Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Entertainment hole-in-one

A hole-in-one is exciting for any golfer, but for event sponsors, it can mean an overwhelming cost. (Photo by Richard Heathcote/Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

>1 minute ago

The Surprising Financing Behind a Hole-In-One

Making a hole-in-one in a golf tournament is a win for a golfer, but for event sponsors that have to pay out significant prize money, these wins can be costly.

Key Details

  • Hitting a hole-in-one during certain fund-raising golf tournaments means the player will receive significant prize money—paid for by the host or the event sponsor. 
  • Amateur golfers have about a 1 in 12,500 chance of hitting a hole-in-one, so the prizes are enticing—new luxury cars, cash prices, or even vacations, The Hustle reports.
  • Often, these massive prizes are too much for the event sponsor to cover, resulting in the need for hole-in-one insurance.

Why it’s news

Big prizes at fund-raising golf tournaments lure in players and help generate more money for the charity. Rarely do players hit a hole-in-one, but when they do, the payout is significant.

Hole-in-one insurance is a secret industry behind the world of golf that brings in significant revenue every year. Like many other forms of insurance, hole-in-one insurers collect a regular payment from clients but have to pay out with less frequency.

Pro golfers may only have a 1 in 3,000 chance of hitting a hole-in-one, but golfers in the U.S. play around 450 million rounds of golf each year, The Hustle reports. With so many golfers, holes-in-one are scored daily—an estimated 128,000 annually.

There are around two dozen liability companies that event sponsors can choose from. Typically, golf event organizers will partner with a sponsor like Volkswagen. The company will offer a prize, such as a new car, for any player who makes a hole-in-one. 

The sponsor will then reach out to an insurer like Hole In One International, one of the oldest hole-in-one insurers in the U.S. The company then calculates a fee per golfer based on several factors determining the likelihood of a hole-in-one during the tournament.

Costs can vary greatly. For example, if insured by Hole In One International, a $3,000 Hawaiian vacation prize could cost a sponsor $150 for up to 144 players. A $60,000 Mercedes-Benz E550 prize, however, can cost anywhere from $865 for 72 players to $1,686 per player for 144 players.

Hole In One International insures around 15,000 events annually and pays for hundreds of holes-in-one—occasionally very costly ones.

In 2021, for example, three players scored a hole-in-one during the women’s LPGA tournament. Each player was awarded a year-long lease on a Lamborghini. Hole In One International owner Mark Gilmartin says the company had to pay around $300,000, The Hustle reports. 

Each year, the company pays anywhere from $2 million to $4 million in insurance claims, but Gilmartin says the insurance company always ends the year with a profit.

Home / News / The Surprising Financing Behind a Hole-In-One
Share
FacebookTweetEmailLinkedIn

Related Stories

Protecting Your Career From A.I. 

by Tyler Hummel Leaders Staff
Hiring

59 minutes ago

Artificial intelligence (AI) is beginning to play a role in the job market as tech companies begin phasing out thousands of low-level positions. 

Key Details

  • The “AI arms race” has been in full swing since the launch of ChapGPT on November 30—having sparked six months of rapid innovation and high demand for AI solutions. 
  • IBM CEO Arvind Krishna mentioned in a May 1 interview that his company will begin phasing out back-office and human-resource jobs in the next few years and pause new hiring on positions that AI could fill, Bloomberg reports. 
  • Non-customer-facing roles at IBM represent 26,000 jobs, and Krishna believes 30%—7,800 of them—will be replaced by automation or AI solutions. 
  • Multiple major industries—including healthcare, customer service, finance, agriculture, retail, education, human resources, entertainment, and legal services—have already begun implementing AI solutions, Forbes reports.

Go deeper

FacebookTweetEmailLinkedIn

Disney Begins Streaming Consolidation

by Tyler Hummel Leaders Staff
Entertainment

About an hour ago

Disney has announced that it plans to combine its two most popular streaming services into a single app for North American users. 

Key Details

  • The Disney Corporation held its second-quarter earnings call on Wednesday afternoon, revealing a 13% increase in revenue and plans for the future. 
  • The largest announcement was a new combined app with the full contents of Disney+ and Hulu, similar to international versions of Disney+ that provide content from both, that will launch before the end of the year. 
  • CEO Bob Iger argues that the consolidation will present new opportunities to grow advertising revenue under a single larger streaming service. 
  • Disney+ is also set to launch ad-free and lower-tier versions of the service, raising prices on the current subscription.
  • Average monthly user revenue has increased by 20% amid widespread layoffs and restructuring. 
  • Disney’s stock valuation decreased by 8.9% after investors learned that Disney+ had lost 4 million subscribers. 

Go deeper

FacebookTweetEmailLinkedIn

Quiet Luxury Speaks Volumes

by Hannah Bryan Leaders Staff
Wealth

2 hours ago

Wealth may be associated with flashy luxury brands, but the world’s wealthiest people prefer to keep their success a little less noticeable.

Key Details

  • Luxury brands often come with flashy logos and noticeable designs, but the ultra-wealthy prefer to buy premium products without obvious brand names and logos. 
  • Many associate brands like Louis Vuitton, Prada, or Gucci with the rich, but these brands draw attention that the ultra-wealthy prefer to avoid, Fortune reports.
  • High-net-worth individuals may prefer to keep their wealth somewhat hidden for security and privacy reasons or out of mindfulness for those around them. 

Go deeper

FacebookTweetEmailLinkedIn
livestream shopping
Marketing and Sales

3 hours ago

The New Way To Shop Online

by Hannah Bryan Leaders Staff
Americans worry
Business

5 hours ago

More Americans Worry About Bank Security

by Hannah Bryan Leaders Staff
Company Culture

21 hours ago

Why Airlines Are So Unpopular 

by Tyler Hummel Leaders Staff

Recent Articles

Leadership

4 hours ago

How to Handle Criticism Professionally in 5 Steps

Improve your weaknesses, emotional intelligence, and relationships by learning how to handle criticism.

Innovation

May 10, 2023

Can Elon Musk Really Create Cyborgs With His Brain Chip Technology?

The Neuralink brain chip could cure blindness, paralysis, and mental illness.

Personal Growth

May 9, 2023

Beyond Poor Sleep: 15 Other Causes of Chronic Fatigue 

Examine the other possible factors triggering your tiredness.

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com

x