The Pellucid Perspective - October 2010 - (Page 7)

ahead of the next defection. In the parlance of the game, the PGA TOUR, which has historically operated hitting “fairways and greens,” is now increasingly scrambling to save pars. What’s interesting to hear is the dramatic dichotomy of the TOUR’s perception and approach to the situation vs. outside observers, tournament sponsors and a number of the players. Here’s Mr. Finchem’s rationalization on why he doesn’t think a “repricing” of the PGA TOUR product is in the offing, “The idea that we would sort of just generally roll back really doesn’t accomplish anything. It just sets us back on a basis from which to move forward, and we don’t feel the need to do that.” So, in other words, just because the market thinks my house is worth 30% less is irrelevant, as long as I don’t think it needs to be 30% less? Let’s contrast that to the comments of Deutsche Bank Americas CEO Seth Waugh who has said that “raising PGA TOUR prize money sends the wrong message.” He went on to elaborate by saying that lowering or holding purse levels might encourage sponsors to re-up with the TOUR. (As a side note, Deutsche Bank did re-up recently. It would be interesting to know what helped change Mr. Waugh’s mind). Additionally, several players during the current year have voiced concerns that the message sent by even modestly increasing purses doesn’t warm the average American to the sport of professional golf. There are reports that Tiger Woods himself has voiced this concern and Greg Norman is on the record as saying the TOUR should cut prize money “out of respect to every citizen and taxpayer who’s suffering dramatically.” He continues, “It seems like the PGA TOUR players are still playing for a million dollars for first every week, like they’re recession-proof.” So, whether the argument is that the repricing of the PGA TOUR will happen due to economics, optics or some combination of both, the tug-of-war will continue between Mr. Finchem’s view of reality (just grow slower) and the general marketplace’s perception (find a new value point and grow from there). In short, will sponsors and advertisers continue to pay more money for a declining audience overall (down 2-4% yearto-date according to the PGA TOUR) and a sharply declining weekend audience (down mid-double digits according to Nielsen) so that the PGA TOUR doesn’t have to “go backwards to go forward”? I’ve learned in my brief decade in the industry not to under-estimate the Commissioner’s ability to “sell the vision,” but, on the other hand, the magnitude of the gravitational forces at work here is as great as anything he’s previously faced in his current position. The other thing I’ve learned is that, no matter how it turns out, the man and the organization will have the revisionist history and the most favorable spin on the outcome figured out and circulated in the media before the dust has a chance to settle. Much like the players whom they represent, when it comes to message and managing perception, “These guys are good.” n “GolfNow gives me 20-30 more rounds a day because I work the system myself.” Matt Callahan General Manager, Callahan Golf Links Waleska, GA Don’t take our word. Take his. Go to golfchannelsolutions.com www.PellucidcorP.com The Pellucid PersPecTive 7 http://www.golfchannelsolutions.com http://www.golfchannelsolutions.com http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - October 2010

The Pellucid Perspective - October 2010
Contents
Bringing a Pellucid Perspective to Golf Industry Information
What's In a Name.... and an Email Address?
September Weather Impact, August YtD Utilization
Will the PGA TOUR be Subject to Repricing?
Alternative Uses for your Golf Course 'Factory'
Los Angeles Market Profile
Survey Says... You're Still Employed
SCGA-PLGA Merger: Sign of the Times?
Sunshine Laws and Midnight Marketing

The Pellucid Perspective - October 2010