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D_Malley

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us open host course compensation
« on: June 16, 2014, 04:44:46 PM »
What does the host course get as compensation from the usga for hosting a us open?
« Last Edit: June 17, 2014, 09:21:07 AM by D_Malley »

Joe_Tucholski

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Re: us open host course compensation
« Reply #1 on: June 16, 2014, 10:16:54 PM »
Not in any particular order but I have to believe the reasons to host include publicity, notoriety, history, a sense of contributing to the game of golf and money.  There is a specific contract written and I assume the contracts with Bethpage and Chambers Bay have to be available to the public but I haven't been able to find them online.  That being said from a previous post on Chambers Bay the contract stipulated the USGA would lease the course the week of the open for $2.5 million but those dollars had to be used in a particular manner.


jeffwarne

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Re: us open host course compensation
« Reply #2 on: June 16, 2014, 10:29:07 PM »
$410 greens fees
"Let's slow the damned greens down a bit, not take the character out of them." Tom Doak
"Take their focus off the grass and put it squarely on interesting golf." Don Mahaffey

Tom_Doak

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Re: us open host course compensation
« Reply #3 on: June 17, 2014, 03:27:10 AM »
It depends on the venue.

One of the reasons there are more public courses and newer courses being chosen for the event is that they are willing to host for less $ from the USGA, because they have other avenues to make it back.  [Not just Chambers Bay and Erin Hills, but Pebble, Pinehurst, Bethpage, Torrey Pines etc.].  You can believe they are doing it to be more "populist" if you want, but there is surely a pattern emerging. 

I've been around a few of the old-line private clubs that have hosted the event, and after every one there was quite a bit of complaint by the membership, that they would have to be paid far more to host it again.

D_Malley

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Re: us open host course compensation
« Reply #4 on: June 17, 2014, 09:30:59 AM »
thx for the info... realize this is a little OT

I read somewhere that chambers bay got a 2.5 million site fee, does this sound correct?

also does the course get any other revenue from the event?

does the usga get all of the corporate hospitality revenue?

had an argument with someone recently where i stated that the open does not really bring in much revenue for the host club.

Nigel Islam

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Re: us open host course compensation
« Reply #5 on: June 17, 2014, 11:32:21 AM »
Would it be fair to say that public access courses benefit much more than private courses from having a major?

Howard Riefs

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Re: us open host course compensation
« Reply #6 on: June 17, 2014, 11:45:53 AM »

I read somewhere that chambers bay got a 2.5 million site fee, does this sound correct?

That's accurate:

http://seattletimes.com/html/localnews/2004420034_apglfchambersbay1stldwritethru.html
"Golf combines two favorite American pastimes: Taking long walks and hitting things with a stick."  ~P.J. O'Rourke

BCowan

Re: us open host course compensation
« Reply #7 on: June 17, 2014, 12:49:25 PM »
Would it be fair to say that public access courses benefit much more than private courses from having a major?

Private courses benefit greatly due to increased guest play on top of dues.   Plus some clubs that host majors are taking the merchandise away from the Head Pro's.  Merchandise is a big factor and I'm sure they get a cut. 
« Last Edit: June 17, 2014, 01:11:21 PM by BCowan »

Greg Tallman

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Re: us open host course compensation
« Reply #8 on: June 17, 2014, 02:09:20 PM »
Would it be fair to say that public access courses benefit much more than private courses from having a major?

Private courses benefit greatly due to increased guest play on top of dues.   Plus some clubs that host majors are taking the merchandise away from the Head Pro's.  Merchandise is a big factor and I'm sure they get a cut. 

One professional in particular has done unbelievably well from his facility hosting multiple Opens. Still gets a portion but got it all through the mid-late 90's. Seven figure profit back then.

David_Tepper

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Re: us open host course compensation
« Reply #9 on: June 17, 2014, 02:30:05 PM »
"Plus some clubs that host majors are taking the merchandise away from the Head Pro's.  Merchandise is a big factor and I'm sure they get a cut." 

BCowan & Greg T. -

I am pretty sure the USGA now runs the entire merchandising operation at U.S. Open sites. Neither the host club nor the host club's pro are involved or profit from it in any way. My guess is it has been that way for the past 5 to 10 years, maybe longer.   

I don't know the situation regarding the PGA.

DT 

D_Malley

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Re: us open host course compensation
« Reply #10 on: June 17, 2014, 02:55:01 PM »
the usga requires the host club's golf shop to close the week before and the week of the tournament.

but i am sure the sales for that year are much higher then normal.


Carl Nichols

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Re: us open host course compensation
« Reply #11 on: June 17, 2014, 03:20:35 PM »
I have it on very good authority that a (private) club achieved $2.5-$2.8 million in "net benefit" from hosting the U.S. Open recently. 

Joe_Tucholski

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Re: us open host course compensation
« Reply #12 on: June 17, 2014, 06:38:42 PM »

I read somewhere that chambers bay got a 2.5 million site fee, does this sound correct?


You read it somewhere...like the first response in this thread?

D_Malley

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Re: us open host course compensation
« Reply #13 on: June 17, 2014, 07:21:02 PM »

I read somewhere that chambers bay got a 2.5 million site fee, does this sound correct?


You read it somewhere...like the first response in this thread?

That must of been it

Nigel Islam

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Re: us open host course compensation
« Reply #14 on: June 17, 2014, 07:31:07 PM »
I have it on very good authority that a (private) club achieved $2.5-$2.8 million in "net benefit" from hosting the U.S. Open recently. 

So it's sounds as if there is at least $2+ million in it for the club regardless then.

D_Malley

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Re: us open host course compensation
« Reply #15 on: June 18, 2014, 06:48:36 AM »

I read somewhere that chambers bay got a 2.5 million site fee, does this sound correct?

That's accurate:

http://seattletimes.com/html/localnews/2004420034_apglfchambersbay1stldwritethru.html

In the article quoted above it states that Pierce County may lose money on the event.

Terry Lavin

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Re: us open host course compensation
« Reply #16 on: June 18, 2014, 01:26:43 PM »
A club can expect north of $2 million, but there is invariably work done on the course that is at the club's expense.  Then there is lost business opportunity for the week of the championship, the week before the championship and any other times that play is restricted in advance of the championship.  Then you have to figure in the cost to repair the resulting damage from the tents, concessions, parking, spectator damage etc.  It's not really that much money when all of these are factored in.
Nobody ever went broke underestimating the intelligence of the American people.  H.L. Mencken

Rob Curtiss

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Re: us open host course compensation
« Reply #17 on: June 18, 2014, 01:32:36 PM »
I played with someone pretty important at the Olympic Club last summer and asked if they were hoping to get the Open again soon.
He said the members are in no real hurry for all the reasons that Terry gave. They love the prestige but think its a pain in the butt.

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