JomezPro Acquired by DGPT

[Three Putt]

A couple items on this. Maybe the kids got paid to oversee the charitable foundation versus each directly inheriting a third from Dad, presumably for tax reasons. So, Todd may have access to all of the foundation resources if in charge and siblings are in agreement.

Here's something regarding where PDGA income is being spent. In the Spring 2020 issue of Disc Golfer it appears the staff and part-time consultants was about 20 people. In the Spring 2023 issue, the masthead shows around 40 staff and consultants post Covid boom. We know membership has increased exponentially, presumably in the Am ranks. However, a significant portion of the hires appear focused on major events for top end players and supporting elite events. I believe non-profits are only allowed to hold in reserve maybe 6 months of operating expenses. So, presumably they need to spend any additional windfall somewhere to retain non-profit status.

That was the PDGA model from the get-go of the players takeover. Step one: let Am's join. Step two: throw the majority of the resources we gain from Am membership at the pro tour. Lather, rinse, repeat.

Disc golf has always been distracted by the pro tour and this idea that the pro tour moves the needle. In reality, the needle was always moved at the grass roots level; the pro tour wasn't viable enough to have coverage and attract fans. Now that the pro tour has their sugar daddy propping them up, I guess we will finally find out if it can.

 

[coupe]

A I believe non-profits are only allowed to hold in reserve maybe 6 months of operating expenses. So, presumably they need to spend any additional windfall somewhere to retain non-profit status.

As someone who has been employed by a 501(c)(3) since 2013 and has served on the Boards of four other 501(c)(3)s prior to that, there is no legal requirement whatsoever that non-profits even HAVE a reserve fund to begin with, much less a cap on the amount that they hold in reserve should they chose to have one, in order to retain their non-profit status.

 

[foxdawg10]

A couple items on this. Maybe the kids got paid to oversee the charitable foundation versus each directly inheriting a third from Dad, presumably for tax reasons. So, Todd may have access to all of the foundation resources if in charge and siblings are in agreement.

Here's something regarding where PDGA income is being spent. In the Spring 2020 issue of Disc Golfer it appears the staff and part-time consultants was about 20 people. In the Spring 2023 issue, the masthead shows around 40 staff and consultants post Covid boom. We know membership has increased exponentially, presumably in the Am ranks. However, a significant portion of the hires appear focused on major events for top end players and supporting elite events. I believe non-profits are only allowed to hold in reserve maybe 6 months of operating expenses. So, presumably they need to spend any additional windfall somewhere to retain non-profit status.

There are only recommendations for 501c3 organizations, not IRS regulations regarding operating reserves. The recommendations are no less than 3 months, and no more than 24 months operating reserves. This allows the organization to survive the ups and downs of the economy, and also the nature of being a non-profit.

 

[Rastnav]

Jomez being absorbed, one way or the other, into DGN/DGPT was essentially inevitable. DGPT holds all the rights to the content that Jomez films and releases. It would have be been an unwise move at this time, but they literally could have killed the Jomez content model at any time by simply denying them the right to film. Things like practice rounds, The Putting Game, Beyond Disc Golf, etc. aren't just off season content generation, but also a development of a broader content model that potentially would have allowed Jomez to exist in some form even without tournament coverage.

The only really way DGPT can allow the post-produced model to thrive long term is being able to combine it with live to make for a packaged product. Now DGPT can use post-produced as a funnel to live coverage, and can also expand the overall reach of any sponsorship deals they sign. Buy a commercial on DGN and it can air across a number of different content channels and the overall reach is increased. That makes those deals more attractive and lucrative.

As was mentioned in the Ultiworld interview, this also gets another benefit of scale, which is that the administrative functions (HR, payroll, accounting, etc.) are now under one roof. That combines with the fact that instead of having two completely separate camera crews on the same hole, you can use one for both live and post-produced content. That will allow for the same number of people to bring more continuous action by covering more cards live.

There are so many benefits to the combination that it's really hard for me to see it as in anyway the result of a some negative power play.

As to Jomez having merch sales being a big chunk of Jomez's revenue, that's pretty much the way of it these days. Asking most touring musicians and they will tell you their concerts and albums are essentially vehicles for promoting merchandise sales.

 

[Cgkdisc]

As someone who has been employed by a 501(c)(3) since 2013 and has served on the Boards of four other 501(c)(3)s prior to that, there is no legal requirement whatsoever that non-profits even HAVE a reserve fund to begin with, much less a cap on the amount that they hold in reserve should they chose to have one, in order to retain their non-profit status.

The 6 months operating reserve was the minimum recommendation from the CPAs involved with PDGA oversite during the years I was involved. That recommendation may have changed, maybe not resulting from Covid upheaval.

 

[philstine]

The 6 months operating reserve was the minimum recommendation from the CPAs involved with PDGA oversite during the years I was involved. That recommendation may have changed, maybe not resulting from Covid upheaval.

I would expect that even you understand the difference between a RECOMMENDATION and a REQUIREMENT. Clearly, I'm giving you too much credit.

 

[Cgkdisc]

I would expect that even you understand the difference between a RECOMMENDATION and a REQUIREMENT. Clearly, I'm giving you too much credit.

Yeah, even these words weren't ideal choices, more like their financial goal to maintain at the time.

 

[Smigles]

Asking Jomez to pay money to film events is so wrong. They have been doing it for a decade and GREATLY increased visibility of the sport. If anything, it should be the other way around. Whoever did this clearly does not know the development of the sport in the last 15 years and how important YouTube and the YouTube content creators were / are to it. Shame, shame, shame.

 

[biscoe]

Asking Jomez to pay money to film events is so wrong. They have been doing it for a decade and GREATLY increased visibility of the sport. If anything, it should be the other way around. Whoever did this clearly does not know the development of the sport in the last 15 years and how important YouTube and the YouTube content creators were / are to it. Shame, shame, shame.

I disagree. Giving something away for nothing (post pro) when you are trying to sell the same product in different packaging (live) would be shooting yourself in the foot business wise. History is nice and all but it doesn't pay the bills.

 

[Smigles]

I disagree. Giving something away for nothing (post pro) when you are trying to sell the same product in different packaging (live) would be shooting yourself in the foot business wise. History is nice and all but it doesn't pay the bills.

That is clearly not the same product.

I ll be called a hippie but the main issue starts when you look at disc golf as a product that you wanna make profit from. I am not against tournament organisers making a few bucks for compensation for all the passion they put into the sport, but I do not want disc golf to become just another corrupt sport (Fifa, Olympics etc).

 

[Shallows]

I disagree. Giving something away for nothing (post pro) when you are trying to sell the same product in different packaging (live) would be shooting yourself in the foot business wise. History is nice and all but it doesn't pay the bills.

Sports broadcasting is not even profitable for the big sports unless they're subsidized by non-sports watching grandparents with cable packages. Hell, Netflix is not profitable. If DGPT is trying to turn a profit on DGN that is a fool's enterprise.

The only way you pay the bills is with zero-interest loans (aka Todd Rainwater) or manufacturers subsidies. Rising DGN popularity (while still operating in the red), can help make those two options more possible.

 

[runningoz]

That is clearly not the same product.

I ll be called a hippie but the main issue starts when you look at disc golf as a product that you wanna make profit from. I am not against tournament organisers making a few bucks for compensation for all the passion they put into the sport, but I do not want disc golf to become just another corrupt sport (Fifa, Olympics etc).

Disc golf has always been a means to make profit.

 

[Smigles]

Disc golf has always been a means to make profit.

Steady Ed founded the sport to get away from the tryhards in the other Frisbee sports and throw in the park with some friends while chugging some beers.

Jomez started with just bringing a camera to worlds one day and filming because he was passionate about both disc golf and filming.

Most tournament organisers try to just get even with their events and put surplus money into players packages or price money.

Maybe you are talking about disc manufacturers? In all other aspects i think you are just wrong.

 

[BogeyNoMore]

Hard to refute what Smigles just posted.
But the times, they are a-changing.

 

[chevis]

wouldn't it be cool to be in a gift society; people give things to other people because they appreciate them

 

[robdeforge]

Sports broadcasting is not even profitable for the big sports unless they're subsidized by non-sports watching grandparents with cable packages. Hell, Netflix is not profitable. If DGPT is trying to turn a profit on DGN that is a fool's enterprise.

The only way you pay the bills is with zero-interest loans (aka Todd Rainwater) or manufacturers subsidies. Rising DGN popularity (while still operating in the red), can help make those two options more possible.

Everything that I have found says that Netflix is profitable

 

[Countchunkula]

Steady Ed founded the sport to get away from the tryhards in the other Frisbee sports and throw in the park with some friends while chugging some beers.

Jomez started with just bringing a camera to worlds one day and filming because he was passionate about both disc golf and filming.

Most tournament organisers try to just get even with their events and put surplus money into players packages or price money.

Maybe you are talking about disc manufacturers? In all other aspects i think you are just wrong.

I thought Steady Ed worked for Wham-o and helped come up with a bunch of the other frisbee sports in addition to dg. Our sport started out as just one part of a marketing campaign for a child's toy.

 

[Hampstead]

Disc golf evolved organically. Steady Ed didn't invent it.

 

[elmexdela]

Disc golf evolved organically. Steady Ed didn't invent it.

most overrated person in dg

 

[coupe]

As a game disc golf may well have evolved organically; Ed Hedrick, by virtue of inventing the pole hole and founding the PDGA, was one of, if not THE, driving force behind the evolution from a casual game to an organized sport.