Business of Sports July 16, 2009, 2:08PM EST

Will Revenues Be Below Par at the British Open?

Despite a roster of stars and anticipated banner ratings, the soft economy could bring the bottom-line results down by as much as 15% over last year

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1. Turning to Turnberry—the 2009 Open Championship and Golf Economics
When the BBC, TNT, and other television cameras begin rolling at Turnberry on Scotland's rugged Ayrshire coastline on July 16, they'll capture a site that is sacred to golf. Not like Musselburgh or the Old Course at St. Andrews, synonymous with the centuries-old roots of the game itself. Rather, Turnberry is a symbol of a much more modern form of the game: as the first recognized golf resort to be built in the world, it's a monument to golf's commercial viability and economic reach.

Looking to win his 15th major title at the 138th Open Championship this week is none other than the modern embodiment of golf's commercial success, Tiger Woods. Playing alongside Woods are the faces of the sport's multinational future: 17-year-old Ryo Ishikawa of Japan, 20-year-old Rory McIlroy of Northern Ireland, and fellow American of South Korean heritage, 24-year-old Anthony Kim.

To cover Woods and other stars young and old (like 54-year-old Greg Norman, who won the Open at Turnberry in 1986 and captivated the world last year at Royal Birkdale), the BBC is reportedly dispatching 420 people to Scotland this week. But in a nod to the down economy, "not one member of staff, including the main presenter Gary Lineker and commentator Peter Allis, will be put up in hotels." Instead, they are "being herded into university halls and shared rented houses." And after the British media exposed lavish expense bills at the government-owned broadcaster last month, no senior BBC executives are planning to attend.

With Woods gunning for his 15th major, defending champion Padraig Harrington in a slump, and Phil Mickelson staying in California to nurse his wife and mother through breast cancer treatments, the cameras of TNT, which won exclusive live coverage in the U.S., will no doubt be focused on Woods the majority of the time. CBS' coverage of Woods' AT&T National tournament two weeks ago earned a 4.6 rating, up 207% from the 2008 event when Woods was injured and unable to play. TNT is likewise expecting banner ratings for its British Open coverage.

Like Woods, McIlroy has fast become the object of constant media scrutiny. He won his first European Tour title in Dubai in February, and finished 10th at last month's U.S. Open. McIlroy counts Jumeirah Hotels and Titleist (FO) among his growing list of sponsors, and has won enough money on tour that he bought a Ferrari F430 earlier this year.

Outside of longtime Open Championship sponsors Royal Bank of Scotland (RBS), Rolex, Lexus (TM), Unisys (UIS), and Nikon (7731.T), United Parcel Service (UPS) in May announced efforts to expand its international golf sponsorship, completing a four-year deal as an official supplier of the British Open. The agreement adds to UPS's deal to sponsor six PGA European Tour events annually as its official logistics and express sponsor. The company also announced separate deals with golfers Lee Westwood and Pablo Larrazábal to become UPS global brand ambassadors.

In the U.S. the PGA Tour's Ty Votaw said the tour is expecting a drop in its bottom-line results from tournaments of 7% to 15% this year from a record $124 million last year, largely due to the economy and lower tournament participation from subsponsors.