augusta national and the masters golf tournament female membership – staying the course? a notre...
TRANSCRIPT
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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
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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
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Introduction
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Augusta National Golf Club
• History
• Membership
• 300 Members
• By invitation only
• First African American in 1990
• Currently no female members
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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
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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.
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June 12
Martha Burk writes a
letter requesting that
Augusta open their
membership to women.
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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.”
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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
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August 30
Mr. Johnson releases the
television sponsors from
their commitment to the
2003 tournament.
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September 18
Ms. Burk asks CBS to
suspend broadcasting
the Masters.
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September 19
Sean McManus replies
that CBS intends to cover
the 2003 tournament.
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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
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The Sponsors
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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
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The National Council of Women’s Organizations
• Oldest and largest coalition
• 160 member organizations
• 7 million women
• Goals
• Structure
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Martha Burk, Ph.D.
• Chair of the NCWO
• Moral issue, not a legal issue
• Initiated action after reading Lloyd Ward’s comments
• Methodical pursuit
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William “Hootie” Johnson
• Chairman of Augusta National Golf Club
• Recent actions are an enigma
• More African American members
• Civil Rights movement
• Darla Moore
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Early October
Augusta members break the “code of silence.”
Sanford Weill Kenneth Chenault Lloyd Ward
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November 12
The final word?
vs.
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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?