Augusta is Stirring [Masters]

A Small City Overflows with Visitors During Masters Week in Augusta
A Golden Egg-Laying Tournament Without a Title Sponsor
Non-Commercialism Leads to Surplus from Souvenir and Ticket Sales
No Billboards, Only Select Corporate Partnerships

'Laying golden eggs.' The small city of Augusta in southeastern Georgia, USA, home to about 200,000 residents, is bustling with people. The entire city is abuzz with the 'Masters Legends' event. The Masters Tournament, one of the four major golf championships, kicked off on the 10th (local time) at Augusta National Golf Club. It is the premier golf event held annually during the second week of April. Top-ranked players gather at Augusta National, one of the world's best golf courses, to compete fiercely for pride. This year marks the 89th edition. Augusta is currently deeply immersed in the 'Masters effect.'

Every April, during Masters Week, the small American city of Augusta attracts a huge crowd. Photo by AFP Yonhap News

Augusta National was created by the legendary golfer Bobby Jones (USA). In 1930, he, along with Clifford Roberts (USA), designed the golf course on a 450,000-pyeong site of the Augusta Indian Farm. The first tournament was held in 1934, and the name "Masters" has been used since 1939. Augusta National is famous as a highly exclusive 'snobby club.' Influential figures from American politics and business aspire to become members, but the threshold is high. The current membership list, numbering about 300, is strictly confidential. Black people were first admitted in 1990, and women in 2012. Players must be ranked within the top 50 in the world to participate.

The Masters has no title sponsor. Advocating non-commercialism, its marketing strategy that thoroughly excludes commercialism has instead created a stronger brand power. The tournament is directly hosted by Augusta National Golf Club, and the prize money is finalized after the third round, the midpoint of the tournament. Last year, the total prize money was $20 million (about 29.56 billion KRW), with the winner's prize reaching $3.6 million (about 5.3 billion KRW).

The Masters does not have a main sponsor, but it generates enormous revenue from souvenirs, admission fees, and more. PGA Tour

Although there is no main sponsor, money overflows. The recently disclosed estimated revenue for the 2022 Masters reached $151 million (about 223.2 billion KRW). Forty-five percent of the revenue comes from souvenir sales, 26% from admission tickets, and 17% from TV broadcast rights. Even after generous expenses, the weekly net profit is enormous. It is estimated that in 2022, the net profit was about $57 million (about 84.3 billion KRW). It can be called the world's best 'cost-effective' golf tournament.

The secret to such profits lies in 'mystery.' It is not a tournament anyone can enter or watch. The biggest source of income is souvenirs. Limited availability and rarity create a 'sell-out' level demand. Most patrons (gallery visitors) line up at the pro shop from the first day to shop for gifts. According to the American social media Medium, souvenir revenue from hats, shirts, and other items alone reaches about $70 million (about 130.5 billion KRW) over a week. That's $10 million per day and $1 million per hour. However, they do not just take excessive profits. Food and beverage prices have been maintained for a long time. The popular menu item, the bell pepper cheese sandwich, has been frozen at $1.50 for 20 years.

Augusta National is a 'snobby club' operated under a strict member-centric system.

Admission tickets are also 'legendary.' The 40,000 tickets were sold out as early as 1972. They are passed down to the 40,000 people who contributed at the time of establishment. The only tickets general golfers can aim for are a very limited number sold by lottery every June. Due to high competition, most rely on scalpers. At the tournament entrance on Washington Road, scalpers holding signs saying 'Tickets Wanted' line up. Scalped ticket prices exceed $10,000 (about 15 million KRW).

There are no billboards at Augusta National Golf Club. Only a few companies like IBM are allowed up to 4 minutes of advertising per hour. This is to allow viewers to focus on the game rather than advertisements. While general PGA Tour events have 18 to 20 minutes of advertising time, the Masters has only about one-fifth of that. The course is closed for more than half the year, boasting a 'carpet-like' turf with no blemishes. TV coverage is expanding every year. This year, CBS Sports extended weekend broadcast hours. Bank of America (BoA) joined as a new partner alongside existing sponsors Mercedes-Benz, IBM, and AT&T.

The Masters, the world's premier golf tournament, is gradually expanding its influence. Photo by AFP Yonhap News

The Masters effect influences the entire Augusta area. More than half of the CEOs of the top 500 US companies selected by the business magazine Forbes visit Augusta during Masters week. They hold parties throughout the tournament and close 'big deals.' Local residents call this period the '13th month.' Over 200,000 tourists flock in, and residents earn income by renting out their homes and traveling. Restaurants prepare separate high-priced menus, and green fees at nearby golf courses skyrocket.

Augusta National has recently expanded its territory. It purchased 122,000 pyeong of nearby land for $55 million and opened a world-class practice facility in 2010. Gallery parking was moved to a lawn area in the western Burkeman's region, with an additional $40 million invested for this. They are also actively improving roads to alleviate severe traffic congestion. This is the true 'Augusta power.'

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