From Joe Pompliano, who writes about the business of sports.
I don't golf. I used to, but I finally accepted my horribleness. Still, I never miss the Masters.
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Hey, Friends! The Masters officially starts today. I may still be trying to break 90 on the course, but you all know by now this is one of my favorite sporting events.
There’s just so much history and tradition, and Augusta National Golf Club’s secrecy makes the business behind the Masters even more fascinating. So, today, we’re going to do something different. Rather than an essay breaking down the economics of the TV deal or the logistical challenges of getting 50,000 people to a small town in Georgia, I’m going to share a laundry list of the things I find most interesting.
It’ll be bullet-point-esque, and some things are quirky and random. But I’m confident you’ll leave with an even bigger appreciation for golf’s most iconic tournament. Enjoy!
RFID Tags: Augusta provides each media member with a badge upon arrival. These badges get you access to the tournament and media center each day, and they also contain an RFID chip, allowing club officials to see where you’re located at all times.
Making The Cut ($$): This year’s Masters is expected to award $18 million in prize money, with the winner receiving the largest check at $3.2 million. However, unlike most other golf tournaments, which do not provide prize money to players who don’t make the cut, even the golfers who head home on Friday night will still receive a $10,000 check.
Home Rentals: Homes in Augusta, Georgia, command insane rates during the Masters. A 5-bedroom home rented by players, for instance, costs $30,000 to $70,000 for the week, and brands like Nike (or billionaire attendees) often pay six figures for bigger homes. But here’s the most interesting part — the IRS has a special exemption in the tax code called “The Augusta Rule,” allowing homeowners to rent out their homes for 14 days per year without paying taxes on the income. This rule was initially put in place for Augusta residents and is now available to anyone in the United States.
Merchandise Sales: The Masters will do about $70 million in merchandise sales this week alone. That’s $10 million per day, $1 million per hour, $16,000 per minute, or $277 per second that the store is open. The reason this number is so high is because Augusta National artificially increases demand by only allowing people to buy official merchandise on-site, aka no online sales. This creates huge lines, and it’s common to see people paying $5,000+ at checkout, often buying things for family and friends.
Lottery Tickets: The Masters leaves a lot of money on the table with tickets. That’s because rather than selling them to the highest bidder in the open market, Augusta selects attendees each year through a lottery system. It’s estimated you only have a 0.55% chance of winning — I’ve applied every year for the last ten years and haven’t won — and you don’t get to pick which day you attend. But if you do get selected, you’ll save a lot of money, as daily passes purchased through the lottery cost $100 to $140, while daily passes on the secondary market will often cost $1,000 to $2,000.
Land Value: Augusta was purchased for $70,000 in 1931. And even if we adjust for inflation at $1.4 million, today’s assessed valued of $200 million is a 14,000% gain.
Augusta’s Expansion: Speaking of land value, Augusta National is expanding. They have spent more than $200 million through an array of limited-liability companies (LLCs) over the last four years, acquiring 100+ properties and adding 270+ acres of land. Augusta has purchased nearby strip malls, restaurants, apartment complexes, and homes, and they often pay 3-4x their actual value. Some of this land has gone towards parking lots and hospitality venues, but the rumor is that Augusta wants to build a second golf course and a private exit off the highway directly into the club.
Map & Flag: Augusta is debuting a new premium hospitality offering this year called “Map & Flag.” Guests will receive a week-long tournament badge and have access to all-inclusive food and drinks. There will be dozens of TVs and even a private merchandise shop to save people time. However, I think this is the best example of Augusta’s pricing power. The venue isn’t even at Augusta National — it’s down the street in a renovated shopping center they purchased for $26 million in 2020 — yet Augusta is charging people $17,000 per ticket, and they have completely sold out.
Cheap Concessions: Three things in life are certain — death, taxes, and cheap concessions at the Masters. From $1.50 pimento cheese sandwiches to $5 beers, the Masters intentionally keeps prices low to ensure fans have a good time. And even if you wanted to test *every single item* on the menu, that would only cost you $66.
Beer Sales: Speaking of cheap concession prices, don’t expect to buy beer until 11 am on Sunday. The previous rule was 12:30 pm — the idea was that no one would drink until church was complete — but the rule was pushed 90 minutes forward in 2020.
The Green Jacket: The Green Jacket tradition started in 1937 when Augusta bought the jackets from Brooks Uniform Co. so Masters visitors could easily find someone on the course who had accurate information about the tournament. Every Masters winner now gets a custom-fit jacket. They get to take it home for a year, but then they must return it to the clubhouse, and it can only be worn on property. My craziest green jacket story is that someone found a green jacket in a Canadian thrift story in 1994. They purchased it for $5, and it later sold at auction for $140,000. Not bad.
Details Matter: Augusta National is incredibly precise with *everything* at the Masters. Magnolia Lane is exactly 330 yards long and has 61 Magnolia trees on each side. The clubhouse has a wine cellar with 30+ pages of the world’s most exclusive wines. Employees study where each player’s locker is located beforehand. The food is intentionally wrapped in green packaging, so it can’t be seen on TV if someone litters. The fairways are cut to 3/8”. The greens won’t be longer than 1/8”, and the grounds crew is so good that they can replace entire pieces of sod within just 15 minutes.
Champions Dinner: We all know Augusta gathers all previous Masters winners for a champions dinner every Tuesday before the tournament starts. The previous year’s winner gets to pick the menu — my favorite is a 21-year-old Tiger Woods making everyone eat cheeseburgers, french fries, and milkshakes. And while Augusta National provides the chef and service crew, they make the prior winner pay for the meal.
Media Rights: The Masters has the most unique TV deal in sports history. Rather than selling the rights to a large network for hundreds of millions of dollars, they give the rights away to ESPN and CBS for free. It’s a year-to-year handshake deal. There is no on-course sponsorship signage, and the Masters only works with a handful of blue-chip brands each year, giving them just 3-4 minutes of commercial time each hour.
Tax Status: Unlike most golf clubs, which are non-profits, Augusta National is registered as a for-profit corporation. This requires them to pay more in taxes, but they do it anyway because it means they don’t have to share their member list, income, holdings expansion plans, or anything else. They value privacy more.
Private Jets: More than 1,500 private jets will land in Augusta this week for the Masters, paying upwards of $3,000 in landing and parking fees. The public side of the airport will be busy, too, with Augusta seeing 6x more arrivals than normal — 5,000 in a typical week vs. 30,000 during Masters week. This requires 100+ extra employees.
Landscaping Perfection: It’s estimated Augusta spends tens of millions of dollars annually on landscaping. However, the course’s most impressive feature might be the SubAir systems located beneath each green. These systems keep greens consistent, sucking up water when it rains and adding moisture when it’s hot. Even crazier, Augusta put them under the walkways after a patron slipped and fell a few years back.
Eisenhower Cabin: Dwight D. Eisenhower is the only U.S. president ever to become a member of Augusta National. He never actually attended the Masters, but Eisenhower made 29 trips to the property, playing 210 rounds, during his eight-year term as president. Even better? The Secret Service worked with the club to build a safe place for him to stay, called Eisenhower Cabin, which is still used on the property today.
Ronald Reagan: Speaking of Eisenhower Cabin, there's a crazy story of when President Reagan vacationed at Augusta in 1983. He stayed at the cabin since the Secret Service had already built it for maximum protection. But one day, when he was out on the course, a man smashed through the gate with a gun and tried to hold him hostage in the pro shop. Nothing ended up happening, as the Secret Service got him off the course and back into the cabin safely. But we got some epic photos like this.
Ultimately, Augusta’s history and allure are what makes the Masters so special. The club cares deeply about its reputation, giving away the TV rights for free so it can control everything, from commercials to how the course is shown. And with the rest of professional golf more divided than ever, the Masters’ ability to handpick who plays in its tournament has elevated the world’s premier golf event to an even higher level.
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