Clarion Content

The Clarion Content has been generally following the story of the LPGA tours collapse. We knew that they had fired their commissioner. We knew that they had lost a significant number of tournaments from next year's schedule. (They have lost nearly 30% of the events from the 2009 schedule.) We see LPGA golf as the vanguard of wider teetering of revenue streams and value across the sports world. If we are right, athletes everywhere should beware, and put a few dollars in the bank. Much of our previous discussion of sport's economics in an era of cratering balance sheets had been about ownership's losses and vulnerabilities.

We just recently saw an article about LPGA tour pros in the New York Times that made us sit-up and take notice. The article was about Reilley Rankin, a LPGA tour pro who earned more than $400,000 a mere two years ago. Last year Rankin wasn't even breaking even on her expenses. She earned about $73k as the 100th player on the tour's money list. Of course, the competitive pressure to score well and finish high was intensified tremendously. She needed financial help from her family to finish the year. The same issue has occurred for a number of other golfers according to the New York Times, including Jamie Hullett who is working in her family's store to help make ends meet. Male golfers have to-date been insulated. The number 100 player on the men's PGA tour, Ted Purdy earned $838k. (Feminism's work is clearly not yet completed.)

The LPGA has been decimated by the loss of advertising revenue and sponsorship. Baseball, basketball, NASCAR, and cycling to name but a few have been facing smaller, but similar troubles. Just as the financial woes of the LPGA have bled through to its players, chances are these other sports will see the same thing occur.

Labels: golf, Sports Economics