, understand their journey and learn their unique and inspiring stories. While others have asked us, 'Why don’t you put the LPGA’s Twitter handle on all bibs?', we feel our players are the stars and not the Tour. We know that if fans follow our athletes, they eventually tune into the LPGA telecasts.

(Photo by Scott Halleran/Getty Images)

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In recognition of the 12^th annual National Golf Day, what would you say golf's societal benefits that some Congressional leaders might not be aware of?

Davis: In recent years, our industry has emphasized the economic benefits of golf at the national and local levels. When we consider jobs, revenue for local economies, charitable contributions and the like, we appreciate that golf’s impact is both substantive and significant. Yet there are also intangible benefits of golf that may be as important as, or even more important than, the economic benefits.

If you look to the origins of golf, it has, from a very early point, been woven into the fabric of communities around the world. That carries both emotional and health benefits that you’re hard pressed to find in other activities. Moreover, golf embodies critical human values and elevates important role models that are critical for sustainable communities and healthy societies. By spreading the spirit of golf and making it more accessible to people of all ages and demographics, we can help bring communities together under a shared love of the game.

The environmental benefits of golf courses are also an important component of what makes the game beneficial to our communities. Currently, we are working with the World Wildlife Foundation, The Nature Conservancy, the University of Minnesota and Stanford University on groundbreaking research to quantify the natural capital of a golf facility. For instance, golf courses are green spaces that help communities with stormwater runoff, infiltration, provide natural habitats for wildlife and crucial pollinators, re-introduce native plant materials, and control urban heat islands that otherwise might exist if a golf course were converted to a housing or business development. These are all important services that a golf course provides to its local community that have meaningful economic value.

McLaughlin: The industry comes together annually in our nation’s capital to share the benefit our sport has on American society. National Golf Day gives us the opportunity to advocate on behalf of the game’s interests, but also to make lawmakers aware of these benefits:

• The game’s economic impact, which was $84.1 billion in 2016
• Golf generates $3.9 billion annually for charity
• Health and wellness benefits of the sport
• The accessibility of the game, which is evidenced by the fact that 76% of golf courses are open to the public and the average cost of a round of golf is just $35
• And, the environmental benefits that golf courses provide as green spaces, wildlife habitats and as filters for runoff

All of these combined make a pretty compelling case for golf’s importance to society and sharing these facts with Congress is an importance aspect of National Golf Day.

The National Golf Day Community Service Project on April 30 featured more than 200 golf industry leaders, coordinated by Golf Course Superintendents Association of America, volunteering to beautify and preserve monuments along the National Mall in Washington DC.

Kevin Dietsch

Monahan: We can start with golf’s annual impact: $84 billion economic, $4 billion charitable, nearly $59 billion in wages. These numbers touch communities of all sizes, in every state, providing more than two million jobs, benefiting thousands of charities. And we can look at the grand scale of what a professional golf tournament means to a community.

But you also must consider the stories beneath in these gaudy numbers to have a full understanding and appreciation for what golf represents in each community and household that is impacted. It becomes a very personal story of how golf has a positive impact on someone’s life. Not only might it represent a career, but that after-school golf program can teach young people that values inherent to the game can be applied to everyday life. Or the local organization that receives financial support from a charitable event that, in turn, assists someone in need. There are countless ways golf impacts lives on a daily basis. It’s an important story to tell.

Whaley: It’s amazing that multiple generations can enjoy this sport – sons and daughters, moms and dads, and grandparents can all play together as a family.

Golf provides everyone with the opportunity to ditch the screens and go outside, building upon healthy exercise habits. Being less injury prone than contact sports, conditioning for golf helps improve the strength of core muscles that support the spine and improve flexibility. As kids learn the game, they develop more than just the skills needed to play golf. They develop key life skills, such as sportsmanship, responsibility and integrity.

The British Journal of Sports Medicine reviewed 5,000 studies of golf and well-being. Their analysis found that playing golf can provide heart-healthy aerobic activity and increase muscle strength, while reducing cholesterol levels. Best of all, golfers even have a longer lifespan on average. In addition to burning calories, other physical benefits can include better balance, lower blood pressure, reduced lower back pain and improved mental health. Other studies have found that regular play can reduce age-related memory loss and lower the risk for depression, anxiety and dementia. There’s a lot to love about golf!

The golf course driving range at PGA Village. (Photo by: Jeffrey Greenberg/UIG via Getty Images)

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Whan: There are more than two million jobs impacted by the game and its diverse benefits to our economy and our society. It's often forgotten that the people working on the courses are the backbone of our sport. We live in a fast-paced, high-energy and high-stress world. A casual round of golf or a family visit to a professional tournament can provide the mind and the soul with a little bit of good. Moreover, all those visits by fans are likely driving increased dollars into local charities.

The contributor of this industry roundtable is also the Editorial Director for the National Golf Foundation.

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https://www.forbes.com/sites/erikmatuszewski/2019/05/01/the-state-of-the-golf-industry-for-2019/

2019-05-01 10:00:00Z
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