The Ryder Cup makes big money for the PGA of America. Here’s where it goes

Former PGA of America President Ted Bishop was involved in Bethpage Black’s selection for the next Ryder Cup and is well aware of how big of a deal it is that the competition is heading to the New York area.

And he is well aware of criticism of the ticket pricewhich will be $750 per person for contest days.

“If you’re going to a major sporting event, I don’t care where it is, that’s the ticket market,” Bishop said. Sports Illustrated in a wide-ranging interview 10 years after his ouster from his position at the PGA. “My daughter lives in New York and she wants to go to the World Series and they want $1,100 in the upper deck.

“Next to the Masters, it’s probably one of the most coveted tickets in golf. It’s once every four years (in the United States). I will not criticize the PGA of America in any way, shape or form. It is a very essential part of the operating budget. When we made the decision in 2013 to play the Ryder Cup and the PGA Championship there (in 2019), the Ryder Cup was really the crown jewel. We knew it was going to be that kind of Ryder Cup.”

As for its importance in the bottom line, Bishop says the PGA of America a decade ago would typically pull in about $10 million for an international Ryder Cup and about $25 million for a domestic event, not including revenue from television rights fees.

“What we would do is take that $35 million and spread it over a four-year period. And when you break that down, the PGA of America, when I was president, had an annual budget of $156 million,” Bishop says. “So it was $8.75 million a year and a big driver for our association.”

How much goes to PGA of America pros across the country? Nothing direct. But Bishop said each of the 41 chapters receives an annual payment that has been increased from $90,000 to $180,000 plus an annual percentage increase as a result of the 15-year, $440 million television deal (to in 2030) that was negotiated during his tenure.

What about the competing players? They also receive no direct compensation other than $200,000 in charitable gifts that they can direct where they want.

But Bishop pointed out that the PGA Tour gets 20 percent of the PGA of America’s Ryder Cup TV revenue, or about $88 million over the life of the contract. That’s just under $6 million a year.

“I don’t know if the players really understood at the time that the money was going back to the Tour, but (then commissioner) Tim Finchem did a good job of explaining it,” Bishop said. “Those 12 guys don’t get paid directly, but the Tour as a whole has been paid pretty well.”

The Tour previously said the money it receives from the PGA of America is used for compensation throughout the Tour, including the retirement plan.