Augusta National and the Masters Golf Tournament

Female Membership – Staying the Course?

A Notre Dame case study prepared by research assistants Andrew Nelson, Ashish

Singh, and Ray Swart under the direction of Professor J. S. O’Rourke, IV

Agenda

• Introduction

• Augusta National Golf Club

• The Masters Golf Tournament

• The Case: April – September

• CBS

• The Sponsors

• The PGA

• The NCWO

• Martha Burk

• William “Hootie” Johnson

• The Case Continues

• Discussion Questions

Introduction

Augusta National Golf Club

• History

• Membership

• 300 Members

• By invitation only

• First African American in 1990

• Currently no female members

The Masters Golf Tournament

• History

• One of the most prestigious

events in the world

• 2002 - $5.5 million purse

$3.3 million to charity

• The Green Jacket

April, 2002

At the 2002 Masters in April,

Lloyd Ward comments to reporters

that the leaders at Augusta should admit a

female member and that they should do it soon.

June 12

Martha Burk writes a

letter requesting that

Augusta open their

membership to women.

July 9

A day after responding to Ms. Burk

with a personal letter, William Johnson

issues a press release saying Augusta will

not be “bullied, threatened or intimidated.”

He goes on to say that perhaps some day a

female will be admitted but it will not be,

“at the point of a bayonet.”

July 30

Ms. Burk sends letters to the C.E.O.’s of the television sponsorsand the commissioner of the PGA asking them to suspend theirsponsorship of the Masters Golf Tournament.

Sanford WeillCitigroup

Douglas DaftCoca-Cola

Samuel PalmisanoIBM

Mark LaNeveCadillac

Tim FinchemPGA

Richard WagonerGeneral Motors

August 30

Mr. Johnson releases the

television sponsors from

their commitment to the

2003 tournament.

September 18

Ms. Burk asks CBS to

suspend broadcasting

the Masters.

September 19

Sean McManus replies

that CBS intends to cover

the 2003 tournament.

Columbia Broadcasting System

• Partnership with the Masters since 1956

• Unique relationship with the Masters

• 2002 fees for airing the Masters - $5 million

• Prestige more important than revenue

The Sponsors

The Professional Golfers’ Association

• Founded in 1916

• Largest sports organization in the world

• Conducts 40 annual tournaments

• Requires host clubs to have diversity policies

• The Masters is not an official PGA event

The National Council of Women’s Organizations

• Oldest and largest coalition

• 160 member organizations

• 7 million women

• Goals

• Structure

Martha Burk, Ph.D.

• Chair of the NCWO

• Moral issue, not a legal issue

• Initiated action after reading Lloyd Ward’s comments

• Methodical pursuit

William “Hootie” Johnson

• Chairman of Augusta National Golf Club

• Recent actions are an enigma

• More African American members

• Civil Rights movement

• Darla Moore

Early October

Augusta members break the “code of silence.”

Sanford Weill Kenneth Chenault Lloyd Ward

November 12

The final word?

vs.

Discussion Questions

• What are the basic business issues in the case?

• Should Augusta admit a female member? If so, when? How?

• Who are the key stakeholders other than those mentioned?

• Should the NCWO continue to press the issue? If so, how?

• What are the possible ramifications for both Augusta and the NCWO?

• What problems might prominent members of Augusta face?

• What other courses of action could have been pursued

by key individuals?