USGA Strategic Partnership Briefing

NGF Executive Meeting Preparation

Meeting Date: Week of January 27, 2026 Prepared For: Reid Gorman, SVP Business Intelligence & Operations Classification: Internal Strategy Document Citation Status: Validated (non-strict) - Key statistics sourced from R24007, Best Tees Update, NGF Segmentation 2025 Prepared: January 22, 2026

Executive Summary

This briefing synthesizes three strategic threads into a transformational partnership opportunity:

1. Best Tees Initiative (David Pierce meeting) - USGA's tee selection program seeking industry partners (USGA Best Tees Industry Update, Jan 2026)
2. Segmentation Research - NGF's 74.8M "Opportunity" golfer insights (NGF Segmentation Study, 2025, p.47)
3. Handicap System Research - NGF's deep understanding of GHIN barriers and motivations (R24007 Handicap Segment Profiling, Sept 2024)

The Opportunity: An AI-powered mobile platform that combines GPS, shot tracking, intelligent tee recommendations, and automatic GHIN enrollment - creating the largest golfer acquisition channel in USGA history.

Part 1: Current USGA-NGF Relationship

Relationship Health: Strong

Recent Deliverables (NGF Internal: R_DRIVE_USGA_AUDIT.md)

• R25009 Brand Equity Tracker - Fall 2025 (delivered Oct 2025)
• R24007 Handicap Segment Profiling (Sept 2024)
• R24006/R24017 Brand Equity W1/W2 (2024)

Key Insight from Relationship

"Lynn LaRocca seemed pleased with both deliverables and implied they're interested in continuing this work in 2026."

(NGF Internal: R_DRIVE_USGA_AUDIT.md, Nov 2025 notes)

Part 2: The Best Tees Opportunity

What David Pierce Presented (Jan 2026)

Core Concept: Help golfers select the right tees based on 7-iron distance to improve experience and retention.

(USGA Best Tees Industry Update, Jan 2026, slides 3-7)

USGA's Explicit Ask (Slide 18):

"Continue to be 'opportunistic' to grow the program" "Partner with industry associations?" (highlighted in blue)

(USGA Best Tees Industry Update, Jan 2026, slide 18)

Best Tees Results to Date

The Burning Platform (Using NGF Data - Slide 5)

Pierce explicitly cited NGF data (Best Tees Update, slide 5): - U.S. annual golfer inflow: ~6 million (NGF Golfer Participation Data) - Net growth: only ~1 million (NGF Golfer Participation Data) - "The yield is low" (Best Tees Update, slide 5)

Reid's Context: Of the 5M who leave annually, approximately half leave for health/mortality and financial pressures - unavoidable attrition. The other ~2.5M leave for addressable reasons (bad experience, wrong tees, feeling unwelcome).

[INTERNAL ESTIMATE - Based on NGF attrition analysis categories]

Strategic Implication: Best Tees and NGF's accessibility work target the same ~2.5M addressable leavers.

Part 3: NGF Handicap Research Insights

The Handicap Keeper Profile (n=3,114 survey)

(R24007 = NGF x USGA Handicap Segment Profiling, Sept 2024; n=3,114)

Key Finding: Handicap keepers are significantly more engaged and valuable customers.

Why Golfers DON'T Have a Handicap

Critical Insight: The top barriers are perception-based, not real. Golfers think handicaps are "for serious golfers" - not them.

What Would Motivate Adoption?

The #1 driver is SOCIAL - not functional. If friends have handicaps, people want them.

The Enjoyment Gap Problem

Problem: GHIN is seen as a "commitment badge" - not a fun enhancement. The marketing is too technical.

Current App Usage (Non-Handicap Keepers)

Opportunity: 95% of non-handicap keepers use apps OTHER than GHIN. They're already tracking - just not in the USGA ecosystem.

(Calculated from R24007 data: 100% - 5% GHIN usage among non-keepers = 95%)

Part 4: The Transformational Vision

Concept: "USGA Golf Intelligence" - AI-Powered Freemium App

Reid's Vision + SwingU Expertise:

An AI-powered freemium GPS app that:

1. Tracks every shot - not just scores, but actual distances hit with each club
2. Learns your game - AI builds a complete profile of your playing characteristics
3. Recommends the right tees - personalized Best Tees guidance for every course, every hole
4. Auto-enrolls users in GHIN Lite - frictionless entry into USGA ecosystem
5. Creates social connections - friends see each other's progress, encouraging adoption

Why This Works (Research-Backed)

Product Tier Concept

The Funnel Vision

┌─────────────────────────────────────────────────────────────┐
│  FREEMIUM GPS APP DOWNLOAD                                  │
│  (Millions of casual golfers - the 74.8M Opportunity)       │
└─────────────────────────────────────────────────────────────┘
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│  SHOT TRACKING / GPS USAGE                                  │
│  AI learns your distances automatically                     │
└─────────────────────────────────────────────────────────────┘
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│  GHIN LITE AUTO-ENROLLMENT                                  │
│  "Your first 3 rounds = your first handicap"                │
│  No friction, no signup - just happens                      │
└─────────────────────────────────────────────────────────────┘
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│  AI TEE RECOMMENDATIONS                                     │
│  "Based on your actual distances, play from Yellow today"   │
└─────────────────────────────────────────────────────────────┘
                              │
                              ▼
┌─────────────────────────────────────────────────────────────┐
│  BETTER EXPERIENCE → RETENTION → GHIN STANDARD UPGRADE      │
│  Premium subscription + full handicap + committed golfer    │
└─────────────────────────────────────────────────────────────┘

Part 5: NGF's Unique Value Proposition

What NGF Brings

(NGF organizational capabilities; Welcome2Golf Initiative Brief, 2025)

Reid's SwingU Background

Reid Gorman previously ran SwingU, a leading freemium GPS golf app. This provides:

• Deep understanding of freemium golf app economics
• Knowledge of user acquisition and retention strategies
• Insight into feature prioritization for golfer engagement
• Relationships in the golf technology ecosystem
• Battle-tested perspective on what works and what doesn't

Part 6: Addressing USGA Concerns

Strategic Pathways for USGA

Reid's Perspective: Having run SwingU, I can speak to the acquisition pathway: - App valuations typically run 3-5x annual revenue - Integration of user base into GHIN ecosystem is technically complex - Product development capability must be retained or rebuilt - Key question for USGA: Do you want to be in the app development business long-term, or partner with those who are?

Recommended Approach: Pathway 3 or 4 - Partnership models that leverage NGF's research expertise and existing app platforms' technology, while keeping USGA focused on governance and standards.

Part 7: Connection to Segmentation Research

The 74.8M Opportunity

Why They Don't Engage

From Segmentation Research: - Only 22% of MVPs feel golf culture welcomes their skill level (NGF Segmentation Capstone Report, 2025, p.103) - Rules/etiquette perceived as intimidating - Fear of "doing it wrong"

From Handicap Research: - 64% think handicaps are only for "serious" golfers (R24007, p.19) - 26% never got proper information about how to start (R24007, p.19)

The AI app solves both: It's welcoming (freemium, no commitment), learns your game automatically, and tells you exactly where to play from - eliminating the "doing it wrong" fear.

Part 8: Financial Framework

USGA Value Creation

[ILLUSTRATIVE PROJECTIONS - Scenarios for discussion, not verified forecasts]

NGF Revenue Potential

[ILLUSTRATIVE PROJECTIONS - Based on comparable partnership models]

Competitive Pressure

If USGA doesn't act: - 18Birdies already has 32% of non-handicap keepers (R24007, p.26) - Arccos has 17% and is building AI recommendations (R24007, p.26) - Topgolf could launch their own "beginner handicap" system - Golf apps will create parallel handicap systems outside USGA control

Part 9: Recommended Discussion Points

Opening Frame

"David Pierce's Best Tees presentation asked about partnering with industry associations. We want to propose something bigger: a partnership that could bring millions of golfers into the USGA ecosystem while solving the tee selection problem at scale."

Key Messages

1. The data connection: "Our handicap research shows 64% of non-handicap golfers think it's 'not for them' (R24007, p.19). The segmentation shows 74.8M interested Americans feel unwelcome (NGF Segmentation Study, 2025, p.47). These are the same people - and we now know exactly how to reach them."

2. The technology vision: "What if the GHIN app didn't just track handicaps, but actually learned how far you hit every club, then told you exactly which tees to play from at every course? And what if it did this automatically, without golfers having to do anything special?"

3. The acquisition channel: "Best Tees currently requires facility-by-facility adoption (Best Tees Update, slide 18). An AI-powered app puts personalized tee recommendations directly in golfer hands - at scale."

4. The social insight: "Our research shows the #1 motivator for getting a handicap is having friends who have one - 30% overall, 43% of 18-39 year olds (R24007, p.24). The app should make handicaps social - shareable, comparable, fun."

5. The expertise: "Reid ran SwingU for years. He knows the freemium golf app business inside and out. NGF has 35 years of golfer behavior data. Together with USGA's credibility and infrastructure, this partnership has unique advantages."

Questions to Explore

1. What is USGA's current mobile app strategy?
2. How does GHIN app development roadmap look?
3. Is there appetite for a "GHIN Lite" tier?
4. What's the relationship with existing GPS app providers?
5. How does Green Section coordinate with GHIN/Handicapping teams?
6. What's David Pierce's role and influence in this decision?

Part 10: Next Steps

Immediate (This Meeting)

1. Gauge USGA interest in expanded partnership
2. Understand internal stakeholders (Green Section vs. Handicapping)
3. Identify decision-makers for technology partnerships
4. Explore willingness to discuss mobile app strategy

Short-Term (Q1 2026)

1. Formal partnership proposal development
2. Technical feasibility assessment
3. Data sharing framework discussion
4. Pilot program design

Medium-Term (2026)

1. Joint development agreement
2. Beta app development
3. Facility pilot selection
4. Research integration planning

Appendix A: Source Documents

Appendix B: Key Statistics Reference

From Best Tees Research (USGA Best Tees Industry Update, Jan 2026)

• Erin Hills: 1,600 golfers moved forward over 2 years (slides 8-9)
• Template fits >95% of golfers (slide 7)
• 7-iron distance is the key metric (slides 3-7)

From Handicap Research (R24007 NGF x USGA Handicap Study, Sept 2024)

• 64% say handicaps are "only for casual players" (p.19)
• 89% commitment badge vs 16% enjoyment (p.16)
• 30% would adopt if friends had handicaps (p.24)
• 13% "very interested" in starting a handicap (p.22)
• 26% lack proper information (p.19)

From Segmentation Research (NGF Segmentation Study & Capstone Report, 2025)

• 74.8M interested but not converting (Study, p.47)
• 22% of MVPs feel welcomed by golf culture (Capstone, p.103)
• 50% are "one invite away" from regular golf (Capstone, p.122)
• 52% of Fusionists cite "vintage cool factor" (Capstone, p.67)

From NGF Data

• ~6M annual golfer inflow (NGF Golfer Participation Data, cited in Best Tees Update slide 5)
• ~5M annual attrition (NGF Golfer Participation Data)
• ~2.5M addressable attrition [INTERNAL ESTIMATE - Based on attrition analysis categories]
• 29.1M on-course golfers (2025) (NGF Golf Industry Report, 2025)

Document prepared by NGF AI Platform Last updated: January 22, 2026