Jon Show provides some concrete numbers on how much it could cost tournament sponsors to cover production costs with the most recent Golf Channel-LPGA deal...
One thing is known: Individual television production costs will
increase for most events due to the structure of the new deal.
In its current deal with the tour, the network keeps most of the
advertising inventory and subsidizes the production costs. The new deal
provides inventory to the LPGA and its sponsors but no production
subsidies.
Events now pay in the low to mid-six figures to cover production
costs under separate five-year deals with ESPN and Golf Channel.
Two-thirds of domestic LPGA events pay about $250,000 for production on
Golf Channel, while the others on ESPN pay $350,000 or more.
Weeks before the Golf Channel deal was announced, tour officials
told tournaments that production costs would likely be around $400,000,
and a tournament source briefed last week by the LPGA said that costs
could rise into the mid-$400,000s.
And then there's a concern I've raised--with the European Tour, Champions Tour and Nationwide Tour telecasts broadcast over the weekend--when will the LPGA's weekend telecasts be aired? Show writes:
Golf Channel now airs a mix of weekend coverage from the European
Tour, PGA Tour, Champions Tour, Nationwide Tour and the LPGA.
Tournament directors fear they will be relegated to live morning
coverage or late afternoon tape delays.
“I’m not paying twice as much for tape delay,” declared the head of one tournament.
On a brighter note though: Martin Kaufmann raises an excellent point in the February 21 edition of Golfweek (sorry, not online) that if the LPGA Tour telecasts are produced anything like the Nationwide Tour telecasts, we will be in good shape:
In locking up the LPGA rights, Golf Channel will have an arrangement similar to the one it has enjoyed with the Nationwide Tour. That's a good thing...Golf Channel has done much of its best work on Nationwide Tour broadcasts. Not coincidentally, GC controls those productions from start to finish; the network boys (CBS and NBC) aren't there to interfere.
The result: The Nationwide broadcasts have been some of the most watchable tournament golf on TV.