ECONOMIC IMPACT OF TIGER WOODS ON THE PGA TOUR
This research assesses the economic impact of Tiger Woods on the PGA Tour. The PGA Tour is a separate entity from the PGA (Professional Golfers Association). The PGA Tour is the public operational name of PGA of America.
Measuring the Economic Impact of Tiger Woods' Participation in the PGA Tour on the PGA Tour's Financial Operations
PGA of America, operator of PGA Tour, was founded in 1968, when professional golfers separated from the PGA, which is dominated by golf professionals. Members of the PGA Tour are golfers who play in the tournaments. The formation of the PGA Tour occurred when the PGA Tournament Division broke away from the PGA ("PGA, PGA Tour Not the Same," 2001).
PGA of America sponsors the PGA Tour, the Senior PGA Tour, and the Nike Tour. PGA of America also owns the PGA European Tour (Yasuda, 1998). This focus of this research is the PGA Tour. PGA of America, owner of the PGA Tour, does not control Grand Slam tournaments, which are not included in the PGA Tour ("PGA secures $850 Million TV Deal," 2001).
The focus of this research is the economic impact of the participation of Tiger Woods in the PGA Tour on the PGA Tour financial operations and position. Primarily, therefore, the focus of this research is the impact of Tiger Woods' participation in the PGA Tour on revenue generation by the PGA Tour organization. Within this context, factors such as media advertising expenditures and even ticket sales are peripheral issues, as they do not exert a direct impact on PGA Tour revenues.
Advertising expenditures, as an example, reflect the confidence of advertisers in the public appeal of the PGA Tour. For the PGA Tour, however, the financial benefits of this public appeal within the context of media advertising are measured primarily in terms of the value of the television broadcast contracts negotiated by the PGA Tour.
Similarly, ticket sales and ti...