Cash Prizes and Amateur Status


The following is an article written by a woman whom I have had the privilege to spend time with in my USGA/PGA Rules of Golf Workshops. - Shari Pfannenstein, VSWGA Rules Chair

 

Know Your Rules,

Courtesy, NCGA

 

Cash prizes and Amateur Status

 

 

 

 

By Gail Rodgers, Director of Education, Northern California Golf Association

 

In a recent e-mail a member asked what to do when a club awarded purchased prizes for the first three places in an invitational and paid cash to the remainder of the winners in the field. I contacted John Morrissett, USGA’s Manager, Rules of Golf and Amateur Status, to ask for the remedy to the situation to protect our members. In this case the members were allowed to return the cash and accept gift certificates in the pro shop for their prize. During this conversation John agreed to answer a number of frequently asked questions on amateur status. I believe you will find his answers very informative.

Gail: When are amateurs allowed to play for cash?

John: Simply put, playing for prize money violates the Rules of Amateur Status, but gambling does not. What’s the difference? Gambling involves informal wagering among friends, while playing for prize money consists of a more organized cash prize format. In general, amateurs should not play for cash prizes in large, organized events where cash is the only prize, playing for the money is not optional, or where the fact that there will be cash prizes is advertised or promoted.

If the format constitutes playing for prize money, a player would forfeit his amateur status just by attempting to win the prize money, regardless
of whether he is successful.
If a player wants to play in an event that offers prize money but does not want to jeopardize his amateur status, he
must waive his right to any prize money before playing.

Gail: What is the story with hole-in-one prizes? What is an amateur allowed to accept? What is his status if he accepts a non-conforming prize?

John: An amateur may accept a prize (e.g., merchandise or gift certificates) of a retail value not greater than $500. He may not accept cash in
any amount. If a player were to accept a prize exceeding this limit (e.g., a car), he would forfeit his amateur status as a golfer. By doing so he
would not necessarily become a "professional." Rather, he would simply be a non-amateur. The USGA looks at all golfers in two ways – as amateurs and as non-amateurs. There are many categories of the latter, from the club professional to the mini-tour player to the high-handicap
player who accepted a non-conforming prize.

In any case, a person who loses his amateur status for accepting such a prize may apply for reinstatement, through his state or regional golf
association.

Provided the player has not been reinstated before, he would have to wait one year to play amateur golf again, rather than the standard two.
During this waiting period, he may, with the tournament organizer’s permission, play in tournaments that are not limited to amateurs.

Gail: I know that an amateur may use his hole-in-one insurance fund to buy drinks for people after the round. What should he do if the bar
bill comes to only, say, $300? May he then take $200 in cash to meet the $500 prize limit?

John: No, he may not accept any amount of the prize in cash. In this particular situation, the simplest course of action would be for the club to
award him the $200 in credit for the golf shop.

Gail: If I win a prize with a retail value greater than $500 (e.g., a set of clubs worth $1200), what may I do to remain an amateur?

John: You may accept $500 of credit toward the prize and then pay for the balance (in this case, $700).

Gail: There is a junior golfer who lives in our area and shows much promise as a player. What can I do to help him play in tournaments?

John: Provided he has not yet reached (a) his 19th birthday or (b) the September 1 following high school graduation, the junior golfer may
accept help from outside his family with his expenses (e.g., entry fee, transportation, lodging, meals, caddie fees, etc.) to play in amateur
competitions. For example, you could help pay his way to play in the U.S. Amateur, but not the U.S. Open as the latter is not an amateur
event.

Gail: Is it possible for a player to give lessons for pay without losing his amateur status?

John: Yes, but with several restrictions. Only an employee of an educational institution (and camp counselor) may be compensated for giving
golf instruction, but only to students of that school and only when the total amount of time devoted to instruction in a year comprises less than
50% of his total time in a year as an employee of the school. Example: A high school history teacher also coaches the school golf team, spending only 10% of his time as a school employee teaching students how to swing the club. It is also possible to be only the golf coach at a school and fall within the 50% rule if he spends the majority of his time as a coach on non-instructional matters such as scheduling practices and matches, driving the team to and from matches, etc.

Gail: When does someone who hopes to qualify to play on one of the professional tours forfeit his amateur status?

John: He would lose his amateur status as soon as he mails the entry form to any stage of qualifying school.

Gail: At our club we have a shop assistant who has taken the PGA of America's Player's Ability Test (PAT). Has he lost his amateur status?

John: Not necessarily. Playing in a PAT does not, by itself, violate the Rules of Amateur Status. Provided the player has done nothing contrary to the Rules (e.g., play for prize money, give instruction for compensation, identify himself as an assistant professional), he remains an amateur. He would forfeit his amateur status if he passed the PAT and then followed through with the process to join the PGA.

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The Rules of Amateur Status can be found on page 117 of the 2000-2001 Rules of Golf Booklet. Please make time to review this section.
Maintaining your amateur status is critical for eligibility in VSWGA tournaments. Learn all the rules of the game of golf. It will make the game
more fun and you a true amateur player.

Shari Pfannenstein, Rules Chairman – VSWGA, can be reached at pfanner@aol.com.

I had a similar experience happen to me last winter in Florida. I played in two events both of which awarded prizes in cash. My team happened to place in both events and we were given cash prizes. I approached the Club Managers at the two different courses and asked that the prize be given to me in the form of a gift certificate instead. One of them basically laughed at me, and the other understood the position I had been placed in with the awarding of a cash prize. I was unsure if I had in fact forfeited my own Amateur Status simply by playing in the events, so I contacted Donna Anderson, Rules of Golf Associate with the USGA. Here is her reply to my email:

Donna: In reply to your recent email, I will answer your questions in the order that they were asked.

1) You have not violated the Rules of Amateur Status as you did not accept the cash prizes in any of the events you played in and did not knowingly play for prize money.

2) The distinction between playing for prize money, which violates the Rules of Amateur Status, and gambling, which does not, is often difficult to determine. In general, amateurs should not play for cash prizes in large, organized events where play for the money is not optional, there are no prizes other than cash or the fact that the cash prizes will be awarded is advertised. The club should be urged not to award cash prizes in the format you describe. By awarding merchandise or gift certificates redeemable for merchandise instead of cash, the club would ensure that the amateur status of the players is not even brought into question.

Events which are open to the public and generate cash prizes do not fall under the USGA Policy on Gambling. Those who participate in such events without waiving their right to cash prizes are said to have played for prize money. It appears the skins events** you have described fall under this category, and those players who have participated in such events, have taken action to forfeit their Amateur Status.

Regarding the Hospice Charity event, as this event is also open to the public and generates cash prizes, it would appear that the prize format constituted playing for money.

To prevent such violations from occurring in the future, it is suggested that all Committees do not conduct events in which cash prizes are awarded. Further, competitors should be notified in advance if such prizes will be awarded.

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**Just so that there is no misunderstanding, the "Skins Event" mentioned in the email above refers to a 9-Hole tournament that was played strictly on a Skins basis – there was no aggregate scoring involved.

An informal skins game among players (when cash is paid out), where the money put up is NOT part of the entry fee and is on a voluntary basis, does not constitute playing for prize money and does not violate the Rules of Amateur Status. However, if any such games are run, they should not be run by anyone on the Tournament Committee and the money should not be collected at the official registration table or in the pro shop.

 

 

 

 


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