2013 Will Be A Great Year For The Golf Industry

I love New Year’s Day.  It’s a day in which most of us are reflecting on the past, thinking about the future, and doing so in a purely optimistic and hopeful way.  One of my goals for 2013 is to approach every day like that.

I didn’t write a New Year’s blog in 2012.  That’s because, while being optimistic and hopeful about most things, I wasn’t for the golf industry.  I thought early on that 2012 was going to be painful, and in many ways it was. 

More industry professionals lost jobs, saw decreases in pay and were forced to look elsewhere for career pursuits.  I know because they were calling me.  Unfortunately most didn’t have the capital to start their own business with TGA as they had been living paycheck to paycheck for years as golf professionals waiting for the industry to turn around.

The USGA didn’t help matters by telling pros and amateurs alike that they’re cheating if they anchor (i.e. use) a long putter, literally causing backaches for the ever-important baby boomer generation.

The PGA Tour further hurt matters by literally wiping away the dream for journeymen professionals of making it onto Tour with a few good weeks at Q School.

But, as in all years, good things happened too.  Year over year rounds were up 7.7% through August, hopefully not the sole result of weather being more golf-friendly this year than last.  And there's new leadership at the PGA of America, with Peter Bevacqua as the newly-appointed CEO and Darrell Crall filling the newly-created COO position, both of whom come from business and development backgrounds.  These are positive steps forward.

But there was a bigger thing that happened in 2012, a bright spot that was/is very bright, that fuels my optimism and hope for 2013.  That is the early sign of a significant and critically important cultural and philosophical shift within the industry.  It’s difficult to describe this paradigm shift with concrete examples as it’s more of a feeling – little things picked up by open ears and eyes.  People being more open-minded to new ways of thinking and acting.  New ways to enjoy the game being thought of and tested.  People being less territorial and more collaborative.  I see it and hear it every day.  The number of golf entrepreneurs is growing.  The status quo is diminishing.  And I believe this is exactly what needs to happen for the industry to rebound, the game to grow and those of us within it to thrive with viable opportunities to build a career and generate wealth.

For this reason, I think 2013 is going to be a great year for golf as this feeling hopefully becomes cemented in strategies, decisions and actions – and we’re investing in that belief at TGA.  We’ve doubled our staff and increased overhead.  We’ve identified and are pursuing new revenue streams.  We are trying to execute an aggressive growth strategy.  And because I believe so much in these things, I recently increased my equity position in the company.

I hope 2013 is a year of innovation, collaboration and entrepreneurship for the golf industry and I wish you all the best in it.

The PGA Tour Golf Marathon Adds More Miles

This has been a big week for Tim Finchem and the PGA Tour.

Yesterday, the Tour officially announced that the 2014 season won't kick off in Kapalua in January, but rather will start three months earlier at the Frys.com Open in October.  The big change is that the four Fall Series events will start awarding a full allotment of Fedex Cup points, hence raising them to the same level as all other tournaments.  The Frys.com Open is just a few weeks removed from the Tour Championship, so an already exhaustive season will go from nine months to ten, with the only break coming from mid-November to mid-January.

I know people very close to the Frys.com Open and am happy for them.  This steroid shot from the PGA Tour speaks highly of their hard work and the quality of tournament they run.  And, if they switch the course to The Institute (a club so private it makes Augusta look like a muni) as this article suggests, it would be an awesome way to start the season.  I'm also happy for the McGladrey Classic, another Fall Series event where my favorite golfer, Davis Love III, is closely tied to as the Chairman.

While this decision boosts the profile (and surely the sponsorship dollars) of these events, I'm scratching my head about how it improves the experience for fans.  The golf season already seems like a marathon and fans will now be asked to jump into a new one a few weeks after the last one ends.  That's like having Week 1 of a new NFL season three weeks after the Super Bowl.  Then, as quickly as fans are asked to embrace a new season, they're forced to take a two month break until the Hawaii events in January.  I further worry that the longer schedule will result in lower-quality fields across the board as players have to pick and choose their events to avoid burnout.  Finally, I've always personally enjoyed the Tour season starting in Hawaii as it's like a big breath of warm fresh air after the holidays.

Following this news yesterday, the Tour announced today that Web.com is the new title sponsor of the Nationwide Tour, effective immediately.  Reports are that the deal is worth >$10 million/year for 10 years.  I couldn't find financial details of Nationwide's deal with the Tour, but I suspect that it wasn't $10 mil.  The Tour's recent decision to eliminate the traditional Q School model and make all aspiring Tour players go through the Web.com Tour for at least one season almost certainly sweetened the deal.  I've already talked about why I disagree with this decision.

Two days and two big announcements by the Tour.  I applaud them for being proactive about trying to grow their business.  I hope we look back on this week in a few years as a big one in a good way, but I fear that we will not as I don't see these decisions being fan or player friendly.  I hope I'm wrong because big in a bad way is not what a fragile industry needs right now.

Spend 2012 on the Right Side of the Haimish Line

After a break for the holidays and the birth of my beautiful daughter Eva Grace Tanner, I’m returning to my weekly blog with a renewed vigor for 2012.

I’ve been reading a lot lately and one of the more interesting pieces was a Mark Suster blog titled “Spend 2012 on the Right Side of the Haimish Line" in which he references this NYT article by David Brooks.

Brooks defines haimish as “a Yiddish word that suggests warmth, domesticity and unpretentious conviviality.”  The concept is that you risk crossing the haimish line into a less happy existence if you blockade yourself from normal folks.  Examples of doing this would include staying at super-private hotels, working solely from behind a desk, etc.  As I read these articles, I took the concept a step further by thinking about the professional consequences that would arise from boxing in one's experiences.  i.e. If you play golf exclusively at private and luxurious clubs, yes, you'll miss out on the congeniality of playing with weekend warriors who are making friends, drinking beers and playing for the love of the game.  However, if this same person is then responsible for addressing the challenges faced by these weekend warriors, they probably wouldn't do a very good job.  They'd be too far removed.  The challenges themselves would fall outside the false sense of reality that their experiences had created.  And thus, professionally, they'd be operating from the wrong side of the haimish line.  

As I went through this intellectual exercise, I thought a lot about the golf industry.  And I’ve thought a lot about this concept of the haimish line since as several interesting headlines and observations appeared in the first few weeks of 2012.

First, at the PGA Tour’s season opening tournament in Kapalua, Commissioner Tim Finchem announced the Tour’s commitment to raise $100 million for The First Tee this year.  Since 1997, The First Tee has been the sole junior golf organization supported by the golf industry and it operates on a $13 million annual budget.  And yet, despite The First Tee’s claim that they’ve had 4.7 million participants, there are less kids playing golf in the U.S. today than there were the day it was founded.  (2.8 million in 1995 vs. 2.5 million in 2010 - National Golf Foundation data.)  Instead of opening their doors and offering support/resources to other youth programs, industry leaders are doubling down on their single all-in bet.  That, to me, is a decision made from the wrong side of the haimish line.

Then, earlier this week, Finchem proposed a change to the Q School format. One of the great things about professional golf is that anyone can pursue their dream of making it on Tour. You don’t need to get drafted, you don’t need an agent, you don't need to be a certain age … you just need to pass through Q School, which is open to any good player. The new format would be a 3-tournament series that is only available to select Nationwide and PGA Tour players, thus eliminating the opportunity for college golfers, club pros and anyone else who’s been working meticulously on their game to bypass the mini Tours and go straight to the big leagues. The new format benefits existing tour players, adds three new tournaments and their corresponding revenue, and undoubtedly builds more prestige in the Nationwide Tour (which, perhaps coincidentally, is in need of a new title sponsor after this year). But nevertheless, it's a closed format. Derived from closed-minded thinking that, to me, comes from the wrong side of the haimish line.

On the flipside, Golf 2.0 has done a great job of identifying golf’s many challenges and it has the industry’s undivided attention.  Its presence is everywhere at the PGA Merchandise Show in Orlando this week.  The much harder and more important part is to now identify viable solutions and execute on them.  Nevertheless, I applaud the PGA for hiring Boston Consulting Group to provide them with a sobering analysis.  I also applaud them for recruiting the perfect person to lead Golf 2.0 in Darrell Crall.  These are all things happening from the right side of the haimish line.

Additionally, the PGA of America clearly has a new social media strategy on Twitter that is much more active and open-minded.  Historically they would only tweet well-manicured PR messages but now they’re engaged in an active dialogue with industry members, including retweeting criticisms and all.  I’m also a big fan of the hashtag they’ve been promoting - #growgolf.  These are smart, engaged decisions made from the right side of the haimish line.

All of these topics require further discussion and there are other smaller examples as well, but the point I want to get across is this concept of this haimish line.  The golf industry has been operating from the wrong side of it for too long.  And it’s understandable – industry leaders don’t pay for golf, probably haven’t experienced a six hour round in their professional careers and aren’t working shoulder-to-shoulder with the PGA Pro who’s folding shirts in the shop and struggling to get by.  It’s good to see that they’re taking steps in the right direction to understand and address the challenges being faced by golfers, industry members and the game as a whole.

With that, I have a challenge for everyone, myself included - let's make sure we spend 2012 on the right side of the haimish line.