Sports are no longer the idealized preserve of those who need to fight for honor and prestige. It has now become a business issue and whole sectors of the economy will rely entirely on the successful staging of sporting events. Golf is no exception. The stars are no longer dumb teenagers who are being manipulated by their parents or guardians.
These days the super sports star in golf is a true international businessman with a workforce that can rival that of many business executives. This has been a necessary transition from the traditional bimbo image because the sport has developed a business model that requires all those involved to be right on the money. This article aims to look at the specific case of golf an example of building a successful business formula.
Building the links that will draw out the profits
The first part of creating a successful business model for golf is the recognition that the revenue streams are much more than just the prize money and entrance fees that the fans pay. You might even find that the peripheral services bring in a lot more money than what you might consider to be the main drivers of business for golf. For instance any major tournament will have to create a residential structure that will support both the big star players and the more affluent members of the audience who will be staying overnight. This need will create a whole new line of businesses that do not just offer cash to the community but which offer real employment opportunities for young people as well as a tax base for the government. Concentrating on just the prize money and ticket sales is a short sighted business mind frame, if we can even call it that.
Wealth creation in golf is a result of letting new entrants into the market to create innovations that will rival and eventually drive out old fashioned practices. Where there is a monopoly of ownership or control the end is result is that the business model will not support the long term development of golf and will instead be used to deal with the day to day crises that befall any tournament. Without effective competition, the monopolist will be free to act as he likes and the consumers may not be able to get the maximum choice that they are entitled to. With the level of capital investments that are necessary to make a firm bid for the golfing industry, it is almost inevitable that the smaller competitors will not get a look in but it is up to the creators of the business model to ensure that they put in place the systems that will be crucial for removing the barriers to entry which support monopolies.
An understanding of the business models that work for golf is important because this is an ever expanding sector of the economy. It has moved away from being a local country sport to an international outfit that will involve millions of participants.
