"Small Town Augusta Comes Alive...The Economics of the Masters"

Building Brand Power by Avoiding Commercialism
Souvenir and Ticket Sales Account for 70% of Revenue
Revenue Remains Undisclosed, Net Profit Estimated at $57 Million
Boosting the Local Economy and Festival Spirit in Augusta

The small city of Augusta, located in the southeastern state of Georgia, United States, with a population of about 200,000, is abuzz with excitement.

This is because of the Masters Tournament, known as the "Tournament of Masters," which opened at Augusta National Golf Club in Augusta, Georgia on April 9 (local time). Among Augusta residents, there is even a saying that they live off the Masters for an entire year. While the revenue generated by the Masters draws significant attention, the organizing committee does not release these figures to the public. It is estimated that the 2022 Masters generated approximately $151 million (about 223.6 billion won) in revenue, with a net profit of around $57 million (about 84.4 billion won).

The Masters is the world’s most prestigious golf tournament, held annually during the second week of April. This year marks the 90th edition. It is characterized by a strict avoidance of commercialism, with no title sponsor. This strategy is cited as the secret behind its powerful brand value. The tournament is hosted by Augusta National Golf Club, and the total prize money is finalized after the third round. Last year, the total prize purse reached $21 million (about 31.1 billion won), setting an all-time record.

The Masters is the world's greatest golf tournament, attracting countless galleries even during practice rounds. Augusta=AP Yonhap News

The tournament’s founder, Bobby Jones, together with Clifford Roberts, developed the course in 1930 on an area of about 1.5 million square meters of former plantation land in Augusta, Georgia. The first tournament was held in 1934, and the name "Masters" was adopted in 1939. Augusta National Golf Club is known for its strict membership criteria and exclusive member-focused operations, earning it the nickname "snob club."

In fact, even prominent figures in American politics and business find it difficult to gain membership. The list of roughly 300 members remains shrouded in secrecy. The first Black member was admitted only in 1990, and female members were allowed for the first time in 2012. This background has contributed to the mystique unique to the Masters. Entry for players is also highly competitive; participants generally must be ranked within the top 50 in the world. Around 40,000 Patron (gallery) tickets were sold out as early as 1972.

The Masters generates enormous revenue by selling various souvenirs. Augusta=EPA Yonhap News

The Masters’ revenue structure is also unique. There is no main sponsor, and only a limited number of companies are allowed as partners. These include Rolex, IBM, AT&T, Delta Air Lines, UPS, Mercedes-Benz, and Bank of America—seven in total.

The main sources of revenue are souvenir sales (45%) and ticket sales (25%). TV broadcasting rights, sponsorships, and on-site food and beverage sales account for only about 30%. Unlike domestic tournaments, sponsor contributions are relatively low.

For most sports events, TV broadcasting rights make up the largest share of revenue, but the Masters is different. For U.S. broadcasts, the tournament does not charge networks separate broadcasting rights fees. Instead, the Masters retains strong control over broadcast content. By minimizing commercial sponsorships and advertising, the tournament preserves its brand exclusivity. Even though higher profits could be achieved, the Masters places greater value on tradition and prestige.

Defending champion Rory McIlroy is the top star leading this year's Masters. Augusta—AFP Yonhap News Agency

Nevertheless, the scale of revenue is enormous. Last year, the Masters generated about $70 million (about 103.6 billion won) in souvenir sales alone during the roughly one-week tournament. From early morning, the area around the venue is crowded with cars, and as soon as the gates open at 7:30 a.m., the souvenir shop is packed with visitors. Popular items sell out quickly, and the "can’t sell because it’s sold out" situation repeats throughout the event.

Ticket revenue is also significant. Only a limited number of tickets are available by lottery, and ticket scalping is rampant. The official price for a main event ticket is about $160 (about 237,000 won), but this year, resale prices have soared up to $8,000 (about 11.8 million won).

The impact of the Masters extends throughout the city. More than half of the CEOs of Fortune 500 companies visit Augusta during the Masters. Throughout the tournament, they host parties and finalize major business deals.

The Augusta area generates tremendous revenue every year thanks to the Masters Tournament. Augusta—AFP Yonhap News

Local residents refer to Masters week as the "13th month." More than 200,000 tourists pour in, and residents earn income by renting out their homes and traveling elsewhere. Restaurants introduce special high-priced menus, and green fees at nearby golf courses rise sharply. During the Masters, the average five-night accommodation rate in Augusta is about $6,700 (about 990,000 won), more than 250% higher than usual. Some accommodations see prices surge by up to 700%.

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