Fierce Competition for Golf Broadcast Rights: "Who Will Be the Final Winner?"

Broadcast Rights Operator Selection Deadline on 2nd
Evaluation of Development Direction Beyond Amount is a Variable
Priority Negotiator Selection on 16th
SBS Golf, JTBC Golf, SPOTV 'Three-Way Battle'

The broadcasting rights competition for the KLPGT, which has become a popular sports content in the COVID-19 era, is heating up. The company that will hold the broadcasting rights for the next five years starting next year will be decided within this month.

Industry attention is focused on the selection of the broadcasting rights holder for the Korea Ladies Professional Golf Tour (KLPGT). As the golf population exceeds 5 million and the base expands, the price of broadcasting rights is also expected to soar. KLPGT announced the bidding notice on the 11th of last month and plans to close document submissions on the 2nd. The new operator will have exclusive domestic women's golf broadcasting rights for five years starting next year. In addition to existing golf specialty channels SBS Golf and JTBC Golf, Aecla, which owns SPOTV, has also shown interest in this broadcasting rights bid.

◇ Restricted Competitive Bidding... OTTs Closed Out = The selection method for this operator is restricted competitive bidding. Contracts are made based on evaluation and negotiation of price, performance, and contributions to KLPGT development. The results of the first document screening will be announced on the 5th. The second screening (PT) and evaluation will be conducted on the 11th, after which the total scores of the top first and second highest scorers will be disclosed. Individual judges' scores will remain undisclosed. On the 16th, the preferred negotiation candidate will be selected and notified. If negotiations fail, the next-ranked company will proceed.

The KLPGT broadcasting rights are effectively a 'three-way battle' among SBS Golf, JTBC Golf, and Aecla. CJ ENM, which owns tvN Sports, and online video service (OTT) providers such as Coupang Play showed interest but were disqualified due to not meeting eligibility requirements. KLPGT restricts eligibility to companies that independently own a golf specialty channel (terrestrial or cable) capable of 24-hour golf broadcasting and can be selected as the main broadcaster by the rights holder to freely produce and schedule content. KLPGT also did not allow consortium formations.

◇ Popularity Rivaling Baseball and Soccer = Golf is considered one of the biggest beneficiaries of the COVID-19 pandemic. According to the Korea Leisure Industry Research Institute, the domestic golf population reached 5.31 million last year, surpassing 5 million for the first time ever. The surge is mainly due to the 1.15 million increase in the 20-30 age group. Golf has established itself as a popular professional sport comparable to baseball and soccer. The flood of golf variety shows on TV also contributed to the popularization of golf. The rapid increase in golf population has caused green fees to soar, and the equipment and apparel markets have also grown rapidly.

This year, with spectators allowed for the first time in two years, galleries flocked to every domestic tournament hosted by the KLPGA. The final round of the Korea Women's Open on June 11 recorded a peak viewership rating of 2.031%. This is why numerous broadcasters and content companies are keenly watching this bidding process. A KLPGT official said, "Golf viewership ratings rose steadily during the COVID-19 period."

◇ ‘Development Direction First’ = KLPGT broadcasting rights fees were around 1 billion KRW in 2007. However, they rose to 4.5 billion KRW in 2014 and surged to 6.4 billion KRW in 2017. This year, there are forecasts that it will exceed 10 billion KRW. A variable is the selection criteria set by KLPGT. In addition to the broadcasting rights fee, high scores will be given for the 'tour development direction.' Operators contributing to the operation of lower-tier tours besides the regular tour are awarded additional points.

KLPGT is booming. Companies eager to host tournaments are lining up. This year, a whopping 34 tournaments will be held. Even if they want to create more tournaments, scheduling is impossible. On the other hand, it is not easy to find title sponsors for the Dream (2nd tier) Tour and Jump (3rd tier) Tour. A KLPGT official explained, "The strength of the KLPGA Tour comes from a solid lower-tier tour. We need partners who will help grow both the Dream Tour and Jump Tour together."

[Asia Economy Reporter No Woo-rae]

This content was produced with the assistance of AI translation services.