WayOT. Why have dues at Augusta National?

[mike_malone]

 I heard that the merchandise tent does 70million.

[Tom_Doak]

I heard that the merchandise tent does 70million.

And the TV rights are a lot more than that.


They charge dues so the IRS doesn't look at them too closely.  I don't know if they are set up as a nonprofit but they can't be seen as making too much money or their tax status will change dramatically.  So they find ways to spend the profits from The Masters, by "reinvesting in the community" and by sponsoring amateur events.  They're still having a hard time spending all the $$$$.

[Tommy Williamsen]

I heard that the merchandise tent does 70million.

I do not have any first-hand knowledge, but it is my understanding that some folks buy everything they can carry, bring it to the car, and then do it all over again and again. Once they get it all home, they sell it online.

[Peter Flory]

They are a for profit private entity owned by Augusta National Inc.  I don't know who technically owns that (i.e. whether the members have any stake or if they are just non-equity members).  They have some LLCs that control certain aspects of their activities. 


If they were a not for profit, they'd have to make their financials publicly available (like the PGA Tour on the form 990). 

[Tom_Doak]

It does make you think Bandon Dunes should host a golf tournament.

[Carl Johnson]

They are a for profit private entity owned by Augusta National Inc.  I don't know who technically owns that (i.e. whether the members have any stake or if they are just non-equity members).  They have some LLCs that control certain aspects of their activities. 

If they were a not for profit, they'd have to make their financials publicly available (like the PGA Tour on the form 990).

Similarly, Quail Hollow Club in Charlotte is incorporated as a private for-profit business corporation modeled after ANGC.  The members seem to be pretty tight with the details of their membership, finances, etc.

[Wayne_Kozun]

I heard that the merchandise tent does 70million.

And the TV rights are a lot more than that.


They charge dues so the IRS doesn't look at them too closely.  I don't know if they are set up as a nonprofit but they can't be seen as making too much money or their tax status will change dramatically.  So they find ways to spend the profits from The Masters, by "reinvesting in the community" and by sponsoring amateur events.  They're still having a hard time spending all the $$$$.

Any idea how much they put into the course on an annual basis?  In the last decade the have rerouted a road to move back the fifth tee, and bought land from Augusta Country Club to extend the 13th tee.
Then there is all of the other work that they do, as they seem to rebuild many of the bunkers every year, plus the technology like SubAir greens, etc.

[Matt Schoolfield]

It does make you think Bandon Dunes should host a golf tournament.

Could be very cool

[Pierre_C]

The Masters Tournament Foundation is a 501(c) (3) tax exempt private entity. I would assume there are various for-profit, not-for-profit, and LLC entities related to Augusta National Inc. The Foundation has held this tax exempt status since 2012 - likely when formed. 2022, Masters Tournament Foundation claimed revenue of $31.4M.


Augusta National Inc., which operates ANGC, is a for profit entity. Steve Eubanks' book, "Augusta: Home of the Masters Tournament" provides some insights into ANGC's structure.

The Masters doesn't make money from domestic tv rights. The fees from TV sponsors pay for the tournaments production costs.

Drive, Chip, & Putt was setup in 2013, a year after the Masters Foundation was established. It is considered a charity, so tax deductions.

Augusta National has a trademark on the phrase, "A tradition unlike any other" - filed 2014-09-03. A list of all Augusta National's trademarks can be found here by clink 'HERE'.


Chart below is sourced from a Forbes 2022 article. 

This is the 2021 990-PF US tax form for the Masters Tournament Foundation.

https://projects.propublica.org/nonprofits/organizations/274452110/202203199349102345/full




These are the 4 largest charities of the Masters Tournament Foundation. The Masters Foundation made $18.7M in charitable contributions in 2022.

[Jeff Evagues]

I heard that the merchandise tent does 70million.

It is definitely not a tent. It is a building almost as big as the clubhouse.

[Steve Lapper]

I heard that the merchandise tent does 70million.

And the TV rights are a lot more than that.


They charge dues so the IRS doesn't look at them too closely.  I don't know if they are set up as a nonprofit but they can't be seen as making too much money or their tax status will change dramatically.  So they find ways to spend the profits from The Masters, by "reinvesting in the community" and by sponsoring amateur events.  They're still having a hard time spending all the $$$$.

The real merchandise #'s are now north of $70M and have been for the last 2yrs. The expansion of its building along with the addition of another, external sales area, Berkman's and the new pavilion outside have substantially added to the bottom line. Don't forget what the club's pro shop sales are to the players, caddies, families, etc... There are some sizable requests made by others for the non-Masters, real logo & text items.


The TV rights are NOT as large as $70M. They are actually relatively small and grossly undervalued if they were ever to be measured against other sports broadcast contracts and conventional viewing metrics. This is done for multiple reasons, with the club's retention of total control of the broadcast atop that pyramid. It's a near perfect partnership between CBS and ANGC. The sponsors are handpicked by the club and most of their CEOs are members. The Lords of Augusta are united and determined in desiring to provide the optimum and ultimate sporting experience.....certainly in the world of golf.

[Ben Hollerbach]

$70M for the week, $10M each day, that's an average of less than $250 spent per person per day. If these numbers are including the DC&P and ANWA, that would drop the per person average to below $200.
That seems low.

[Wayne_Kozun]

What about money from their corporate sponsors like AT&T, Mercedes and IBM?  Do they pay directly, or is their fee offset by TV/media production costs.  Or given as in-kind services - at least in the case of IBM for the web page.

[John_Cullum]

$70M for the week, $10M each day, that's an average of less than $250 spent per person per day. If these numbers are including the DC&P and ANWA, that would drop the per person average to below $200.
That seems low.

Not everyone who attends acts like they've never been there before

[Kalen Braley]

$70M for the week, $10M each day, that's an average of less than $250 spent per person per day. If these numbers are including the DC&P and ANWA, that would drop the per person average to below $200.
That seems low.

Not everyone who attends acts like they've never been there before

John,

I was thinking same, especially if you're one of the lucky ones who's already getting tickets year in and out.

[Peter Sayegh]

I heard that the merchandise tent does 70million.

I do not have any first-hand knowledge, but it is my understanding that some folks buy everything they can carry, bring it to the car, and then do it all over again and again. Once they get it all home, they sell it online.

Tommy,
I was only there for the first Women's Am but I LOADED up on merchandise.

Birthday and Christmas lists were checked off that visit.

I only bought what I could carry and walk. Obviously, nothing like Masters week but the building was churning.

Things that stood out:
-Reasonable apparel prices.
-The serpentine entrance to access the merchandise. (Think Disney entering a ride in the 80s).
-Each cashier mentioned they would happily ship your purchases. Genius.

[Edward Glidewell]

I don't think I've ever spent more than $400-500, and that was buying shirts/hats for several people. I think I spent less than $100 when I was there last year.


That said, you definitely see people walking out carrying four or five big bags full of merchandise. Last year I heard one of the cashiers telling someone else they'd rung up somebody at just over $17k earlier that day.

[Ian Mackenzie]

@ Pierre Cruikshank


Well played, sir, well played.

[Ira Fishman]

My wife played yesterday in our club’s Spring Opening scramble which of course was billed around Masters Sunday. I remembered that I had a hat that a friend purchased in 2019 (Tiger’s Fifth) so I gave it to her to wear.


Nobody noticed, and nobody cared.


JK would tell you that buying mass produced logo merchandise is a very temporary feeling.


Ira

[Matt Schoolfield]

Chart below is sourced from a Forbes 2022 article. 

This is the 2021 990-PF US tax form for the Masters Tournament Foundation.

https://projects.propublica.org/nonprofits/organizations/274452110/202203199349102345/full

Kudos on this Pierre. Just wanted to say that I really appreciated these types of high-effort responses.

[Bruce Katona]

I have a Masters hat someone got me a few years ago.  I ore it the other day when we went out fishing for striped bass.  I got skunked. 


I'll try the hat for golf......if its a poor day, that hat will become my painting hat.

[Kalen Braley]

Years ago, got my buddy and I Cypress Point hats after playing it.

Neither one of us had a single mention over the years, but perhaps most wouldn't recognize the logo or name anyways...

[Joel_Stewart]

I spent about $800 in the pro shop when I played there and the guy I was with spent $2,500.


The lodging, food, green fees and especially the wine must run close to $10 million in revenue if not more.  They have Petrus in the the cellar for $35,000 and hundreds of cases of Screaming Eagle for $2,000 per bottle. 

[Wayne_Kozun]

The lodging, food, green fees and especially the wine must run close to $10 million in revenue if not more.  They have Petrus in the the cellar for $35,000 and hundreds of cases of Screaming Eagle for $2,000 per bottle.

But wouldn't they charge a low profit margin on that sort of stuff, like F&B at the Masters?  I wouldn't expect them to be gouging their members on accommodations and F&B if they have trouble spending money.  So they will get revenue from that but not much profit margin since the COGS will be pretty high.

[Pierre_C]

The lodging, food, green fees and especially the wine must run close to $10 million in revenue if not more.  They have Petrus in the the cellar for $35,000 and hundreds of cases of Screaming Eagle for $2,000 per bottle.

But wouldn't they charge a low profit margin on that sort of stuff, like F&B at the Masters?  I wouldn't expect them to be gouging their members on accommodations and F&B if they have trouble spending money.  So they will get revenue from that but not much profit margin since the COGS will be pretty high.

Wayne,
     The National doesn't charge much for accommodations (rooms & cabins) and F&B. The margins are extremely low; lower than most destination clubs.  The menu is simple, basically meats & veggies, nothing exotic. The Masters Tournament basically pays for the operations, renovations, & maintenance.


The National is close during the summers (May - Oct), marked by the Closing Party, usually the 3rd week of May. The summer is when all of the renovations are performed.