Harper Lin
Golf is a sport with a diverse range of business categories. The equipment industry is the most prominent, with a $5 billion annual market for clubs and balls alone, and endorsements from top professionals further boosting sales. Apparel and accessories are also significant, with companies offering golf-specific shoes, clothing, and accessories. Media and technology are growing sectors, with simulators, apps, and software enhancing the golf experience and course management. Golf courses themselves vary, from public to private, and resorts, with associated clubs and competitions. Televised events and tournaments attract viewers and sponsors, while participation rates and interest levels impact the industry's health.
| Characteristics | Values |
|---|---|
| Golf industry revenue streams | Ticket sales, event attendance, sponsorship, prize money, equipment sales, course fees, TV rights |
| Number of golf courses in the US | 15,963-16,000 |
| Percentage of courses that are public | 70% |
| Percentage of private clubs facing financial struggles | 14% |
| Percentage of public courses facing financial struggles | 8% |
| Number of people who played golf in 2023 | 26.6 million |
| Average age of golfers in 2023 | 43.5 years old |
| Average household income of golfers in 2023 | Over $103,000 |
| Percentage of golfers who are male | 73.7% |
| Number of newcomers to golf each year (2016-2019) | 2.5 million |
| Number of people "very interested" in playing golf on a course | 24 million |
| Number of rounds of golf played in the US in 2024 | 545 million |
| Number of companies in the equipment sector in the Top 100 Businesses in Golf | 17 |
| Number of companies in the apparel & accessories sector in the Top 100 Businesses in Golf | 12 |
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What You'll Learn
Golf courses and their management
Golf is a sport that has both professional and amateur components. The professional side of the sport involves generating revenue through ticket sales, event attendance, sponsorships, and prize money. The sport also attracts revenue through equipment sales and golf courses.
Golf course management companies offer a range of services, from full-service management to consulting roles. In a full-service agreement, the management company handles all facets of the golf course, including staffing, training, marketing, sales, budgeting, and financial reporting. The fees for full-service agreements are usually structured as a base management fee, often tied to a percentage of revenue, with potential performance-based incentives. Partial management agreements provide flexibility and cost-effectiveness, with variable scopes of services and fee structures depending on the course's specific needs. Consulting agreements offer expert advice and recommendations on specific areas of golf operations, with fees charged hourly, per project, or as a retainer.
Troon, a leading hospitality management company, provides golf club management services worldwide. They operate over 900 locations in 35+ countries, offering amenities such as golf, racquet sports, aquatics, and fitness. Troon has been praised for its responsiveness, professionalism, and commitment to improving the user experience. Their expertise in club management has helped golf courses improve their conditions, reduce expenses, and achieve greater financial success.
Overall, golf course management companies play a vital role in the success of golf courses by combining their love for the game with business expertise to create a thriving and sustainable golf industry.
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Golf equipment sales
Golf is a sport that has a significant impact on multiple business sectors. While professional golf generates revenue through ticket sales, event attendance, sponsorship, and prize money, the sport also has a substantial amateur following, with local golf courses and equipment sales forming a significant part of the industry.
The golf equipment sales market is influenced by various factors, including the popularity of the sport, economic conditions, and the presence of prominent players like Tiger Woods. With over one-third of the US population over the age of 5 engaged with golf in some form in 2024, and a growing interest among young adults, the market for golf equipment sales remains robust. Additionally, the number of rounds played in the US has been increasing, with a record 545 million rounds played in 2024, surpassing the previous high of 531 million in 2023. This growing engagement in the sport translates to increased demand for golf equipment, creating a thriving market for golf equipment sales.
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Golf apparel and accessories
Golf is a sport that has various business components, including professional and amateur players. The professional side of the industry generates revenue through ticket sales, event attendance, sponsorship, and prize money. The sale of golf equipment, such as clubs, bags, and balls, is also a significant source of income. Additionally, golf courses bring in substantial revenue, with famous locations like Pebble Beach and Augusta National attracting large PGA events.
One aspect of the golf business that continues to grow is the market for golf apparel and accessories. Companies like Golf Gods, Breezy Golf, and Bad Birdie offer a wide range of clothing and accessory options for golfers. These companies understand that golfers want to look good and feel comfortable while playing, so they design items that are both stylish and functional.
Golf Gods, for example, has a collection of golf polos that combine bold style with premium performance. Their Tropical Check Golf Polo features a vibrant beige and orange check pattern with subtle palm tree accents. They also offer limited-edition collaborations, such as the Duffman polo, which blends style and comfort with its ultra-comfy fit and fun tie-dye design. Golf Gods understands that golfers want to express their personalities on and off the course, so they create pieces that stand out with unique designs and unexpected details.
Breezy Golf, founded by Bobby Fairways Robby Berger, takes a similar approach by offering versatile sports and lifestyle apparel. Their philosophy centres around enjoying a round of golf with friends, and their clothing line reflects this fun-loving attitude. Breezy Golf provides a range of designs, from fun patterns to traditional golf clothing, ensuring that golfers of all skill levels can find something that suits their taste. They also offer various accessories, such as headcovers, ball markers, towels, and scorecard holders, ensuring that their customers are well-equipped and stylish on the course.
Bad Birdie, trusted by professional golfers like Si Woo, Isaiah, and Sophia, offers bold premium golf apparel. Their focus on style and performance appeals to golfers who want to stand out on the course. With free returns and exchanges, Bad Birdie makes it convenient for golfers to find their perfect fit.
The golf apparel and accessories market recognises the importance of catering to a diverse range of golfers. By offering stylish, comfortable, and functional clothing, these companies enhance the golfing experience for players of all levels.
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Media and technology
The media and technology sector in the golfing industry is vast and ever-evolving, with a range of products, technology, software, and innovations aimed at improving the experience of recreational golfers, deepening their engagement with the game, and helping operators manage their facilities more efficiently.
Media
The media landscape in golf is primarily driven by dedicated golf channels, such as the Golf Channel, which has been a prominent network for all things golf since its launch in 1995. The channel provides comprehensive live tournament coverage, studio programming, and related content. The Golf Channel's rights for the PGA Tour and LPGA are secured through 2030, ensuring its central role in the industry. Other notable media outlets in golf include Golf Digest, which has been a leading authority for golfers for over seven decades, offering insights on how, what, and where to play. Golfweek has also established itself as an authoritative voice in the sport, delivering consistent and comprehensive coverage of golf.
Technology
The golfing industry has witnessed significant technological advancements, including equipment upgrades and fan engagement strategies. Golf-centric apps have streamlined various aspects of the game, such as booking tee times, tracking scores, and facilitating sports betting. Real-time weather updates and user-friendly interfaces have further enhanced the golfing experience. Technological innovations like high-speed cameras, launch monitors, and pressure-sensitive mats empower golfers to analyze their swings and refine their techniques.
Additionally, breakthroughs in materials and engineering have resulted in lighter and more durable golf clubs, along with advancements in ball technology, optimizing players' performance. The emergence of indoor golf simulator companies, like Golf VX, and shot-tracking technologies, such as Toptracer, has added new dimensions to the sport.
Convergence of Media and Technology
The convergence of media and technology is evident in the rise of virtual reality experiences, with GOLF+ taking a leading position in making the sport more accessible through VR. Live streaming platforms have expanded the sport's audience, and tailored smartwatches and fitness trackers provide golfers with performance metrics and targeted training programs.
Business Opportunities
The media and technology sector in golf presents numerous business opportunities, with companies like Golf Genius providing golf tournament management solutions globally. GolfNow is another example of a technology company that facilitates connections between golfers and golf courses. The industry also encompasses turf and course suppliers, offering maintenance equipment, irrigation technology, and chemicals to ensure the optimal condition of golf courses.
The diverse nature of the golfing industry, with its various categories and subsectors, highlights the dynamic interplay between media and technology, shaping the future of the sport and driving its evolution.
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Golf participation and engagement
Golf, as a business, has multiple facets, including professional and amateur components. While the professional side involves revenue streams from ticket sales, event attendance, sponsorships, and prize money, the amateur aspect focuses on local club courses, fees, and equipment sales. Television also plays a crucial role in the business of golf, attracting significant financial investments for tournaments and related programming.
In 2021, NGF research revealed a notable increase in overall golf participation, with a 2% rise attributed to both on-course and off-course engagement. Off-course golf, including entertainment golf venues and driving ranges, has been instrumental in attracting newcomers to the sport, offering a less intimidating introduction to the game. This trend continued in 2022, with a 13% increase in off-course engagement, surpassing the number of on-course golfers for the first time.
The diversification of golfers is another significant aspect of golf participation. In 2021, women made up 25% of golfers, while people of color accounted for 21%, reflecting meaningful increases over the previous five years. Additionally, the number of youth golfers has shown a substantial rise, with over 3 million young golfers in 2021, an increase of almost 25% in three years.
Interest in golf among non-golfers is also noteworthy. Nearly 18 million Americans expressed a strong desire to take up the sport, with off-course golf contributing to this latent demand. The accessibility and broad appeal of off-course golf have encouraged many to consider trying the traditional game.
Golf's engagement among young adults, even if they don't play frequently, is a positive sign for the industry. Over 7 million young adults have experienced golf away from the course, indicating a substantial future prospect pool. Moreover, more than 7.5 million non-golfing young adults are "very interested" in taking up traditional golf.
The popularity of golf has fluctuated over time, influenced by prominent players such as Tiger Woods and economic conditions. However, with a record 545 million rounds played in 2024, surpassing the previous high in 2023, the sport continues to demonstrate resilience and growth.
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Frequently asked questions
The golf industry is diverse, with many categories of business. The equipment industry is the most commercially visible sector, with a host of household brands producing clubs and balls. The apparel and accessories sector is also significant, with companies selling items ranging from shoes and socks to sunglasses and travel gear. The media and technology sector is growing, with products such as rangefinders, simulators, and industry-leading app providers. Other categories include golf courses, television, and event management.
Golf is a large industry with an annual economic impact of over $100 billion in the US alone. There are nearly 16,000 golf courses at 14,000 facilities in the US, and the sport has seen a recent surge in popularity with a 45% increase in participation since 2016.
Golf courses generate revenue through ticket sales, event attendance, and sponsorship. They also make money through fees, equipment sales, and selling merchandise in pro shops. Golf courses can also attract additional revenue by hosting leagues, tournaments, and events.
