by Former PGA of America president Ted Bishop was involved in selecting Bethpage Black for the next Ryder Cup and is aware of the big deal that the competition is moving to the New York City area.
He is also aware of the criticism of the entry prices, which are $750 per person on competition days.
“If you go to a big sporting event, I don’t care where it is. This is what the market looks like for tickets,” Bishop said Sports Illustrated in an extensive interview 10 years after his ouster from his position at the PGA. “My daughter lives in New York and wants to go to the World Series and they’re asking for $1,100 in the top deck.
“Next to the Masters, it is probably one of the most sought-after tickets in golf. It is once every four years (in the United States). I will not criticize the PGA of America in any way, shape or form. It is a very important part of the operating budget. When we made the decision to host the Ryder Cup there in 2013 and the PGA Championship there (in 2019), the Ryder Cup was truly the crown jewel. We knew it was going to be a Ryder Cup like that.”
As for its bottom-line importance, Bishop says that a decade ago the PGA of America would typically have made about $10 million at an international Ryder Cup and about $25 million at a domestic event – revenue from the television rights fees are not included.
“What we would do is spread that $35 million over four years. And if you break it down, when I was president, the PGA of America had an annual budget of $156 million,” Bishop says. “So that was $8.75 million a year and a major driver for our association.”
How much of that goes to PGA of America professionals across the country? None of this directly. But Bishop said each of the 41 chapters will receive an annual payment increased from $90,000 to $180,000, plus an annual percentage increase following the 15-year, $440 million (through 2030) television deal that negotiated during his term of office.
What about the players competing? They also receive no direct compensation, aside from $200,000 in charitable donations that they can direct wherever they want.
However, Bishop noted that the PGA Tour receives 20% of the PGA of America Ryder Cup’s TV revenue, which equates to about $88 million over the life of the contract. That’s almost $6 million per year.
“I don’t know if the players really understood at the time that money was going back into the tour, but Tim Finchem (then the commissioner) explained it well,” Bishop said. “These 12 guys don’t get paid directly, but the tour as a whole was paid pretty well.”
The tour has previously stated that the money it receives from the PGA of America will be used for on-tour compensation, including the retirement plan.
