The USGA May Have to Curb its Spending

The 12-year $1.1 billion deal ($93 million annually) was a feather in the Blue Blazers caps for a short period before FOX realized they made a costly mistake as did the USGA and eventually FOX negotiated with NBC to get out of its golf foray n 2020.

The cost for FOX’s mistake was steep, with NBC paying just above $37 million and FOX covering the remainder of the $93 million annually.

In Whan’s annual meeting presentation at Pinehurst earlier this year, the CEO showed that broadcast revenue was $116,594 million, or 35% of the organization's total revenue in 2024.

It now seems that NBC is not interested in spending $93 million annually with the USGA for what is basically a weekend in June.

Of course, as part of the current contract, NBC has the Women’s Open, Senior Open, U.S. Amateur, and other USGA amateur events, but none generate enough revenue that would fall to the bottom line.

The USGA spent $335.7 million on championships and programs in 2024.

Taking in $330,395 million, which means the USGA spent $5,305 million more than it took in.

USGA CEO Mike Whan said the overspend was purposeful in his annual meeting presentation:

“If there was ever a time to really double down and invest in a little bit of what you didn’t bring in and start pulling out of savings and put it back in the game, it be now. When it's working it’s time to really throw the foot down and drive it.”

While this sounds good, the USGA may have to reevaluate its position going forward and make do with less, as NBC is clearly in no position to pay what FOX agreed to in 2013 and while a potential raise from $37 million is not out of the question, what is the value of what seems like a depreciating television sport?