KPMG Golf Business Forum Reflects the Importance of Sustainability & Innovation

 

Day 2

Session 4 – Back to the blueprint

The speakers focused on how to attract the younger viewers and how important this is to the future of Golf. David Maclaren, Director of property at the European Tour gave advice to the Mozambique delegates by suggesting they need a strong golf tournament and must succeed in grassroots.

The common theme that was occuring seemed to be the inability of Golf to accomodate the youth. One of the examples, one of the audience used was that his son was asked to change his clothes after he wore ‘non- traditional’ wear. The panel suggested theses elements of the game need to change if the sport is going to progress and bring younger golfers to the game.

Giles Morgan, HSBC’s Global Head of Sponsorship and Events, presented the bank’s specially commissioned report ‘Golf’s 2020 Vision’ detailing trends shaping the future of golf including the shift of influence towards Asia, increased feminization of the game, the sport’s adaption to technology, golf tourism and sustainability challenges.

Speaking about Influence in Asia. It will do more for the game if one big tournament was awarded to Asia.

Future Golf

Following on Giles Morgan’s presentation on ‘Golf’s 2020 Vision’, looking at global trends shaping golf, KPMG’s expert panel looked into the future and discuss how golf will need to adapt to stay in tune with the world about us.

Mike Loustalot, vice-president of sales Golf Channel began by suggesting  appearance fess will chip away at the game. A lot of players ask for appearance fees to enter tournaments.

HSBC’s head of global sponsorship, Giles Morgan, bemoaned players’ agents demanding unrealistic fees, when the bank – which has spent more than $300 million on golf sponsorship in 10 years, including the WGC HSBC Champions Event in China– has already put up the prize fund.

“At the Ryder Cup we will see tournament professionals playing for free, doing lots of man hugs and high fives and getting right into it – and we, the public, love it,” he said. “But in the men’s professional game I think this sportsmanship and spirit is eroding. There are unregulated agents and players’ managers who are now asking for enormous fees for golfers to play in tournaments and sell their wares.”

Giles Morgan continued: “The recession is not something agents are used to. What some of these agents are doing – not all, and they are not regulated, which is critical – is going back to a trough where they think the money is, and that means the tournament sponsor. As a title sponsor you pay for the prize fund, which is what the players win. When you are then asked to pay additionally, it feels like there is a biting of the hand that feeds – and I do not believe this is sustainable for the game of golf.”

According to Giles Morgan, 32% of golf sponsorship comes from the financial services sector and that unlike some sports, golf is sponsor driven.

“Professional golf, like any sport, is the fuel and oxygen for growth, and nowhere has this been better seen than in China where, when we introduced the HSBC Champions event in 2005, we just needed to bring one golfer, Tiger Woods, along with 77 others. The publicity went bananas – he was the world’s greatest golfer and the crowds followed, and the tournament was a success.

He also suggested sponsors need to rein in spending as they provide all of the prize fund. “Spending has to be managed. Fear of spending is too much.”

Jack Nicklaus II also suggested speeding up the game to get more interest. On some of the golf courses he also used bigger holes to get older members and kids involved.

Jon Podany of the LPGA,  added “There will be opportunities for women. There is that younger movement happening for women, but how do we capitalise on it.

“Should women’s golf be played at the same time as mens much like tennis.”

There are many players active on twitter. On the back of the caddy bag we also have the twitter handle to enhance social engagement.  We have to make sure we are providing compelling content. Through different mediums.

The panel as a parting suggestion said the Rio 2016 event should be less like a major and more like the Ryder Cup. Giles Morgan said Golf has one chance to make it’s mark. “IOC will vote for 2020, if bid fails Golf fails.”

Summing up the ninth annual Golf Business Forum, Andrea Sartori, Head of KPMG’s Golf Advisory Practice and founder of the Forum, said: “It has been enlightening bringing the Golf Business Forum to Italy, a country that offers significant potential for golf development. Clearly, the ongoing challenges of the global economic downturn, the lack of liquidity and domestic issues such as bureaucracy, continue to depress opportunities at this time, but the supply and demand factors indicate the potential for a positive upturn as and when the economy begins to recover.

“This week has been a great success and I would like to thank our hosts, event patrons and sponsors, and all of the speakers, delegates and media who joined us at the Renaissance Tuscany Il Ciocco Resort & Spa.”

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