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Sponsoring amateurs turning professional
Forums → Ask Bruce | 35 posts
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Bruce, I have a bit of spare cash at the moment and was looking to perhaps buy a share in a racehorse. Its been suggested to me however, that its a better bet to "invest" in a top amateur golfer when they turn pro. How does this all work? I must say the idea of it all is of great interest to me. Can you offer any suggestions as to the correct structure of becoming an investor in a young professionals career? Cheers, Jack.
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Jack, someone in your position should be paying the subs of a pennant player at your home club.
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i'm not much good Jack, but I'd be prepared to take your cash.
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Jack there are people who do this but I imagine the question is how you are going to make money from it if that is your aim. A mate of mine funded Steve Bowditch last year when things were not going so well for him and deals like that typically are along the lines of a percentage of earnings for a set time. Bowditch is an exceptional case of someone who is likely to give a return but it should be remembered that expenses will be very high. I think unless you have a very philanthropic nature Jack and I'm not necessarily sure that is the case then you are better to stick with racehores although golf is likely closer to your heart. Like the horse racing scene there are many more dud pros than successful ones and it is difficult to structure a deal that can make money.
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Bruce, I played in a pro am a few years ago with David Hill. He couldn't tell me enough good stories about blokes who had invested in young pros starting out on tour and had made a decent return from the percentage of their prizemoney. It also gave the young pros a solid base on which to launch their career. I reckon there would be many more dud horses that pro's - provided you invest in the right one of course you should be a reasonable chance of getting your money back.
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Jack, Good to hear you have some money to throw around. The movies seems to be a good way to dodge tax these days. And I know of a few young amateur girls who are thinking of turing pro which might appeal to you as an investment opportunity. But if you want to stick to golf, you should probably set it up like a you would with a horse. You buy a two year old. Pay a coach a monthly fee to cover training and food and take the winnings for yourself, minus 10% for the coach and 10% for the caddy.
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Jack David Hill is a player manager of sorts so it is likely he
would say that. I imagine if that is the case he has invested in
many of his own players
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Of course not - he just takes a clip off the top of everything?
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Websites...that's where the money is
Use your "Edit My Profile" link in the right hand sidebar to add in your signature
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Things like this have been around for ages. Bruce is right. They rarely break even. What you have to remember is rather than just worry about whether the pro makes it big or not, is how it is structured. Most pros won't hang off backers for long once they are earning, so the bulk of the backing is done when they can't support themselves. By the time they are earning $20-30,000 more than they are spending, they ain't renewing and will go with conventional sponsorship opportunities. So even when these things win, they'll hang on long enough (hopefully) to give value to those who supported them and no longer. This doesn't go close to paying for those you might back that never make it or when the deal never returns in the positive. I'll bet my last dollar Bruce has seen this too over the years almost exactly as above. I think the best ones are just when some members who love their club back a young up-and-comer as a philanthropic thing. If a handful of members don't have to dig in for a huge sum each if there are enough of them and yet it still helps out and the player eventually maintains ties with their club and their fondness for it after becoming successful, that is all warm and fuzzy in the good sense. Another one I like is when the members encourage their pro to play. One Sydney club pro was an ex-Tour player who at his best did well but got sick and never looked like being able to play again. When he did, it was a for a few weeks off per year and wasn't ever going to become a permanent thing, but the members kept pushing him to have a crack if he wanted to. I remember after the '89 Aus Open at Kingston Heath, he was very grateful for their support and thought he'd play a bit and see how it went. Now, Peter Lonard is probably thankful the club didn't let him resign himself to starting Saturday fields and giving lessons.
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Jack, A buddy of mine looked into that re his business and the tax implications. Apparently he was pretty keen because they could claim it as a deduction off the business if the pro didn't make anything. I think it was better for them to claim the loss rather than a percentage of any prizemoney.
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Jack,
I need sponsorship if you're willing!!!
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You want competition?
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So do I but doubt we're gonna get it!!!
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If anyone is looking for a golfer to sponser,head out to Peninsular country club this week.The tour school is on and I watched some players today.Some of them look to be very promising.Some guy shot 66 in pretty windy conditions.
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Well explained there ttitherige. I know one guy who turned pro last year and had a syndicate of members back him. After his first year, which was successful, he was able to return the money. Now the joy on these guys faces knowing they were able to help a fellow member turn pro and make money is priceless. They took a risk to help someone out, and were fortunate to get a return in a year. Now the player who is very greatful for there help is more than happy to renew the syndicate to see if he can make the members support even more worth while.
One point that is very important is "what does the player
have to offer?" Still keen to hear bruce's opinion on how common syndicates are and what issuse they may face.
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blade - who was that? Indro bloke? Tex, Bloomy, Penman, Blythey?
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Has anyone heard of this guy, Robert Penman, lately? He was a really good amateur but sort of fell off the planet. Heard he may be doing a traineeship now...
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Blade is his older borther Brian Penman? He played amatuer golf here in Vic and turned pro but not with a lot of success.
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nup, a rednut QLD'er with a smooth swing but not quite there talent wise. I believe he is doing a traineeship at a small course on the Sunny Coast, perhaps mt coolum? before that I think he was a checkout chick at woolies
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Brian Penman was from QLD as well - pretty sure this bloke is his brother.
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not unlikely
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There's a very good chance he is. I recall him telling me some stories about a brother but the details have escaped me. Thanks for the update Thommo.
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They were from Lismore or Casino in Northern NSW I think - both may have played State for NSW. I thought one of them went to the AIS in Melbourne at one stage...it's all a bit hazy - it was a while ago!
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you're right about Robert AlexMc, now that you mention it he was definately from Lismore. if the other dude is his brother, then I guess he's from there too!
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