The Greens Economy
Golf remains a big moneymaker. Some 26 million U.S. golfers helped the industry generate $69 billion in revenue in 2011, according to the latest data from market researcher SRI International. While that's down from $76 billion in a 2005 SRI study, it tops revenue from such professional spectator sports as baseball, basketball, football and hockey combined, according to the Census Bureau. Add in the spillover effect on industries such as tourism, and the golf economy expands to $177 billion. So before watching British Open replays/putting in your living room/snorting derisively, take a moment to marvel at the greens economy.
The Golf Economy: $69 billion
The Fairway
The U.S. has nearly 16,000 private and public courses, according to the National Golf Foundation. One of the showiest and most expensive to construct was Los Angeles’s Trump National Golf Club, where visitors to the pro shop can buy 1.7 fluid ounces of Donald J. Trump's Success Cologne for $60. The course was designed in 2002 by Pete Dye (whose "ability to combine physical beauty with severe punishment earned him the nickname Marquis de Sod," according to time.com) and cost $264 million, according to Trump National. In 2011, SRI says, more than 75 construction projects were under way, contributing $515.8 million to the economy, and nearly $1.6 billion in investments in existing courses.
Course Construction and Investments: $2.07 billion
Greens Homes
Many golf courses are designed with homes right off the greens. Since the housing bubble burst, more than 500 courses have closed as revenue from home sales and residents dried up. Now there are signs of a resurgence. Steven Ekovich, a managing director at Marcus & Millichap Real Estate Investment Services, says demand for golf homes is rising to the point that developers are reducing course sizes and building more homes on the remaining land. SRI's Jennifer Ozawa says golf residential construction, which was $3.1 billion in 2011, continues to increase. It tracks new U.S. home construction, she says, which was up 20.5 percent in June compared to a year ago. In the aggregate, SRI estimates buyers in 2011 paid a premium of $1.6 billion over comparable housing for the benefit of living by the links.
Golf Real Estate Construction and Sales: $4.7 billion
Before Tee-Off
Players spend a lot of money on golf clothing, bags, DVDs and other golf paraphernalia (fancy hitting a Jetstreamer Exploding Golf Ball, for $4?). In 2011, Americans spent $2.1 billion on golf supplies. Of this, $1.6 billion went to apparel, especially for such brands as Greg Norman Collection and Tuttle Golf. While a good golf bag can be had for as little as $30 at golfsmith.com, the world's most expensive golf bag is the Louis Vuitton Damier Geant Golf Bag, according to most-expensive.com, and costs more than $9,000. Presumably it's carried by a caddy while its owner walks the greens in $1,500 custom golf shoes.
Golf Clothing and Accessories: $2.1 billion
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First published in Bllomberg.com
First published in Bllomberg.com
