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Sponsoring amateurs turning professional


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#1 Uncle_Leo

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Posted 12 December 2005 - 01:14 AM

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.



#2 AndyA

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Posted 12 December 2005 - 04:08 AM

Jack, someone in your position should be paying the subs of a pennant player at your home club.



#3 Moe

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Posted 12 December 2005 - 04:10 AM

i'm not much good Jack, but I'd be prepared to take your cash.



#4 bruce

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Posted 12 December 2005 - 04:36 AM

QUOTE: Thommo @ Dec 11 2005, 05:10 PM

i'm not much good Jack, but I'd be prepared to take your cash.

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.



#5 Uncle_Leo

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Posted 12 December 2005 - 04:56 AM

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.



#6 the_unreal_jeffrey

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Posted 12 December 2005 - 05:52 AM

QUOTE: Jack @ Dec 11 2005, 05:56 PM

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.

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.



#7 bruce

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Posted 12 December 2005 - 07:12 AM

QUOTE: Jack @ Dec 11 2005, 05:56 PM

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.

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 wink.gif



#8 Uncle_Leo

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Posted 12 December 2005 - 07:14 AM

QUOTE: bruce @ Dec 11 2005, 09:12 PM

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 wink.gif

Of course not - he just takes a clip off the top of everything?



#9 admin

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Posted 12 December 2005 - 10:21 AM

Websites...that's where the money is smile.gif



#10 ttitheridge

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Posted 12 December 2005 - 05:50 PM

QUOTE: Jack @ Dec 11 2005, 06:56 PM

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.

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.



#11 daacha

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Posted 12 December 2005 - 07:07 PM

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.



#12 aek

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Posted 12 December 2005 - 09:33 PM

Jack,

I need sponsorship if you're willing!!! wink.gif wink.gif



#13 peanuts

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Posted 12 December 2005 - 11:19 PM

QUOTE: admin @ Dec 11 2005, 09:21 PM

Websites...that's where the money is smile.gif

You want competition? blink.gif



#14 Willow

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Posted 12 December 2005 - 11:37 PM

QUOTE: aek @ Dec 12 2005, 11:33 AM

Jack,

I need sponsorship if you're willing!!!  wink.gif  wink.gif

So do I but doubt we're gonna get it!!! biggrin.gif



#15 G.Keenan

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Posted 14 December 2005 - 03:11 AM

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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