David Pillsbury

1. [DRAFT – 27 Oct 2006] David Pillsbury President, PGA TOUR Golf Course Properties

2. PGA TOUR Fans &Growth of the Game • Fan growth converting into growth of game • Update on PGA TOUR fan growth initiatives • Connecting PGA TOUR initiatives and industry initiatives to maximize number of fans and players

3. Objectives of GOLF 20/20 • Increase participation • Increase rounds of golf • Fan base expansion

4. Viewers vs. Participation Claimed Golf Participation Low High Index vs. US Avg. (US Avg.=100) Low Claimed TOUR Viewers High Source: MRI, Doublebase 2005

5. Core Golfers Golfers Fans Expand Breadth and Depth

6. Changes for PGA TOUR Fan 2007 Current Fan Experience No clearly-defined season • New era in golf • True season with playoffs • Energized fan base Broadcast has become fixed and somewhat predictable • New initiatives • Broadcast strategies • HDTV • Long term TV partnerships Evolving media platforms • Ability to consume product in the way fans want it Inconsistent tournament experience • Consistent execution • Standards & best practices

7. Fan/Golfer Lifecycle BuildAwareness CreateConnection Trial/Introduction Golfer/Retention Golf Operators Golf Professionals PGA TOUR FedExCup PGA of America USGA Other Media Broadcast pgatour.com pga.com Local events Play Golf America Free Lesson Month Corporate Golf Link Up to Golf The First Tee Local Programs Executive Women’s Golf

8. Broadcast Consumption 2007 1996 • Expanded six year agreement • Higher quality telecasts Primarily network broadcast 424 network hours • 538 network hours Golf Channel in 7.4 M homes • Golf Channel in 70 M homes • Primetime replay of events

9. Inherent Limitations of TV • Less than 2% of tournament play is on TV • Airs only 25% of competition • Cannot cover all players/shots • Fan access to the broadcast not always possible

10. New Media Landscape • Broadband means increased consumption of Internet content

11. Broadband Driving Internet Consumption U.S. Broadband Internet Penetration Internet Broadband 40 Million US Households Source: Forrester Research 2005

12. New Media Landscape • Broadband means increased consumption of Internet content • Media platforms are fragmenting and proliferating

13. Time on Internet • Time spent on Internet has increased dramatically and is comparable to TV • Pressure on TV due to increased fragmentation and DVRs • Additional pressure on traditional media sources U.S. Percentage Time Spent by Media Note: Internet = Home + Work Source: Forrester Research 2005. Online consumers

14. New Media Landscape • Broadband means increased consumption of Internet content • Media platforms are fragmenting and proliferating • Media consumption is changing; we are moving to an on-demand content world

15. U.S. Mobile Phone Users Millions Projected Actual Mobile Phone • 207 million wireless subscribers in US • 50 billion SMS messages in last 6 months of 2005 • Up 50% YTY • Total 2005 carrier data revenues of $8.6B • Up 86% • Early as a content platform Source: Yankee Group 2005

16. 3G – High Speed Mobile Networks • Analogous to Broadband Internet • Carriers invested $200B to secure licenses and deploy networks • 3G adoption driven by handset turnover every 18 months • Carriers focused beyond commodity voice traffic. Video content is critical U.S. 3G Mobile Users Source: Yankee Group 2005

17. New Media Landscape • Broadband means increased consumption of Internet content • Media platforms are fragmenting and proliferating • Media consumption is changing; we are moving to an on-demand content world • Consumers expect content whenever, wherever, and however they want it

18. Broadband Internet Mobile Where the PGA TOUR is going • Experiment with alternative distribution • Adjust strategies and business models • Future: 3-screen video world Television

19. Golf Well-suited to Leverage New Platforms • Nature of Sport • In-office audience • Significant play outside telecast window • Inability to provide full coverage within telecast window • Significant “fan-favorites”, interest around individual players • Fans are consuming content from new platforms There is fan demand for coverage beyond the TV window

20. pgatour.com & pga.com pgatour.com • Largest non-TV audience • 30% yr-to-yr growth over five years • 5.1 M unique users • Over 31 minutes spent per user per month • Leading instructional golf site • Access to 28,000 dedicated professionals promoting the game • Direct link to local instructors pga.com Leverage synergies in new media landscape

21. PGA TOUR Highlights • First Round • Second Round • Third Round • Final Round PGA TOUR Interviews • Tiger Woods • Ernie Els • Phil Mickelson PGA TOUR New Media Platforms Internet/Broadband Mobile Fan Database • Rich content delivery • Anytime, anywhere • Increased mobility • Interactive • Direct marketing • 1:1 fan communication Sat. Radio/Radio Non-Standard TV* On Venue Video Game • Information demand • Multi-platform deployment • Rapidly growing • Wired home • Mobile medium • Multi-programming formats • VOD/DVR • Data channels • Two-Screen interaction • HDTV

22. Close the Loop FAN • Fan-centric broadcasts • Contests • Voting (i.e. American Idol) • Content links from Broadcast • Fantasy Golf • Play Golf America • The First Tee School Program BroadcastMedia pgatour.com

23. Apply programs in new media environment Fan Activation 2007 Core Golfers Golfers Fans

24. Focus in 2007 • Leverage energy from FedExCup: “New era in golf” • Growth opportunity with Baby Boomers • Reach more fans with richer content through new media • Maturity of national golf development programs • “Close loop” for fan experience • Challenge to Industry Operators and Media: • Continue to support player development programs • Build and promote a development calendar • Create innovative ways to convert fans into golfers