AIG Women's Open Features a Record Purse, But Could That Money Have Been Used Elsewhere?
MUIRFIELD, Scotland — On Wednesday, in an attempt to keep up with the Joneses, the AIG Women’s Open announced an increase in its prize purse to $7.3 million with the winner pocketing $1.095 million on Sunday.
In this case the Joneses are the USGA, which earlier this year increased its purse for the U.S. Women's Open to $10 million. The increase coincided with the first year the Open had a title or presenting sponsor, ProMedica, and that contributed to the purse increase from $5.5 million in 2021.
Wednesday's announcement by the R&A at Muirfield is a $1.5 million increase from 2021 and $2.8 million increase from when AIG signed on a title sponsor in 2019.
The increase is significant, no doubt about it. But is it necessary?
This is may be an unpopular position, considering the women’s game has been playing for chump change for years when compared to the PGA Tour, but if we believe professional golf is not all about the money and just about competing and winning trophies, would not an incremental increase of 10% or $580,000 been more acceptable?
It's hard to believe that a women’s professional golfer would have stood up and said "I’m not playing at Muirfield," one of the iconic golf venues in the world, because the purse was only $6.38 million versus $7.3 million.
So why such an increase?
“We have to use this week to highlight the need for a broader engagement in women's golf, and over the past seven years,” Martin Slumbers, chief executive of the R&A said in a press conference announcing the purse increase. “I've learnt there are a number of things that are needed to make that happen.”
Slumbers then outlined three points to support his claim for broader engagement — partners, great courses and extensive coverage to raise the profile of the championship.
None of these points included raising the purse, either incrementally or substantially.
What Slumbers did say about the increase is that progress in prize funds needs to be commercially sustainable. While he is delighted that many of the British Open patrons now also support the AIG Women's Open, golf needs to unlock new supporters to make sure women's golf is financially viable.
Does this make the substantial increase a loss leader toward convincing other potential supporters or partners to get involved in the women’s game? If the economy went to hell in a handbasket and AIG decided to pull back its reins, the increases would most likely need to be pared back.
It wasn’t long ago that AIG needed loans totaling $182 billion from the federal government during the financial crisis. While it paid those loans back — with a profit to the government — the company was teetering on bankruptcy before the bailout.
“This is very strategic for us to make a difference to women in business, society and in the women's game of golf,” said Peter Zaffino, the chairman and chief executive of AIG, when asked about the size of the increase. “So, this is a strategic positioning for AIG. We felt very comfortable with the increased purse and our long-term commitment to the Open.”
Yet, when asked about the return on investment — a 125% spike since 2018, the year before AIG’s partnership with the R&A commenced — Zaffino chose to be extremely subjective.
“We use this as a reference to our own purpose and values within AIG as being allies to women,” Zaffino said. “So, this is something that is hard to measure, but we know we're getting a fantastic return.”
I'm never comfortable when my investment advisor tells me they know something is fact with absolutely zero details to back up the conclusion. Which goes back to what is really going on here.
For the R&A, it wants to be seen as supportive to both sexes in golf, and while the men’s and women’s purses may never be equal, making an effort is important.
For AIG, Zaffino says his company is committed to diversity and in his chairman and CEO letter for 2021, he makes specific reference to the AIG sponsorship.
“This same commitment to diversity and allyship was behind the action we took in August 2021 with regard to the AIG Women’s Open,” Zaffino wrote. “Together, AIG and our partner, The R&A, increased the purse to be the largest prize fund in 2021 in women’s major championship golf. The AIG Women’s Open is one of the most prestigious and celebrated golf championships in the world. AIG is committed to serving as allies to women in golf, in business and in the communities where we live and work. Striving for pay equity and highlighting the achievements of successful women are critical components of this commitment and part of AIG’s core values.”
Could these goals have been accomplished by a lesser increase? Could the additional money have been used for other initiatives to grow the game — you do remember that well-used theory, right?
Considering that the discussion of money is so taboo lately in professional golf, the idea of pushing substantial increases in either the men’s or women’s game seems disingenuous, given many golf organizations are questioning LIV Golf and the players who jumped over for one reason — money.
At the same time, pro golf is raising purses to compete with the bottomless pit known as PIF, the Saudi Sovereign Wealth fund.
What happened to playing golf for the game, competing and winning trophies?
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