Showing posts with label golfer. Show all posts
Showing posts with label golfer. Show all posts

Thursday, June 16, 2011

Why the U.S. Hibernation?

The U.S. Open begins today and you’ll be hard-pressed to watch coverage without hearing about how the U.S. is getting dusted these days by international players.  Here’s the landscape:

·         The top three ranked players in the world are Europeans (Donald, Westwood and Kaymer, in that order).
·         Europe possesses the Ryder Cup and has won 4 of the last 5 meetings.
·         Europeans hold the U.S. Open Trophy and the Wanamaker Trophy (PGA Championship) with Graeme McDowell and Martin Kaymer, respectively. 

Adding salt to the wound is the fact that South Africa, a country 1/6 the size of America with 49 million people, holds the other two major trophies – The Open’s Claret Jug with Louis Oosthuizen and The Master’s Trophy with Charl Schwartzel.

Is there a sensible explanation for international dominance and U.S. hibernation on professional golf’s largest stages?  I decided to explore.

Theory 1: People are picking up golf at a greater rate overseas than in the states.


Year
U.S.
Europe
1985-90
8.1%
6.1%
1990-95
-2.0%
9.2%
1995-00
3.3%
5.5%
2000-05
0.8%
5.7%
2005-10
-2.6%
1.6%


Europe has been growing in overall golfers at a greater clip than the U.S. since 1985 but they’ve generally followed the same pattern.

Additionally, the number of golfers in Europe’s largest golf market, the UK and Ireland, actually decreased 4% last year.  This is the same market where five of the top ten golfers in the world reside. 

Thus, I don’t think growth/decline in golf participation is the culprit.

Theory Two: There are more overall golfers and/or a larger percentage of the population is playing golf overseas.


Country/Region
Total Players
% of Population
U.S.
26,100,000
8.5%
Europe
4,436,085
0.7%
South Africa
147,960
0.3%


This data suggests that the U.S. should dominate professional golf.  We have 5.9x more golfers than Europe and 176x more than South Africa!

Theory Three: We have less junior golfers who can be developed for competition at a young age.

The top 5 ranking European countries in terms of the percentage of overall golfers who are juniors are:

1.    Turkey (51%)
2.    Latvia (28%)
3.    Romania (24%)
4.    Greece (21%)
5.    Czech Republic (15%)

i.e. Not the U.K., Ireland, Germany and Spain where Europe’s top pros come from. 

Additionally, with 2.7 million kids playing golf in America, more than 50% of Europe’s 4.3 million total players would need to be juniors in order to outpace the U.S.  As shown above, that is not the case.

(Side note – if, in 15-20 years, we see young stars tearing up the PGA Tour from Turkey and the rest of Eastern Europe, you heard it here first.)

Theory 4: The quality of junior competition in the U.S. is inferior to Europe and others.

This is subjective and cannot be proved or disproved with data.  The folks at the American Junior Golf Association (AJGA) and U.S. Kids Golf would likely point out that top teenage golfers from around the world travel to the U.S. to compete … not vice versa.  Same with collegiate golf – top International players come to ASU, USC, Oklahoma St., Georgia, etc.  So, I doubt this is the culprit.

Theory 5: It is happenstance and we’ll see a return to equilibrium shortly.

My findings are that disparities in overall participation, growth in participation, youth participation and competitive preparation are not the causes for Europe’s recent dominance in professional golf. 

Thus, in conclusion, my lack of a conclusion leads me to believe that it’s happenstance – a perfect storm resulting from Tiger’s implosion, Phil’s struggles and the incubation period of America’s young guns like Rickie Fowler as they evolve from good to great.

Maybe equilibrium will start its process this week.  As a result of this analysis, my fantasy squad is loaded solely with Americans.

On a serious note, I look at this data as an entrepreneur and see two things:

1.    The golf industry is seemingly ripe for innovation to turn around the declining participation numbers.

2.    The international golf market is starting to blossom in places like Turkey, Eastern Europe, South Africa and elsewhere (i.e. China) and there will be some big winners who capture this growth.  Hopefully it’s you and me.

Have a great U.S. Open week and Happy Entrepreneuring. 

(All data about golf in the U.S. courtesy of http://www.ngf.org/ and data about golf in Europe and Africa courtesy of http://www.kpmg.com/ ... along with personal computations.)


Tuesday, May 3, 2011

Kickstarter - Sponsorships & Moore

After a weeks-long hiatus on everything except work and school, I thought it appropriate to re-energize this blog with some thoughts on Kickstarter.

According to their website: “Kickstarter is the largest funding platform for creative projects in the world.  Every month, tens of thousands of amazing people pledge millions of dollars to projects from the worlds of music, film, art, technology, design, food, publishing and other creative fields.”
According to a recent TechCrunch headline, it’s working – “Kickstarter, Two Years and 20,000 Projects Later: $53 Million Pledged, $40 Million Collected.”

I’ve received funding requests from friends/colleagues for projects that fit within this description, but what really got my attention about this company was a recent Fred Wilson blog post. 

Wilson told the story of how a professional golfer named Mike D is using Kickstarter to fund his journey on the mini-tours and create a documentary about it.  Wilson summed it up best by saying: “Mike is taking the classic big brand sponsorship model and crowdsourcing it with Kickstarter.  Awesome.”  He has raised over $13,000 thus far, which is almost double his minimum goal.

I think this is a great example of: 1) a golfer applying innovative thinking to the pursuit of his dreams; 2) a product being applied in a way that the company had no clue it could/would be used.  Great lessons for both golfers and entrepreneurs.

This story reminded me of Ryan Moore, the young PGA Tour player and 2004 U.S. Amateur Champ.  Moore parted with his club sponsors in 2008 and then signed a deal with a start-up equipment company called Scratch Golf in 2009.  The deal – Moore would play Scratch Golf’s irons/wedges in exchange for becoming a part-owner of the company.  Compensation was not cash, but equity.  Again, genius. 

The arrangement ultimately fell apart last year with Moore signing a deal with Adams Golf and losing his equity in Scratch, but I believe (and hope) he was a pioneer for more golfers to think in a similar way.  Certainly it’s a great opportunity for players to build equity in something other than their golf game.  It also injects an innovative spirit into the golf industry and provides a path for start-ups to penetrate and pivot around the “good ole boys network.”

I think these two innovative approaches to sponsorships are steps in the right direction and will hopefully pave more paths for golf entrepreneurs.