[MUSIC] >> Let's go back to the media rights and how can we drive to make these purses even bigger and better. I want to juxtapose the media rights deals that the LPGA has with, which the WTA did recently. That's a bunch of questions into one, but let's start with how do media rights drive the purses? Let's just start with that. >> Yeah. Well, today at the LPGA media rights is overwhelmingly our largest revenue source. And what I mean by media rights is that's taking television production of an event we play anywhere, wherever we're playing it and selling it to countries all over the world. 20 years ago, the LPGA had about 15 to 20 countries buying our rights. Meaning, watching us week in and week out. Today, we have about 167 countries buying and watching. And so when we play in Mobile Alabama it might be a great little home town event in Mobile Alabama. But almost 170 countries around the world are actually paying for and watching that same television production. If you jump back a couple decades ago, the LPGA's business was essentially put on tournaments in hope that we could make money for the tour and then use that money to kind of pay for staff and everything else we're doing. Today, we lose money on tournaments around the world and quite frankly are not embarrassed at all. We don't care how much money we make at a tournament or really how much money we would even lose at a tournament, because the rights to that tournament that we own, the international TV rights are what's really lucrative and we talked about a little bit before. Why do other countries want to buy the rights of the LPGA? Mostly simply because some of their best female athletes in the world are playing here. So if you're in Australia or Taiwan or Thailand or Korea, pick the country. Your best female golfers in all likelihood are playing here on the LPGA Tour. And you might have watched them grow up in your home country and you want to know how much better they can be and they went to play against the best. I always tell people that we've always known this model can work, because we're following the best sporting model in the world called the Olympic. The Olympics puts, grabs the best athletes in the world in the prime of their career, puts them in competition together to decide who's the best. They put on a phenomenal hometown event wherever the Olympics are being held and then they sell their rights all around the world to 200 countries and their business model is put on a great hometown event. It may not make money, but the international TV rights will more than pay for all of that. The exact same thing happens at the LPGA. And what did the WTA, we have a tennis module as well. What did they do that's different, and arguably more lucrative and do we aspire to that on the LPGA side of that table? >> Yeah, you know, it's an interesting mix if you look at us in the WTA. I think the WTA would say, I want to keep finding ways to follow the LPGA's model in having great players come from more parts of the world, because more great players coming from more parts of the world means more countries are buying your rights. And so, I think they look at us and go wow, you guys got to 167 countries quickly and you got there, because you're bringing them from all over the world. We looked at the WTA and see recently, they did a deal where somebody is actually paying for the production cost. So in the case of the LPGA, when we put on an LPGA event, we pay for the cost of producing that TV. The cameraman with the talent, everything that goes into a production of an event, which can be anywhere from 700,000 to $1 million every time we tee it up. So we pay for that, and the reason we pay for that it is because selling the rights without a vendor is worth a lot more than the $1 million it costs to put them on. In the WTA's case, in Women's Tennis case, they recently had a company that came together and said we'll pay for the production of the TV. In paying for that, they get to keep a few country rights themselves and they get to make sure that they own some rights they can sell, but the WTA can own all the other country rights. So a perfect world would be for the LPGA to find somebody that says, you know what? We'll pay for your TV production. We just want the rights here in the US and you can have them all over the world, which is similar to what the LPGA Tour has now. NBC and CBS says, we'll pay for production. In fact, we'll pay you to let us be the person for production and you still own the rights all around the world. That's the next generation for the LPGA for us to make it to the next tier. We've gotta get to a situation where somebody's paying us to produce our rights and still giving us the right to sell them. That would be the next great jump in purses and television exposure. >> And as we said in our prep session, so the differential, let's go back to the PGA now versus the LPGA differential on purses as it would affect the professional athlete here, is quantitatively different. >> Yeah, the bottom line is I've said this to players, they hate it when I say this, but I say, currently we're not worth more. And I don't meant that for anything other than attention getter. But the reality of it is, how big a purse you pay for is exactly 100% relative to how big of an eyeball viewership you're delivering to that sponsor. So in the case of the PGA tour, they're delivering a two or a two point five rating on CBS on Saturday and Sunday. And the advertising rights or the advertising equivalent for that sponsor is 7,8 million dollars. If they want to deliver 2.5 and have their brand on that amount of CBS television over the course of the weekend and around the world, they pay $8 million for that the media buy. In the case of the LPGA, we don't deliver that. We deliver more like a 0.9 or a 1.0. So we're delivering almost kind of a three to one lesser delivery of total eyeballs. And as a net result, they might be playing for an average of $6 million and we might be playing for an average of $2 million and the difference there is just the size audience we deliver over to the check writer. As our audience size increases and it has as you know over the last three or four years, and so when people say to me, what are you doing to raise purses, I'm not doing anything to raise purses. As our viewership audience increases, it increases the value we can charge to a sponsor and as we increase that value price, it increases our purses. And the difference between us and the LPGA Tour now is the difference of that audience size. 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