How to Design a Sports League in Golf: Stakeholder-Oriented Empirical Evidence from the German Golf League

How to Design a Sports League in Golf: Stakeholder-Oriented Empirical Evidence From the German Golf League

Christopher Huth University of Bayreuth

The organization of individual sports into leagues has received little attention in research, but its practical relevance has increased. Based on the currently largest sample in golf sports that focuses on competition players’ and golf clubs’ attitudes before and after a league reform in Germany (first survey: N = 619 players and N = 124 golf clubs; second survey: N = 643 players and N = 147 golf clubs), this study attempts to find the optimal league design for developing team sports leagues in golf. Both stakeholder groups are involved in the reformed German Golf League, which responds to golf’s reentry into the Olympics. The attitude measures of the survey are analyzed by longitudinal comparisons and ordered logit and probit regressions. The results indicate that general league-specific and most golf-specific characteristics are widely accepted in golf leagues and suggest targeted strategic insights. Importantly, the future financial capability of league participants must be properly assessed to ensure that these leagues will survive.

Keywords: league organization, league reform, sport finance, golf clubs, golf players

Team sports are typically organized into leagues that provide administrative, sporting and financial functions to help ensure their continued viability (Gerrard, 2003). Previous research has focused on, inter alia, (optimal) league design (Drewes, 2003; Noll, 2003; Szymanski, 2003), the competitive balance within a league (Buz- zacchi, Szymanski, & Valletti, 2003; Horowitz, 1997; Humphreys, 2002; Kesenne, 2000; Neale, 1964; Szymanski, 2001 & 2003), labor-market issues (El-Hodiri & Quirk, 1971; Rosen & Sanderson, 2001; Rottenberg, 1956; Vrooman, 2000) and clubs’ objectives in a league (Cairns, Jennett, & Sloane, 1986; Kesenne, 1999; Primault & Rouger, 1999; Sloane, 1971). In general, individual sports leagues (Cottle, 1981) have received much less attention than team sports leagues. Nonetheless, the relevance of individual sports leagues has increased. A growing number of individual sports have developed and established semiprofessional or professional league systems with various levels

The author is with Sport Governance and Event Management, University of Bayreuth, Bayreuth, Germany. Address author correspondence to Christopher Huth at [email protected].

1 2 Huth of differentiation, in addition to their original single tournaments. For years, the governing body of cycling, Union Cyclist Internationale (UCI), has attempted to implement a competitive and financially successful league system (Benijts & Lagae, 2012; Morrow & Idle, 2008; Rebeggiani & Tondani, 2008). Sports leagues based on individual sports aim to increase both organizationally and financially because they suffer from the dominance of major European and North American team sports leagues. By developing a sports league, proponents of such sports have to learn how to organize and design a league system to support their sports in their entirety. This study aims to analyze the specifics of golf-league systems using the example of the so-called KRAMSKI Deutsche Golf Liga (DGL, German Golf League). This purely amateur league was reformed both to stimulate professional golf in Germany and to enable Germany to have a realistic chance at winning a gold medal in the 2020 Olympics (DGV, 2013). As a result of golf’s global popularity and its successful series of individual tournaments (Bramley, 2009), the sport has been added to the 2016 Olympics in Rio de Janeiro. Focusing on golf and particularly on the DGL, this study’s objective is to find the optimal league design—or at least to identify the most important league—and golf-specific characteristics—for developing team sports leagues in golf. Therefore, the German Golf Association (DGV), the league’s governing body, underlines that if required, there will be a major revision of the new league system after the DGL’s third season. Therefore, the DGL is currently in the test phase. Our findings deliver important insights into the DGL’s future product development. Evaluating the periods preceding and following the DGL’s inaugural season, this study evalu- ates the expectations—and the level of acceptance—of two key stakeholders in the DGL: golf clubs and players. In contrast, other studies of sports leagues have mostly focused on spectator demand in various contexts (e.g., Bird, 1982; Forrest & Simmons, 2006; McDonald & Rascher, 2000; Simmons, 2009; Soebbing, 2008; Soebbing & Watanabe, 2014). Because the DGL is a purely amateur league with no payments for players and few spectators at the moment, a change of perspective is appropriate. Initially, we note that the league is prefinanced by the clubs and/or their players. Therefore, the interests of these two stakeholders must be considered in product development because the DGL product is not realizable without these two groups. Instead of monetary incentives, nonmonetary factors, such as an attractive competitive design, incentivize the competition. However, DGV’s aim as the league’s governing body is to develop the league to become professional—or at least semiprofessional—in the future. To do so, the DGV must first develop and establish a convincing product. Second, the new league system must attract spectators to commercialize the league by creating an atmosphere around the greens. This paper broadens the literature considerably. In general, studies focusing on league designs and reforms in either individual sports or golf are rare. Economic-related studies have primarily focused on professional team sports or—in individual sports—on reforms in cycling. This first exploratory study of a golf league thus provides a useful reference point—and might present convincing arguments—for funding and developing golf sports leagues. Moreover, the study uses the largest sample of primary stakeholder data that focuses on golf players and clubs in a competition system. Previously, golf-related studies on competition players have primarily used secondary data (e.g., Ehrenberg & Bognanno, 1990; Orszag, 1994; Farell, Karels, Montfort, & McClatchey, 2000; Shmanske, 2000).

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Studies in golf sports based on primary data have focused on golf spectators (e.g., Hansen & Gauthier, 1993; Robinson, Trail, & Kwon, 2004). Because of the lack of golf-related sports league studies, literature on professional team sports leagues is considered. No research has been published on golf leagues, and prior research and models may not be perfectly applicable to golf. However, because DGV’s aim is to become more commercial, an orientation toward professional league systems seems appropriate. In addition, for the first time, golf-specific tournament elements, which are unusual in other sports, are discussed and considered. This paper is structured as follows: Section 2 discusses theoretical consid- erations related to the research questions. Section 3 presents the DGL generally, along with its golf-specific characteristics. Our method is presented in section 4, and the analytical results follow in section 5. Section 6 interprets the results and highlights their implications; our conclusion follows.

The Economics of Sports League Organizations and Reforms Team sports require coordination among clubs or teams because the main product, a game, is a contest between at least two teams (Borland, 2009; Sutton & Parrett, 1992). To enhance marketing opportunities, these contests are almost always organized into leagues (Noll, 2003). Scully (1995) offers reasons for the existence of leagues and notes that organized championships—and thus sports leagues—are particularly attractive for spectators. Developing a sports league consists of two major fields of action (Szyman- ski, 2003). On the one hand, the design must address significant financial issues that confront the league’s governing body, the participating individuals, and the teams. On the other hand, the league must attract consumers (supporters), which is perhaps the reason that nearly every sports league—whether professional or semiprofessional—has undergone significant changes in recent years (Benijts & Lagae, 2012). These leagues tend to be subject to changes such as alterations in the game (e.g., alterations in the point system in volleyball or table tennis), new technical requirements (e.g., video evidence of goals in soccer), changes in the size of the sport league (e.g., expansion of the UEFA Champions League or the growing number of teams in Major League Soccer), or changes in the rules (e.g., the Bosman Ruling). Several factors contribute to such reforms, including new technological developments, stakeholders’ claims (Morrow & Idle, 2008), new government regulations (Binder & Findlay, 2012; Madeiro, 2007), and decreasing public and broadcaster popularity. In addition, a special decision of a sports association or another sports-related governing body (Medcalfe, 2009; O’Brian & Slack, 2003), the sport’s attractiveness (Brocas & Carillo, 2004; Guedes & Machado, 2002; Haugen, 2008) or weak results (e.g., league reforms due to a weak national team) can act as a catalyst for league reforms. Each of these last three explanations led to league reforms in German (team) golf. The DGV introduced a league system with a completely new design that included several match days instead of a league season organized as a tournament on a bank holiday weekend. In the process of developing a new league, the DGV had to make various decisions regarding the structure of the reformed—or

IJGS Vol. 5, No. 1, 2016 4 Huth rather, new—league. Although the concept of sports leagues is generally simple, league structures vary considerably. The league structure substantially influences the demands of different stakeholders (Cairns, 1987). Therefore, it is essential to design an optimal—or at least suitable—league structure that addresses issues such as the league’s future format, hierarchy, or membership (Noll, 2003). In addition, league-governing bodies must consider sport-specific characteristics such as the game mode or number of matches within a match day. Central factors of both elements are presented and discussed next, beginning with general league-specific characteristics.

General League-Specific Characteristics In all sports leagues, the league-governing body must identify the method of scheduling matches and determining a champion. Setting a schedule is one of the most basic tasks for participants—a league cannot exist without scheduling (Fort, 2012). In general, there are two types of schedules that a league can adopt: a round robin between all pairs of participants (Rubinstein, 1980) or an elimination tournament (Noll, 2003). Round-robin tournaments are typically held for team sports, although they have also found application in individual sports (Berker, 2014). Participants in a round-robin tournament are typically ranked by the number of wins over other participants (Henriet, 1985; Rubinstein, 1980). Often, the ranking is tabulated based on points. In contrast, teams are dropped from the schedule after losing a certain number of games in an elimination tournament. The benefit of elimination tournaments is connected with the importance of each match, which creates more intense demand. The disadvantage is that eliminated teams may have only limited opportunities to ensure that potential demand can be exhausted (Noll, 2003). Elimination tournaments such as play-offs or a Final 4 are, if considered, only implemented after a league’s regular season to ensure that demand can be enhanced. However, the second round can detract from the value of the first tournament. In individual sports, elimination tournaments are more common, although simultaneous contests are also possible in certain individual sports (Szymanski, 2003). Classical professional golf tournaments are neither pure round-robin nor pure elimination tournaments. Golf tournaments are played as a simultaneous contest over four days from Thursday to Sunday (Gilley & Chopin, 2000), with a reduction in the participant field after two rounds (Callan & Thomas, 2007; Ehrenberg & Bognanno, 1990). The league’s governing body must also decide issues concerning the league’s hierarchy. Most team sports and some individual tours are organized into a hierarchy. A major advantage of such a system is that it helps clubs or individuals survive longer. A team that could not survive in a higher league might flourish in a lower league (Noll, 2003). The same is true for golf tours. At a higher tour level (e.g., PGA Tour), individuals may have find it difficult to qualify either for the weekend or for the entire tournament. On the second-class Web.com Tour in North America or the Sunshine Tour in South Africa, these same golfers have more opportunities to rank high and cover their expenses (Shmanske, 2006). Consequently, the organization of leagues or tours into hierarchies provides economic benefits to the entire sport. In a hierarchical league system, the league is open. This system permits new teams to enter the top league each season (Buzzacchi, Szymanski & Valletti, 2003; Drewes, 2003; Noll, 2002). In closed leagues, clubs have the right

IJGS Vol. 5, No. 1, 2016 Designing a Sports League in Golf 5 to participate in the league by purchasing franchise rights for a substantial fee (Franck, 1995); therefore, a club’s previous performance is irrelevant (Hoehn & Szymanski, 1999; Noll, 2002; Sloane, 2009). One major advantage of this system is that promotion and relegation affects the distribution of team quality (Noll, 2003; Ross & Szymanski, 2010). More specifically, clubs in the bottom third of a league have a greater incentive to improve their team quality than would be the case in a league with fixed membership (Noll, 2003). However, open league systems can lead to financial instability through both under- and overinvestment (rat race; Akerlof, 1976), along with the risk that top teams can be relegated from the highest league level, which can be detrimental to the league overall (Szymanski, 2009). In the open league system, the number of relegated and promoted teams is crucial. Rivett (1975) has explained that an excessive number of relegated teams can create the risk that teams and their supporters may soon feel that they are in a hopeless situation, which can lead to waning attendance. In European so-called big-five football leagues, between 15 and 20% of all clubs relegate (or promote) every season. A similar situation exists in other European team sports leagues. In addition, the league-governing body must make decisions about the size of the league. Optimal league size depends on various issues. The league-governing body must consider several distinct components, such as determining how many teams have the financial ability to participate in a league or at least to participate at the top level. One of the worst situations for an organized league is a club’s insolvency; this risk is present in the open European league system, in which clubs often practice the so-called rat race in the pursuit of their sporting aims (Akerlof, 1976; Müller, Lam- mert, & Hovemann, 2012). One possible solution is to introduce multiple divisions or conferences at the top of the hierarchy (Noll, 2003). In sports leagues with less financial power, the league’s governing body introduces regional divisions at the top level (e.g., North and South) to avoid long trips to away matches and their resulting cost to the clubs. Finally, competitive balance within a sports league has been identified as important (Kesenne, 2000; Neale, 1964; Szymanski, 2003). Smaller leagues should increase suspense by increasing team homogeneity (Cairns, 1987) and consequently, stimulate demand for attendance of different stakeholders.

Golf-Specific League Characteristics In addition to the league-specific design determinants, sports-specific characteristics are also considered in the process of developing a league product. In contrast to team sports leagues, individual sports leagues must consider additional league- development issues. Therefore, in team sports the number of players is clearly defined, such as eleven players per team in football. In individual sports, the league-governing body has to decide the appropriate number of players per team. Moreover, the body must also specify the game mode, the weekday of the match days and the handling of players injured during a competition. Focusing first on the game mode, two types of sporting contest exist in individual sports: match play and simultaneous play by many contestants (Szymanski, 2003). Golf tournaments can be organized by pairing the players and allowing the winner to reach the next round until a winner emerges from the final pairing. Alter- natively—and most common in golf sports—players simultaneously play a so-called stroke play, and the player with the lowest score wins the tournament. Rosen (1986)

IJGS Vol. 5, No. 1, 2016 6 Huth shows that match play positively influences performance. However, Ehrenberg and Bognanno (1990) find that effort will be higher and scores lower in the final round of a stroke-play competition. Team sports contests in golf such as the Ryder Cup and the Solheim Cup typically feature match play. In addition, the PGA and European Tours (e.g., Volvo World Match Play Championship in Europe or the World Golf Championships-Cadillac Match Play in North America) include a few tournaments based on match play. These tournaments are organized to feature round-robin play (group stage) followed by an elimination tournament. In contrast, as mentioned above, tournaments on the tours are played as simultaneous contest. The Olympic golf tournament is also a simultaneous contest over four days for both women and men. No team competition is included: every player plays for him- or herself. In addition to the question of whether a match or a simultaneous contest is considered, the league-governing body must also decide whether to host single matches only, or whether to include foursome matches. In the team contests mentioned above—the Ryder Cup and the Solheim Cup—both elements are implemented. Therefore, the team concept is implemented through inclusion of the foursome element. In the next step, the league-governing body must decide the appropriate number of players. Decisions about the number of participants should involve both the desired quality of the competition’s participants and the inherent limitations of a given sporting event or facility. In this context, the potential number of players capable of performing in a sports league is determined. Therefore, in golf sports, more men than women actively play. In Germany, there are 306,648 regular male golfers and 196,923 regular female golfers (World Golf Foundation, 2015). Therefore, the league-governing body in Germany should consider these facts in its decision about how many players to include. Furthermore, the financial situation of participating teams must prompt consideration of limiting costs, especially for away matches. In the context of the optimal number of players, the question of how to handle injured players also has to be answered. Unlike in team sports, in individual sports, injured players cannot be replaced during a match. In golf, the so-called scratch mode is a special alternative. It allows teams using a game mode based on stroke play to cut their weakest result(s) without consequences. This mode allows teams to compete until the end of a given competition. This system is special for stroke play in golf competition given that in all other individual sports (such as tennis or chess), the game mode is based on match play. Finally, the league-governing body has to define the weekday of the match days. In golf, summer Saturdays and Sundays are the busiest days for playing golf (Shmanske, 2006). Golf courses are frequented much more on weekends than on other days, as evidenced by higher greens fees on weekends (Haywood-Farmer, Sharman, & Weinbrecht, 1988). However, golf tournaments are typically played on weekends because potential spectators are more likely to attend on the weekend.

The Characteristics of the KRAMSKI German Golf League The DGV’s objective was to introduce a league system to stimulate players’ performance (DGV, 2013). The association defined seven objectives regarding the quality of competition in the new league; in particular, the competition should aim

IJGS Vol. 5, No. 1, 2016 Designing a Sports League in Golf 7 to be more emotional, more precise, more valuable, more objective, more relevant, more attractive and livelier. The DGV introduced five match days from May to August—which contrasted with only one on a bank holiday weekend in the former system meaning that the DGV was actually organizing the team competition as a tournament on neutral courses. Thus, every club has now one home match and four away matches on its opponents’ courses with all league teams competing against one another at each match day. In addition, an elimination-tournament element was implemented in the First Bundesliga. This contest is organized as a Final 4 competition after the regular season. The two best teams from each track of the two-track First Bundesliga qualify for the Final 4 competition. The new DGL hence combines a round-robin competition followed by an elimination tournament at the top level. As a result, DGL’s scheduling system of a four-day competition differs from that of most professional golf tournaments. Concerning the match day, DGV selected the two days that Shmanske (2006) has noted as golf courses’ busiest days: Sunday as the match day and Saturday as the official practice day. With respect to financial issues, DGV introduces different tracks of five teams to reduce its golf clubs’ traveling costs. In the First Bundesliga, ten teams are divided into two divisions: North and South. Overall, there are five divisions for men’s teams and four divisions for women’s teams in a hierarchical system (Figure 1); 40% of the clubs are relegated, 20% are promoted and 40% remain in the same league (60% in the First Bundesliga and Fifth Division). Women’s teams’ number between five and seven players, and men’s teams between seven and nine players, thereby ensuring that every team has one sub- stitute player, based on the maximum team size. Following the game mode at the Olympic Games, stroke play is played during the round robin. However, the Final

Figure 1 — League structure of the German Golf League

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4 tournament is played as match play. Single matches and foursomes are played in the three highest leagues, whereas no foursome is implemented in the minor leagues. On each match day, the best 10 of 12 scores are selected for the men’s teams, and seven of nine results are chosen for each women’s teams to ensure that every team has two scratch results. The match day is won by the team with either the lowest total result or the lowest number of strokes. The team with the lowest stroke total receives five points, the second four points. The worst team receives one point. Defaulting teams receive zero points for the match day. Total points at the end of the season determine which teams are promoted or relegated.

Methodology, Research Design and Data Analysis This study chose a longitudinal approach to track stakeholders’ preseason expectations and postseason acceptance of and satisfaction with the DGL’s first season in 2013. Thus, two standardized questionnaires—one for the clubs and the other for the players—were developed. The first survey was conducted in January 2013 and focused on the expectations of the two stakeholder groups. The second survey was distributed in August 2013 after the last match day and evaluated stakeholders’ acceptance of the new league system. The main topics in the first questionnaires were also included in the second survey to enable a longitudinal comparative evaluation of the league reform. To ensure consistent operationalization, 5-point Likert scales (from 1 = do not agree to 5 = fully agree) were applied throughout the attitude measurement in the questionnaire (Li, Pitts, & Quarterman, 2008; Revilla, Saris, & Krosnick, 2014). At the beginning of the golf clubs’ pre- and postseason questionnaires, respondents indicated the league in which their women’s and men’s teams had begun. In the second survey, the clubs were also asked about their success in the first season. The following section addressed financial aspects in detail—including the competition budget and the demands of major stakeholders, such as club members, sponsors, and the local media. Then, clubs evaluated the DGV’s objectives for the new competition. The next section, which was the focus of the study, asked participants to evaluate the main characteristics (as presented above) of the new league system. The questionnaire for the golf clubs closed with a comparison of the old and the new league systems, and respondents could make open comments. Whenever possible and relevant, the questions for the players were adapted to the questions for the golf clubs. Consequently, it is possible to compare the two stakeholders’ responses to most of the questionnaire. In contrast to the survey of the golf clubs, the questionnaire for the players closed with sociodemographic questions. The Qualtrics questionnaire tool was used for online sampling. Password- protected survey links were e-mailed to all of the participating golf clubs in the DGL (N = 317). For each club, the most suitable contact person, club manager, president or team captain, had been identified in advance. The survey link for the players was e-mailed separately to the appropriate contact person. The online questionnaire was available for four weeks. One week before the closing of the survey, an e-mail reminder was sent. The analysis contains two major approaches. First, a longitudinal analysis is performed using SPSS Statistics 22 to identify the evolution of stakeholders’

IJGS Vol. 5, No. 1, 2016 Designing a Sports League in Golf 9 personal attitudes about the DGL (Frees, 2004; Rudinger, 2010). It is particularly interesting to analyze whether the new league structure is more accepted after its first season because reservations and stakeholder prejudices might have decreased over time. Thus, the primary component of this approach is the temporal changes within a single—i.e., the inaugural—season, focusing on the association’s objectives for the league reform and the primary (and possibly the alternative) characteristics of the new league. The results of this analysis are presented by means and the absolute change in the means between the two surveys. In addition, a group comparison by league levels (First Bundesliga to Fifth Division) for both clubs and players is achieved using data from the second survey. The purpose is to identify differences between stakeholders at different league levels. These differences are analyzed using the significance test of Kruskal-Wallis-H (Kruskal & Wallis, 1952). The identification of major differences between different divisions is an important aspect of the DGL, particularly with respect to its future development. It is possible that players and/or clubs in higher divisions have needs that are different from those of minor- league participants. The group comparison can be better determined in the players’ survey. Every participant is allocated to a particular league level. In contrast, for golf clubs, this classification is not possible because nearly every club begins with two teams—women’s and men’s—in the DGL. In most cases, the teams do not play at the same league level and thus, the allocation of a given club to a certain league level is only an approximation, which therefore is a limitation of this study. In the second step, regressions are run on the data from the second survey. The impact of different general and golf-specific league characteristics (as presented above) on two distinct dependent variables is evaluated. The purpose is to identify those league characteristics that are considered particularly significant for the new league, other things being equal. The dependent variables are the overall grade (GRADE) for the new league system and the statement that the new league system is better than the previous system (NEWSYS). Using the dependent variable of GRADE, a one-dimensional perspective on quality assessment is chosen that focuses only on the new system itself. The second dependent variable, NEWSYS, also considers the previous system and compares the two competition designs in a two-dimensional quality assessment. Both the dependent and independent variables are measured in 5-point Likert scales. Although the categories for an ordinal variable are ordered or censored, the distances between those categories are unknown (Long & Freese, 2006). Therefore, the regressions are estimated by ordered logit and probit estimation techniques instead of by linear regressions (Baum, 2006; McKelvey & Zavoina, 1975). This assumption would be violated in a linear regression model, which consequently would yield incorrect conclusions (McKelvey & Zavoina, 1975; Winship & Mare, 1984). The analysis is conducted using the statistical program STATA SE 13 because it has clear advantages in calculating ordered logit and probit regression models. Scalar measures of fit—McFadden’s R2 and McKelvey and Zavoina’s R2—are used to compare the competing models (Hagle & Mitchell, 1992; Long, 1997; Windmeijer, 1995). Finally, two (for the golf clubs) or three (for the players) variables are considered, which also include the sporting criteria of the two stakeholder groups. The league division and sporting success in the first season for both groups are considered in the regression models. League level highlights the sporting ability of a given stakeholder, whereas sporting success (promotion, relegation or same

IJGS Vol. 5, No. 1, 2016 10 Huth league) shows the stakeholder’s sporting performance during the first season. Both variables may have an influence on the rating and consequently, on the regression model. In addition, for the players, the number of match days played is included because a player with more match days played (maximum five) may have more detailed insight into the new league system than does a player who rarely played. For the regression analysis, only actual league characteristics are included. The suggested alternative items are excluded because they played no role in reality. Table 1 gives an overview of all of the variables considered in the two approaches. Regarding the number of survey participants, N = 124 of 317 golf clubs (39%) and N = 619 players participated in the first survey. In the second survey, the participation rate was slightly higher, with N = 147 golf clubs (46%) and N = 643 players. Unsurprisingly, most of the participants played in the minor leagues. In contrast, higher participation rates, in relative terms, characterize the higher leagues. More male players than female players answered the questionnaire. In the first survey, N = 215 females and N = 404 males participated, whereas N = 242 females and N = 392 males participated in the second survey. Of the participant players, 24% were relegated, 25% moved up and 51% remained in their original league division. Finally, 65% of the participating golf clubs and 25% of the players participated in both studies. It may be noted that the sociodemographic data of the two surveys are quite similar.

Results Longitudinal Findings The competition’s aims received mediocre ratings (Table 2), except for objectivity (AIM_OBJ) and precision (AIM_PRE). Overall, the two respondent groups evaluated the competitive objectives similarly. The slight decline in the rating of the competition objectives within the first season is nearly identical between the two groups. No differences in the ratings can be identified by league divisions, with two exceptions. The Kruskal-Wallis-H significance test shows that players at different league levels evaluate the competition objectives of emotion and attractiveness differently. A more detailed examination of the data indicates that in both cases, players in higher divisions provide less favorable evaluations than do the minor-league players. Table 3 presents the results of the longitudinal evaluation of league characteristics and potential alternatives by focusing on golf clubs. In general, the league characteristics receive a mean evaluation of 3.82 in the preseason and 3.74 in the postseason survey on a 5-point Likert scale. More specifically, the number of relegated teams in the higher leagues (-0.47), the number of foursomes (-0.35) and the Final 4 (-0.35) receive an inferior rating in the postseason survey, whereas the away matches (0.13) are slightly more accepted after the first season. Except for these three items, the golf clubs’ support for the league characteristics did not significantly drop during the first season. In comparison with the mean value over all suggested alternatives, the values of the league characteristics are obviously higher in both surveys. However, match play has the highest rate of increase. The Kruskal-Wallis-H indicates that in the majority of cases, the clubs evaluate the new league system items quite similarly.

IJGS Vol. 5, No. 1, 2016 Table 1 Overview of Variables Variable Description Scale Competition aims AIM_EMO Competition is more emotional Ordinal AIM_PRE Competition is more precise Ordinal AIM_VAL Competition is more valuable Ordinal AIM_OBJ Competition is more objective Ordinal AIM_REL Competition is more relevant Ordinal AIM_ATT Competition is more attractive Ordinal AIM_LIV Competition is livelier Ordinal General league characteristics SIZE Current league size (5 teams per track) Ordinal HOME Home match Ordinal AWAY Away matches Ordinal FINAL4 Final 4 in the First Bundesliga Ordinal PROMOTION Number of promoted teams Ordinal RELEG_HIGH Two relegated teams in higher leagues (club’s survey) Ordinal RELEG_LOW One relegated team in the lowest league (club’s survey) Ordinal RELEGATION Number of relegated teams (players’ survey) Ordinal POINT Point system Ordinal MATCHDAYS Several match days Ordinal Golf-specific league characteristics SINGLES Number of singles Ordinal FOURSOME Number of foursome Ordinal STROKE Stroke play as game mode Ordinal SCRATCH Number of scratch results Ordinal SUNDAY Sunday as match day Ordinal PRACTICE Saturday as practice day Ordinal Alternative suggestions SIZE_INC Increase league size Ordinal RELEGATION Implementation of relegation games Ordinal MATCH Match play as game mode Ordinal SINGLES_INC Increase number of singles Ordinal FOURSOME_INC Increase number of foursome Ordinal SCRATCH_INC Increase number of scratch results Ordinal SATURDAY Saturday as match day Ordinal OLD Old weekend system Ordinal Additional regression variables SINGLES_W Number singles women (club’s survey) Ordinal SINGLES_M Number singles men (club’s survey) Ordinal FOURSOME_W Number foursome women (club’s survey) Ordinal FOURSOME_M Number foursome men (club’s survey) Ordinal (continued)

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Table 1 (continued)

Variable Description Scale Additional regression variables (continued) LEVEL_W League level women team (club’s survey) Ordinal LEVEL_M League level men team (club’s survey) Ordinal LEVEL League level (players’ survey) Ordinal SUCCESS_W 1st-season success, women’s team (club’s survey) Ordinal SUCCESS_M 1st-season success, men’s team (club’s survey) Ordinal SUCCESS 1st-season success (player’s survey) Ordinal PLAYED Number of match days played (player’s survey) Ordinal Dependent regression variables GRADE Given grade by players and clubs (1 (best) to 6 (best)) Ordinal NEWSYS New system better than the previous system Ordinal

Regarding the longitudinal evaluation by the players, the results indicate that support for the league characteristics generally rose (+0.32) and those for the alternatives decreased (-0.27) during the first season (Table 4). In particular, stroke play as a game mode (+0.72), away matches (+0.46) and home matches (+0.39) are more accepted after the season. However, a value of 3.58 for match play shows that players continue to crave such an element, although support for this item declined over the first season (-0.34). Overall, this study found that the players support the new league system after the season more than before, whereas the support of the clubs essentially did not change. It is notable that players’ attitude toward most league items significantly differs by league affiliation, with slightly more acceptance in the lower divisions. The suggested alternative items are more accepted in the higher divisions, particularly in the First Bundesliga.

Findings of the Regressions In this section, the results for the ordered logit and ordered probit regressions are presented, first for the golf clubs and then for the players. As discussed above, the overall GRADE and NEWSYS are selected as dependent variables whereas general and golf-specific league characteristics along with the participants’ sporting criteria are explanatory variables. Considering McFadden’s R2 and McKelvey and Zaviona’s R2, a slightly better fit of the ordered probit model is observed for golf clubs (Table 5). In the two regression models with GRADE as the dependent variable (C1 and C2), only the number of foursomes in women’s leagues is found to be significant and to decrease the grade given by the clubs. All of the other items are insignificant at the 0.05-level. Using the second dependent variable, NEWSYS (C3 and C4), stroke play, the number of scratch results, the Sunday match day (strongest value) and the point system are found to be significant at the 0.05 level. With respect to players’ regressions (Table 6), McFadden’s R2 and McKelvey and Zaviona’s R2 indicate that both the ordered logit and the ordered probit model

IJGS Vol. 5, No. 1, 2016 - 0.191 0.006 0.094 0.000 0.137 0.081 0.552 divisions by league league by Kruskal-Wallis-H Kruskal-Wallis-H -0.15 -0.09 -0.15 -0.15 -0.12 -0.15 -0.15 -0.21 Difference Difference Players between surveys between 3.11 3.05 3.08 3.24 2.67 3.46 2.93 3.35 Post Post survey season 3.26 3.14 3.23 3.39 2.79 3.61 3.08 3.56 survey Preseason Preseason - 0.048 0.251 0.053 0.140 0.078 0.181 0.702 divisions by league league by Kruskal-Wallis-H Kruskal-Wallis-H 0.02 -0.05 -0.22 -0.13 -0.13 -0.15 -0.16 -0.23 Difference Difference Golf clubs between surveys between 3.19 3.17 3.17 2.84 3.55 2.99 3.37 3.10 Post Post survey season 3.24 3.39 3.30 2.97 3.70 3.15 3.60 3.08 survey Preseason Preseason Longitudinal Mean Comparison of DGL’s Competition Aims by Golf Clubs and Players Aims by Competition of DGL’s Mean Comparison Longitudinal Competition aims AIM_ATT AIM_LIV mean Total AIM_EMO AIM_PRE AIM_VAL AIM_OBJ AIM_REL Table 2 Table

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Table 3 Longitudinal Evaluation by Means of Central League Characteristics and Alternatives by Golf Clubs Difference Kruskal-Wallis-H Preseason Postseason between by league League characteristics survey survey surveys divisions SIZE 3.85 3.90 0.05 0.105 HOME 4.25 4.38 0.13 0.981 FINAL4 4.61 4.26 -0.35 0.816 PROMOTION 3.93 4.04 -0.11 0.225 RELEG_HIGH 3.46 2.99 -0.47 0.010 RELEG_LOW 3.80 3.82 0.02 0.974 STROKE 3.61 3.69 0.08 0.947 SINGLES 3.97 3.83 -0.14 0.122 FOURSOME 3.57 3.22 -0.35 0.056 SCRATCH 4.03 4.06 0.03 0.961 POINT 3.37 3.38 0.01 0.199 SUNDAY 3.33 3.29 -0.04 0.926 Mean value over all items 3.82 3.74 -0.08 - Difference Kruskal-Wallis-H Preseason Postseason between by league Alternative suggestions survey survey surveys divisions SIZE_INC 1.87 1.68 -0.19 0.711 RELEGATION 2.66 2.86 0.20 0.303 MATCH 3.01 3.24 0.23 0.834 SINGLES_INC 1.96 1.67 -0.29 0.246 FOURSOME_INC 2.05 2.01 -0.04 0.094 SCRATCH_INC 1.85 1.79 -0.06 0.972 SATURDAY 2.75 2.77 0.02 0.946 Mean value over 2.31 2.29 0.02 - all alternatives

fit about equally (Table 5). Focusing on the GRADE, several match days (clearly the strongest variable), league size, stroke play, Sunday match day, number of singles and the point system are generally found to be highly significant and to enhance the overall grade given by the players in both models (P1 and P2). Moreover, it has to be noted that in these models, the league level decreases the GRADE and the level of sporting success enhances the GRADE slightly. A closer examination of the dummy variables for league level shows that the negative value originates from players in higher leagues. With respect to the dependent variable NEWSYS (P3 and P4), several match days (also the strongest variable), stroke play, number of singles and point system are (highly) significant and support the new system, whereas higher league levels show decreases in the positive attitude toward the new system.

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Table 4 Longitudinal Evaluation by Means of Central League Characteristics and Alternatives by Players Difference Kruskal-Wallis-H Preseason Postseason between by league League characteristics survey survey surveys divisions MATCHDAYS 3.37 3.58 0.21 0.141 HOME 3.89 4.28 0.39 0.844 AWAY 3.67 4.13 0.46 0.020 STROKE 2.64 3.36 0.72 0.000 SUNDAY 3.30 3.45 0.15 0.039 PRACTICE 3.16 3.14 -0.02 0.000 Mean value over all items 3.34 3.66 0.32 - SIZE - 3.75 - 0.000 PROMOTION - 4.02 - 0.000 RELEGATION - 3.47 - 0.000 SINGLES - 3.71 - 0.152 FOURSOME - 2.71 - 0.000 POINT - 3.49 - 0.370 SCRATCH - 4.12 - 0.897 Difference Kruskal-Wallis-H Preseason Postseason between by league Alternative suggestions survey survey surveys divisions OLD 3.01 2.73 -0.28 0.000 MATCH 3.92 3.58 -0.34 0.065 SATURDAY 2.52 2.33 -0.19 0.077 Mean value over 3.15 2.88 -0.27 - all alternatives SIZE_INC - 2.21 - 0.029 SINGLES_INC - 1.90 - 0.571 FOURSOME_INC - 2.89 - 0.000

Discussion and Implications In the following, the central findings are reviewed and practical implications for the future development of the DGL as a new league product are derived. First, the results on the DGV’s competition aims are discussed. Second, in line with the literature review, general league characteristics are focused, followed by golf-specific league characteristics. Third, participants’ sporting criteria are considered. The results demonstrate that, in general, the new league system is accepted by the two stakeholder groups. Focusing on the three arguments that led to league reforms in German team golf, we see that the aim of increasing sporting attractiveness (Brocas & Carillo, 2004; Guedes & Machado, 2002; Haugen, 2008) has been only partially achieved. Both stakeholder groups agree that the new league system

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Table 5 Ordered Logit and Probit Regressions by Golf Clubs ologit oprobit ologit oprobit model (C1) model (C2) model (C3) model (C4) Dependent variable grade New system better SIZE HOME PROMOTION RELEG_HIGH RELEG_LOW FINAL4 SUNDAY 0.457* 0.248* SATURDAY POINT 0.283* 0.161* STROKE 0.341* 0.189* SINGLES_W FOURSOME_W -0.445* -0.272* SINGLES_M FOURSOME_M SCRATCH 0.371* 0.216* LEVEL_W SUCCESS_W LEVEL_M SUCCESS_M Cut 1–5 all cuts are significant at *** level N 135 135 135 135 McFadden’s R2 0.154 0.157 0.177 0.172 McKelvey & Zaviona’s R2 0.375 0.395 0.441 0.449

Standardized beta coefficients; * p < .05, ** p < .01, and *** p < .001. is more precise and objective. However, it must be acknowledged that the competition is neither more valuable nor more emotional. In addition, other competition objectives, including relevance, attractiveness and liveliness, received lukewarm ratings. The two other mentioned arguments—adoption of golf in the Olympics and weak international results of German players beyond Martin Kaymer—were not evaluated in this study. Considering golf clubs’ assessments of weak demand with respect to additional stakeholders—i.e., spectators including club members, sponsors, and (local) media—the league-governing body must seriously consider the league’s future. The findings related to the competition aims indicate that from various stakeholders’ perspectives, the newly introduced league system remains imperfect. As to the findings of the general league and golf-specific characteristics in the next step, starting points for future corrections of the current league system can be identified.

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Table 6 Ordered Logit and Probit Regressions by Players ologit oprobit ologit oprobit model (P1) model (P2) model (P3) model (P4) Dependent variable grade New system better MATCHDAYS 0.854*** 0.479*** 0.975*** 0.532*** HOME AWAY SIZE 0.251** 0.111** POINT 0.180* 0.110** 0.197*** 0.100** PROMOTION RELEGATION STROKE 0.315*** 0.190*** 0.366*** 0.208*** SUNDAY 0.231* 0.112* PRACTICE SINGLES 0.254** 0.149*** 0.156* 0.097** FOURSOME SCRATCH LEVEL -0.233** -0.126* -0.179* -0.098* SUCCESS 0.140* 0.088* 0.065* PLAYED Cut 1–5 all cuts are significant at *** level N 589 589 589 589 McFadden’s R2 0.253 0.248 0.275 0.265 McKelvey & Zaviona’s R2 0.573 0.572 0.617 0.618

General League-Specific Characteristics The DGV opted to implement a round robin among all participants (Rubinstein, 1980), with home and away matches for every golf club. To determine the league table, the DGV ranked the teams by number of wins over other participants (Henriet, 1985; Rubinstein, 1980) in a point system. The findings indicate that HOME and AWAY are highly accepted by both stakeholder groups. During the first season, acceptance even increased. Thus, a major element of a round-robin competition is highly accepted. However, both variables have no significant impact on the dependent variables in all of the regression models. Instead, MATCHDAYS has, overall, the strongest impact on both dependent variables in the players’ regression models. In summary, both stakeholder groups accept the new round-robin competition with several home and away match days instead of a single weekend tournament on a neutral golf course. It should be noted that players in higher leagues are more critical at this point, given that these players are especially likely to have other important national and international individual tournaments during a golf season. Yet, a return to the old system is not expedient because the competition advantages—more precision and objectivity—predominate over potential disadvantages such as the default

IJGS Vol. 5, No. 1, 2016 18 Huth risk of single players at a given match day. Besides, the supplemental element, the Final 4 competition, is strongly accepted by golf clubs. It is apparent that the acceptance is related to the game mode and the special atmosphere of this event. An item that receives mediocre support but that has a significant and slightly positive impact in most of the regression models is the point system (POINT). The league-governing body used a point system instead of adding total strokes together. The advantage is that a point system contracts the distance among the teams. For a dominant team within a track, the point system slightly reduces sporting differences. At best, sporting decisions about promotion and relegation are open until the final match day and, therefore, they comply with Rivett’s (1975) recommendation. Conversely, a point system is—for golf—perhaps less precise and objective than the classical stroke system, which may be adverse to the competition objectives. In sum, the point system is an important item for the league because it guarantees suspense until the end of the season without excessively discriminating against the best teams. Instead of large leagues, the DGV introduced multiple divisions or conferences at every level of the league system (Noll, 2003). The current league size of five teams per track is supported by both stakeholder groups because there are essentially no middle-of-the-table games (Cairns, 1987). However, league size only influences the given grade (GRADE) in the regression models. With respect to financial matters, the current league size of five teams per track appears to be appropriate. Further results of the club surveys indicate that the budget for the DGL is financed primarily (60%) by membership fees, and 15% of the budget is borne by sponsors and players. The remainder of the budget is financed through other sources. The clubs specified that they needed to bear significant new financial burdens, which they found difficult to do. Currently, it is therefore not reasonable to expand the size of the tracks. The purpose not only for the golf clubs but also for the league-governing body should be to reduce—not to increase—the cost of the match days. A practical solution is that the DGV should attempt to reduce the distances among the golf clubs using distance-optimized tracks. In addition, the DGV should attempt to find sponsors in the hotel industry (such as a large hotel groups) to offer special packages for the DGL’s participating clubs. The issue becomes more complicated when focusing on the number of promoted and relegated teams. The DGV heeded Cairns’ (1987) advice to minimize the number of middle-of-the-table games of nearly no importance to the championship. Both stakeholder groups support the number of promoted teams but are more critical of the number of relegated teams. Therefore, it is remarkable that two of five teams (three of five in the First Bundesliga and in the Fifth Division) remain in the same league. Compared with other sports leagues, this number is extremely low. Consequently, the clubs have almost no ability to establish them- selves, trouble-free, at a given league level. In the case of the league’s development into a more professional (and therefore, more commercial) league, this could lead to a rat race (Akerlof, 1976; Müller, Lammert & Hovemann, 2012). In a league system in which 40% of the teams are relegated, the fight for sporting survival in a given league could be very intense, with corresponding financial consequences. But the system is particularly attractive for the players because they play on new courses every season. In addition, the competitive balance (Kesenne, 2000; Neale, 1964; Szymanski, 2003) is more easily realized within a smaller sports league and guarantees suspense until the final match day. Finally, the current league system

IJGS Vol. 5, No. 1, 2016 Designing a Sports League in Golf 19 does not allow another number of relegated teams. Instead, relegation games appear to be a realistic alternative; however, most golf clubs do not support such games. Another practical solution for the DGL could be to join different tracks of a league level in certain years. In other team sports, leagues joined after achieving sufficient financial capacity to finance more match days.

Golf-Specific League Characteristics Focusing on the golf-specific league characteristics, the findings indicate that these are differently evaluated by the two stakeholder groups. Therefore, in the preseason survey, stroke play was especially criticized and considered boring by the players who strongly prioritized match play as the game mode. However, STROKE is now more accepted than previously, and it is demonstrably relevant in different regression models (C3 and C4, in addition to P1-P4). This result is surprising, considering that players and clubs do not find the system more attractive, emotional and valuable. According to Rosen (1986), match play can positively influence players’ performance and, therefore, render the competition more attractive. Furthermore, players favored match play elements, although support declined after the first season. Match play elements can be exciting for both the players and other stakeholders, including spectators, sponsors or media. Considering the prominent example of the most prestigious team event, the Ryder Cup, more match play elements are indeed desirable and advisable because they generate more suspense and excitement for both players and spectators and as a result, a more attractive and emotional competition (Szymanski, 2003). To implement match play elements in singles is less useful because stroke play is a feature of the singles competition at the Olympic Games. In addition, as Ehrenberg and Bognanno (1990) have suggested, stroke play can also enhance players’ scores. Given that almost every match day is highly relevant, stroke play should also contribute to players’ sporting improvement. The next closest choice would be to play the foursome in the match-play mode. Yet, this option would have consequences in the evaluation system and consequently for the point system. In match play, the total strokes required are not relevant; only the best result per hole is considered. The challenge is to combine the two game modes into the point system. A practical solution could be to separate points for both parts—singles and foursomes—adding the points together for the final match day score and allocating total match day points after this ranking. In the context of game mode, the appropriated number of players must also be determined. As mentioned above, this decision involves the desired quality of the competition’s participants, the inherent limitations of a given sporting event or facility and financial issues. The findings illustrate that the number of singles is generally accepted by both stakeholder groups. In the regression models for the players, SINGLE has a significant, positive impact on both dependent variables. In contrast, the number of foursome is more weakly rated. Therefore, players in minor leagues in which no foursome is implemented wish to play foursomes in the future. The selected number of scratch results (two) receives above-average ratings from both stakeholders, and no revision is needed in the DGL’s future development. On average, sports teams can use one scratch result for the singles and the other for the foursome. However, it is also possible to use both scratch results for either the singles or the foursome.

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Finally, the weekday of the match is controversial. On the one hand, a Sunday match day receives mediocre acceptance; on the other hand, the alternative suggestion of a Saturday match day is rated far worse. Moreover, the regression models show a significant positive effect of match day both on the GRADE (players’ survey) and on the two-dimensional quality assessment NEWSYS (clubs’ survey). There- fore, the participating players are typically not professionals and must practice a “normal” profession, study or attend school. For these players, the match day and the practice day must be on a weekend so that they can combine sport and work. Following Shmanske (2006) and Haywood-Farmer et al. (1988), it would perhaps be desirable not to have the home match on a weekend. However, potential spectators such as members, family, and the interested public are more likely to attend on the weekend. To develop the league in a more professional and commercial direction, the time resources of potential spectators must also be considered. In addition, every club has only one home match per season to ensure that it remains open many weekends for members or guest golfers, who must pay greens fees. Considering all aspects, both Sunday as match day and Saturday as practice day is a manageable solution for all of the involved stakeholders.

Sporting Criteria In the regression analysis, both sporting level and sporting success were considered. Although both variables have no significant impact on the club-management regression models, they are significant in the players’ regression models. As expected, players’ sporting success has a positive impact. In contrast, the players’ league level has a significant negative impact. These results are also underlined by the results of the Kruskal-Wallis test, which indicate significant differences in most variables. Therefore, players—especially in the First Bundesliga—criticize the new league system. Accordingly, despite the stakeholders’ overall positive assessment, the DGV should reflect on the critical finding that the players in the First Bundesliga either rated the new league system significantly lower than did the players in the minor leagues or preferred the old weekend-system. This players’ assessment is all the more important because the DGL was created to improve the playing strength and support the development of the best German amateur players by offering a challenging team competition. Therefore, a revision of the league reform at the top division is necessary to better serve the needs of the best players to realize the objective of a gold medal at the 2020 Olympics.

Conclusion Considering the example of the DGL, it is notable that the general team-sports- league characteristics are widely accepted in golf-oriented sports leagues. It is moreover insightful that a combination of various competition elements, such as the regular season and the first league’s Final 4 competition, are possible without substantial problems. The typical characteristics of sports leagues, such as several match days, home and away matches, point systems and the promotion and relegation system received above average-ratings by the surveyed stakeholders. More specifically, the regressions also showed that the item of several match days has a highly positive impact on the acceptance of the league system. The number of

IJGS Vol. 5, No. 1, 2016 Designing a Sports League in Golf 21 relegated teams is considered critical but is more of an issue regarding the current league design than a general problem for golf leagues. League-governing bodies in golf sports from other countries that also wish to implement a nationwide league system can adopt central team sports-league characteristics. However, the high number of relegated teams must be discussed and should not be adopted in an absolute manner. In addition, a detailed examination of the findings of the overall questionnaire indicates that there are clear differences among the participating golf clubs in the DGL. As expected, sporting objectives (e.g., competitive club teams, good talent system within the club, or sporting success in the DGL) are, for certain clubs, less important than member-oriented objectives (e.g., well-maintained golf courses, modern club houses, and excellent club restaurants). Such a club obviously has less intention either to invest in the league or to bear the costs of a club team. A classification of the clubs in sporting and nonsporting oriented/ambitious clubs appears to be advantageous to broaden the evaluation. This classification may have useful implications for the league-governing body DGV. With the knowledge of clubs’ target systems, the DGV can develop the DGL product into a “two-class” league system with appropriate regulations for performance-oriented clubs in higher, semiprofessional divisions and leisure-oriented clubs in lower, amateur divisions. Interestingly, the other critical points are related to golf itself. Stroke play receives below-average ratings, for instance. Nevertheless, in the regression models for the players, stroke play has the second-highest positive impact on the two dependent variables. As mentioned above, considering the successful examples of team events in golf, the introduction of a match-play element in the foursome could be an interesting alternative in the game mode. Therefore, both elements would be present in the future league development of the DGL and upgrade the DGL product. Therefore, special features of golf may also be considered by the league-governing body. An important issue is that the participants’ future financial capability must be estimated correctly. It is recommended that the league-governing body implement compact divisions to reduce costs. Divisions based on the model of North American Major League Baseball can help find a suitable solution. However, to reduce the risk of a rat race in a more commercial and professional league system, the number of relegated teams must be revised. Finally, considering golf clubs’ assessments of weak demand with respect to additional stakeholders—i.e., spectators, including club members, sponsors, and (local) media—the league-governing body must seriously consider the future of the league. As previously described, golf clubs were not satisfied with the demand of spectators, sponsors, and (local) media. Therefore, further DGV attention and research should also concentrate on these stakeholders. Embedding more exiting elements such as the previously proposed suggestion of more match play elements may be useful. Therefore, Hansen and Gauthier (1994) show that—taking the example of the Ladies PGA Tour—excitement and drama are important factors for their spectators. However, the research should consider that the DGL is newly established and that its managers must build loyalty among stakeholders, which takes a certain amount of time. In general, golf, with more than 600,000 players, is popular in Germany. In this context, the DGV should try to increase the identification of different stakeholders within the DGL. Indeed, various studies have shown

IJGS Vol. 5, No. 1, 2016 22 Huth that identification is a key predictor of spectators’ sport consumption behavior (Cialdini, Borden, Thorne, Walker, Freeman, & Sloan, 1976; Wann & Branscombe, 1993; Zillmann, Bryant, & Sapolsky, 1989). In summary, it is recommended that a league-governing body that wants to introduce a golf league should implement (1) several match days with home and away matches, (2) small tracks to reduce costs and increase excitement and (3) a reasonable number of teams facing relegation. In addition, regarding golf-specific league characteristics, it is important to consider (1) a combination of stroke and match play elements to increase the excitement of different stakeholders, (2) scratch results in stroke play and (3) singles and foursome to strengthen team spirit.

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