Exclusive:How the R&A 'chasing The Open dollar' is bypassing historic courses such as Muirfield and Turnberry

Now, at a pivotal moment in its storied 270-year history, how much further can the R&A develop golf’s most prestigious competition to extract more revenue? Founded as the Royal and Ancient Golf Club of St Andrews, the R&A long occupied a unique position as a private members’ club with no course of its own. Two decades ago, however, it separated its championship, commercial and rule-making operations. The impact of that decision has been seismic.

In its first decade, R&A Championships Ltd, a subsidiary incorporated to stage the Open and other tourneys, posted an average annual turnover of £47 million and average profits of £4.5m. The past ten years have seen those figures jump to £88m and £6.3m. Turnover broke the £100m mark in 2019 and, in its two most recent annual filings, cumulative revenues totalled nearly £300m.

That has allowed it to invest significantly, particularly across the women’s and girls’ game. The R&A is developing a new headquarters in St Andrews scheduled to open next year, and is on track to meet its goal of investing more than £200m in developing the game in the ten years to 2027.

Such success has many fathers, but the main architect is Martin Slumbers, an investment banker who became chief executive in 2005, and oversaw a major increase in broadcasting and sponsorship revenue. It is understood the R&A now receives around £60m a year from Sky and NBC for rights to The Open.

“Some of the rebranding and big slogan campaigns seem excessive and even contradictory at times, yet it’s hard to criticise when you hear attendees feel like the event seems big and modern,” reasoned golf writer Geoff Shackelford, author of The Quadrilateral newsletter. “The R&A is also doing tremendous things with the increased revenues that have nothing to do with the pro game.”

But with a fresh era for the R&A beginning under new chief executive Mark Darbon, is there a limit to the growth, and are some of Scotland’s most historic courses paying a price?

Efforts to boost The Open’s commercial standing mean venues are accommodating more spectators. When Royal Troon hosted in 1997, 2004, and 2016, it drew average crowds of around 175,000. Last year, however, it welcomed a record 258,000 punters. Similarly, numbers at the Old Course in St Andrews shot up from 201,000 in 2010 to 290,000 in 2022. When The Open returns there in 2027, the talk is of breaking the 300,000 mark.

That trend is being pursued, in part, to meet the rising prize purse - while victory at The Open was once considered sufficient reward in itself, the fund nearly trebled under the Slumbers era to £13.4m - but also to bankroll the R&A’s investments. “The Open is a global sporting event and we work hard to maximise its commercial success so we can invest more in supporting golf around the world,” an R&A spokesman explained.

Not every course on the Open rota, however, has the capacity to drive such growth, leading to concerns the R&A is pushing out historic venues. Muirfield, a 16-time host, has not welcomed the tournament since 2013, when a crowd of 142,000 fell below expectations. Amid doubts over whether its practice range can accommodate the modern game’s big hitters, it is effectively in limbo.

A similar holding pattern exists at Turnberry, a four-time host that last attracted 123,000 spectators in 2009. It is hoping for a reset in relations with the R&A amid controversies surrounding its owner, US president Donald Trump, and has invested heavily in redesigning the Ailsa course. But long-standing logistical issues, such the lack of a nearby rail station or large-scale accommodation offerings, remain.

Then there is Carnoustie, which has hosted The Open eight times, albeit only twice since the turn of the century. As revealed by The Scotsman, a consortium of investors could gain control of the Angus venue for the best part of the next century, with a view to bolstering its status in the R&A’s eyes.

One source familiar with the rota system said the R&A had effectively created a “two-tier” system that excluded some venues to “chase the dollar,” explaining: “The R&A’s husbandry is second to none, and it has really raised the profile of The Open,” the source said. “But the trade-off is that it now prioritises a silo of courses on the rota that can host the event on a regular basis. There is a rota, and there is a wider pool.”

However, the R&A said it was “working collaboratively” with a number of venues on improvements and investments to help ensure they are ready to host The Open “now and in the future”, adding: “The venues hold a special place in the unrivalled heritage of the Championship and we believe these investments are worth it because of the returns they generate in terms of substantial long-term economic benefits.”

Mr Shackelford said the rota would be in a good place if the likes of Carnoustie and Muirfield hosted the championship once every ten to 15 years, but stressed that it would be rash to try and predict the R&A’s next steps.

“These organisations go in phases, and right now they are riding quite a wave of commercial interest and success,” he said. “But this is the same organisation that also kept telling us The Open could never happen at Royal Portrush - this year will be its second Open in six years.”