A recent news report shouted the equal pay for Women’s Soccer victory as a moral and ethical step in the right direction for American society. While we’re very pleased that parity is being recognized we also want to reflect on the real issue–the economics of the story. As we have said before, money drives all situations in sports and many other fields of endeavor. In this case, money comes from advertisers and advertisers pay according to the audience size they can reach by sponsoring specific events. Question: do you think more people watch/attend the University of Kentucky’s men’s basketball games or the women’s basket ball games? The answer determines the ad rates charged by and paid by the networks and advertisers. This week proves our point very clearly. Golf tournaments are currently being held at four sites around the world. The amount of the purses (that is the amount of money to be won) will show the size of the anticipated audience and the value of associated advertising dollars. First, the men’s US golf tour is playing in Orlando, Florida and the total purse is $12 million. A second men’s tour is playing in Puerto Rico and its total purse is $3.7 million. The US men’s Champion golf tour is playing this week for a $ 2.0 million purse. And the Ladies Pro Golf Tour with the best women players in the world is playing in Singapore for a $1.7 million purse. This is not discrimination at work. It is simple economics. Advertisers assess the value of sponsoring events and negotiate ad rates with TV networks. The fact that the Ladies golf tour has a purse value that is 85% lower than the equivalent men’s tour purse has nothing to do with gender inequality. It’s about ad dollar investment efficiency. So, to sum up, we are thrilled to see Women’s Soccer be recognized and receive equal pay but we know that somewhere in the mix something must be adjusted. Either money will come from more commercials, player endorsement money, concessions from TV networks or elsewhere. Increased TV viewership and attendance will not happen overnight–if ever. And that’s the real tragedy because these women are every bit as skilled an athlete as the men. But until ad people and networks can find an audience they will be climbing a very steep hill toward equal fan acceptance in numbers.
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