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Current Video:Beyond the Box Score|

Rick Horrow goes beyond the box score to talk sports business and chats with PGA of America CEO Joe Steranka.

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Automatically Generated Transcript (may not be 100% accurate)

I'm Rick Carlisle welcome to beyond the box score an inside look at the business of sports. Today's guest is the CEO of the PGA of America chose to rank up. Mr. ranked get leads the world's largest working sports organization. Which counts over 28000. -- professionals in their ranks He also directs the tour's brand marketing and business development. It was also a driving force to -- golf as an Olympic sport. A recently sent Dallas to Franca at the PGA championship. -- PGA of America 28000. Employees. Big organization. Club professionals. But there is some confusion with the PGA tour what are what are the different.

And understandably so up until 1968. The two organizations were one. We're celebrating our 95 anniversary of the PGA of America. And if that. Brings back memories of a day when club professionals didn't have today. Eight million dollar purse that they're gonna play for this week at the PGA championship they. Had to have the security of the financial security for their families of a club job. So whether it was Ben Hogan. And a Redding Pennsylvania. Byron Nelson. And Pennsylvania as well. Famous story about some other that greats of all time. Over and dear to the members of the teaching the game and representing the club as well as playing the game at the highest level.

Did the second CEO since PJ inception. And you've been with the organization for 23 years what your proudest accomplishment.

Well. Upholding. The great tradition of this sport in this institution you mentioned. 18000 men and women who go to work every day of can put a smile on folks faces. Some half. Billion times a year you know that's how many rounds played there aren't. At the same time I'm proud that through -- our organization has one foot in the future as well as we look at. How we maintain the relevance of golf in this. Very busy lifestyle that we have we do think golfers that they antidote. For childhood obesity. The need furcal got more stress relief to bring families together. And the economic impact that we talked about. Is -- so what are the biggest challenge of the future as far as making golf more welcoming in more accessible to the masses. Well you look at where the game -- played well. Our focus here this week is that they Atlanta athletic club one of the great private clubs only one and ten golfers belonged to a private club in this country. 70% of the rounds Slater played a public access those buildings they. Average -- the median. Around of golf cost them 29 dollars to golf is very accessible. And affordable but what we're looking at is how we use our and the way we could probably use. About 54%. Of the nations that golf course -- Torre. A little more prudently. Look at ourselves like -- airline industry the hotel industry that cruise industry. Have we use some of that inventory. And may be invested in the virgin. To get more kids and families. To play the sport.

I'd say talk about growth obviously one of the biggest instruments of growth is the Olympics you international counterparts basically got. Golf except in the Olympics starting 2016 -- are you proud of that where's it going.

Yes I would it was very. Heartwarming to see that entire golf industry. I come together to put our best. Combined effort forward for the IOC. So to thank the US GA the PGA tour the LPGA. In. Best the national royal and they treat them all come together. Great moment as. There is no single thing that we'll have done. That will accelerate the global growth involved like our sports additions to the Olympic Games.

And so from that international perspective since tiger won his first major. He's won fourteen there have been twenty American wins but also 25 international. Wins is the growth of the international golf game. Good for the sport.

Well you same day if you cycles through. Time back in 9394. There was emergency meetings convened in in the United States because six. They've majors have been won by non Americans we went all of 94 and no American won a major. And then -- right you know come. That decade of the two thousands -- Americans won 25 out of forty majors. Where this. Era of unprecedented global growth of golf and the Olympics will only do more of that. So we have to step up our game our view is competition is and we use the PGA championship. Invitation. Formula that we have to continue to bring the world's best players together so whoever. You know lifts up the Wanamaker trophy and takes it from our president Alan announced on Sunday is -- best of the very tough for -- strongest field of the year.

In the golf business is a great hands of your stewardship now tell me this you have the power to. Basically circle of friends every putt within three feet is good important for me to do it.

You know I was asked. The New York Times earlier this year that talked about the alternative golf association. Got a chance that the to spend some time -- Scott Pioli and they think you know. Are the rules as -- they need to be made them more friendly and you know the last time I checked they the ball again and again we were part of every -- also I think that's in this day and place them. But at the PGA championship to put your hands on the ball you better take two shots.

Golf is much more than a leisure sport it's a 76 billion dollar industry providing states with valuable jobs and tax revenue. Let's go inside the numbers to see the five states were golf has the biggest total economic -- First up is a tie between new York and North Carolina with each generating over five billion dollars annually from the business of golf. New -- the birthplace of the PGA of America. And has hosted five majors in the last decade while North Carolina has more than 550. Golf courses and was the site of the 2005. US open. Next is Texas which generates nearly seven billion dollars from the golf industry putting on par with the soft drink business. Texas has more than 900 courses and community development around golf has been one of the best in the country in recent years. At number two Florida. Golf in the sunshine state as an almost fourteen billion dollar business which is more important to the state economy than Orlando's theme parks. Florida's the only state that can -- to have over a thousand course. Finally the state with the biggest golf Industry,. California. Over fifteen. Billion dollars. Golf is responsible for a 160000. Full time jobs producing nearly five billion dollars in total wages for the state. The iconic Pebble Beach golf links also played host to last year's US open. Of course the impact the game brings into communities fluctuate based on the state of the economy. For three ways the economy affects the business of golf it's time for -- boom and hope. Prominent golf agent chubby Chandler may have jumped the gun and -- part of his agency ISM group. Recently documents have surfaced that indicates Chandler sold 75%. Of his company last summer. Right before his clients went on to win four of the next five majors now. Wyndham hotels extended its title sponsorship of the PGA event in Greensboro, North Carolina through 2016. Which is valued between seven and eight million dollars annually. The tour is also in negotiations for naming rights to another 25 tournaments. And finally I hope. The PGA super store plans to open its first location in South Florida in November the company's twelve nationwide. Along with merchandise and -- for golf lessons group clinics and club fittings. The super store -- an easy time selling Rory McIlroy themed merchandise. After He shocked the golf community by saying He would join the PGA tour next year. The ripple effects from that announcement makes the 2012 PGA tour season my valedictorian of the week. McIlroy is expected to -- about seventeen events which is critical for the towards marketing plans and I'm going TV rights negotiations. By contrast. My flunk out of the week. None other than Tiger Woods. Tagged -- decided against knowing -- to sponsorship deal after nearly a decade together. The deal was believed to be worth north of ten million dollars. And this is on top of a handful of other major companies have cut ties with tiger since -- scandalous private life became front page news. Now for my final take. Talk about a global golf market the rising young gun like Rickie Fowler Dustin Johnson and Rory McIlroy I've done wonders for golf manufacturers. American Express released a report that revealed the people in their twenties increased spending on golf like 27%. Over last few years. However all other demographics decreased their spending during this period. The data is included in the new US business and consumer golf spending report from Amex. The biggest decline in consumption came from senior 66 and older who cut their golf spending on average by 21%. Among the other findings from the golf spending report. Retail spending and golf equipment and apparel appears to have bounced back from the recession with a 10% increase in 2011. Over 2010. Good news for a sport that dealing with bad play from its top draw Tiger Woods. I'm Rick -- won't you join me next week will once again we go beyond the box score.

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