The Big Business of the Masters Tournament: Why Augusta National Leaves $250M In Revenue On The Table Every Year

The Masters is the most famous golf tournament in the world, and the merchandise behind the tournament has turned into big business. Augusta National sells an average of $10 million worth of merchandise each day, or $16,000 per minute. The Masters brought in a staggering $141 million in 2022 but reportedly left over $250 million in revenue on the table in order to maintain privacy, exclusivity, and control.

The Masters’ golf tournament has become such an anticipated event early in the golf season as it has continued to jump in popularity as the game of golf grows. But the world’s most famous golf tournament has also become known for its impressive merchandise business, which is carefully curated to create a sense of exclusivity and generate significant revenue. Unlike most major sporting events, merchandise sales are limited strictly to in-person attendees, which adds to the feeling of exclusivity and generates an impressive $70 million in sales each year.

The golf shop at Augusta does about $1 million in sales per hour during the tournament.

To put this into perspective, if the merchandise store is open for 10 hours a day during the tournament, Augusta National is selling an average of $10 million worth of merchandise each day.

That breaks down to $16,000 in sales every minute, and $277 in sales every second as documented by Joe Pompliano. These figures highlight the immense popularity of Masters merchandise and the tournament’s successful approach to creating a unique and exclusive shopping experience for its attendees.

So how do they manage the demand and the logistics of serving this many people making this many purchases?

Staggering Revenue Numbers In Augusta

According to reports, the tournament brought in an impressive $141 million in revenue last year.

The vast majority of this revenue, around 75%, was generated from merchandise and ticket sales, which are highly sought after by golf fans around the world. The remaining 25% of revenue came from other sources such as international TV rights and concession sales.

These figures demonstrate the immense popularity of the Masters and the significant impact it has on the golf industry. With its unique blend of tradition, exclusivity, and prestige, the Masters continues to attract golf enthusiasts and generate significant revenue year after year.

The Masters Revenue Breakdown for 2022 (% of total)

  • Merchandise: $69 million (49%)
  • Tickets: $39 million (28%)
  • International TV rights: $25 million (18%)
  • Concessions: $8 million (5%)

Augusta National Pro Shop Upgrades

The Big Business of the Masters Tournament: Why Augusta National Leaves $250M In Revenue On The Table Every Year

Augusta National golf course is so interesting because it is steeped in tradition, yet always changing.

Each year we learn about new additions and changes to the golf course and how it will challenge players. This year it was the changes to #13. We’ve seen changes to fairways, additions of bridges, and water, and a variety of hazards added and moved.

The golf shop at Augusta is no different as they are constantly looking to make changes to allow patrons to get in and purchase official Masters’ merchandise with efficiency. The most recent upgrades to the golf shop have taken place in 2018 and 2021.

Patrons are greeted by a surprisingly simple “Golf Shop” sign at Augusta National, a surprisingly ordinary sign for a shop that sells $1 million in merchandise in an hour.

A Refined Process For Purchasing

When it comes to purchasing most hats and shirts, the system has been refined for quickness, as well as the addition of a checkout area with 64 total registers.

Each hat and many of the shirts available have a number next to them on a large wall. When it is a patron’s turn to order, one of 45+ attendants will ask them which number, size, and how many. The attendant will then retrieve the hats or shirts for the patron, and they can make their way to the register/ checkout area.

There is even a shipping center if patrons would like to ship their new merchandise home or to a friend. No piece of merchandise is sold more than official Masters’ hats.

In total, there are 125 styles of hats to choose from and it is reported that one hat is sold for every second that the Augusta golf shop is open.

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