WEBVTT - Chief Future Officer: Kathy Milthorpe, LPGA 0:00:02.680 --> 0:00:05.279 In a decade of disruption for the business of sports, 0:00:05.480 --> 0:00:07.880 one game has seen a significant. 0:00:07.320 --> 0:00:13.280 Upsling During COVID, golf exploded on a. 0:00:13.280 --> 0:00:17.160 Course, at the driving range, at indoor simulators and entertainment venues. 0:00:17.600 --> 0:00:21.120 Record numbers of Americans played golf last year, and a 0:00:21.160 --> 0:00:24.759 growing portion of those were women. More than six million 0:00:24.760 --> 0:00:27.240 women and girls played the game on a US course 0:00:27.280 --> 0:00:31.120 in twenty twenty two, again of fourteen percent over twenty nineteen. 0:00:32.440 --> 0:00:35.320 You look at the number of women that want to 0:00:35.400 --> 0:00:39.560 learn the game, young girls that are joining on the tea. 0:00:40.080 --> 0:00:42.240 Really an exciting time for all of us to really 0:00:42.240 --> 0:00:43.520 capitalize on this moment. 0:00:44.720 --> 0:00:47.639 It's a moment of peak opportunity for the Ladies Professional 0:00:47.680 --> 0:00:51.160 Golf Association. Founded in nineteen fifty as a playing tour, 0:00:51.520 --> 0:00:55.560 the LPGA is now a nonprofit organization supporting women's golf 0:00:55.600 --> 0:00:56.640 at every level. 0:00:57.200 --> 0:00:59.800 I think that the LPGA's the land of opportunity. They 0:01:00.000 --> 0:01:03.840 were the originals. Like when you think about women's sport 0:01:04.720 --> 0:01:08.080 and the idea of women founding and building sports on 0:01:08.120 --> 0:01:11.959 their own, I think LPGA. 0:01:12.560 --> 0:01:16.240 LPGA tournaments featured the world's best players competing for millions 0:01:16.240 --> 0:01:20.360 of dollars, while LPGA programs build a grassroots involvement that 0:01:20.400 --> 0:01:22.679 creates a passionate audience for the product. 0:01:23.200 --> 0:01:26.080 Golf is one of those rare sports that adults actually 0:01:26.520 --> 0:01:30.360 love to watch, but then they can actually go play nice. 0:01:30.680 --> 0:01:32.800 Oh that's the best of the day. 0:01:32.840 --> 0:01:33.440 Holy cow. 0:01:34.520 --> 0:01:39.319 Molly Marcousseman was named LPGA Commissioner in twenty twenty one. 0:01:39.760 --> 0:01:43.920 That was amazing, bringing credentials as a college athletics administrator 0:01:44.040 --> 0:01:48.480 and a longtime sports facilities executive, smoothing her transition to 0:01:48.520 --> 0:01:52.920 this new challenge seasoned CFO Kathy Milthorp, who started her 0:01:52.960 --> 0:01:55.760 career at the LPGA over thirty years ago. 0:01:56.240 --> 0:01:59.200 Kathy's you know, wealth of knowledge for the golf industry 0:01:59.440 --> 0:02:02.200 was really really important for me to be able to 0:02:02.240 --> 0:02:02.920 learn the business. 0:02:02.960 --> 0:02:04.920 We're going to do a little finance one on one 0:02:04.960 --> 0:02:07.120 for the player for the new player director she was 0:02:07.160 --> 0:02:07.880 talking about. 0:02:07.720 --> 0:02:10.680 She's definitely not the CFO that sits in the office and. 0:02:10.639 --> 0:02:12.600 Crunches the numbers that we tell her to crunch. 0:02:12.680 --> 0:02:15.880 As we're talking about strategy, we can just ask her 0:02:15.919 --> 0:02:17.600 sitting in the room, Okay, what are the levers we. 0:02:17.560 --> 0:02:22.359 Can pull to to really implement that strategy in competition. 0:02:22.639 --> 0:02:26.200 Golf is the ultimate individual sport. But for the LPGA 0:02:26.320 --> 0:02:29.400 to sustain its momentum as a driving force for women's golf, 0:02:29.919 --> 0:02:31.360 it takes a team effort. 0:02:31.919 --> 0:02:34.600 She has this tremendous knowledge, but she also you know, 0:02:34.680 --> 0:02:37.280 she's committed to the business. She's passionate about it. She 0:02:37.440 --> 0:02:39.440 really doesn't just think this is what I'm told to do. 0:02:39.600 --> 0:02:41.960 She thinks about how we can actually grow the organization 0:02:42.360 --> 0:02:42.919 every day. 0:02:43.120 --> 0:02:44.400 So it's been a godsend to me. 0:02:45.000 --> 0:02:48.760 She loves the LPGA, loves the organization, and I think 0:02:48.960 --> 0:02:51.120 in that leadership role, you really have to have a 0:02:51.160 --> 0:02:54.400 passion for the mission. She's also got great business acumen. 0:02:54.800 --> 0:02:58.200 She's interesting because she really does like the numbers. So 0:02:58.280 --> 0:03:00.080 as a CFO, that's great for me. 0:03:00.360 --> 0:03:01.839 She's asking about the numbers all the time. 0:03:01.919 --> 0:03:05.080 She's asking about the numbers. She likes the numbers. I 0:03:05.080 --> 0:03:07.320 think if she dies and comes back, she's going to 0:03:07.360 --> 0:03:08.480 be an accountant one day. 0:03:08.880 --> 0:03:12.040 With our growth strategy, the idea is to get to yes. 0:03:12.120 --> 0:03:14.320 I mean, we're really investing in top line growth and 0:03:14.360 --> 0:03:15.760 so we want her to say yes as much as 0:03:15.760 --> 0:03:16.959 she can possibly say yes. 0:03:17.080 --> 0:03:19.519 You always often think of accountants as the no people 0:03:19.600 --> 0:03:21.400 or the people of why we've got to work within 0:03:21.639 --> 0:03:25.440 a structure or save money or cost control, and sure 0:03:25.520 --> 0:03:27.280 we do that. We try to make sure that we're 0:03:27.320 --> 0:03:30.960 good stewards of the association's resources. But I think where 0:03:31.000 --> 0:03:33.480 we've tried to be more effective is to make sure 0:03:33.520 --> 0:03:37.680 that we're helping our departments, our colleagues, our members drive success. 0:03:38.080 --> 0:03:40.880 And so that's finding the ways to a yes instead 0:03:40.880 --> 0:03:41.960 of finding the ways to a no. 0:03:58.240 --> 0:04:01.880 To understand Kathy Milthorpe's rule. As CFO, it's essential to 0:04:02.000 --> 0:04:03.960 understand the LPGA's business model. 0:04:04.360 --> 0:04:07.000 The best CFOs and not for profits and sports are 0:04:07.160 --> 0:04:12.360 great at growth, great innovation, great at scale, and then 0:04:13.080 --> 0:04:17.599 really excellent as strategic thinkers about where should we be spending. 0:04:17.800 --> 0:04:21.000 Our focus is on mission and so that's really taking 0:04:21.040 --> 0:04:24.000 the revenues that we generate and redriving that back into 0:04:24.080 --> 0:04:28.159 providing member opportunities. So as a finance team, you know, 0:04:28.240 --> 0:04:31.200 our goal is to really help shepherd those resources to 0:04:31.240 --> 0:04:33.320 make sure that we're driving and fueling growth. 0:04:35.160 --> 0:04:39.560 Before COVID, the lpg's annual revenue fluctuated within a consistent range. 0:04:39.880 --> 0:04:42.320 The last two years have seen those numbers jump. 0:04:44.720 --> 0:04:46.560 We've experienced tremendous growth. 0:04:46.880 --> 0:04:49.520 You know, from pre pandemic to now, I think in 0:04:49.560 --> 0:04:52.159 every one of our major revenue categories we're up over 0:04:52.240 --> 0:04:54.880 fifty percent, which is which is tremendous. 0:04:55.400 --> 0:04:57.279 What are the metrics that matter the most to you 0:04:57.360 --> 0:04:57.760 right now? 0:04:57.960 --> 0:05:00.400 Prize money for the players, that's the way they make 0:05:00.440 --> 0:05:02.920 a living. The ability to be able to compete at 0:05:02.920 --> 0:05:05.880 the highest level and earn purses that are commensurate with 0:05:05.920 --> 0:05:09.040 their male counterparts is a mission that we're driving towards 0:05:09.080 --> 0:05:09.640 every day. 0:05:11.640 --> 0:05:14.640 The annual prize money pool in LPGA tournaments has grown 0:05:14.720 --> 0:05:18.039 fifty percent since twenty nineteen. In twenty twenty three, it 0:05:18.080 --> 0:05:21.400 topped one hundred million dollars, but the prize fund still 0:05:21.520 --> 0:05:24.600 likes far behind what men compete for on the PGA Tour. 0:05:25.080 --> 0:05:27.760 The inequality hits hardest at the lower end of the 0:05:27.760 --> 0:05:28.320 money list. 0:05:28.680 --> 0:05:30.920 Clearly, we want the top players to continue to make 0:05:30.920 --> 0:05:31.839 a great living playing. 0:05:31.839 --> 0:05:33.760 These are the very best in the world. But we 0:05:33.800 --> 0:05:34.760 also then dig in and. 0:05:34.680 --> 0:05:37.080 Say, Okay, what's the fiftieth best player in the world making, 0:05:37.200 --> 0:05:38.920 and what did you make last year? What did the 0:05:38.920 --> 0:05:40.599 one hundred best player in the world make, and what 0:05:40.640 --> 0:05:42.760 did you make the year before? I've asked Kathy to 0:05:42.800 --> 0:05:46.240 run numbers many times to say, Okay, tell me where 0:05:46.240 --> 0:05:48.039 we are exactly during the middle of the season. 0:05:48.040 --> 0:05:50.279 At the end of the season, that one hundredth player, 0:05:50.400 --> 0:05:53.120 our goal would be to obviously have that player make 0:05:53.440 --> 0:05:56.040 considerable amount of prize winnings, and we're going to work 0:05:56.040 --> 0:05:58.599 really hard to do that. Having said that, we do 0:05:58.760 --> 0:06:02.039 need to continue to focus on ways to provide opportunities 0:06:02.080 --> 0:06:05.400 so that one hundred best player can cover those costs 0:06:05.400 --> 0:06:06.960 that it takes for them to be out here on 0:06:07.000 --> 0:06:10.479 the golf course. That's hiring a caddy, that's travel, that 0:06:10.800 --> 0:06:14.880 strength coaches. We're helping to provide stipends for health insurance 0:06:15.000 --> 0:06:18.960 or create a tour wide health insurance program ability, to 0:06:19.000 --> 0:06:22.000 create more discounts for travel, you know, for hotel and 0:06:22.080 --> 0:06:24.480 car and all those things that really cost them a lot. 0:06:24.760 --> 0:06:29.120 To meet these objectives, LPGA leadership collaborates creatively with sponsors. 0:06:29.520 --> 0:06:31.440 We've worked with some of our corporate partners to say, 0:06:31.640 --> 0:06:34.120 help us solve a problem. You help us create a 0:06:34.200 --> 0:06:36.520 fund that will allow our players to get to the 0:06:36.560 --> 0:06:39.680 first team ready to reach peak performance. 0:06:40.320 --> 0:06:43.679 And more partners are stepping up. According to Intelligence platform 0:06:43.760 --> 0:06:47.760 sponsor United sponsorships in women's sports leagues grew twenty percent. 0:06:47.800 --> 0:06:50.919 In twenty twenty two, the LPGA led the way, with 0:06:51.040 --> 0:06:55.039 brand deals increasing thirty percent versus twenty twenty one. Underpinning 0:06:55.080 --> 0:06:56.960 the boom a shift in thinking. 0:06:57.360 --> 0:06:59.479 It was only a few years ago we were saying, oh, 0:06:59.520 --> 0:07:02.719 you should for women's sports because it's nice. We don't 0:07:02.720 --> 0:07:03.400 have to say anymore. 0:07:03.480 --> 0:07:09.440 Brands are understanding that it's not a pity party anymore. 0:07:09.600 --> 0:07:12.320 They're not investing in women's sports because it's the right 0:07:12.360 --> 0:07:16.840 thing to do, but they are seeing actual great ROI. 0:07:16.480 --> 0:07:18.760 When you look at women who are making most of 0:07:18.800 --> 0:07:23.120 the purchasing decisions in households, whether that's cars, or that 0:07:23.360 --> 0:07:26.280 is home or financial services, and who are going to 0:07:26.360 --> 0:07:28.559 drive the wealth of the future, it's women. 0:07:28.600 --> 0:07:30.680 If you talk to our top sponsors, they'll say, listen, 0:07:30.760 --> 0:07:33.320 this is a double value. We get the value of 0:07:34.040 --> 0:07:36.440 the commercial, you know, sort of just exposure that we 0:07:36.480 --> 0:07:38.560 get in the brand building, but we also get to 0:07:38.600 --> 0:07:42.720 talk to our clients, to our employees and really show 0:07:43.160 --> 0:07:44.600 the commitment that we have to women. 0:07:46.000 --> 0:07:50.600 The beautiful thing is brands are not realizing there's huge 0:07:50.640 --> 0:07:55.480 demand for women's sports, but even more importantly, women's sports 0:07:55.520 --> 0:07:58.560 fans are fiercely loyal they'll spend. 0:08:00.120 --> 0:08:01.320 Not playing if it releases. 0:08:01.520 --> 0:08:04.720 The LPGA's TV viewership also rows in twenty twenty two, 0:08:05.000 --> 0:08:07.280 another promising sign for its financial future. 0:08:08.000 --> 0:08:10.960 Media rights is really probably the single largest driver. In 0:08:11.000 --> 0:08:15.200 addition to corporate partners that drive the association's revenues. 0:08:14.920 --> 0:08:17.720 The LPGA and the PGA Tour have a joint agreement 0:08:17.760 --> 0:08:21.120 for domestic media rights that runs through twenty thirty. In 0:08:21.160 --> 0:08:23.680 the rest of the world, the LPGA controls its own 0:08:23.720 --> 0:08:26.560 media rights. Its content can be seen in over five 0:08:26.640 --> 0:08:29.720 hundred million households in one hundred and seventy five countries 0:08:29.760 --> 0:08:30.440 around the world. 0:08:30.680 --> 0:08:34.679 Twenty five years ago, was primarily a US based organization. 0:08:35.320 --> 0:08:37.920 Now more than forty percent of our revenues come from 0:08:37.960 --> 0:08:39.000 outside the US. 0:08:40.960 --> 0:08:43.640 Media rights deals outside the US are a driver of 0:08:43.679 --> 0:08:47.319 revenue growth, but building a global media brand takes time 0:08:47.520 --> 0:08:48.760 and money on side. 0:08:48.760 --> 0:08:52.920 For je Chin, someone sitting in Soeul, Korea has a 0:08:53.040 --> 0:08:56.720 very different perspective than maybe someone that's sitting in Toledo, Ohio, 0:08:57.200 --> 0:09:00.760 and so the ability to really create a global telecast 0:09:01.120 --> 0:09:03.480 is something that we've got to continue to invest in. 0:09:05.520 --> 0:09:08.679 Developing and upgrading technology has been a key priority for 0:09:08.720 --> 0:09:11.280 the LPGA and will be for years to come. 0:09:11.840 --> 0:09:14.280 Technology is going to drive the future. 0:09:14.760 --> 0:09:16.400 One seven shot continued. 0:09:16.920 --> 0:09:18.640 Sports are all about data these days. 0:09:18.640 --> 0:09:21.560 People want to know how well are women performing at 0:09:21.600 --> 0:09:23.600 various parts of the game, and also it helps with 0:09:23.640 --> 0:09:27.960 the equity conversation. By having more advanced stats and more data, 0:09:28.000 --> 0:09:29.960 we can tell the stories of the very best players 0:09:29.960 --> 0:09:32.040 in the world and how they compare to other women 0:09:32.040 --> 0:09:33.880 on the tour, but also how they compare to men. 0:09:34.200 --> 0:09:36.480 Shot level data for betting is also important. 0:09:36.520 --> 0:09:40.040 We know that betting really gets people connected to the game. 0:09:40.080 --> 0:09:41.760 If you have a stake in what people are doing, 0:09:41.880 --> 0:09:43.560 you get to know the players more, you get you 0:09:43.600 --> 0:09:45.880 follow them more closely or more connected as a fan. 0:09:46.000 --> 0:09:48.520 Our website and having two way communication with our fan 0:09:48.840 --> 0:09:49.800 fans is critical. 0:09:49.920 --> 0:09:54.360 I think that data is very important to any league 0:09:54.400 --> 0:09:56.800 that is looking to connect with their fans on a 0:09:56.840 --> 0:10:00.000 deeper level, because women's sports is an opt in experience 0:10:00.240 --> 0:10:03.320 where you actually are seeking out where can I watch 0:10:03.880 --> 0:10:06.520 this match? Where can I watch this game? How can 0:10:06.559 --> 0:10:10.440 I watch this tournament. The more that that league or 0:10:10.520 --> 0:10:13.640 team can talk to their fans, I think that's. 0:10:15.440 --> 0:10:18.760 Really tremendous. What does your investment spend on technology look 0:10:18.800 --> 0:10:19.679 like right now. 0:10:19.640 --> 0:10:22.360 We're trying to figure that out, and I will tell 0:10:22.360 --> 0:10:24.200 you we're going to need partners to be able to 0:10:24.240 --> 0:10:27.920 do that, because I'm sure you know tech is not cheap. 0:10:27.960 --> 0:10:30.520 We're in the process of kind of outlining our roadmap. 0:10:30.640 --> 0:10:33.920 We're also looking at how we can create operational efficiencies 0:10:34.320 --> 0:10:39.360 molding all the various databases and various solutions that we 0:10:39.440 --> 0:10:42.840 have Internally. We probably have thirty plus different solutions that 0:10:42.880 --> 0:10:47.640 we work with today. Currently, our thirty four tournaments operate 0:10:47.720 --> 0:10:51.960 really like independent, independent businesses, and so what we're working 0:10:52.040 --> 0:10:54.880 on in the next couple of years is to build, 0:10:54.960 --> 0:10:58.160 for instance, a tour wide ticketing solution. We'll also start 0:10:58.240 --> 0:11:02.200 building rebuilding our website in the next probably three to 0:11:02.280 --> 0:11:04.760 six months, and then you know, in two or three 0:11:04.840 --> 0:11:07.839 years you start all over again with tech. What is 0:11:08.400 --> 0:11:11.880 popular today will be probably quite different in the not 0:11:11.920 --> 0:11:12.800 too distant future. 0:11:13.480 --> 0:11:15.640 The year that Kathy Milthorpe came to work for the 0:11:15.720 --> 0:11:18.760 LPGA Hall of Femer, Pat Bradley was the tour's top 0:11:18.800 --> 0:11:22.319 money winner. She earned just under five hundred thousand dollars. 0:11:22.720 --> 0:11:24.120 That was in nineteen eighty six. 0:11:24.760 --> 0:11:26.880 I worked for Price water House Coopers at the time 0:11:26.920 --> 0:11:29.880 Cooper's and librand when I went into public accounting and 0:11:29.880 --> 0:11:32.200 they were a client. The LPGA tournament was a client 0:11:32.200 --> 0:11:34.920 of mine, got recruited and came to work for the 0:11:34.920 --> 0:11:37.640 association when we were based in Texas, and then helped 0:11:37.679 --> 0:11:40.120 as part of the relocation when the business moved to Florida. 0:11:40.920 --> 0:11:43.600 She's had three separate tours of duty at the LPGA, 0:11:43.840 --> 0:11:47.360 stepping away twice to pursue other opportunities in sports. What 0:11:47.440 --> 0:11:50.199 did you bring back to the LPGA from those experiences? 0:11:50.440 --> 0:11:52.760 While it was challenging to leave, it was probably the 0:11:52.760 --> 0:11:54.600 best thing I could have ever done for my career 0:11:54.800 --> 0:11:57.200 because I got a chance to see one, for instance, 0:11:57.200 --> 0:11:59.200 on the golf side, really what it takes to put 0:11:59.200 --> 0:12:02.520 a golf tourent on. On the public affairs side, really 0:12:02.559 --> 0:12:07.360 seeing what it takes to secure sponsors, to build marketing plans, 0:12:08.559 --> 0:12:12.280 to look at new ways of financing. And I think 0:12:12.280 --> 0:12:14.640 that has served me well to allow me to look 0:12:14.640 --> 0:12:17.400 at things in a different light than just crunching numbers. 0:12:17.800 --> 0:12:20.520 Kathy Milthorpe's range of experience helps her see the big 0:12:20.559 --> 0:12:24.600 picture and also master the details. Both capabilities come into 0:12:24.600 --> 0:12:29.000 play as she oversees the LPGA's primary revenue source the tour. 0:12:29.320 --> 0:12:32.480 Every week we play in different markets around the country, 0:12:32.520 --> 0:12:34.840 and it's somewhere between a five to fifteen million dollar 0:12:34.960 --> 0:12:41.320 operation that's taking place. We're bringing in staff, vendors, caterers, 0:12:41.600 --> 0:12:46.040 building really a little city within a tournament infrastructure. 0:12:49.360 --> 0:12:52.240 In twenty twenty three, the LPGA will hold tournaments across 0:12:52.280 --> 0:12:56.000 Asia and Europe and in eleven US states. Geography is 0:12:56.080 --> 0:12:57.880 just one measure of its complexity. 0:12:58.200 --> 0:12:59.839 When we go to a tournament site, that's like a 0:13:00.040 --> 0:13:03.040 upper business also, and each tournament that we work with 0:13:03.080 --> 0:13:04.400 has a different financial model. 0:13:05.320 --> 0:13:08.960 We'll operate about four of our thirty plus tournaments this year, 0:13:09.720 --> 0:13:13.200 and then the rest of them are operated by other individuals, 0:13:13.200 --> 0:13:16.960 other promoters, other operating companies that help bring what we 0:13:17.040 --> 0:13:19.720 call the traveling circus to town each week. 0:13:19.960 --> 0:13:23.840 Across all the different venues and operational conditions, Milthorpe and 0:13:23.880 --> 0:13:26.600 her colleagues have to make sure that the customer experience 0:13:26.679 --> 0:13:28.880 consistently achieves a high standard. 0:13:29.720 --> 0:13:31.920 I think the fan when they come to a sporting 0:13:31.960 --> 0:13:36.000 event today. While the competition is certainly the key, they 0:13:36.040 --> 0:13:40.000 want an experience. So they want great food, they want 0:13:40.040 --> 0:13:42.800 something where their family, whether maybe they're not a patron 0:13:42.840 --> 0:13:46.240 of the sport, or their kids can do something they want, 0:13:46.600 --> 0:13:51.120 really an outdoor experience and also be able to watch 0:13:51.360 --> 0:13:52.640 great athletes compete. 0:13:53.160 --> 0:13:55.920 Fans also attend tournaments to interact with their heroes on 0:13:55.960 --> 0:13:58.920 a more personal level. For an organization with a mission 0:13:58.960 --> 0:14:02.440 to promote the sport and build engagement, every event is 0:14:02.440 --> 0:14:05.280 an opportunity to create bonds between the women who play 0:14:05.640 --> 0:14:07.240 and the audience that supports them. 0:14:07.520 --> 0:14:11.680 The tournaments are a great foundation. The stars of the 0:14:11.720 --> 0:14:15.360 show are those athletes, and I do think there's an 0:14:15.360 --> 0:14:21.320 opportunity right now to better connect the LPJ superstars with 0:14:22.640 --> 0:14:25.520 the growing fandom of women's sports, especially if we look 0:14:25.560 --> 0:14:28.600 ahead and we look at gen Z. It's a generation 0:14:28.680 --> 0:14:30.640 that cares about purpose, They care about connection. 0:14:30.840 --> 0:14:32.960 How close can they get, how much engagement is there? 0:14:33.160 --> 0:14:35.600 Interaction is there between the fans and the players themselves. 0:14:35.840 --> 0:14:37.960 You know, golf is probably one of the few sports 0:14:37.960 --> 0:14:40.440 where the fan can really get up and close and 0:14:40.480 --> 0:14:42.640 personal with the athlete. But the great thing about the 0:14:42.640 --> 0:14:46.200 players are is they'll stop during the competition, they'll sign autographs, 0:14:46.440 --> 0:14:50.480 they'll you know, welcome fans. Every Wednesday or Thursday, there's 0:14:50.480 --> 0:14:53.640 a pro am setting where individuals actually compete with the 0:14:53.680 --> 0:14:56.840 athletes who would do that in sports, but here and 0:14:56.880 --> 0:14:59.600 then we'll offer clinics, So players might do a special 0:14:59.640 --> 0:15:02.480 appear grants, they might do a junior clinic where they 0:15:02.480 --> 0:15:04.880 give some tips, they might give tips to new golfers. 0:15:04.920 --> 0:15:06.160 And our players. 0:15:05.760 --> 0:15:06.440 Really get it. 0:15:06.680 --> 0:15:08.680 They recognize at the end of the day that the 0:15:08.680 --> 0:15:10.040 fans are what make the difference. 0:15:10.160 --> 0:15:12.760 As CFO, of course, your job is to maximize revenue, 0:15:12.800 --> 0:15:14.680 to bring in revenue, So how do you determine the 0:15:14.800 --> 0:15:18.120 value of that level of fan player engagement? 0:15:18.640 --> 0:15:21.800 Yeah, I mean, certainly driving ticket sales is important to 0:15:21.840 --> 0:15:26.560 the overall bottom line for an event. Each week, it's 0:15:26.680 --> 0:15:30.280 essential that we create something that's profitable, so either we 0:15:30.320 --> 0:15:34.680 can reinvest back into the prize money or provide money 0:15:34.720 --> 0:15:37.600 for charity in the local community, which is also equally 0:15:38.000 --> 0:15:39.560 an important component to what we're doing. 0:15:40.400 --> 0:15:43.320 Some of the headwinds facing all global businesses continue to 0:15:43.360 --> 0:15:46.880 weigh on the LPGA Tour. A tournament in Shanghai early 0:15:46.880 --> 0:15:50.080 in twenty twenty three was canceled due to COVID complications. 0:15:50.480 --> 0:15:54.120 Inflation has driven up travel and hospitality costs, among other 0:15:54.160 --> 0:15:57.480 expenses that vary dramatically from continent to continent. What do 0:15:57.600 --> 0:15:59.880 the financials of a tournament that's held an Asia look 0:15:59.920 --> 0:16:02.720 like versus the tournament that's held in the US. 0:16:02.360 --> 0:16:05.400 It's interesting when you play overseas, it's a lot more 0:16:05.400 --> 0:16:08.760 expensive to conduct an event for a couple of reasons. One, 0:16:09.280 --> 0:16:13.040 you don't have the large volunteer base in typically in Asia, 0:16:13.600 --> 0:16:18.760 most of those support individuals are paid. Also, just infrastructures 0:16:18.760 --> 0:16:22.040 more expensive in some of those In some of those areas, 0:16:22.240 --> 0:16:24.480 we might play in more remote areas where there's not 0:16:24.520 --> 0:16:29.480 a lot of competition, so building the infrastructure skyboxes, tents 0:16:29.480 --> 0:16:31.880 and all that can be quite expensive. It's not an 0:16:31.960 --> 0:16:36.640 inexpensive proposition to run an event overseas, but it actually 0:16:36.680 --> 0:16:38.720 is one of the more profitable ones for us. In 0:16:38.760 --> 0:16:42.000 any tournament where we've been in a long time, we'll 0:16:42.200 --> 0:16:44.080 easily have one hundred thousand fans for the week. 0:16:44.720 --> 0:16:48.600 There's also geopolitics to consider. One sensitive issue that's playing 0:16:48.600 --> 0:16:52.000 out across the golf world centers on Saudi Arabia. The 0:16:52.120 --> 0:16:55.560 Kingdom's Sovereign Wealth Fund finances the men's Live Tour, which 0:16:55.600 --> 0:16:59.080 competes directly with the PGA. On the women's side, The 0:16:59.160 --> 0:17:03.160 Kingdom's oil company, Saudi Ramcop sponsors a series of tournaments 0:17:03.200 --> 0:17:06.320 that attract the world's top players with substantial prize money. 0:17:06.520 --> 0:17:10.320 The LPGA's approach to Saudi investment in women's golf accentuates 0:17:10.359 --> 0:17:11.680 the positives. 0:17:11.359 --> 0:17:15.760 They're providing additional playing opportunities for the women on the Ladies' 0:17:15.760 --> 0:17:19.120 European Tour, which you know, they're much needed opportunities. As 0:17:19.119 --> 0:17:20.920 far as the LPGA is concerned, I mean, I think, 0:17:20.960 --> 0:17:23.359 as you know, we're really bullish on our growth and 0:17:23.400 --> 0:17:26.000 so we're really focused on the growth that we're sort 0:17:26.040 --> 0:17:29.080 of a trying to achieve, and you know, it's our 0:17:29.280 --> 0:17:32.080 responsibility to always listen to and to see other people 0:17:32.080 --> 0:17:33.840 coming into the game and to see what. 0:17:33.880 --> 0:17:34.919 Opportunities could be. 0:17:35.000 --> 0:17:37.520 Our job again is to focus on you know, elevator, 0:17:37.600 --> 0:17:42.000 elevating our brand and elevating our footprint, and that's really 0:17:42.000 --> 0:17:43.679 what we're doing. And I think as we've seen the 0:17:43.720 --> 0:17:44.720 opportunity is there. 0:17:45.880 --> 0:17:49.119 In twenty twenty three and beyond, the LPGA is poised 0:17:49.160 --> 0:17:52.960 to capitalize on two very favorable trends. An increase in 0:17:53.000 --> 0:17:55.359 the number of women who play golf and a surge 0:17:55.359 --> 0:17:58.480 of support for women's sports from corporate sponsors and partners. 0:17:58.880 --> 0:18:02.159 The organization has a expanded its global employee headcount by 0:18:02.240 --> 0:18:05.359 ten percent since twenty twenty one and plans to continue 0:18:05.400 --> 0:18:06.080 staffing up. 0:18:06.280 --> 0:18:09.040 Mostly, I would think we're investing in our sales team 0:18:09.600 --> 0:18:11.840 because we think the market is really big and it's 0:18:11.880 --> 0:18:15.360 ready for us. So we're also investing in some partnerships 0:18:15.359 --> 0:18:18.639 with some third party partners that can go out and 0:18:18.680 --> 0:18:21.440 help us, you know, kind of canvass the world more. 0:18:21.520 --> 0:18:23.879 We need more people to be out there talking to 0:18:23.920 --> 0:18:27.720 those brands across the globe that we're interested in helping 0:18:27.800 --> 0:18:28.160 us grow. 0:18:28.359 --> 0:18:31.160 How critical is Kathy going to be in looking through 0:18:31.160 --> 0:18:32.080 those opportunities. 0:18:32.520 --> 0:18:35.320 Well, I mean again, she has to first let us 0:18:35.320 --> 0:18:36.960 know how much money we have to invest in that 0:18:37.040 --> 0:18:38.639 top line growth. So we need to go to her 0:18:38.680 --> 0:18:40.480 and say, listen, we need to we need to build 0:18:40.480 --> 0:18:42.680 people that can manage our current partnerships, and we need 0:18:42.720 --> 0:18:44.520 to build the staff that can go out and find 0:18:44.560 --> 0:18:48.560 new partnerships. Again, she's right right next to me on 0:18:48.600 --> 0:18:51.239 this to say it's time to bet on ourselves and 0:18:51.280 --> 0:18:54.119 to be able to really scale more quickly. 0:18:54.920 --> 0:18:58.280 Scaling up its infrastructure is one task ahead for the LPGA. 0:18:58.680 --> 0:19:01.840 Another pillar of the organization. A strategic plan is scaling 0:19:01.880 --> 0:19:06.280 up societal impact by increasing diversity. One of the goals 0:19:06.280 --> 0:19:08.359 that Molly has made a priority is to change the 0:19:08.400 --> 0:19:10.920 face of the game, bringing more diversity into the sport 0:19:10.960 --> 0:19:13.720 at all levels. As CFO, I'm wondering, what can you 0:19:13.800 --> 0:19:15.600 do to move the needle on that. Is there something 0:19:15.640 --> 0:19:16.640 you can do well? 0:19:16.680 --> 0:19:19.560 I think there is, because we've dedicated resources to do that. 0:19:19.680 --> 0:19:23.040 We've actually staffed up, you know, the LPGA Foundation, which 0:19:23.080 --> 0:19:27.160 was really primarily operating the girl's golf program. I think 0:19:27.440 --> 0:19:30.560 probably ten years ago we had less than four employees. 0:19:30.960 --> 0:19:34.240 Now we have probably close to twenty. So they're focused 0:19:34.280 --> 0:19:39.480 on programming, they're focused on fundraising, leadership academies, bringing golf 0:19:39.560 --> 0:19:43.040 to underserved populations. If you look at twenty years ago 0:19:43.240 --> 0:19:47.080 and particularly persons of color, it was less than one 0:19:47.119 --> 0:19:51.040 out of seventeen individuals we're playing the game now, that's 0:19:51.040 --> 0:19:53.480 moved to one in three. Secondly, is really moving the 0:19:53.520 --> 0:19:57.200 needle on young girls? Twenty years ago, about fifteen percent 0:19:57.280 --> 0:20:01.200 of the new golfers of junior golfers were women. Now 0:20:01.240 --> 0:20:04.040 that's more than a third of those golfers are women, 0:20:04.400 --> 0:20:06.879 our young girls. But maybe we can insert in them 0:20:06.920 --> 0:20:08.440 as well the partners. 0:20:07.920 --> 0:20:11.880 And as CFO of the LPGA, Kathy Mildorp makes sure 0:20:11.960 --> 0:20:14.480 that resources go where they can do the most good 0:20:14.600 --> 0:20:18.760 for women's golf, whether it's empowering beginners through grassroots programs 0:20:18.840 --> 0:20:22.760 or increasing earning power and pay equity for professionals. I 0:20:22.880 --> 0:20:25.200 wanted to know what she sees when she looks into 0:20:25.240 --> 0:20:27.960 the future. What is the opportunity for the LPGA in 0:20:28.000 --> 0:20:30.440 the next five years that really gets the most excited. 0:20:30.880 --> 0:20:32.080 It's still those athletes. 0:20:32.760 --> 0:20:37.480