RUFFIN BECKWITH

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RUFFIN BECKWITH

• Senior Vice President
• World Golf Foundation

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80 of success is just showing up.
- Woody Allen -
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Oilfield Prayer Lord, let there be one more
boom. And dont let us screw it up.
- Sign in a Texas Diner -
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WORKSHOPS

• Link Up 2 Golf (2)
• Junior Golf (2)
• Retention and Frequency

• Women in Golf
• Emerging Fan Base

• Alternative Facilities
• Colleges

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AMERICAS WELCOMETO GOLF PROGRAM

• M.G. Orender
• President, PGA of America
• President, Hampton Golf

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AMERICAS WELCOMETO GOLF PROGRAM

• Nancy Oliver
• National Program Director
• Link Up 2 Golf

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AMERICAS WELCOMETO GOLF PROGRAM

• Anne Lyndrup
• Director Player Development
• National Golf Course Owners Assn.

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AMERICAS WELCOMETO GOLF PROGRAM

• Mike Hughes
• Executive Director
• National Golf Course Owners Assn.

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COMMUNICATIONS
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THE GOLF INDUSTRY REPORT FOR 2001
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INDUSTRY REPORT Sources

• ESPN Sports Poll
• National Climatic Data Center
• National Golf Course Owners Association
• National Golf Foundation
• Nielsen Media Research
• PGA of America
• PGA TOUR
• U.S. Census

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INDUSTRY REPORT Rounds

• Information from 2,426 facilities of 15,720
  (15.4)
• One-time adjustment of 8
• 2000 - 518,400,0002001 - 518,100,000

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INDUSTRY REPORT Participation

• 2000 2001
• Participants 36M 37.1M
• Golfers 25.4M 25.8M
• Juniors 4.0M 4.4M
• Alternative Users 1.7M 2M
• Range Users 4.9M 4.9M

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INDUSTRY REPORT ESPN Poll

• 20 of people over 12 in U.S.answer yes to the
  questionDo you play golf?
• That equates to 45 million people. Our study
  identified about 35 million.

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INDUSTRY REPORT Frequency

• Occasional Core Avid
• Year (1-7) (8-24) (25)
• 1997 10.6M 7.9M 5.6M
• 2000 10.9M 7.3M 6.2M
• 2001 14.2M 5.7M 5.9M

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INDUSTRY REPORT Interest

• Ratings of all competitive golf are down less
  than 10 since 1996, well below industry norm.
• PGA TOUR ratings are up 20 in same time period
  only other sport that increased was NASCAR
  (5.8)
• Percentage of respondents claiming to be fans of
  professional golf is up from 32 to 40 since
  1995, far bigger increase than any other sport.

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INDUSTRY REPORT Course Development

• Increase in new courses from high of 3.2 in 2000
  to 2.3 in 2001 to projected 1.8 this year.
• Average rounds per course2000 33,7372001 33,000

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INDUSTRY REPORT Course Development

• If new courses increase by 1.5 per year
• Total Courses Total Rounds/
• 2020 Rounds Course
• 20,908 690 million 33,000
• 836 million 40,000
• 1 billion 47,800

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JESSICA TURNWALD

• USGA Foundation
• Coordinator, Fellowship Grants

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GOLF 20/20 Junior Initiative
Objectives

• Quantify the scope of junior golf in this
  country
• Establish communication mechanisms that will
  enable and engage kids, their parents, and
  program administrators
• Impact more kids through golf

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GOLF 20/20 Junior Initiative
Strategies JuniorLinks.com

• Develop and maintain a global junior golf website
  hosting a searchable database of junior
  initiatives and featuring content for kids,
  parents and program administrators

Summits

• Empower local communities to assess junior golf
  needs and serve as a catalyst for the exchange of
  best practices.

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GOLF 20/20 Junior Initiative
Summit Operations Manual

• Timelines, Tools and Templates for organizing a
  Junior Golf Summit

2002 Junior Summits

• New Jersey (Far Hills) May 10th
• Florida (Orlando) May 18th
• Southern California (Los Angeles) October 8th
• Colorado (Denver) October 12th
• Northern Virginia (Reson) November 5th
• Indiana - MidWest () December 3rd

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GOLF 20/20 Junior Initiative

• Quantify the scope of junior golf in this
  country
• Nearly 1,000 junior programs
• Participation from all 50 states
• Active solicitation and promotion from existing
  junior initiatives
• Register a Program print ads ran in industry
  publications
• Streamlined online registration process

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GOLF 20/20 Junior Initiative

• Engaging and impacting more kids, parents, and
  program directors
• More dynamic visuals on homepage
• More call to actions and opportunity for user
  participation
• Tailoring content to audiences
• Animated Greeting Cards
• Trivia Challenge

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GOLF 20/20 Junior Initiative

• Animated Greetings
• Birthday Greeting
• Register a Program Greeting
• General Greeting

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GOLF 20/20 Junior Initiative

• Promotions
• Build program database through online
  registration process
• Drive kids, parents and program directors to a
  informative, fun and safe site on junior golf.
• Key Message The Ultimate Junior Golf Website!

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GOLF 20/20 Junior Initiative

• Promotional Strategies
• Word of Mouth!
• Print Ads/Flyers
• Links
• Industry Publications
• Trade Shows/Conferences
• 30-second PSA

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THE FIRST TEEMORE THAN A GAME

• Joe Louis Barrow, Jr.
• Senior Vice President
• Word Golf Foundation, Inc.

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THE FIRST TEE

• Honorary Chairman
• Former President George Bush
• Oversight Committee

Jim L. Awtrey
Judy Bell
Timothy W. Finchem
Ty M. Votaw
James H. Armstrong
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Public Sector Partnerships

• National Association of County Officials
• National League of Cities
• National Recreation Park Association
• US Bureau of Land Management
• US Conference of Mayors
• US Department of Housing Urban Development
• US Drug Enforcement Administration
• White House Office of Drug Policy
• Local Housing Authorities
• Local School Districts

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Allied Partnerships

• American Junior Golf Association
• American Society of Golf Course Architects
• Golf Course Builders Association of America
• Golf Course Superintendents Association of
  America
• National Golf Course Owners Association of
  America
• National Golf Foundation
• National Minority Golf Foundation
• National Minority Junior Golf Scholarship
  Foundation
• Nationwide Tour
• PGA TOUR Tournaments Association
• Tiger Woods Foundation

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Industry Related Partnerships

• Pursell Technologies
• Redden Nets
• Simplot Turf and Horticulture
• Spalding Worldwide
• Standard Golf Company
• SynchroFlo
• TaylorMade-adidas
• The St. Paul Companies
• The Toro Company
• THOR GUARD Inc.
• Titleist Footjoy Worldwide
• TourTurf
• VGM
• Wittek Golf Supply Company

• Ahead Headgear
• Callaway Golf
• Cayman Golf Company
• Club Car Inc.
• Coastal Netting and Steel Pole Company
• Delta Golf
• Eagle One Golf Products
• Electronic Arts
• Greensmix
• Kohler Company
• Lesco, Inc.
• PGA TOUR Design Services, Inc.
• Pignato Group
• Pro-Shopkeeper

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(904) 940 - 4300
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Youth Service Partnerships

• Police Athletic League
• Boys Girls Clubs of America
• YMCA of the U.S.A.
• Goodwill Industries
• Numerous Local Youth Service Agencies

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Phase II

• January 2001 through
• December 2005

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Mission Statement

• To impact the lives of young people around the
  world by creating affordable and accessible golf
  facilities primarily to serve those who have not
  previously had exposure to the game and its
  positive values.

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Phase II - (January 2001 December 2005)
Goals

• 500,000 young people participate inThe First Tee
• 250 Dedicated The First Tee Learning Facilities
• (Development of 5 internationalLearning
  Facilities)
• 500 affiliate relationships

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Youth Participation (2005)
As of 10/15/02
(Thousands)
2001
2002
2003
2004
2005
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Facility Development (2005)
As of 10/15/02
2000
2002
2003
2004
2005
2001
19 of the 30 facilities are projected through
12/31/02
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Youth Participation Per Facility (2005)
As of 10/15/02
2000
2001
2002
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Affiliates (2005)
As of 10/15/02
2000
2002
2003
2004
2005
2001
Annual Goal
Cumulative Projected Total
Actual Affiliations
Cumulative Actual Total
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98 OPEN FACILITIES
ME
Montreal
WA
VT
MN (8)
MT
ND
NH
MA
WI
MI
NY
RI
OR
SD
ID
CT
WY
NJ
IA
PA
NE
NV
IN
WV
OH
DE
UT
VA
IL (12)
MD (2)
KS
CA
CO
KY
MO
NC
TN
AZ
SC
AR
OK
NM
GA
MS
TX
AL
LA
FL
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45 FACILITIES IN DEVELOPMENT
ME
VT
WA
ND
MT
NH
NY
OR
ID
MN
WI
MI
MA
SD
RI
CT
WY
PA
NJ (2)
IA
IN
OH
NE
NV
DL
WV
IL
VA
UT
MD (2)
MO
CO
KY
KS
CA
NC
TN
AZ
OK
SC
AR
NM
GA
MS
AL
TX
LA
FL
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Snapshot of Information

• Facility Configuration
• Breakdown of the 98 open facilities
• 36 are 3 6 hole
• 38 are 9 hole
• 17 are 9 hole
• 9 are other

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Snapshot of Information

• Facility Configuration
• Breakdown of the 98 open facilities
• 24 are Financially Independent
• 21 are Partially Integrated
• 47 are Fully Integrated
• 8 are programming at atemporary site

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Snapshot of Information
Participant Database Profile - 2002

• 100,000 young people were exposedto the game
  through The First Tee

All of 2001 2002 Golf Male 66 64 75 Female
34 36 25
National Golf Foundation
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Snapshot of Information
Age Statistics
2001 2002 Ages 5-8 17 20 Ages
9-13 61 60 Ages 14-18 22 20
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Snapshot of Information
Ethnicity Statistics
All of 2001 2002 Golf

• Caucasian 52 54 90
• African American 22 30 3
• Hispanic American 13 8 4
• Asian American 9 5 3
• Other 4 3 N/A

National Golf Foundation
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Snapshot of Information
Registered Participants - 30,500
2001 2002 Pre-par 80 43 Par 18 45 Birdie 1.5
10 Eagle .5 2
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Life Skills Objective

• To impact the lives of young people by creating
  fun, golfrelated opportunities to learn valuable
  life skills that can be applied on and off the
  golf course.

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Life Skills Golf Experience

• The three levels of Life Skills achievement
• Par focuses on communication skills and
  behavior management
• Birdie teaches realistic goal setting
• Eagle teaches problem solving and planning for
  the future

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Life Skills Experience Survey

• The First Tee surveyed 27 of the 592001-opened
  Chapters and received feedback from
• 327 Participants
• 290 Parents/guardians
• 107 Instructors

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Life Skills Experience Survey

• 97 of youth participants responded that they
  will continue Life Skills training
• 99 of parents/guardians agreed that they would
  like to see their children continue with Life
  Skills training
• 96 of instructors indicated a desire to continue
  using Life Skills as a teaching vehicle

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www.thefirsttee.org
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• Petition with 15,000 signatures required
• Florida Sports Foundation oversees
• Signed into law August 27 available Nov. 1
• Marketing efforts will include billboards,
  toll-free number to purchase (1-877-GOLFTAG) and
  car dealer cross promotions.

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Mission Statement The new tag will provide
funding and accessibility to the sport of golf
for all children without regard for socioeconomic
status, physical disability or skill level.
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ALTERNATIVE FACILITIES
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COLLEGES
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RESEARCH
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Research is formalized curiosity.-Zora Neale
Hurston
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ESTIMATING THE CHARITABLE IMPACT OF GOLF THROUGH
LOCAL FUNDRAISING EVENTS IN THE UNITED STATES

• James F. OHara
• Vice President of Research
• National Golf Foundation

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Research Overview - Facilities

• Interviewed balanced sample of1,000 facilities
• Each facility provided
• Number of charitable outings hosted
• Organization sponsors
• Number of participants
• Charitable revenue raised
• Fees and services donated

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Research Overview - Charities

• Validated facility interviews withnearly 500
  charities
• Each charity confirmed
• Charitable revenue raised
• Fees and services donated

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Research Overview - Estimation

• Calculated averages across key facility
  designations
• Number of charitable outingsper year
• Revenue generated per event
• Averages calculated for Premium, Standard, and
  Value facilities

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Research Overview - Estimation

• Averages applied to universe of facilities in the
  United States

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Key Findings

• The annual impact of golf on charitable giving is
  dramatic!
• The majority of facilities average10 charitable
  outings
• 140,000 charitable golf outingsare held in the
  United States
• 15,000,000 participants play golfin a
  charitable outing

Total Revenue Exceeds 2.9 Billion!
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Key Findings (cont.)

• Most charitable events are conducted to benefit
  local community causes
• Monique Burr Foundation for Children (223,000)
• Roanoke Island Historical Society (70,000)
• 1st Presbyterian Church of Belmont (5,000)

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Key Findings (cont.)

• National organizations also use golf outings as a
  primary source of revenue
• American Cancer Society
• National Multiple Sclerosis Society
• Kidney Foundation
• Special Olympics
• Local chapters of these national charities
  spearhead the efforts

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Key Findings (cont.)

• Facilities regularly donate fees and services to
  the charitable organizations holding the events
• Discounted green fees
• Discounted food and beverages
• Discounts on other services (e.g. lessons, range
  use, etc.)

Facilities donate almost 250 Million annually!
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Key Findings (cont.)

• Charitable giving is an integral part of
  professional golf
• Each and every PGA TOUR event raises money for
  charitable organizations

The PGA TOUR raisesover 75 Million annually!
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The Charitable Impact of Golf Is
                                             
 
15,000,000 Participants
140,000 Events
Facility Donations
PGA TOUR
3.2 Billion!
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THE GOLF ECONOMY

• Who benefits, and to what degree?
• Get perspective on benefits to travel, tourism
  and real estate industries
• Improve Wall Streets perspective
• Elevate golfs status vis-à-vis other sports and
  industries
• To measure our progress
• To measure the value of a single golfer to the
  industry

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THE GOLF ECONOMY

• Peter Ryan, Ph.D., Director
• Center for Organizational Developmentand
  Training, SRI International

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Study Objective

• Many economic studies have been conducted
• State level
• National level (specific segments/perspectives
  of golf economy)
• Develop a framework that captures the many
  dimensions of golf.
• This analysis estimates the size of the overall
  golf economy, building up from golfs components.

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Analytical Approach

• Economies are typically measured in terms of GNP.
• Overly restrictive
• Doesnt capture the true dimensions and
  contributions of golf
• Our approach is based on GNP analysis, but
  extends beyond GNP to build a more comprehensive
  picture of the golf economy, including
• Charitable fundraising
• Real-estate premiums

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Methodology Employed

• Model of the Golf Industry Cluster
• Analysis of existing studies and data sources
• Government statistics (Census Bureau, BLS)
• State-level golf impact studies
• NGF surveys and reports
• Annual reports (Firms, Associations)
• Association reports
• Academic and general media articles
• Inputs from industry experts and stakeholders

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The Golf Cluster
Golf Course Capital Investment
Irrigation Installation
Course Renovations
Clubhouse Renovations
Infrastructure Improvements
GOLFER SUPPLIES (on and off course)
Equipment / Golf Car Purchases
New Course Construction
Soft Goods
Hard Goods
Apparel
Core Industries
Books Magazines
Enabled Industries
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Core Industries Golf Facility Operations
Golf Facilities Revenues ( millions)

• Does NOT include
• Capital investment
• Equipment and merchandise sales

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Core Industries Golf Facility Capital Investment
Golf Course Capital Investments ( millions)
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Core Industries Golfer Supplies
Consumer Spendingon Golfer Supplies (
millions)
4,096
Equipment
989
Apparel
897
Books, Magazines
5,982
Total
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Core Industries Media, Charities, Tournaments
Associations
871
Major Tournaments
MEDIA, CHARITIES,TOURNAMENTS ASSOCIATIONS
255
Player Endorsements
Charities
Player Endorsements
Player Endorsements
167
Associations
Television
Charities
3,200
Associations
Total
4,493
( millions)
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Enabled Industries Real Estate
Hospitality/Tourism
( millions)
REAL ESTATE
Related Residential Construction
Real Estate Premiums
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Enabled Industry Estimates
Real Estate

• The number of new homes in golf communities is
  estimated from a variety of sources.
• Average building costs for residential
  construction varies greatly by region.
• Golf premiums capture the higher value of homes
  in golf communities.

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Enabled Industry Estimates
Hospitality/Tourism

• Golf travel includes both primary and incidental
  activities/expenses.
• Golf travel expenditures per trip are based on
  consumer surveys.
• Estimates conservatively prorated spending
  attributable to golf.

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Estimate of the Golf Economy
Overall Size of the Golf Economy in 2000 by
Segment ( millions)
Core Industries
20,496
Golf Facility Operations
7,812
Golf Facility Capital Investment
5,982
Golfer Supplies
4,493
Media, Tournaments, Charities, and Associations
38,783
Enabled Industries
9,904
Real Estate
13,480
Hospitality/Tourism
23,384
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Implications of the Golf Economy
The Golf Economy Compared with Other Industries
Sales ( billions)

• Growth through the 1990s was consistent with the
  most optimistic scenario envisioned in the late
  1980s.
• A previous study projected the golf industry to
  be between 25.2 billion and 57.8 billion (most
  optimistic) by the year 2000.

McKinsey Co. and NGF.
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Implications of the Golf Economy

• Occasional Participants
• Largest segment
• Smallest spending per player per year
• Smallest total expenditures 8,163 (20 year
  spend)
• Avid Participants
• Much smaller segment
• Highest per player spending
• Largest spending segment 87,094 (20 year spend)

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Implications of the Golf Economy

• The size scope of the golf industry clearly
  confirm its importance to the U.S. economy.
• Determining the economic stake of stakeholders
  can promote effective investment strategies.
• A mechanism to achieve industry-level
  collaboration and growth-oriented investment will
  benefit all stakeholders.

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Next Steps Action Items

• Refine estimates (Hospitality/Tourism, Real
  Estate) of certain components.
• Calculate economic impacts of golf.
• Identifying golfs benefits (jobs, tax revenues,
  tourism, etc.) can highlight the games
  importance to communities and policymakers.
• This information can influence policy decisions
  affecting the industry.

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The Final Report

• The Final Report contains
• Specific methodologies used
• Component (and sub-component) estimates
• Detailed references
• The report will soon be available on the GOLF
  20/20 website www.golf2020.com

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TIMOTHY W. FINCHEM

• Commissioner, PGA TOUR
• Chairman, World Golf Foundation

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CATTLEMANS BEEF BOARD

• Established in 1985 as part ofThe Farm Bill
• Participation is mandated by law
• General goal Increase industrys potential for
  profitability
• Specific goal Increase consumer demand by 6 by
  2004

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BEEF SOURCES OF FUNDS

• Producers contribute 1.00 per head
• 50 to states where programsare certified
• Annual revenue to The Beef Board 90 million

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BEEF USES OF FUNDS

• Legislation that helps build demand for beef
• New product development (i.e., fast track items
  for families on the go).
• Consumer advertising
• Cooperative marketing efforts
• Youth education

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BEEF USES OF FUNDS (cont.)

• Industry communication
• Research
• International marketing
• The Beef Board (110 members) makes the decisions

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BEEF RESULTS

• Increase in demand in 12 of thelast 14 quarters
  after 20 years of declining demand

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NATIONAL PORK BOARD

• The Pork Act enacted in 1985, and participation
  became mandatory in 1988
• Pork producers pay .45 per 100 in value of each
  animal
• Percentage (20) is returned to state pork
  producer associations for work overseen by Pork
  Board members
• Generates 50 million per year forPork Board

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PORK USES OF FUNDS

• Communication Tools
• Magazine
• Radio services with farm broadcasters
• Website
• Newsletters
• Advertising
• The Other White Meat

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PORK RESULTS

• Production has increased 37
• Per capita consumption has increased 3.6
• U.S. has gone from being a pork importer to a net
  exporter of pork products

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NATIONAL DAIRY PROMOTION AND RESEARCH BOARD

• Established as a mandatory checkoff in 1984
• Objective
• To carry out a coordinated program of promotion
  and research to strengthen the dairy industrys
  position in the marketplace and to maintain and
  expand domestic and foreign markets and uses for
  milk and dairy products produced in the U.S.

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NATIONAL DAIRY PROMOTION AND RESEARCH BOARD
(cont.)

• Producers contribute .15 per hundred weight of
  all milk produced and can direct portion to state
  and regional programs
• Total revenue is about 230 million

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DAIRY USES OF FUNDS

• 69 Advertising and promotion
• 16 Nutrition education, public and industry
  communication
• 15 Product research, export enhancement,
  administration
• Secretary of Agriculture delegates oversight
  responsibility to the Promotion and Research
  Staff, which reports to a 36-member Board

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DAIRY RESULTS

• Per capita consumption is up 11.5 since 1984
• Fluid milk sales are up 29
• Cheese consumption per capita is up 37 to 30.3
  lbs per person per year

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FOOTBALL

• The NFL and its players association are expected
  to create an organization that in the next five
  years will pump 130 million from league revenues
  into grassroots youth football programs around
  the country.

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BOWLING

• In the process of generating a35 million annual
  fund from a voluntary donation per lane rental to
  be used for advertising and promotion, research
  and education.

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TENNIS

• Tennis Industry Association
• Manufacturer driven, not facility drivenlike
  bowling all racquet makers participate except
  one
• An independent company handles collection of 1
  of net revenue
• USTA contributes 60 of the 8-10 million total
• 85 go to player development programs and 15 to
  administration

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POSSIBLE USES

• Link Up 2 Golf
• Junior Golf (Schools)
• Targeted Promotions
• Statewide 20/20 Representation
• Research

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In the history of the world, no one has ever
washed a rented car. Lawrence
Summers President, Harvard University
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