Where Does Money From The Ryder Cup Go?

Following its humble beginnings in 1927, the Ryder Cup is now huge business in the modern day.

According to New York State Governor, Kathy Hochul, the 2025 running at Bethpage State Park could help to generate in excess of $200 million of economic revenue for the area.

While much of that will not directly benefit the Ryder Cup - given there are transport, accommodation and a multitude of external vendors who will cash in - the profits generated by the biennial team event will be substantial nonetheless.

For context, the last time the US hosted a Ryder Cup - at Whistling Straits in 2021 - the PGA of America announced $192 million in total revenue for the year, $143 million of which related to tournament revenue (Ryder Cup, PGA Championship etc).

Those numbers could well be blown out of the water in 2025, though, with competition-day tickets priced as high as $750 and premium hospitality prices going up to $10,000. According to a post on Substack, "the 2025 Ryder Cup is projected to generate $146.4 million from ticket sales alone."

In addition, the 2023 Ryder Cup at Marco Simone boosted economic activity in Italy by well over $300 million and led to revenue of roughly $144 million with around $12.5 million profit.

So who actually sees the money and directly benefits from the vast sums which are banded about? Well, it depends on whose turn it is to host.

The Ryder Cup, as a complete entity, is evenly split between the United States of America and Europe. More specifically, the PGA of America and Ryder Cup Europe.

The PGA of America controls 100% of the US share while the European half (Ryder Cup Europe) is split between three bodies - the European Tour Group (60%), the PGA of Great Britain & Ireland (20%) and the Confederation of Professional Golf (20%).

Whoever’s turn it is to stage the Ryder Cup is believed to receive the revenue relating to the broadcast rights, the ticket sales and the merchandise. After that, money from the commercial rights is split between the hosts and the opposition.

From there, both teams use part of their profits to cover the expenses of the players, caddies and staff involved in subsequent Ryder Cups.

However, exactly how the vast sums are used after that differs slightly. The PGA of America pays a fifth of its broadcast revenue to the PGA Tour, which is consequently passed on into the circuit's general operating budget, and it keeps the rest.

Conversely, Ryder Cup Europe funnels the vast majority of its money from each contest into the bank account which funds the DP World Tour. Without the Ryder Cup, the elite tour in European golf would simply not be able to operate in the way it currently does.

That, in short, is one significant reason why European Ryder Cup players are not fussed about being directly paid for their involvement in the three-day team competition.

They are aware that the DP World Tour and its feeder circuits gave them the platform to build their professional careers, where they now earn millions, and they want to see the cash reinvested into the tour so that they can continue to compete against America in the Ryder Cup.

Speaking to BBC Sport in 2024, Rory McIlroy said: "The common consensus among us is that $5 million would be better off spent elsewhere on the DP World Tour to support other events or even to support The Challenge Tour.”

A contrasting view is that the Ryder Cup generates so much money for the mammoth corporations involved that the protagonists deserve at least a token share. This idea is potentially what led to the US side seeing their charitable contributions increased from $200,000 to $500,000 (including a $200,000 stipend) ahead of the 2025 tournament.

Up until the mid-1990s, no one involved in the Ryder Cup saw a penny directly passed on. Although, that changed in 1999 - prior to Brookline - when it was confirmed that a $200,000 charitable donation, half of which went to a college golf program, would be made on behalf of each American representative.

But, in today's age of eye-watering purses and the emergence of incredibly wealthy investors such as the Strategic Sports Group or the Saudi PIF, the Ryder Cup remains one of the few events in the sport where players are not competing for prize money, but instead for the prestige and honor of representing something far bigger than themselves.