"Laying golden eggs." The small city of Augusta in the southeastern state of Georgia, USA, with a population of about 200,000, is bustling with people. The entire city is stirred up because the "Tournament of Masters" is unfolding. This is none other than the Masters Tournament, one of golf's four major championships, which kicked off on the 10th (local time) at Augusta National Golf Club. It is the premier golf event held every year during the second week of April. Top-ranked players gather at Augusta National, one of the world's best golf courses, to compete for pride. This year marks the 89th edition. Augusta is now fully 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

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Augusta National was created by legendary golfer Bobby Jones (USA). In 1930, together with Clifford Roberts (USA), he designed the golf course on a 450,000-pyeong plot of Augusta Indian Farm. The first tournament was held in 1934, and the name "Masters" has been used since 1939. Augusta National is famous as an extremely exclusive "snobby club." Influential figures from American politics and business want to become members, but the threshold is high. The list of about 300 current members is strictly confidential. The first Black member was admitted in 1990, and the first female member in 2012. Players must also be ranked within the world's top 50 to qualify for entry.

The Masters has no title sponsor. Its marketing strategy, which thoroughly excludes commercialism and upholds non-commercialism, has created an even stronger brand power. The tournament is hosted directly by Augusta National Golf Club, and the prize money is determined after the third round, midway through the event. Last year, the total prize money reached 20 million dollars (about 29.56 billion won), with the winner's prize at 3.6 million dollars (about 5.3 billion won).

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

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Despite lacking a main sponsor, money overflows. The recently released estimated revenue for the 2022 Masters reached 151 million dollars (about 223.2 billion won). Merchandise sales accounted for 45% of the revenue, tickets 26%, and TV broadcasting rights 17%. Even with generous spending, the net profit for the week is enormous. In 2022, the estimated net profit was about 57 million dollars (about 84.3 billion won). It is truly the "best value for money" tournament in the global golf world.

The secret to such profits lies in its "mystique." It is not a tournament anyone can participate in or watch. The biggest revenue source is merchandise. Limited availability and rarity mean items sell out instantly. Most patrons (gallery) line up at the pro shop from the first day to shop for gifts. According to US social media outlet Medium, revenue from merchandise such as hats and shirts alone reaches about 70 million dollars (about 13.05 billion won) in a week. That's 10 million dollars per day, or about 1 million dollars per hour. However, it's not just about profiteering. Food and beverage prices have remained unchanged for a long time. The popular pimento cheese sandwich has been frozen at $1.50 for 20 years.

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

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The tickets are "legendary." The 40,000 tickets were already sold out in 1972. They are inherited by the 40,000 people who contributed at the time of the tournament's founding. The only tickets general golfers can hope for are a very limited number sold by lottery each June. Due to fierce competition, most rely on scalped tickets. At the entrance on Washington Road, scalpers holding signs reading "Need Tickets" are everywhere. Scalped ticket prices exceed $10,000 (about 15 million won).

There are no billboards at Augusta National Golf Club. Only a few companies, such as IBM, are allowed up to four minutes of advertising per hour. This is to help viewers focus on the game, not commercials. While typical PGA Tour events have 18-20 minutes of commercials, the Masters has only about one-fifth of that. The course is closed for more than half the year, maintaining a "carpet-like" flawless condition. TV coverage is also expanding every year. This year, CBS Sports increased its weekend broadcasting hours. In addition to existing partners Mercedes-Benz, IBM, and AT&T, Bank of America (BoA) joined as a new partner.

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

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The Masters effect influences all of Augusta. More than half of the CEOs of America's top 500 companies, as selected by Fortune magazine, visit Augusta during Masters week. They hold parties and close "big deals" throughout the tournament. Local residents refer to this period as the "13th month." Over 200,000 tourists flock to the city, and residents earn income by renting out their homes and going on trips themselves. Restaurants prepare special high-priced menus, and green fees at nearby golf courses skyrocket.

Augusta National continues to expand its domain. It recently purchased 122,000 pyeong of nearby land for 55 million dollars and opened a world-class practice facility in 2010. The gallery parking lot was relocated to the west Berkman's area lawn, with an additional 40 million dollars invested. The club is also actively improving roads to alleviate severe traffic congestion. This is the power of "Augusta."