BANK OF MONTREAL CANADIAN WOMEN'S OPEN

August 14, 2002

Ty Votaw

LAURA NEAL: We'd like to welcome our commissioner, Ty Votaw and thank you all for joining us today. And I know Ty has a couple opening remarks and we will just open it up to questions. Thank you.

TY VOTAW: Thank you. It's great to be back here in Canada for the second year of our relationship with RPGA and Bank of Montreal as the title sponsor of the Canadian Women's Open. And obviously the momentum that we have had coming in this week leading up to this week from the year that we have had on the LPGA Tour we feel very good about. Certainly you look at the performances of some of the players on our Tour this year, you have to start with Annika Sorenstam and what she has been able to accomplish in bringing a lot of awareness and a lot of energy to the LPGA. We have had four different winners of our major championships this year. Annika, Se Ri Pak, Juli Inkster and just this past week, Karrie Webb at the Weetabix Women's British Open at Turnberry. And I think that speaks to the fact that when you got the four best players in the world winning your four major championships in any given year, that I think speaks very strongly on the breadth and depth and quality on the LPGA Tour and in fact 13 of the past 15 major championships have been won by those four players. So it's just the years that they have had in the past four years on this Tour have been remarkable. And I think when you look back on the history of the LPGA those four years and the dominance of those four players I think will be reflected in the history books as four of the greatest players who ever played the game. We have had a lot of talk this year about the players summit that we conducted in March in Phoenix before our season started. Where we gathered all of our players together, 178 players in three days, and we shared with them the business plan of the LPGA for the next five years, as well as all the things that we are asking the players to do on behalf of the association. And also telling them what the LPGA is doing on behalf of them. So that everybody has a greater understanding of the road map for the next five years in terms of business of the LPGA. One of the central things that we discussed as far as the players were concerned as part of our five year business plan is or was the Five Points of Celebrity that we asked each of our players to work on and be aware of. And we have been approached by any number of players over the years to say what can we do to make ourselves more marketable. Well our fans after conducting a number of episodes of research with our fans came back to us and said, look -- and we did our own investigation of other celebrity athletes. And we come up with the Five Points of Celebrity. And the objective of those Five Points of Celebrity is, look, if you do these five things, if you improve in these five areas, you will become more marketable. Because every single successful celebrity athlete embodies at least these five characteristics. And if you are then more marketable because you improved in each of those areas, the overall enterprise that is the LPGA will become more marketable as well and that will only elevate the overall media awareness and sponsorship effectiveness of the organization. Those Five Points of Celebrity start obviously with performance. We're a performance based sport. We want every player to work as hard as they possibly can to get better. So that player 150 breaks into the top 100. Player 90 on the Money List can get to the top 50 and so on. Performance has to be the number one issue in the Five Points of Celebrity. After that, relevance, joy and passion, appearance and approachability are all things that make up what we call the successful celebrity athlete. And we have asked each of our players to work on those areas. That if you're a 10 in one area, but a zero in the other four, we would like you to work as hard in those other four as you worked in the one in which you are a 10 on a scale of one to 10 on. And if you do that you will then become more marketable. And if you are a 10 in one and a 0 in the other four you won't be as marketable as someone who is a five in perhaps all five of those areas. The players embraced those five points of celebrity, I think and came out of the summit with enormous amount of enthusiasm and energy to improve themselves in all of those areas. And I think we have seen the fruits of that over the course of this year. We set some very hard goals with respect to our business plan for the next five years. We wanted 15 percent average attendance gains at our tournaments over the next five years. And we asked for 10 percent greater television viewership over the next five years. And I'm happy to say that on our tournament attendance so far this year in comparing events from last year to this year, like events, we're up 13 percent so we're right on track to that goal. And as far as our television viewership numbers this year on our telecasts, on our broadcast networks we're well over 40 percent increases in viewership from last year to this year. And on our cable telecasts were well over 20 percent. So we're tracking on that. We also understand it's a five year business plan, and we're not going to get too high on these initial successes because we do realize it's a marathon and not a sprint. When Laura called yesterday to say that there was a number of people who wanted to talk to me about any number of different things we thought we would call a press conference. And so I think it's probably better for me to ask or to listen to some of your questions and hopefully respond to them than for me to just continue to answer all your questions before you ask them. So with that I would like to open up the room to questions.

Q. About the tournament in particular here, this year is more or less the same as last years. Next year it's different because of logistics in terms of the Women's U.S. Open being on the west coast and this tournament will be in Vancouver. When do you see this tournament getting a firm date and in which month do you see that happening or is it still too early to tell about this?

TY VOTAW: It's still pretty early. I think part of it relates to a number of factors. Because this event rotates around the country, where it is and proximity to other LPGA events state-side is always going to be an issue. And so when we had a situation where we knew that Women's U.S. Open was going to be in Portland, Oregon and there was a goal on the part of Bank of Montreal to move this event to the northwest part of Canada, we felt that would be a nice way to marry those two from a geographic flow perspective. Where that is in future years and where they go in future years, the event will I think dictate the date more than anything else. I think for the most part to get the maximum amount of exposure for the Bank of Montreal Series leading up to this event, I think it would preclude a June date for the most part and we're looking at something typically in the July or August time frame that also compliments what event is before it and what event it after it on our schedule so we can get the maximum amount of player ease in travel in getting here.

Q. We have seen a bit already on the PGA TOUR with some of the major sponsors that because of stock market problems and things like that in terms of their commitment to tournaments, are we faced with anything like that on the LPGA Tour next season and do you see any additional events coming on or any fewer events, some events disappearing after this year?

TY VOTAW: We told the players that at a player meeting in Youngstown a couple weeks ago, it's probably been about a month now, that where we sit today, worst case scenario, we will have the same number of events next year as we had this year. With current projects looking at purse increases with those same numbers of events totalling about anywhere from two to three million dollars more than this year. Best case scenario is we think we could probably add two net incremental events to our schedule with purse increases with those two additional events added to the schedule anywhere from three to four and a half million dollars in prize money. So from where we sit right now and we're still working hard to finalize our schedule, for 2003, and from all indications we feel very good about the fact that in this pretty tough economy we will be in a situation where we will maintain the same number of events or perhaps in a best case scenario, add one to two with significantly more prize money. So we're looking for our average purse to go up next year from the 1.19 average purse that we had this year, 1.19 million dollars average purse that should go up with anywhere from two to four and a half million dollars in additional prize money for the next year. And I feel very good about that, given the economy that we're faced with and the uncertainty of a number of different companies and marketing in general.

Q. The points of celebrity that you speak of, some athletes female or male can embrace certain objectives and run with them and they have no problem with them. Others are shy, they're just for whatever reason they just don't take to them as readily as easily, it's just as not a natural thing for them. Will the LPGA provide some sort of counseling or expertise for them to the players to help them develop some of these qualities you're speaking of?

TY VOTAW: Yes, that was one of the questions that came out of the summit is what tools are we -- if we're expecting our players to do these things, what tools are we going to provide our players to help them with them. One of the things we did about three weeks ago is hold a seminar in New York that was headed up by Vera Wang, the international clothing designer who along with the three other panelists provided 60 players who sat for two hours with fashion tips and with tips on appearance. Not in any salacious or titillating way, but rather just what types of things should our players be mindful of when they are in the public's eye and in the entertainment world and to get people to want to watch them. And it was a fascinating two hours where the 60 players were held their attention and asked a number of great questions and it was a real, I felt like I was a fly on the wall sitting there. And when a lot of the things that were said were surprising to me, but also I think very enlightening to the players in how they can be more mindful of how their appearance could then be augmented and then make them more marketable as professional athletes. That's one example of us providing the tools to them to help them. Certainly you're right, there are players who in terms of being approachable or being -- it's not that hard to be approachable it's looking people in the eye, it's saying thank you to volunteers. It's giving that young fan a golf ball as you leave the putting green or on the final day. All of those things are not that difficult to do. We have asked our players, as shy as you may be, if you sign 20 autographs a day we would like you to sign 40 the next day and 80 the next day after that and if you do those things, you'll be remembered by the people who you interact with. That's really what we're talking about in terms of all the various points. And they all interrelate. I think if you perform and have relevance as an individual and as a professional athlete, and you play the game with joy and passion, and you are approachable, you will be more attractive to our fan base. No matter -- so they all are related and they all are by-products of one another. And that's what we want to make sure the players are mindful of.

Q. (Inaudible.)

TY VOTAW: What would be the reason why? We have a pretty full schedule in the summer months in which you can play events in Canada. I don't think you get this kind of weather all year round out here. And so we are pretty full, I kind of tell players and media that we have 50 pounds of potatoes and a 40 pound bag in the summer months of June, July and August anyway. So finding a date on the schedule that could be played in Canada in those months is a real challenge because we have events that are in May and in September that are put on the schedule because those are available and when those dates open up, they kind of get pinched into the June, July and August months. We want to focus on making this event the best it can be in Canada and we think that we're off to a great start with the RCPGA and the Bank of Montreal.

Q. There's been some criticism of your plan you mentioned salacious and titillating. There's been criticism of your plan I just am wondering what your reaction is to that?

TY VOTAW: I'm fairly bemused by it. Because I think that the media has been really made a mountain out of a molehill in terms of what the, what in trying to characterize what we're trying to do. We're not selling sex. I think that's where the media has defaulted to in terms of this whole thing and I find it interesting that that's the one thing in a five point plan of the celebrity athlete that they think that that's somehow what we're trying to do. I think ones we have educated the media or and we have talked to media who are willing to be educated, and not just take a point for their own glorification, to advance their position and not let the facts influence their position, they come away knowing what we're trying to accomplish. And that is, to have our players be more mindful of having the power to attract more fans. Which is what our ultimate business plan is about. A fans first strategy. We have more attendance, we have more viewership and we have more interest in the LPGA. And if we do those things the things like purses and sponsorships and individual player endorsements will rise as well. But we're not, I think, selling, you know, sex for sex's sake in a titillating and salacious way has a short shelf life philosophy. And I said that ever since I became commissioner. We're not selling pinup calendars of our players. We're not putting players in provocative poses and outfits. All we're doing is asking them to be mindful as you go out into the public's eye to look the best you can look and to present yourself in the best possible way. And if you do those things, only positive things will happen from them. Because appearance does matter in our society in our culture, both in the United States and on this side of the border.

Q. Just to change topics a little bit. Solheim Cup. Played a week before the Ryder Cup. Too much match play at one time? What do you think?

TY VOTAW: I think it's a, the cup runneth over in terms of match play. I think the Solheim Cup will be great for the Ryder Cup and I think the build up that the Ryder Cup has had is going to be great for the Solheim Cup. We obviously had to face the situation of having the Ryder Cup moved to even numbered years when in the past the Solheim Cup was put in even numbered years so it wouldn't be in Ryder Cup years. The events of September 11th changed that. That's why we made a decision to go in 2003 to odd numbered years to have the Solheim Cup next year in Sweden so that we would not be in this same situation. And we will have the, for the first time in the event's history, back to back Solheim Cups in consecutive years so that we do get that odd numbered rotation back. But I think this year I'm happy that we're before the Ryder Cup and not after the Ryder Cup. So that the first international match play event on the professional side of the game is in our court and not in the machine's side of the game.

Q. Switching events, keeping in mind that events and dates, how difficult is it this week for the LPGA to go up against the presence in Montreal of the tennis which is one of the biggest sporting events in this city year after year.

TY VOTAW: Sure. Certainly we compete every week with sporting events around the United States and in Canada. I would be interested in hearing the answer to that question from the women's tennis side and I hope you ask that question of the person who is running the WTA, because obviously in this city having those two events is I think a great thing for the sporting fans of Montreal. What -- is it a perfect situation, no. But is it a situation that I think, is there enough to go around for both, I think the answer is yes. And I don't think in the rotation going forward we're not going to have that issue next year in Vancouver. And I think in future years when we come back in future cites in this part of Canada we won't have that same situation. So in a perfect world would I like to do it differently, yes. We don't live in a perfect world.

Q. Earlier you were talking about the seminar given by Vera Want to 60 of your players and you said that some of the things that were talked about were a bit surprising to you. Can you tell me what certain things surprised you during that seminar?

TY VOTAW: Well, what I was surprised at was the willingness of our players to ask tough questions and get tough answers. Based on what these four panelists felt were fashionable. So whenever a player would raise their hand she was asked to come up to the front of the room and have her outfit evaluated by these four designers. And they handled it with grace and with deplomb and with all sorts of class and dignity. And they wanted the information. They wanted to know what they were doing right and what they were doing wrong. And things like I think one of the surprises that our players heard was Vera Want gave the advice not to wear belts when you play golf. That belts somehow cut women in half in a way that doesn't necessarily make them, isn't as fashionable or isn't as a attractive as otherwise. So that was a buzz around the room. Don't wear belts, my God, that's heresy. And yet the next day you saw a number of players not wearing belts and they got used to it. So that was one example of what makes you look good on television. What fabrics, what patterns, what colors. Make you look good on camera. That was talked about. And so if the advice that was coming through was bold, vibrant complicated patterns, as tops for your players, don't come across very well on TV. You saw eyes around the room looking at all the bolds and vibrant and complex colors that were being worn by our players as if, okay, then this isn't camera friendly. And so you saw then a difference the next couple of days and the following weeks on people, players being more mindful of that. The other thing that I think the players were encouraged to hear were that golf apparel manufacturers on the women's side, there may very well be a vacuum in golf apparel for women. That in many cases golf apparel for women is just smaller sizes of men's shirts. Which don't necessarily make women golfers look as fashionable as someone who is wearing a, wearing those clothes socially. So all of those things were discussed and many other things that were very entertaining to go through and to learn. And I think the players took away from this advice much like they take away swing tips from four different golf professionals. They pick things out that they could each use individually accepted some, rejected others and were enlightened about what these four experts in the world of fashion and design and hair care and skin care were telling them.

Q. Were these seminars optional?

TY VOTAW: It was optional. We had 60 players show up and it was a two and a half hour session and I don't believe any player left before the two and a half hours were up that were there. And I was just proud of the players going through that seminar as I was their attendance at the summit. Because frankly it was a much more up close and personal type of impact to them. Because there's nothing more personal or impactable to all of us than our own appearance. Every day we -- this is why I think appearance has to be part of the Five Points of Celebrity. Every single person got up this morning and put on what you put on based on how you wanted to present yourself to the outside world. And that's only exaggerated when you deal with professional athletes. And so talking about that and being willing to be criticized about than also having pointed objective tips and encouragement on what you're doing well and as well as advice about what you could do better, I think the players who attended were, should be commended for being as open minded and as open to those types of advice.

Q. Officially or unofficially will there be any standard bearer among the LPGA professionals who you think can take this and run with and perhaps be, fly that flag a little and you can maybe use as not use, but have them as kind of forefront of your marketing of this as you continue to take this program along? Has there been any discussion to that point?

TY VOTAW: I don't know if you want, I don't know if we want to go with one flag bearer. I would like to have 178 flag bearers on this issue. And I think the feedback we received out of the summit, the public comments of players along the entire spectrum of the Tour were very positive about that. And I think that the message we were saying to the players at the summit was there's not one player in the 178 who attended that couldn't embody all five points of the Five Points of Celebrity. And that has been, I think, embraced and encouraged by the entire membership and there was, there has been some discussion lately about the fact that you know, was the LPGA in trouble in some way. Do we need to do this? And the question, the answer I have to that question is, this is what every major sports entertainment property and frankly any major corporation does. Is continually strife for self improvement. We have had some -- we have some of the most approachable and accessible and accommodating and appreciative professional athletes in all sports. Great role models. We have always been, that's been a point of differentiation for us along with in comparing us to other sports. We felt that in this pretty competitive sports entertainment marketplace we had to do a better job to continue to differentiate ourselves so we could extend our lead in those areas and I think if we do those things the positive economic issues will follow with greater television, greater sponsorship, greater prize money because the demand for our product will be that much greater.

Q. We talked about the players themselves and how they're advancing the LPGA cause. Is there anything going on behind the scenes in terms of marketing, any special programs?

TY VOTAW: Well the entire -- kind of overarching theme of our business plan is a fans first strategy. That everything we do, whether it's how our tournaments market themselves in their communities, how our television partners televise our events to how our players present themselves to the public all of those are done with a mindset of what do our fans want. From the LPGA, and from our tournaments and from our television and from our players. And so what our business plan is about is making sure that every business area of the organization is mindful of that and then build their activities and their tactics and their day-to-day operations around that overarching theme of fans first. So we're talking to our tournaments about ways in which they can make their events more fan friendly. We week in and week out. We're talking to our television partners about how we can make our telecasts more compelling. In terms of miking our players or music in terms of the overall presentation of or telecast and making our players more dynamic in those telecasts in terms of what our fans have told they would like to see there. And all of those are examples of what we will be doing over the course of the next five years in the business plan. And to answer your question, are there things happening behind the scenes, yes, there are. And all of those things are centered around the fans first approach.

LAURA NEAL: Thank you all for coming. Thanks, Ty.

TY VOTAW: You're welcome, Laura. Thank you.

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