The Money Behind The Open

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Hey Golfers —

The Open at Royal Troon is sold out. An estimated 250,000 fans will attend the event later this week. The attendance is an increase of 70,000 from the 2016 Open at Troon.

The R&A governs the sport of golf worldwide, with the exception of the United States and Mexico. Included in the 28 championships the R&A oversees are its three professional events.

• The Senior Open

• AIG Women’s Open

• The Open Championship

The R&A has had an exceptional last two years from a revenue standpoint. Last year was a record revenue year, on top of a record year in 2022.

Here’s a quick rundown of the R&A.

• 239 employees

• 165 affiliated organizations

• Revenues of $197 million in 2023.

Some added context on The R&A’s revenue numbers. The USGA recognized $235 million in 2022.

The R&A has increased its revenue by $57 million since 2019 — an increase of 41%. 

Below is a chart of R&A revenue from 2018 to 2023. Keep in mind the chart is in Pounds — the current exchange rate from Pounds to USD is 1.3.

The R&A doesn’t break out revenue by category, but the Open Championship accounts for a significant portion. The R&A canceled The Open in 2020 and recognized $17.5 million, a decrease of $123 million the year prior.

Key portions of revenue for The Open Championship.

• Media rights

• Sponsorships

• Tickets and merchandise

In 2018 — NBC Sports signed a twelve-year deal with the R&A for $50 million per year to broadcast The Open Championship. Sky Sports also extended its media agreement with the R&A to 2024 for an undisclosed amount.

To increase its revenue, the R&A has significantly increased its expenses. Cost of sales increased by 31% from 2021 to 2023 — in line with its revenue increase in the same period.

Here’s a look at the R&A’s expenses from 2018 to 2023.

In 2017, the R&A committed to investing $250 million in golf in various ways by 2027. They have already invested over $175 million since 2017. The R&A invested $28 million and $26 million in 2022 and 2021, respectively. The money that the R&A invests comes directly from the profits of The Open.

The R&A sells tickets for eight days to The Open. And in my opinion — no one does tickets better than The Open. Those under 16 years old are free the entire week. While 16 to 24 pay half the price for the week.

Here’s a look at adult ticket prices for competition rounds. Prices have been converted to USD.

• Thursday — $123

• Friday — $130

• Saturday — $136

• Sunday — $143

Fans have been flocking to The Open for the last three years. Over 200,000 fans will attend the championship for three consecutive years. From 2013 to 2021, the attendance only exceeded 200,000 four times.

One of the most important aspects of money in The Open is its economic impact on local economies — The Open is an economic juggernaut.

The 2022 Open at St Andrews benefited the local economy by around $400 million. Of that $400 million, $140 million was new money entering the economy, while the other $260 million was valued in destination marketing benefits.

Here is a look at the economic impact of The Open.

• 2023 — $242 million (Royal Liverpool)

• 2022 — $400 million (St Andrews)

• 2021 — $136 million (Royal St George’s)

• 2019 — $120 million (Royal Portrush)

• 2018 — $143 million (Carnoustie)

The Open is valuable for golfers, too. Regarding endorsement money for winning a major, two majors move the needle like nothing else: the Open and the Masters.

Phil Mickelson received a $1 million bonus from Callaway after winning The Open in 2013. Several golfers will have seven-figure win bonuses from sponsors should they win The Open this week.

The Open is one of my favorite tournaments — if not my favorite. There is nothing like waking up at 3:00 a.m. and heading to the couch to flip on the TV, hoping for wind and rain.

Have a great Monday. We will talk to you next week!

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