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R&A Warns Golf Must Prioritize Sustainable Prize Money Growth

Financial Times Companies •
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Golf's governing body cautions against unsustainable prize money spikes, citing lessons from English rugby's financial collapse.

Mark Darbon, R&A chief, warned that inflationary pressures from Saudi-backed LIV Golf have driven prize pools to $17mn at The Open, up 48% since 2021. He compared this to rugby clubs that overspent on player wages, leaving them financially vulnerable. "Every extra dollar in prizes reduces funds for sport development," Darbon stated, emphasizing the need for balance between player rewards and long-term investment.

The R&A, which governs golf outside the US and Mexico, generated over £155mn in revenue in 2024, with The Open contributing 80% of that income. Darbon unveiled a five-year plan to expand amateur participation and explore new formats like golf simulators and adventure golf, noting rising engagement through non-traditional avenues. He stressed, "All golf is golf," advocating inclusivity across formats.

Logistical hurdles loom for hosting The Open at Turnberry, Trump's preferred venue. Darbon highlighted infrastructure gaps, estimating road and rail upgrades would require public funding. While acknowledging the course's quality, he deferred final venue decisions, stating, "We’ll clarify requirements and explore feasibility."

With LIV's $470mn 2026 prize pool now defunct, Darbon urged caution. As amateur golf booms and new formats gain traction, the R&A faces a pivotal choice: sustain traditional majors or adapt to evolving player expectations. The Open's 2027 return to St Andrews underscores golf's historical roots amid modern financial challenges.