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Kevin_Reilly

  • Karma: +0/-0
Re:A U. S. Open at Sand Hills? Really?
« Reply #25 on: June 15, 2004, 01:05:21 PM »
Kevin, you of all people would understand that you'd have to change the business model to make this work.  Sure, in big cities, you get a certain crowd.  To take people to SH would be another thing.  If you bought one of these tents, you'd take GOLFERS, not Asst. Sr. VP of Whateverthehell who is just looking to take a day off work and drink beer and stuff his face.
 
Let's face it, this probably wouldn't happen until there were a couple more courses in the sand hills area where guys could make a week of it and go play, too.  

What's that, you say?  They're doing that?  Hmmm....

 I'm envisioning this Open as an interesting mix of (a) local (ie, within 4 hours' drive) support and (b) hardcore golf junkie/business fat-cat heaven.  That's the market.  Maybe tons of huge tents ain't the answer.  But there are lots of ways to skin a cat....

For crying out loud, the biggest $ driver (TV money) is only $25MM.    I guarantee you could pull the event off TV, make it hyper exclusive for one year, and change 5000 guys $10,000 a pop to be the only guys there and pamper the living crap out of them.  (think that number is crazy? -- hard core golfer/rich guys drop close to that going to Pebble for a week every week of the year!).   That's just one idea.  That's $50MM -- with minimal infrastructure to worry about. Put it on PPV if you need more $.  You telling me you can't turn a profit on that?  

These are crazy ideas, I know.  The point is that this CAN be done.  

Note to self - file business plans from Dave in the round file.   ;D
"GOLF COURSES SHOULD BE ENJOYED RATHER THAN RATED" - Tom Watson

SJ_McCarthy

Re:A U. S. Open at Sand Hills? Really?
« Reply #26 on: June 15, 2004, 01:06:36 PM »
Shivas, I wasn't saying that if the Open weren't televised no one would go.  I said Woodstock was NOT televised and had it been, it might not have been as large an audience as it was.

In regards to tickets, you have to keep perspective on it and it's pricing.  I would bet there is a minimum of 30% of Open ticket sales that go to people who have zero intention of attending, but in fact are "fronting" to get tickets to re-sell to ticket brokers.  I am also saying that many famalies who do go consider the cost to be a BIG expense and not just a cheap ticket.

The USGA are not the ones who "set the cost", therefore they can't just "lower the cost" of staging said event.  The US Open is a premiere event that corporations want to entertain at, therefore, by their participation and fiscal contributions, the Open is today what we see.  The MAJORITY of money spent at the Open is not from individual patrons, rather by the corporations.  

You are right, no individual demamnded that it be the big production it is today, DEMAND demanded.  And in a supply side economy, one, even the USGA would be fools to not capatalize on that opportunity.  If they didn't, some one else would.  It's all about the money.

I never said NO model would not work at SH, just the CURRENT model.  If you honestly think the USGA would peel back the onion to an Open that is smaller, makes less money, you are dead wrong.  It's not about being folksy, warm, cuddly & cute, it's about making the cash, period.

The TV revenue is not the first revenue stream, it is secondary, perhaps even a distant third to corporate hospitality being first, merchandising & F&B second.

Of course the Nebraska football gets supported well by Nebraskans.  If you think they will take that same Nebraska football pride and transfer it to 1 US Open, no way.  I am not saying they won't support it, I'm saying just not to the same degree as you claim.  Yes they have RV's, but thats for them for the DAY.  Not for them, 3 friends for FOUR NIGHTS.  Again, no infrastructure (airports, hotels,restaurants, transportaion) = no Open.

" BTW, just a reminder, but Warren Buffett lives in Nebaska.  You think there isn't a way for him and his local buddies that he's made filthy rich to make this happen, raise the business profile of the state and make a buck at the same time?"

You are assuming the USGA would invite him and his pals to be partners?  Have we seen the USGA share profits with any other private entity on an Open?

 " C'mon, these days you can do just about anything anywhere.  This nonsense about infrastructure is a lot of hogwash in my book."

Apparently you have not ever produced an event requiring logistics, infrastructure etc.  Trust me here, infrastructure is crucial, without it, no Open.

"  It can be done.  That's the American way.  Just accepting the challenge is the hard part.  I have every conficence that the execution would work out just fine."

I would be happy to agree with you, yes, we americans are great, no argument here.  But reality and expectations are what will allow the USGA to make the profit that they are now 100% dependant on.  If you think they would be willing to let that go so we can all be warm, cuddly & folksy with an Open at SH, you need to review your linear thinking on the basic business model of profit and loss.

I WISH an open like you describe could be held at SH, it's just completley unrealistic

SJ, you're not being consistent.  You're saying that nobody would go to SH if it was on TV?  Well then why the hell does anybody go to ANY Open?  They're ALL on TV!

You're saying that people who buy the tickets to the Open think they're too expensive....yet they still buy them!  So obviously, they ain't!  I often buy a Coke for the trainride home.  It's $1.25.  I think that's a ripoff.  Yet I buy it.  That one makes no sense.

As for the costs involved in putting on the Open, maybe the USGA ought to just lower the damn costs!  Nobody demanded that the Open be the gigantic production that it is.  The USGA made it a gigantic production to maximize profits, given the markets they were bringing the Open to.  What can be made can be un-made.  There is certainly a business model that could create a profit for an Open at SH.  All you're saying is that the current gigantic production model wouldn't work at SH.  That does not necessarily mean that NO model would work there.  Don't forget, the TV revenue wouldn't change one iota, and that's the big $ driver anyway.  With TV as a constant, the key would be to find a walk-up model that would work.

Let me ask you a question.  What's the third largest city in Nebraska 6 or 7 Saturday afternoons a year?  It's the Nebraska football stadium.  They get 100,000 people every fricking Saturday.  They love and support their state and their school.  And they take RV's to get there, no less.  Let's say you can get 20,000 of them, out of civic pride, if nothing else, to show up.  I'd imagine that people in Nebraska would LOVE to host an Open and would go nuts to support it.    And you've got a whole bunch of people from other states in the Midwest that would go.  Hell, there are people that would go just to see the sand hills (lower case) themselves, if not the tournament.  BTW, just a reminder, but Warren Buffett lives in Nebaska.  You think there isn't a way for him and his local buddies that he's made filthy rich to make this happen, raise the business profile of the state and make a buck at the same time?   C'mon, these days you can do just about anything anywhere.  This nonsense about infrastructure is a lot of hogwash in my book.  It can be done.  That's the American way.  Just accepting the challenge is the hard part.  I have every conficence that the execution would work out just fine.    
:-X

Lou_Duran

  • Karma: +0/-0
Re:A U. S. Open at Sand Hills? Really?
« Reply #27 on: June 15, 2004, 01:30:18 PM »
Brian,

My comment about identifying the "best golfer" is in reference to Adam's post, which is probably in step with the definition hinted at by Sandy Tatum (to paraphrase loosely, "the USGA does not seek to embarass the world's best players, only to identify them).

The word "fair" is a fascinating one which means so many various things to different people.  No, I do not believe that a site devoid of bad bounces, poor lies, or inconsistencies is a necessity, nor ideal for that matter.  I do think that in a medal play event, the possibility of extricating oneself after an indifferent shot with a superior one is not only exciting, but leads to better, more inspired play.  In my opinion, Carnoustie-like setups are not conducive to the style of golf that I enjoy watching or playing.

Perhaps not to the extent as Kiawah-Ocean, at Sand Hills, shots just barely off the green or fairway can be deadly beyond the penalty of a single stroke.  In match play it is but a loss of hole.  A 10 in medal at an exacting course such as Sand Hills is very much in the realm of the possible and largely insurmountable.  I don't really know the June wind patterns in NE, but if it blows 20+ mph with any regularity and the course is firm, it would be a test of survival.  Some may like this.  I personally prefer more shot variety and a course which rewards great performance without too severely penalizing the relatively rare misses.
« Last Edit: June 15, 2004, 01:32:26 PM by Lou_Duran »

SJ_McCarthy

Re:A U. S. Open at Sand Hills? Really?
« Reply #28 on: June 15, 2004, 02:00:00 PM »
Shivas, wrap away in the flag at anytime you wish, we earned that right :)

You can't make a "free market concept" on an event that is wholly owned by a certain entity.  If somehow the USGA were to sell or lease the event on a year to year basis, then free market economy it is, but for now, they own it period.

The TV revenue vs all other outlet revenue is one that we dont want to try and debate / discuss unless its a live one, trust me, i agree, the 25mm number might be the single biggest number on the surface, but in reality it is not the single biggest profit center in a line item budget.

FYI, it's not ABC but NBC who currently owns the broadcast rights.

The USGA cant raise the prices of the tickets just because some are being scalped, thats a scorched earth theory no?

SJ, wait a second, I wrapped myself in the American flag to avoid actual scrutiny of my ideas.  No fair!  ;D

Seriously, you aren't making a free market concept argument in a MONOPOLY, are you?  Just exactly WHO is going to hold the US Open besides the USGA?

BTW, TV is, in fact, the biggest driver.  The USGA would have to sell 100 tents at $250K a piece, to equal the $25MM of TV money, and there's a ton of costs involved.  I don't know how many they sell or at what price, but I'd imagine that what they make on that, net, net, is much less.  The TV money is simple -- thank you very much for your check, ABC.  Straight to the bottom line.

Oh, btw, tell me something, SJ ... if 1/3 of the people buying Open tickets are buying them to lay them off to brokers, who are reselling them at MUCH HIGHER PRICES, just exactly how is the USGA not underpricing the tickets??   ???  (Out of courtesy, I won't expect you to answer that one.  You've already made my point for me)  

   

SJ_McCarthy

Re:A U. S. Open at Sand Hills? Really?
« Reply #29 on: June 15, 2004, 02:38:55 PM »
Shivas,

Are you sure you aren't Pat Muccis twin?

You have taken what I have said out of context, re-wrapped it to fit your need.

I am not the one saying to raise prices to accomodate an open at SH.  I was the one who said WHY should they raise prices at another site to pay for an Open at SH??  Stating of course the delicate price that Open tickets currently reside at.

If the USGA is making a profit by charging whatever they currently are, then there is no need for them to RAISE prices other than to see YOUR dream of an open at SH.  Thats not good business. Thats selfish on your end.

When and if the USGA decides to either lease or sell the rights to the Open, you should jump right in there.  If your not happy with how they are conducting it now, or where they are conducting it now, write a letter to them or get on the board and make a diff.



All this talk of ABC's coverage of Westchester must have confused me...

But, hell yes, they can and shoud operate on what you call a scorched earth ticket pricing policy!  SJ, you're contradicting yourself.  On one hand, you're saying that the Open is the big-production circus that it is because of the demand. On the other, you're saying that the USGA should not charge a price for its tickets that squarely meets the level of demand.  I can't reconcile those two positions.  Yes, they should charge what the market will bear for the tickets.  If that means $100, so be it.  That's just good business.  I thought you said that the Open wasn't about being folksy, warm, cuddly and cute, but rather was only about raking in cash.   So, hell yes, that's exactly what they should do!    

Michael Moore

  • Karma: +0/-0
Re:A U. S. Open at Sand Hills? Really?
« Reply #30 on: June 15, 2004, 02:50:33 PM »
I guarantee you could pull the event off TV, make it hyper exclusive for one year, and change 5000 guys $10,000 a pop to be the only guys there and pamper the living crap out of them.

Shivas -

You are getting ahead of yourself, as you still owe us a few eagles on the thirteenth hole at Augusta National.
Metaphor is social and shares the table with the objects it intertwines and the attitudes it reconciles. Opinion, like the Michelin inspector, dines alone. - Adam Gopnik, The Table Comes First

SJ_McCarthy

Re:A U. S. Open at Sand Hills? Really?
« Reply #31 on: June 15, 2004, 04:20:20 PM »
Shivas,

1.  Perhaps the USGA is attempting to not be complete, total atypical corporate hogs about the revenue, therefore they are not maximizing the ticket prices.  If they are paying for the event AND making a profit AND making entrance to an Open possible for those that may not have the BIG bucks, why should they raise the nut?  Just so you can have your "field of dreams" moment at SH?  

2. "I don't know a single person who's ever paid for a US Open ticket and felt that they paid too much.  None."

Pardon me for playing Pat Mucci here, but have you spoken with EVERY person who bought tickets?  Seriously though, I would agree with your point on THIS, if no one feels they paid too much, providing of course they bought direct from USGA and not a broker, WHY raise the price if all of the above points (profit etc) are already being met or exceeded?  Are you reccomending now that prices be raised just for the heck of it?  Or do you have a motive / idea behind that thought as what they would do with the additonal revenue?


3. "The USGA could get way more than they charge.  What they do with the extra $ is irrelevant to this issue."  It's only relevant when YOU said earlier to raise prices on the east coast to pay for a west coast SH field of dreams event, that is unfair and misguided at best.


Michael:

I don't recall that being about eagles, but now that I'm putting better than at just about any point in my LIFE, sure, why not -- EAGLES!  

SJ:

I'm not rewrapping.  I'm contesting your presumption that the tickets are delicately priced right now.  Today's goofy pet project of robbing rich guys to pay for an Open at SH notwithstanding  ;D, the USGA doesn't charge enough for tickets to the Open.   They should charge more, regardless of the reason.  Why?  You said it yourself -- it's all about the cash.  Well how can it be all about the cash if they aren't maximizing the cash they can get for tickets.  The tickets are underpriced.

Evidence?

Objective Evidence:

Tickets sell out every year in about 4 minutes flat and the Open has been a sellout every year for what, 20 years now?

By your own words, at least 30%  of the people buying them are laying off to scalpers. Scalpers charge more, and get it.  

Subjective Evidence:

I don't know a single person who's ever paid for a US Open ticket and felt that they paid too much.  None.  

The USGA could get way more than they charge.  What they do with the extra $ is irrelevant to this issue.  


 

Jason Hines

  • Karma: +0/-0
Re:A U. S. Open at Sand Hills? Really?
« Reply #32 on: June 15, 2004, 07:27:02 PM »
I guess this response belongs here and not on the redux thread.

I don’t think you would have a problem selling tickets, as Tony mentioned earlier Nebraskans are sports starved and would go to any lengths to see this event.  The Omaha Classic on the Nationwide tour is one of their more popular events, if not the top.  The College World Series sells 250k tickets in Omaha precisely because it’s in Nebraska and not somewhere else.

The unfortunate thing is the logistics.  Hiway 97 with no shoulders could not accommodate that kind of traffic and quite frankly neither could N. Platte, however, I am sure where there is a will there is a way.

Maybe if the moon was aligned with the sun, expensive but limited tickets, pay per view etc it would work.  I would be there.


Jason

P.S.  Don’t forget the rattle snakes.