British Open 2011: It's Not About the Americans Anymore

With the rise of Rory McIlroy and other non-U.S. golfers, the sport is going more global than ever—and sponsors aren't complaining

By Rick Horrow and Karla Swatek

Excepting the biannual Ryder Cup, the U.K.’s annual Open Championship used to be the best opportunity for American audiences to experience "foreign" golf. Conditions for the Ryder, played in chilly drizzle among castles and moors and witnessed by fans in sweaters and slickers, were typically the antithesis of the American summer, all beaches and backyard barbecues and a whiff of Coppertone in the air.

No more. These days, America’s PGA Tour circuit is but a subset of the year-round golf season, with Golf Channel and the Internet regularly bringing golf fans to Asia, the Middle East, and South Africa. The British Open serves as more of a connection with golf’s roots than as an exotic novelty. Its stars are younger and hipper than "Monty" (Colin Montgomerie) ever was—and they are increasingly, decidedly, not American, led by U.S. Open winner and Northern Ireland citizen Rory McIlroy.

"Undoubtedly it is positive, for both the golf industry as well as individual players, that four of the five top golfers in the world hail from outside the U.S.," says Black Knight International Chief Executive Marc Player (son of Gary). "Most golf sponsors are international companies, and most equipment manufacturers have a significant, if not a majority, of their sales outside the U.S. The growth of the game is in Asia, India, and the Middle East. More and more, the top players are global players, and they know the importance of participating on all tours around the world. And sponsors want international coverage and exposure for their brands."

Whether McIlroy or another golfer takes it home this year, the British Open’s famed Claret Jug will runneth over. The prize fund for the Open Championship will reach $8.09 million for this week’s event at Royal St. George’s in Sandwich, England, marking the first time the prize money has hit the £5 million mark. The sum is an increase of $320,000 from last year’s tournament.

More lucrative news on the Open Championship tee: MasterCard, already a corporate partner with the PGA and European Tours, has announced that it will become a patron sponsor of the British Open. MasterCard joins HSBC, Mercedes-Benz, Nikon, Rolex, and Doosan as the British Open’s patron sponsors. The deal resumes a long association between the credit-card company and the Royal & Ancient.

Golf Youthquake Boosts Spending Among Young Consumers

Talk about a global growth market.

With Rory McIlroy joining Germany’s Martin Kaymer and South Africa’s Charl Schwartzel and Louis Oosthuizen, all four of golf’s current Grand Slam title holders are global citizens age 28 or younger. As NBC’s Johnny Miller said of the four major winners in their 20s, "There’s a new dawn, a new era in golf, and it’s pretty darn exciting."

The rise of golf’s young guns, such as McIlroy and Americans Rickie Fowler and Dustin Johnson, seems to be paying off for manufacturers. Last month, American Express released a report that revealed the 18-29 age group increased its spending on golf 27 percent from 2007 to 2011. All other demographic groups, however, decreased their spending during this period.

The data are included in the new U.S. Business & Consumer Golf Spending report from AmEx. The biggest decline in consumption came from seniors 66 and older, who cut their golf spending 21 percent, on average. The 46-66 and 30-45 groups each decreased spending by 19 percent.

Among the other findings from the golf spending report: retail spending on golf equipment and apparel appears to have bounced back from the recession, with a 10 percent increase this year over last. Some states—including Iowa and South Dakota, not exactly golf meccas—saw spending at golf courses increase last year, while golf-centric California, Florida, and Texas suffered declines. And overall, businesses have reduced their budgets for golf-related hospitality and company outings 25 percent to 35 percent since 2007, although businesses of all sizes appear to have increased golf spending in the past four quarters.