Rich:
The USGA isn't in the business of providing "largesse" to golf associations with their GHIN System.
My understanding is that it costs the USGA around $6 million per year to provide the GHIN System. Their per player fee of around $3.75 is supposed to cover that USGA cost.
Do I think the USGA should charge that? Well, I guess my answer would have to be both yes and no.
I say yes because I certainly understand why they charge that---again, it's to basically cover their annual cost of providing the GHIN System.
I say no because I feel the USGA both could and should underwrite the entire cost of the GHIN System as a service for the good of the game. If they did that, we, the state and regional golf associations could reduce our fee to golfers and member clubs and provide the same handicap service for theoretically $3.75 less. This too I view as for the good of the game.
Unfortunately this type of suggestion seems to freak out the USGA and the state and regional associations because of the fear of anti-trust and restraint of trade laws suits.
Would state and regional golf associations providing a USGA subsidized handicap service get sued by "for profit" handicap service providers? Sure they would, they have anyway but they've never lost a case and I doubt they ever would.
Why? Because essentially they're doing something for the good of the game and they're really not profiting from it.
But restraint of trade litigation is pretty tricky business.
However, I think the hallmark and precedent case in this area happened a few years ago in New Jersey where a for profit handicap service provider, Handicom, sued the NJ State Golf Association (a GHIN handicap association) for monopolizing their district.
The judge basically said:
"I don't care if the NJ Golf Association has 99.9% of the handicap business in its region, I do not see that as a monopolistic practice constituting restraint of trade against Handicom.".
When the Handicom lawyers asked the judge how 99.9% of the market could not constitute monopoly and restraint of trade, the judge said:
"Because if you (Handicom) want to provide your handicap service with no restraint at all do it over the INTERNET BECAUSE THE INTERNET IS FREE."
Interesting situation and an interesting legal precedent and legal apparent loophole, in my opinion.
I say the best situation is to provide the American golfer with the best handicap system possible for as little money as possible. If the USGA can provide that by subsidizing their GHIN Handicap System, then hey, that's for the good of the game, isn't it? That enures to the ultimate benefit of the American golfer, right?