Thus, the financial benefits to the PGA Tour of the public appeal of the PGA Tour within the context of on-site attendance at tournaments are measured primarily in terms of the value of PGA Tour prize money.
Tiger Woods joined the PGA Tour when he turned professional in 1996 ("Tiger Woods Biographical Information," 2001). In November 2000, Tiger Woods threatened to leave the PGA Tour in a dispute over marketing rights. Woods is seeking more control over his own marketing rights, as opposed to seeking a bigger share of PGA Tour television revenues. The financial impact of Tiger Woods on the PGA Tour is so powerful that PGA Tour management must settle the dispute to his satisfaction (Ferguson, 2000).
As Tiger Woods joined the PGA Tour in 1996, measuring the economic impact of his participation in the PGA Tour on the financial operations of the PGA Tour requires the comparison of PGA Tour financial data before and after 1996. The period of data analysis applied in this research is 1990-2001.
The Impact of Tiger Woods' Participation in the PGA Tour on the Value of PGA Tour Television Contracts
PGA Tour revenues derive from five primary sources. These sources are (1) tournaments, (2) television, (3) tournament players clubs, (4) licenses and marketing, and (5) interest and other. The contributions to total revenue by source in 1996 was as follows (Johnson, 1997):
Tournaments 32 percent
Television 30 percent
Tournament Players Clubs 24 percent
Licenses and Marketing 9 percent
Interest and Other 5 percent
By 2001, television was the largest contributor (40 percent) to PGA Tour revenues. Further, licenses and marketing are growing in importance as revenue sources for the PGA Tour.
The popularity of Tiger Woods enabled the PGA Tour to negotiate television broadcast rights packages with six networks for the 2003-2006 period. The contracts with ABC, CBS, NBC, ...
Identifying Tiger Wood's Economic Impact on PGA Tour. (2000, January 01). In LotsofEssays.com. Retrieved 02:53, November 01, 2014, from http://www.collegetermpapers.com/viewpaper/1304088706.html