The Value of Exclusivity and Control in Media Rights

By maintaining exclusive control over the media rights and broadcast of the tournament, Augusta National and the Masters are able to leave substantial revenue on the table each year, estimated between $100 to $150 million. This unique approach of granting media rights for free to ESPN and CBS, rather than selling them for profit, allows Augusta National to retain complete control over the tournament broadcast, including choosing advertisers and TV timings. This exclusivity extends to their tax status as a for-profit corporation, enabling them to maintain privacy by not disclosing information such as their member list, income, holdings, or expansion plans. Augusta National values privacy and control over maximizing profits and is willing to pay additional taxes to ensure this secrecy.