Advertising expenditures, as an example, reflect the confidence of advertisers inside public appeal with the PGA Tour. For the PGA Tour, however, the financial benefits of this public appeal inside context of media promoting are measured primarily in terms on the significance on the television broadcast contracts negotiated by the PGA Tour.
Similarly, ticket sales and ticket prices reflect the public appeal from the PGA Tour. PGA Tour earnings generation, however, does not depend directly on tournament ticket sales because local tournament sponsors must (by contract on the PGA Tour) guarantee payment towards PGA Tour of an amount equal to one-half with the value in the tournament prize money. Ticket sales generate most of this revenue. If ticket sales along with other earnings sources do not generate the guaranteed amount, local sponsors make up the difference (Yasuda, 1998). The public appeal from the PGA Tour determines both the demand for tournament tickets and also the level of ticket prices that the market will bear.
The ability of local sponsors to recoup their expenses (including the guaranteed payment to the PGA Tour) determines in big component their willingness to sponsor a tournament. In some instances, however, corporate and civic sponsors are willing to sustain some degree of financial loss on tournament sponsorship to obtain the prestige significance of sponsoring or hosting a PGA Tour tour PGA Tour revenue from on-site attendance at PGA Tour tournaments, therefore, is a purpose with the value with the prize funds awarded at tournaments (as indicated above, the PGA Tour tournament earnings guaranteed by local sponsors equals one-half with the significance of prize money).
Thus, the financial advantages to the PGA Tour from the public appeal from the PGA Tour in the context of on-site attendance at tournaments are measured primarily in terms on the significance of PGA Tour prize money.
Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.
No comments:
Post a Comment