The PGA Tour purchased TPC Sawgrass for just $1 (but ended up making billions)
Today's newsletter includes a detailed account of how the PGA Tour turned a $1 land purchase into a network of more than 30 golf clubs worldwide, generating $150 million in annual revenue.
TPC Sawgrass is one of the world’s most unique golf courses. Situated thirty minutes east of Jacksonville in Ponte Vedra Beach, Florida, the 7,300-yard course is owned by the PGA Tour and has hosted the iconic Players Championship every year since 1982.
The course itself is incredibly challenging. Players must hit every shot in their bag; tight, narrow fairways combined with dozens of strategically placed bunkers require a mix of fades and draws that are highly penalized if executed incorrectly. Almost every single hole on the course presents some type of challenge, and holes 16,17, and 18 form the best finishing stretch in golf, turning Sunday’s final-round into must-see TV.
“You can’t fake it around this place,” World No. 1 Scottie Scheffler said earlier this week. “I think there’s a lot of genius in the way the golf course is designed. There is some volatility in terms of the hazards. That provides a lot of volatility for how the golf course can play, especially in high winds. Like you look at a hole like No. 1, it’s a fade off the tee and a draw into the green. You look at No. 2, it’s a draw off the tee. No. 4 is a fade off the tee. No. 5 is a fade. No. 6 is a draw. No. 7 is a draw. It calls for different shots on each hole.”
TPC Sawgrass is also a public course. So, unlike most of the events on the PGA Tour calendar, average golfers can test their skills against the world’s best players by booking a tee time for the low cost of $550 in the summer and $750 in the winter.
But that’s not what makes TPC Sawgrass so unique. It is unique because former PGA Tour commissioner Deane Beman purchased the swamp-infested land for just $1. He then convinced legendary architect Pete Dye to design a course that tested players while also transforming the sport’s model. The PGA Tour now owns dozens of courses worldwide, enabling it to cut out the middleman and generate even more revenue.
This single construction project has led to billions of dollars in additional revenue for the PGA Tour. The course has a few unique features that vastly improved the spectator experience, and it was a win-win for everyone involved, as even the previous landowners made a ton of money despite selling the 415 acres of land for just $1.