1 00:00:02,680 --> 00:00:05,279 Speaker 1: In a decade of disruption for the business of sports, 2 00:00:05,480 --> 00:00:07,880 Speaker 1: one game has seen a significant. 3 00:00:07,320 --> 00:00:13,280 Speaker 2: Upsling During COVID, golf exploded on a. 4 00:00:13,280 --> 00:00:17,160 Speaker 1: Course, at the driving range, at indoor simulators and entertainment venues. 5 00:00:17,600 --> 00:00:21,120 Speaker 1: Record numbers of Americans played golf last year, and a 6 00:00:21,160 --> 00:00:24,759 Speaker 1: growing portion of those were women. More than six million 7 00:00:24,760 --> 00:00:27,240 Speaker 1: women and girls played the game on a US course 8 00:00:27,280 --> 00:00:31,120 Speaker 1: in twenty twenty two, again of fourteen percent over twenty nineteen. 9 00:00:32,440 --> 00:00:35,320 Speaker 2: You look at the number of women that want to 10 00:00:35,400 --> 00:00:39,560 Speaker 2: learn the game, young girls that are joining on the tea. 11 00:00:40,080 --> 00:00:42,240 Speaker 2: Really an exciting time for all of us to really 12 00:00:42,240 --> 00:00:43,520 Speaker 2: capitalize on this moment. 13 00:00:44,720 --> 00:00:47,639 Speaker 1: It's a moment of peak opportunity for the Ladies Professional 14 00:00:47,680 --> 00:00:51,160 Speaker 1: Golf Association. Founded in nineteen fifty as a playing tour, 15 00:00:51,520 --> 00:00:55,560 Speaker 1: the LPGA is now a nonprofit organization supporting women's golf 16 00:00:55,600 --> 00:00:56,640 Speaker 1: at every level. 17 00:00:57,200 --> 00:00:59,800 Speaker 3: I think that the LPGA's the land of opportunity. They 18 00:01:00,000 --> 00:01:03,840 Speaker 3: were the originals. Like when you think about women's sport 19 00:01:04,720 --> 00:01:08,080 Speaker 3: and the idea of women founding and building sports on 20 00:01:08,120 --> 00:01:11,959 Speaker 3: their own, I think LPGA. 21 00:01:12,560 --> 00:01:16,240 Speaker 1: LPGA tournaments featured the world's best players competing for millions 22 00:01:16,240 --> 00:01:20,360 Speaker 1: of dollars, while LPGA programs build a grassroots involvement that 23 00:01:20,400 --> 00:01:22,679 Speaker 1: creates a passionate audience for the product. 24 00:01:23,200 --> 00:01:26,080 Speaker 4: Golf is one of those rare sports that adults actually 25 00:01:26,520 --> 00:01:30,360 Speaker 4: love to watch, but then they can actually go play nice. 26 00:01:30,680 --> 00:01:32,800 Speaker 1: Oh that's the best of the day. 27 00:01:32,840 --> 00:01:33,440 Speaker 2: Holy cow. 28 00:01:34,520 --> 00:01:39,319 Speaker 1: Molly Marcousseman was named LPGA Commissioner in twenty twenty one. 29 00:01:39,760 --> 00:01:43,920 Speaker 1: That was amazing, bringing credentials as a college athletics administrator 30 00:01:44,040 --> 00:01:48,480 Speaker 1: and a longtime sports facilities executive, smoothing her transition to 31 00:01:48,520 --> 00:01:52,920 Speaker 1: this new challenge seasoned CFO Kathy Milthorp, who started her 32 00:01:52,960 --> 00:01:55,760 Speaker 1: career at the LPGA over thirty years ago. 33 00:01:56,240 --> 00:01:59,200 Speaker 4: Kathy's you know, wealth of knowledge for the golf industry 34 00:01:59,440 --> 00:02:02,200 Speaker 4: was really really important for me to be able to 35 00:02:02,240 --> 00:02:02,920 Speaker 4: learn the business. 36 00:02:02,960 --> 00:02:04,920 Speaker 2: We're going to do a little finance one on one 37 00:02:04,960 --> 00:02:07,120 Speaker 2: for the player for the new player director she was 38 00:02:07,160 --> 00:02:07,880 Speaker 2: talking about. 39 00:02:07,720 --> 00:02:10,680 Speaker 4: She's definitely not the CFO that sits in the office and. 40 00:02:10,639 --> 00:02:12,600 Speaker 5: Crunches the numbers that we tell her to crunch. 41 00:02:12,680 --> 00:02:15,880 Speaker 4: As we're talking about strategy, we can just ask her 42 00:02:15,919 --> 00:02:17,600 Speaker 4: sitting in the room, Okay, what are the levers we. 43 00:02:17,560 --> 00:02:22,359 Speaker 5: Can pull to to really implement that strategy in competition. 44 00:02:22,639 --> 00:02:26,200 Speaker 1: Golf is the ultimate individual sport. But for the LPGA 45 00:02:26,320 --> 00:02:29,400 Speaker 1: to sustain its momentum as a driving force for women's golf, 46 00:02:29,919 --> 00:02:31,360 Speaker 1: it takes a team effort. 47 00:02:31,919 --> 00:02:34,600 Speaker 5: She has this tremendous knowledge, but she also you know, 48 00:02:34,680 --> 00:02:37,280 Speaker 5: she's committed to the business. She's passionate about it. She 49 00:02:37,440 --> 00:02:39,440 Speaker 5: really doesn't just think this is what I'm told to do. 50 00:02:39,600 --> 00:02:41,960 Speaker 4: She thinks about how we can actually grow the organization 51 00:02:42,360 --> 00:02:42,919 Speaker 4: every day. 52 00:02:43,120 --> 00:02:44,400 Speaker 5: So it's been a godsend to me. 53 00:02:45,000 --> 00:02:48,760 Speaker 2: She loves the LPGA, loves the organization, and I think 54 00:02:48,960 --> 00:02:51,120 Speaker 2: in that leadership role, you really have to have a 55 00:02:51,160 --> 00:02:54,400 Speaker 2: passion for the mission. She's also got great business acumen. 56 00:02:54,800 --> 00:02:58,200 Speaker 2: She's interesting because she really does like the numbers. So 57 00:02:58,280 --> 00:03:00,080 Speaker 2: as a CFO, that's great for me. 58 00:03:00,360 --> 00:03:01,839 Speaker 1: She's asking about the numbers all the time. 59 00:03:01,919 --> 00:03:05,080 Speaker 2: She's asking about the numbers. She likes the numbers. I 60 00:03:05,080 --> 00:03:07,320 Speaker 2: think if she dies and comes back, she's going to 61 00:03:07,360 --> 00:03:08,480 Speaker 2: be an accountant one day. 62 00:03:08,880 --> 00:03:12,040 Speaker 5: With our growth strategy, the idea is to get to yes. 63 00:03:12,120 --> 00:03:14,320 Speaker 4: I mean, we're really investing in top line growth and 64 00:03:14,360 --> 00:03:15,760 Speaker 4: so we want her to say yes as much as 65 00:03:15,760 --> 00:03:16,959 Speaker 4: she can possibly say yes. 66 00:03:17,080 --> 00:03:19,519 Speaker 2: You always often think of accountants as the no people 67 00:03:19,600 --> 00:03:21,400 Speaker 2: or the people of why we've got to work within 68 00:03:21,639 --> 00:03:25,440 Speaker 2: a structure or save money or cost control, and sure 69 00:03:25,520 --> 00:03:27,280 Speaker 2: we do that. We try to make sure that we're 70 00:03:27,320 --> 00:03:30,960 Speaker 2: good stewards of the association's resources. But I think where 71 00:03:31,000 --> 00:03:33,480 Speaker 2: we've tried to be more effective is to make sure 72 00:03:33,520 --> 00:03:37,680 Speaker 2: that we're helping our departments, our colleagues, our members drive success. 73 00:03:38,080 --> 00:03:40,880 Speaker 2: And so that's finding the ways to a yes instead 74 00:03:40,880 --> 00:03:41,960 Speaker 2: of finding the ways to a no. 75 00:03:58,240 --> 00:04:01,880 Speaker 1: To understand Kathy Milthorpe's rule. As CFO, it's essential to 76 00:04:02,000 --> 00:04:03,960 Speaker 1: understand the LPGA's business model. 77 00:04:04,360 --> 00:04:07,000 Speaker 3: The best CFOs and not for profits and sports are 78 00:04:07,160 --> 00:04:12,360 Speaker 3: great at growth, great innovation, great at scale, and then 79 00:04:13,080 --> 00:04:17,599 Speaker 3: really excellent as strategic thinkers about where should we be spending. 80 00:04:17,800 --> 00:04:21,000 Speaker 2: Our focus is on mission and so that's really taking 81 00:04:21,040 --> 00:04:24,000 Speaker 2: the revenues that we generate and redriving that back into 82 00:04:24,080 --> 00:04:28,159 Speaker 2: providing member opportunities. So as a finance team, you know, 83 00:04:28,240 --> 00:04:31,200 Speaker 2: our goal is to really help shepherd those resources to 84 00:04:31,240 --> 00:04:33,320 Speaker 2: make sure that we're driving and fueling growth. 85 00:04:35,160 --> 00:04:39,560 Speaker 1: Before COVID, the lpg's annual revenue fluctuated within a consistent range. 86 00:04:39,880 --> 00:04:42,320 Speaker 1: The last two years have seen those numbers jump. 87 00:04:44,720 --> 00:04:46,560 Speaker 5: We've experienced tremendous growth. 88 00:04:46,880 --> 00:04:49,520 Speaker 4: You know, from pre pandemic to now, I think in 89 00:04:49,560 --> 00:04:52,159 Speaker 4: every one of our major revenue categories we're up over 90 00:04:52,240 --> 00:04:54,880 Speaker 4: fifty percent, which is which is tremendous. 91 00:04:55,400 --> 00:04:57,279 Speaker 1: What are the metrics that matter the most to you 92 00:04:57,360 --> 00:04:57,760 Speaker 1: right now? 93 00:04:57,960 --> 00:05:00,400 Speaker 2: Prize money for the players, that's the way they make 94 00:05:00,440 --> 00:05:02,920 Speaker 2: a living. The ability to be able to compete at 95 00:05:02,920 --> 00:05:05,880 Speaker 2: the highest level and earn purses that are commensurate with 96 00:05:05,920 --> 00:05:09,040 Speaker 2: their male counterparts is a mission that we're driving towards 97 00:05:09,080 --> 00:05:09,640 Speaker 2: every day. 98 00:05:11,640 --> 00:05:14,640 Speaker 1: The annual prize money pool in LPGA tournaments has grown 99 00:05:14,720 --> 00:05:18,039 Speaker 1: fifty percent since twenty nineteen. In twenty twenty three, it 100 00:05:18,080 --> 00:05:21,400 Speaker 1: topped one hundred million dollars, but the prize fund still 101 00:05:21,520 --> 00:05:24,600 Speaker 1: likes far behind what men compete for on the PGA Tour. 102 00:05:25,080 --> 00:05:27,760 Speaker 1: The inequality hits hardest at the lower end of the 103 00:05:27,760 --> 00:05:28,320 Speaker 1: money list. 104 00:05:28,680 --> 00:05:30,920 Speaker 4: Clearly, we want the top players to continue to make 105 00:05:30,920 --> 00:05:31,839 Speaker 4: a great living playing. 106 00:05:31,839 --> 00:05:33,760 Speaker 5: These are the very best in the world. But we 107 00:05:33,800 --> 00:05:34,760 Speaker 5: also then dig in and. 108 00:05:34,680 --> 00:05:37,080 Speaker 4: Say, Okay, what's the fiftieth best player in the world making, 109 00:05:37,200 --> 00:05:38,920 Speaker 4: and what did you make last year? What did the 110 00:05:38,920 --> 00:05:40,599 Speaker 4: one hundred best player in the world make, and what 111 00:05:40,640 --> 00:05:42,760 Speaker 4: did you make the year before? I've asked Kathy to 112 00:05:42,800 --> 00:05:46,240 Speaker 4: run numbers many times to say, Okay, tell me where 113 00:05:46,240 --> 00:05:48,039 Speaker 4: we are exactly during the middle of the season. 114 00:05:48,040 --> 00:05:50,279 Speaker 2: At the end of the season, that one hundredth player, 115 00:05:50,400 --> 00:05:53,120 Speaker 2: our goal would be to obviously have that player make 116 00:05:53,440 --> 00:05:56,040 Speaker 2: considerable amount of prize winnings, and we're going to work 117 00:05:56,040 --> 00:05:58,599 Speaker 2: really hard to do that. Having said that, we do 118 00:05:58,760 --> 00:06:02,039 Speaker 2: need to continue to focus on ways to provide opportunities 119 00:06:02,080 --> 00:06:05,400 Speaker 2: so that one hundred best player can cover those costs 120 00:06:05,400 --> 00:06:06,960 Speaker 2: that it takes for them to be out here on 121 00:06:07,000 --> 00:06:10,479 Speaker 2: the golf course. That's hiring a caddy, that's travel, that 122 00:06:10,800 --> 00:06:14,880 Speaker 2: strength coaches. We're helping to provide stipends for health insurance 123 00:06:15,000 --> 00:06:18,960 Speaker 2: or create a tour wide health insurance program ability, to 124 00:06:19,000 --> 00:06:22,000 Speaker 2: create more discounts for travel, you know, for hotel and 125 00:06:22,080 --> 00:06:24,480 Speaker 2: car and all those things that really cost them a lot. 126 00:06:24,760 --> 00:06:29,120 Speaker 1: To meet these objectives, LPGA leadership collaborates creatively with sponsors. 127 00:06:29,520 --> 00:06:31,440 Speaker 4: We've worked with some of our corporate partners to say, 128 00:06:31,640 --> 00:06:34,120 Speaker 4: help us solve a problem. You help us create a 129 00:06:34,200 --> 00:06:36,520 Speaker 4: fund that will allow our players to get to the 130 00:06:36,560 --> 00:06:39,680 Speaker 4: first team ready to reach peak performance. 131 00:06:40,320 --> 00:06:43,679 Speaker 1: And more partners are stepping up. According to Intelligence platform 132 00:06:43,760 --> 00:06:47,760 Speaker 1: sponsor United sponsorships in women's sports leagues grew twenty percent. 133 00:06:47,800 --> 00:06:50,919 Speaker 1: In twenty twenty two, the LPGA led the way, with 134 00:06:51,040 --> 00:06:55,039 Speaker 1: brand deals increasing thirty percent versus twenty twenty one. Underpinning 135 00:06:55,080 --> 00:06:56,960 Speaker 1: the boom a shift in thinking. 136 00:06:57,360 --> 00:06:59,479 Speaker 3: It was only a few years ago we were saying, oh, 137 00:06:59,520 --> 00:07:02,719 Speaker 3: you should for women's sports because it's nice. We don't 138 00:07:02,720 --> 00:07:03,400 Speaker 3: have to say anymore. 139 00:07:03,480 --> 00:07:09,440 Speaker 6: Brands are understanding that it's not a pity party anymore. 140 00:07:09,600 --> 00:07:12,320 Speaker 6: They're not investing in women's sports because it's the right 141 00:07:12,360 --> 00:07:16,840 Speaker 6: thing to do, but they are seeing actual great ROI. 142 00:07:16,480 --> 00:07:18,760 Speaker 2: When you look at women who are making most of 143 00:07:18,800 --> 00:07:23,120 Speaker 2: the purchasing decisions in households, whether that's cars, or that 144 00:07:23,360 --> 00:07:26,280 Speaker 2: is home or financial services, and who are going to 145 00:07:26,360 --> 00:07:28,559 Speaker 2: drive the wealth of the future, it's women. 146 00:07:28,600 --> 00:07:30,680 Speaker 4: If you talk to our top sponsors, they'll say, listen, 147 00:07:30,760 --> 00:07:33,320 Speaker 4: this is a double value. We get the value of 148 00:07:34,040 --> 00:07:36,440 Speaker 4: the commercial, you know, sort of just exposure that we 149 00:07:36,480 --> 00:07:38,560 Speaker 4: get in the brand building, but we also get to 150 00:07:38,600 --> 00:07:42,720 Speaker 4: talk to our clients, to our employees and really show 151 00:07:43,160 --> 00:07:44,600 Speaker 4: the commitment that we have to women. 152 00:07:46,000 --> 00:07:50,600 Speaker 3: The beautiful thing is brands are not realizing there's huge 153 00:07:50,640 --> 00:07:55,480 Speaker 3: demand for women's sports, but even more importantly, women's sports 154 00:07:55,520 --> 00:07:58,560 Speaker 3: fans are fiercely loyal they'll spend. 155 00:08:00,120 --> 00:08:01,320 Speaker 2: Not playing if it releases. 156 00:08:01,520 --> 00:08:04,720 Speaker 1: The LPGA's TV viewership also rows in twenty twenty two, 157 00:08:05,000 --> 00:08:07,280 Speaker 1: another promising sign for its financial future. 158 00:08:08,000 --> 00:08:10,960 Speaker 2: Media rights is really probably the single largest driver. In 159 00:08:11,000 --> 00:08:15,200 Speaker 2: addition to corporate partners that drive the association's revenues. 160 00:08:14,920 --> 00:08:17,720 Speaker 1: The LPGA and the PGA Tour have a joint agreement 161 00:08:17,760 --> 00:08:21,120 Speaker 1: for domestic media rights that runs through twenty thirty. In 162 00:08:21,160 --> 00:08:23,680 Speaker 1: the rest of the world, the LPGA controls its own 163 00:08:23,720 --> 00:08:26,560 Speaker 1: media rights. Its content can be seen in over five 164 00:08:26,640 --> 00:08:29,720 Speaker 1: hundred million households in one hundred and seventy five countries 165 00:08:29,760 --> 00:08:30,440 Speaker 1: around the world. 166 00:08:30,680 --> 00:08:34,679 Speaker 2: Twenty five years ago, was primarily a US based organization. 167 00:08:35,320 --> 00:08:37,920 Speaker 2: Now more than forty percent of our revenues come from 168 00:08:37,960 --> 00:08:39,000 Speaker 2: outside the US. 169 00:08:40,960 --> 00:08:43,640 Speaker 1: Media rights deals outside the US are a driver of 170 00:08:43,679 --> 00:08:47,319 Speaker 1: revenue growth, but building a global media brand takes time 171 00:08:47,520 --> 00:08:48,760 Speaker 1: and money on side. 172 00:08:48,760 --> 00:08:52,920 Speaker 2: For je Chin, someone sitting in Soeul, Korea has a 173 00:08:53,040 --> 00:08:56,720 Speaker 2: very different perspective than maybe someone that's sitting in Toledo, Ohio, 174 00:08:57,200 --> 00:09:00,760 Speaker 2: and so the ability to really create a global telecast 175 00:09:01,120 --> 00:09:03,480 Speaker 2: is something that we've got to continue to invest in. 176 00:09:05,520 --> 00:09:08,679 Speaker 1: Developing and upgrading technology has been a key priority for 177 00:09:08,720 --> 00:09:11,280 Speaker 1: the LPGA and will be for years to come. 178 00:09:11,840 --> 00:09:14,280 Speaker 2: Technology is going to drive the future. 179 00:09:14,760 --> 00:09:16,400 Speaker 1: One seven shot continued. 180 00:09:16,920 --> 00:09:18,640 Speaker 5: Sports are all about data these days. 181 00:09:18,640 --> 00:09:21,560 Speaker 4: People want to know how well are women performing at 182 00:09:21,600 --> 00:09:23,600 Speaker 4: various parts of the game, and also it helps with 183 00:09:23,640 --> 00:09:27,960 Speaker 4: the equity conversation. By having more advanced stats and more data, 184 00:09:28,000 --> 00:09:29,960 Speaker 4: we can tell the stories of the very best players 185 00:09:29,960 --> 00:09:32,040 Speaker 4: in the world and how they compare to other women 186 00:09:32,040 --> 00:09:33,880 Speaker 4: on the tour, but also how they compare to men. 187 00:09:34,200 --> 00:09:36,480 Speaker 5: Shot level data for betting is also important. 188 00:09:36,520 --> 00:09:40,040 Speaker 4: We know that betting really gets people connected to the game. 189 00:09:40,080 --> 00:09:41,760 Speaker 4: If you have a stake in what people are doing, 190 00:09:41,880 --> 00:09:43,560 Speaker 4: you get to know the players more, you get you 191 00:09:43,600 --> 00:09:45,880 Speaker 4: follow them more closely or more connected as a fan. 192 00:09:46,000 --> 00:09:48,520 Speaker 4: Our website and having two way communication with our fan 193 00:09:48,840 --> 00:09:49,800 Speaker 4: fans is critical. 194 00:09:49,920 --> 00:09:54,360 Speaker 6: I think that data is very important to any league 195 00:09:54,400 --> 00:09:56,800 Speaker 6: that is looking to connect with their fans on a 196 00:09:56,840 --> 00:10:00,000 Speaker 6: deeper level, because women's sports is an opt in experience 197 00:10:00,240 --> 00:10:03,320 Speaker 6: where you actually are seeking out where can I watch 198 00:10:03,880 --> 00:10:06,520 Speaker 6: this match? Where can I watch this game? How can 199 00:10:06,559 --> 00:10:10,440 Speaker 6: I watch this tournament. The more that that league or 200 00:10:10,520 --> 00:10:13,640 Speaker 6: team can talk to their fans, I think that's. 201 00:10:15,440 --> 00:10:18,760 Speaker 1: Really tremendous. What does your investment spend on technology look 202 00:10:18,800 --> 00:10:19,679 Speaker 1: like right now. 203 00:10:19,640 --> 00:10:22,360 Speaker 2: We're trying to figure that out, and I will tell 204 00:10:22,360 --> 00:10:24,200 Speaker 2: you we're going to need partners to be able to 205 00:10:24,240 --> 00:10:27,920 Speaker 2: do that, because I'm sure you know tech is not cheap. 206 00:10:27,960 --> 00:10:30,520 Speaker 2: We're in the process of kind of outlining our roadmap. 207 00:10:30,640 --> 00:10:33,920 Speaker 2: We're also looking at how we can create operational efficiencies 208 00:10:34,320 --> 00:10:39,360 Speaker 2: molding all the various databases and various solutions that we 209 00:10:39,440 --> 00:10:42,840 Speaker 2: have Internally. We probably have thirty plus different solutions that 210 00:10:42,880 --> 00:10:47,640 Speaker 2: we work with today. Currently, our thirty four tournaments operate 211 00:10:47,720 --> 00:10:51,960 Speaker 2: really like independent, independent businesses, and so what we're working 212 00:10:52,040 --> 00:10:54,880 Speaker 2: on in the next couple of years is to build, 213 00:10:54,960 --> 00:10:58,160 Speaker 2: for instance, a tour wide ticketing solution. We'll also start 214 00:10:58,240 --> 00:11:02,200 Speaker 2: building rebuilding our website in the next probably three to 215 00:11:02,280 --> 00:11:04,760 Speaker 2: six months, and then you know, in two or three 216 00:11:04,840 --> 00:11:07,839 Speaker 2: years you start all over again with tech. What is 217 00:11:08,400 --> 00:11:11,880 Speaker 2: popular today will be probably quite different in the not 218 00:11:11,920 --> 00:11:12,800 Speaker 2: too distant future. 219 00:11:13,480 --> 00:11:15,640 Speaker 1: The year that Kathy Milthorpe came to work for the 220 00:11:15,720 --> 00:11:18,760 Speaker 1: LPGA Hall of Femer, Pat Bradley was the tour's top 221 00:11:18,800 --> 00:11:22,319 Speaker 1: money winner. She earned just under five hundred thousand dollars. 222 00:11:22,720 --> 00:11:24,120 Speaker 1: That was in nineteen eighty six. 223 00:11:24,760 --> 00:11:26,880 Speaker 2: I worked for Price water House Coopers at the time 224 00:11:26,920 --> 00:11:29,880 Speaker 2: Cooper's and librand when I went into public accounting and 225 00:11:29,880 --> 00:11:32,200 Speaker 2: they were a client. The LPGA tournament was a client 226 00:11:32,200 --> 00:11:34,920 Speaker 2: of mine, got recruited and came to work for the 227 00:11:34,920 --> 00:11:37,640 Speaker 2: association when we were based in Texas, and then helped 228 00:11:37,679 --> 00:11:40,120 Speaker 2: as part of the relocation when the business moved to Florida. 229 00:11:40,920 --> 00:11:43,600 Speaker 1: She's had three separate tours of duty at the LPGA, 230 00:11:43,840 --> 00:11:47,360 Speaker 1: stepping away twice to pursue other opportunities in sports. What 231 00:11:47,440 --> 00:11:50,199 Speaker 1: did you bring back to the LPGA from those experiences? 232 00:11:50,440 --> 00:11:52,760 Speaker 2: While it was challenging to leave, it was probably the 233 00:11:52,760 --> 00:11:54,600 Speaker 2: best thing I could have ever done for my career 234 00:11:54,800 --> 00:11:57,200 Speaker 2: because I got a chance to see one, for instance, 235 00:11:57,200 --> 00:11:59,200 Speaker 2: on the golf side, really what it takes to put 236 00:11:59,200 --> 00:12:02,520 Speaker 2: a golf tourent on. On the public affairs side, really 237 00:12:02,559 --> 00:12:07,360 Speaker 2: seeing what it takes to secure sponsors, to build marketing plans, 238 00:12:08,559 --> 00:12:12,280 Speaker 2: to look at new ways of financing. And I think 239 00:12:12,280 --> 00:12:14,640 Speaker 2: that has served me well to allow me to look 240 00:12:14,640 --> 00:12:17,400 Speaker 2: at things in a different light than just crunching numbers. 241 00:12:17,800 --> 00:12:20,520 Speaker 1: Kathy Milthorpe's range of experience helps her see the big 242 00:12:20,559 --> 00:12:24,600 Speaker 1: picture and also master the details. Both capabilities come into 243 00:12:24,600 --> 00:12:29,000 Speaker 1: play as she oversees the LPGA's primary revenue source the tour. 244 00:12:29,320 --> 00:12:32,480 Speaker 2: Every week we play in different markets around the country, 245 00:12:32,520 --> 00:12:34,840 Speaker 2: and it's somewhere between a five to fifteen million dollar 246 00:12:34,960 --> 00:12:41,320 Speaker 2: operation that's taking place. We're bringing in staff, vendors, caterers, 247 00:12:41,600 --> 00:12:46,040 Speaker 2: building really a little city within a tournament infrastructure. 248 00:12:49,360 --> 00:12:52,240 Speaker 1: In twenty twenty three, the LPGA will hold tournaments across 249 00:12:52,280 --> 00:12:56,000 Speaker 1: Asia and Europe and in eleven US states. Geography is 250 00:12:56,080 --> 00:12:57,880 Speaker 1: just one measure of its complexity. 251 00:12:58,200 --> 00:12:59,839 Speaker 4: When we go to a tournament site, that's like a 252 00:13:00,040 --> 00:13:03,040 Speaker 4: upper business also, and each tournament that we work with 253 00:13:03,080 --> 00:13:04,400 Speaker 4: has a different financial model. 254 00:13:05,320 --> 00:13:08,960 Speaker 2: We'll operate about four of our thirty plus tournaments this year, 255 00:13:09,720 --> 00:13:13,200 Speaker 2: and then the rest of them are operated by other individuals, 256 00:13:13,200 --> 00:13:16,960 Speaker 2: other promoters, other operating companies that help bring what we 257 00:13:17,040 --> 00:13:19,720 Speaker 2: call the traveling circus to town each week. 258 00:13:19,960 --> 00:13:23,840 Speaker 1: Across all the different venues and operational conditions, Milthorpe and 259 00:13:23,880 --> 00:13:26,600 Speaker 1: her colleagues have to make sure that the customer experience 260 00:13:26,679 --> 00:13:28,880 Speaker 1: consistently achieves a high standard. 261 00:13:29,720 --> 00:13:31,920 Speaker 2: I think the fan when they come to a sporting 262 00:13:31,960 --> 00:13:36,000 Speaker 2: event today. While the competition is certainly the key, they 263 00:13:36,040 --> 00:13:40,000 Speaker 2: want an experience. So they want great food, they want 264 00:13:40,040 --> 00:13:42,800 Speaker 2: something where their family, whether maybe they're not a patron 265 00:13:42,840 --> 00:13:46,240 Speaker 2: of the sport, or their kids can do something they want, 266 00:13:46,600 --> 00:13:51,120 Speaker 2: really an outdoor experience and also be able to watch 267 00:13:51,360 --> 00:13:52,640 Speaker 2: great athletes compete. 268 00:13:53,160 --> 00:13:55,920 Speaker 1: Fans also attend tournaments to interact with their heroes on 269 00:13:55,960 --> 00:13:58,920 Speaker 1: a more personal level. For an organization with a mission 270 00:13:58,960 --> 00:14:02,440 Speaker 1: to promote the sport and build engagement, every event is 271 00:14:02,440 --> 00:14:05,280 Speaker 1: an opportunity to create bonds between the women who play 272 00:14:05,640 --> 00:14:07,240 Speaker 1: and the audience that supports them. 273 00:14:07,520 --> 00:14:11,680 Speaker 3: The tournaments are a great foundation. The stars of the 274 00:14:11,720 --> 00:14:15,360 Speaker 3: show are those athletes, and I do think there's an 275 00:14:15,360 --> 00:14:21,320 Speaker 3: opportunity right now to better connect the LPJ superstars with 276 00:14:22,640 --> 00:14:25,520 Speaker 3: the growing fandom of women's sports, especially if we look 277 00:14:25,560 --> 00:14:28,600 Speaker 3: ahead and we look at gen Z. It's a generation 278 00:14:28,680 --> 00:14:30,640 Speaker 3: that cares about purpose, They care about connection. 279 00:14:30,840 --> 00:14:32,960 Speaker 1: How close can they get, how much engagement is there? 280 00:14:33,160 --> 00:14:35,600 Speaker 1: Interaction is there between the fans and the players themselves. 281 00:14:35,840 --> 00:14:37,960 Speaker 2: You know, golf is probably one of the few sports 282 00:14:37,960 --> 00:14:40,440 Speaker 2: where the fan can really get up and close and 283 00:14:40,480 --> 00:14:42,640 Speaker 2: personal with the athlete. But the great thing about the 284 00:14:42,640 --> 00:14:46,200 Speaker 2: players are is they'll stop during the competition, they'll sign autographs, 285 00:14:46,440 --> 00:14:50,480 Speaker 2: they'll you know, welcome fans. Every Wednesday or Thursday, there's 286 00:14:50,480 --> 00:14:53,640 Speaker 2: a pro am setting where individuals actually compete with the 287 00:14:53,680 --> 00:14:56,840 Speaker 2: athletes who would do that in sports, but here and 288 00:14:56,880 --> 00:14:59,600 Speaker 2: then we'll offer clinics, So players might do a special 289 00:14:59,640 --> 00:15:02,480 Speaker 2: appear grants, they might do a junior clinic where they 290 00:15:02,480 --> 00:15:04,880 Speaker 2: give some tips, they might give tips to new golfers. 291 00:15:04,920 --> 00:15:06,160 Speaker 2: And our players. 292 00:15:05,760 --> 00:15:06,440 Speaker 5: Really get it. 293 00:15:06,680 --> 00:15:08,680 Speaker 2: They recognize at the end of the day that the 294 00:15:08,680 --> 00:15:10,040 Speaker 2: fans are what make the difference. 295 00:15:10,160 --> 00:15:12,760 Speaker 1: As CFO, of course, your job is to maximize revenue, 296 00:15:12,800 --> 00:15:14,680 Speaker 1: to bring in revenue, So how do you determine the 297 00:15:14,800 --> 00:15:18,120 Speaker 1: value of that level of fan player engagement? 298 00:15:18,640 --> 00:15:21,800 Speaker 2: Yeah, I mean, certainly driving ticket sales is important to 299 00:15:21,840 --> 00:15:26,560 Speaker 2: the overall bottom line for an event. Each week, it's 300 00:15:26,680 --> 00:15:30,280 Speaker 2: essential that we create something that's profitable, so either we 301 00:15:30,320 --> 00:15:34,680 Speaker 2: can reinvest back into the prize money or provide money 302 00:15:34,720 --> 00:15:37,600 Speaker 2: for charity in the local community, which is also equally 303 00:15:38,000 --> 00:15:39,560 Speaker 2: an important component to what we're doing. 304 00:15:40,400 --> 00:15:43,320 Speaker 1: Some of the headwinds facing all global businesses continue to 305 00:15:43,360 --> 00:15:46,880 Speaker 1: weigh on the LPGA Tour. A tournament in Shanghai early 306 00:15:46,880 --> 00:15:50,080 Speaker 1: in twenty twenty three was canceled due to COVID complications. 307 00:15:50,480 --> 00:15:54,120 Speaker 1: Inflation has driven up travel and hospitality costs, among other 308 00:15:54,160 --> 00:15:57,480 Speaker 1: expenses that vary dramatically from continent to continent. What do 309 00:15:57,600 --> 00:15:59,880 Speaker 1: the financials of a tournament that's held an Asia look 310 00:15:59,920 --> 00:16:02,720 Speaker 1: like versus the tournament that's held in the US. 311 00:16:02,360 --> 00:16:05,400 Speaker 2: It's interesting when you play overseas, it's a lot more 312 00:16:05,400 --> 00:16:08,760 Speaker 2: expensive to conduct an event for a couple of reasons. One, 313 00:16:09,280 --> 00:16:13,040 Speaker 2: you don't have the large volunteer base in typically in Asia, 314 00:16:13,600 --> 00:16:18,760 Speaker 2: most of those support individuals are paid. Also, just infrastructures 315 00:16:18,760 --> 00:16:22,040 Speaker 2: more expensive in some of those In some of those areas, 316 00:16:22,240 --> 00:16:24,480 Speaker 2: we might play in more remote areas where there's not 317 00:16:24,520 --> 00:16:29,480 Speaker 2: a lot of competition, so building the infrastructure skyboxes, tents 318 00:16:29,480 --> 00:16:31,880 Speaker 2: and all that can be quite expensive. It's not an 319 00:16:31,960 --> 00:16:36,640 Speaker 2: inexpensive proposition to run an event overseas, but it actually 320 00:16:36,680 --> 00:16:38,720 Speaker 2: is one of the more profitable ones for us. In 321 00:16:38,760 --> 00:16:42,000 Speaker 2: any tournament where we've been in a long time, we'll 322 00:16:42,200 --> 00:16:44,080 Speaker 2: easily have one hundred thousand fans for the week. 323 00:16:44,720 --> 00:16:48,600 Speaker 1: There's also geopolitics to consider. One sensitive issue that's playing 324 00:16:48,600 --> 00:16:52,000 Speaker 1: out across the golf world centers on Saudi Arabia. The 325 00:16:52,120 --> 00:16:55,560 Speaker 1: Kingdom's Sovereign Wealth Fund finances the men's Live Tour, which 326 00:16:55,600 --> 00:16:59,080 Speaker 1: competes directly with the PGA. On the women's side, The 327 00:16:59,160 --> 00:17:03,160 Speaker 1: Kingdom's oil company, Saudi Ramcop sponsors a series of tournaments 328 00:17:03,200 --> 00:17:06,320 Speaker 1: that attract the world's top players with substantial prize money. 329 00:17:06,520 --> 00:17:10,320 Speaker 1: The LPGA's approach to Saudi investment in women's golf accentuates 330 00:17:10,359 --> 00:17:11,680 Speaker 1: the positives. 331 00:17:11,359 --> 00:17:15,760 Speaker 4: They're providing additional playing opportunities for the women on the Ladies' 332 00:17:15,760 --> 00:17:19,120 Speaker 4: European Tour, which you know, they're much needed opportunities. As 333 00:17:19,119 --> 00:17:20,920 Speaker 4: far as the LPGA is concerned, I mean, I think, 334 00:17:20,960 --> 00:17:23,359 Speaker 4: as you know, we're really bullish on our growth and 335 00:17:23,400 --> 00:17:26,000 Speaker 4: so we're really focused on the growth that we're sort 336 00:17:26,040 --> 00:17:29,080 Speaker 4: of a trying to achieve, and you know, it's our 337 00:17:29,280 --> 00:17:32,080 Speaker 4: responsibility to always listen to and to see other people 338 00:17:32,080 --> 00:17:33,840 Speaker 4: coming into the game and to see what. 339 00:17:33,880 --> 00:17:34,919 Speaker 5: Opportunities could be. 340 00:17:35,000 --> 00:17:37,520 Speaker 4: Our job again is to focus on you know, elevator, 341 00:17:37,600 --> 00:17:42,000 Speaker 4: elevating our brand and elevating our footprint, and that's really 342 00:17:42,000 --> 00:17:43,679 Speaker 4: what we're doing. And I think as we've seen the 343 00:17:43,720 --> 00:17:44,720 Speaker 4: opportunity is there. 344 00:17:45,880 --> 00:17:49,119 Speaker 1: In twenty twenty three and beyond, the LPGA is poised 345 00:17:49,160 --> 00:17:52,960 Speaker 1: to capitalize on two very favorable trends. An increase in 346 00:17:53,000 --> 00:17:55,359 Speaker 1: the number of women who play golf and a surge 347 00:17:55,359 --> 00:17:58,480 Speaker 1: of support for women's sports from corporate sponsors and partners. 348 00:17:58,880 --> 00:18:02,159 Speaker 1: The organization has a expanded its global employee headcount by 349 00:18:02,240 --> 00:18:05,359 Speaker 1: ten percent since twenty twenty one and plans to continue 350 00:18:05,400 --> 00:18:06,080 Speaker 1: staffing up. 351 00:18:06,280 --> 00:18:09,040 Speaker 4: Mostly, I would think we're investing in our sales team 352 00:18:09,600 --> 00:18:11,840 Speaker 4: because we think the market is really big and it's 353 00:18:11,880 --> 00:18:15,360 Speaker 4: ready for us. So we're also investing in some partnerships 354 00:18:15,359 --> 00:18:18,639 Speaker 4: with some third party partners that can go out and 355 00:18:18,680 --> 00:18:21,440 Speaker 4: help us, you know, kind of canvass the world more. 356 00:18:21,520 --> 00:18:23,879 Speaker 4: We need more people to be out there talking to 357 00:18:23,920 --> 00:18:27,720 Speaker 4: those brands across the globe that we're interested in helping 358 00:18:27,800 --> 00:18:28,160 Speaker 4: us grow. 359 00:18:28,359 --> 00:18:31,160 Speaker 1: How critical is Kathy going to be in looking through 360 00:18:31,160 --> 00:18:32,080 Speaker 1: those opportunities. 361 00:18:32,520 --> 00:18:35,320 Speaker 4: Well, I mean again, she has to first let us 362 00:18:35,320 --> 00:18:36,960 Speaker 4: know how much money we have to invest in that 363 00:18:37,040 --> 00:18:38,639 Speaker 4: top line growth. So we need to go to her 364 00:18:38,680 --> 00:18:40,480 Speaker 4: and say, listen, we need to we need to build 365 00:18:40,480 --> 00:18:42,680 Speaker 4: people that can manage our current partnerships, and we need 366 00:18:42,720 --> 00:18:44,520 Speaker 4: to build the staff that can go out and find 367 00:18:44,560 --> 00:18:48,560 Speaker 4: new partnerships. Again, she's right right next to me on 368 00:18:48,600 --> 00:18:51,239 Speaker 4: this to say it's time to bet on ourselves and 369 00:18:51,280 --> 00:18:54,119 Speaker 4: to be able to really scale more quickly. 370 00:18:54,920 --> 00:18:58,280 Speaker 1: Scaling up its infrastructure is one task ahead for the LPGA. 371 00:18:58,680 --> 00:19:01,840 Speaker 1: Another pillar of the organization. A strategic plan is scaling 372 00:19:01,880 --> 00:19:06,280 Speaker 1: up societal impact by increasing diversity. One of the goals 373 00:19:06,280 --> 00:19:08,359 Speaker 1: that Molly has made a priority is to change the 374 00:19:08,400 --> 00:19:10,920 Speaker 1: face of the game, bringing more diversity into the sport 375 00:19:10,960 --> 00:19:13,720 Speaker 1: at all levels. As CFO, I'm wondering, what can you 376 00:19:13,800 --> 00:19:15,600 Speaker 1: do to move the needle on that. Is there something 377 00:19:15,640 --> 00:19:16,640 Speaker 1: you can do well? 378 00:19:16,680 --> 00:19:19,560 Speaker 2: I think there is, because we've dedicated resources to do that. 379 00:19:19,680 --> 00:19:23,040 Speaker 2: We've actually staffed up, you know, the LPGA Foundation, which 380 00:19:23,080 --> 00:19:27,160 Speaker 2: was really primarily operating the girl's golf program. I think 381 00:19:27,440 --> 00:19:30,560 Speaker 2: probably ten years ago we had less than four employees. 382 00:19:30,960 --> 00:19:34,240 Speaker 2: Now we have probably close to twenty. So they're focused 383 00:19:34,280 --> 00:19:39,480 Speaker 2: on programming, they're focused on fundraising, leadership academies, bringing golf 384 00:19:39,560 --> 00:19:43,040 Speaker 2: to underserved populations. If you look at twenty years ago 385 00:19:43,240 --> 00:19:47,080 Speaker 2: and particularly persons of color, it was less than one 386 00:19:47,119 --> 00:19:51,040 Speaker 2: out of seventeen individuals we're playing the game now, that's 387 00:19:51,040 --> 00:19:53,480 Speaker 2: moved to one in three. Secondly, is really moving the 388 00:19:53,520 --> 00:19:57,200 Speaker 2: needle on young girls? Twenty years ago, about fifteen percent 389 00:19:57,280 --> 00:20:01,200 Speaker 2: of the new golfers of junior golfers were women. Now 390 00:20:01,240 --> 00:20:04,040 Speaker 2: that's more than a third of those golfers are women, 391 00:20:04,400 --> 00:20:06,879 Speaker 2: our young girls. But maybe we can insert in them 392 00:20:06,920 --> 00:20:08,440 Speaker 2: as well the partners. 393 00:20:07,920 --> 00:20:11,880 Speaker 1: And as CFO of the LPGA, Kathy Mildorp makes sure 394 00:20:11,960 --> 00:20:14,480 Speaker 1: that resources go where they can do the most good 395 00:20:14,600 --> 00:20:18,760 Speaker 1: for women's golf, whether it's empowering beginners through grassroots programs 396 00:20:18,840 --> 00:20:22,760 Speaker 1: or increasing earning power and pay equity for professionals. I 397 00:20:22,880 --> 00:20:25,200 Speaker 1: wanted to know what she sees when she looks into 398 00:20:25,240 --> 00:20:27,960 Speaker 1: the future. What is the opportunity for the LPGA in 399 00:20:28,000 --> 00:20:30,440 Speaker 1: the next five years that really gets the most excited. 400 00:20:30,880 --> 00:20:32,080 Speaker 5: It's still those athletes. 401 00:20:32,760 --> 00:20:37,480 Speaker 2: The talent, the energy they bring, the extraordinary performance both 402 00:20:37,520 --> 00:20:40,120 Speaker 2: on and off the golf course is what makes it special. 403 00:20:40,280 --> 00:20:42,439 Speaker 2: And I think that we're just at this moment in 404 00:20:42,520 --> 00:20:45,360 Speaker 2: time where the world is really going to see how 405 00:20:45,880 --> 00:20:48,679 Speaker 2: incredible these athletes are and that's super exciting to be 406 00:20:48,720 --> 00:20:49,159 Speaker 2: a part of. 407 00:20:49,680 --> 00:20:52,439 Speaker 1: On the flip side, what's the challenge that keeps you 408 00:20:52,560 --> 00:20:55,680 Speaker 1: up at night that you see as something really kind 409 00:20:55,680 --> 00:20:57,600 Speaker 1: of hanging over over the next five years. 410 00:20:57,880 --> 00:21:01,520 Speaker 2: You know, I probably it's navigating through all the opportunity. 411 00:21:02,600 --> 00:21:03,200 Speaker 5: There's a lot. 412 00:21:03,280 --> 00:21:06,880 Speaker 2: We're in a very competitive sports landscape. We're really competing 413 00:21:06,920 --> 00:21:09,480 Speaker 2: not only in sports, but in entertainment, and what do 414 00:21:09,520 --> 00:21:12,160 Speaker 2: we spend our time on how do we do things well. 415 00:21:12,240 --> 00:21:14,639 Speaker 2: I'm a big believer on doing things, you know, two 416 00:21:14,760 --> 00:21:17,520 Speaker 2: or three things really well instead of one hundred things. Okay, 417 00:21:18,119 --> 00:21:21,560 Speaker 2: So I think making sure that we stay laser focused 418 00:21:21,760 --> 00:21:23,359 Speaker 2: on the things that are going to move the needle 419 00:21:23,400 --> 00:21:27,359 Speaker 2: for our members and provide that next generation of golfer 420 00:21:27,400 --> 00:21:29,920 Speaker 2: that's behind them is something that's really important. 421 00:21:30,040 --> 00:21:32,000 Speaker 1: What is the skill set or area of knowledge that 422 00:21:32,040 --> 00:21:33,880 Speaker 1: you think is going to be most useful to you 423 00:21:34,040 --> 00:21:35,960 Speaker 1: as CFO in five years time. 424 00:21:36,320 --> 00:21:39,960 Speaker 2: I still think you have to be very strategic. It's 425 00:21:39,960 --> 00:21:42,680 Speaker 2: not just the numbers, but it's how do you make 426 00:21:42,720 --> 00:21:45,880 Speaker 2: the numbers get to the yes and what you're trying 427 00:21:45,880 --> 00:21:48,840 Speaker 2: to accomplish. And I think thinking strategically about what makes 428 00:21:48,880 --> 00:21:51,600 Speaker 2: the business move and what will be meaningful for our 429 00:21:51,640 --> 00:21:55,119 Speaker 2: membership is something that's going to be that we're laser 430 00:21:55,119 --> 00:21:56,760 Speaker 2: focused on. That I'm laser focused on. 431 00:21:57,240 --> 00:21:58,879 Speaker 1: Let's just say you get a call from a friend 432 00:21:58,920 --> 00:22:01,680 Speaker 1: who says, hey, guess what I was named CFO. What's 433 00:22:01,760 --> 00:22:04,440 Speaker 1: one piece of advice you would give to someone who 434 00:22:04,480 --> 00:22:05,680 Speaker 1: is about to become a CFO. 435 00:22:05,920 --> 00:22:08,359 Speaker 2: It's an interesting question because I think about my own 436 00:22:08,440 --> 00:22:11,520 Speaker 2: career journey and it is probably my answer would be 437 00:22:11,640 --> 00:22:13,640 Speaker 2: is it's not about how to say no. It's about 438 00:22:13,680 --> 00:22:16,159 Speaker 2: how to say yes, how to figure out how to 439 00:22:16,240 --> 00:22:19,439 Speaker 2: support the business around you to get them to the 440 00:22:19,440 --> 00:22:22,520 Speaker 2: place where they need to be sure. You know you 441 00:22:22,560 --> 00:22:26,440 Speaker 2: want to deliver results and you want to create processes, 442 00:22:27,000 --> 00:22:30,600 Speaker 2: but don't let processes keep you away from achieving results. 443 00:22:30,640 --> 00:22:33,520 Speaker 2: And so I'd say, have fun with it. This is 444 00:22:33,840 --> 00:22:36,000 Speaker 2: This has been a ball for me and I'm looking 445 00:22:36,000 --> 00:22:37,280 Speaker 2: forward to the next five years. 446 00:22:37,520 --> 00:22:40,119 Speaker 1: I'm Scarlet Foo. This is Bloomberg.