NEW LONG FORM VIDEO: Why The Masters Doesn’t Want Your Money
In 2002, a women’s rights activist named Martha Burke sent a polite letter to Augusta National Golf Club with a simple request: please consider admitting a female member. The chairman at the time, a man named Hootie Johnson, responded firmly. He said that someday they might admit a female member, but they would not do it under pressure.
What happened next surprised everyone. Johnson called the Masters’ three biggest sponsors, IBM, Coca-Cola, and Citigroup, and told them not to return. Instead, the tournament would run its television broadcast with no advertising. For two straight years, the Masters aired without commercials, leaving roughly $20 million a year in sponsorship revenue on the table.
Even today, the Masters continues to operate in ways that seem almost irrational. The tournament is estimated to leave around $250 million in potential revenue on the table each year. They sell pimento cheese sandwiches for just $1.50 and limit commercialization in ways that most businesses would never consider.
And yet, despite all of these unusual decisions, the Masters remains one of the most prestigious sporting events in the United States.
So what would make an organization run a business this way? Is it greed, elitism, or something much more strategic? This is the rise of the Masters.