The Business of Sports September 30, 2010, 1:15PM EST

The 2010 Ryder Cup: Golf, National Bragging Rights, and Lots of Money

This year's Ryder Cup already has a guaranteed winner. Host country Wales can expect an economic boost of as much as $70 million

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1. Welsh Benefit: Impact of the 2010 Ryder Cup

Whether it is held in the U.S. or the U.K., the biannual Ryder Cup has a distinct and profound impact on its host community. Outside the upcoming golf component of the 2016 Summer Olympic Games in Brazil—the first time golf will be included as an Olympic sport in almost a century—the Ryder Cup marks the sport's most prestigious duel of nation vs. nation on fairways and greens. Its significance is certainly not lost on the tens of thousands of spectators who attend every two years, nor on the communities that bid decades in advance for the honor of hosting the event.

This year's event, starting Oct. 1 at the Twenty Ten course at Celtic Manor in South Wales (built especially for this purpose), is expected to inject £36 million to £47 million (roughly $53 million to $70 million) into the South Wales region, according to IFM Sports Marketing Surveys, which was commissioned by Ryder Cup Europe to undertake economic impact studies on Ryder Cup contests in 2010 and 2014. The survey investigates actual expenditures on the event by spectators, sponsors, organizers, facility providers, local businesses, media providers, and international visitors to measure the impact on the venues and regions and overall economies of Wales and Scotland.

We don't need a survey, however, to prove that the Ryder Cup contest is one of the top international sporting events.

Although the U.S. is defending champion in the biennial meeting with Europe, it has a losing streak that Captain Corey Pavin would like to erase once and for all by Sunday evening. The U.S. last won overseas in 1993, when Pavin was a member of the victorious team that defeated Europe, 15-13, at the Belfry in Sutton Coldfield, England. The alumni who are here this week from that team are also working extra time—Davis Love III is one of four other assistant captains helping Pavin, while Europe's Colin Montgomerie is captain of a 12-member team with six talented rookies.

The Ryder Cup is also a huge engine for golf-related giving. On behalf of the U.S. Team, PGA Tournament Corp. and the PGA of America will direct $2.6 million to designated charities, Play Golf America universities chosen by the U.S. captain and players; and help support the launch of the Ryder Cup Junior Golf Academy. Each U.S. Ryder Cup Team member and U.S. Ryder Cup Team Captain Pavin contributed $100,000 to the charity of their choice; $50,000 to the college/university of their choice for Play Golf America University programming; and $50,000 to the Ryder Cup Junior Golf Academy, which is scheduled for a summer launch in 2011.

About 30,000 fans are expected to attend the early days of Ryder Cup practice at Celtic Manor, with about 45,000 people per day expected for the three official rounds. As Los Angeles Times Sports Editor Bill Dwyre notes, "For discussion, if all tickets sold at $880 [the listed price of a weeklong pass], that would generate $39.6 million. That's a nice payday for PGA and European golf charities, especially since the players don't get paid."

2. 2010 Ryder Cup—the Sponsors

With hundreds of millions of people worldwide expected to watch Ryder Cup coverage, sports marketers are making sure their brands are visible.

BMW (BMWG) announced an extension of its Ryder Cup sponsorship through 2014, while in March, Hewlett-Packard (HP) signed on to be the Ryder Cup's Official Networking Sponsor. European Captain Colin Montgomerie signed an endorsement deal with Emirates Airline, and on Tuesday, European team member Edoardo Molinari announced that he has agreed to become a brand ambassador for Italy-based Schuco, a manufacturer of "green" aluminum, solar, steel. and PVC-U products.