PLAYING FOR PRIZE MONEY

3-1/1 Closest to the Hole, Long Drive and Putting Contests Offering Prize Money

Q. If a player competes in a closest to the hole, long drive or putting contest for a cash prize, is he considered to be "playing for prize money," in breach of Rule 3-1?

A. In these circumstances, it is not considered that the player is playing for prize money in breach of Rule 3-1. However, it is considered that the player who accepts the prize would be liable for forfeiture of Amateur Status under Rule 3-1.

3-1/2 Prize Money Placed in Trust Fund

Q. Is it permissible for amateur golfers to compete with professionals for prize money, with any prize money that is won by an amateur golfer put in a trust fund for the future development of amateur golfers?

A. No. Such an act would be a breach of Rule 3-1.

Fund Raising to Create Trust Fund for Amateur Golfer — see 6-2/19.

3-1/3 Cash Prize to Club of Winning Team

Q. May the sponsor of a team competition, in addition to giving prizes to individuals, give a cash prize to the winning team's Club for the purpose of improving their course?

A. No. Such a prize would involve the forfeiture of Amateur Status of all those playing in the competition in that they would be indirectly playing for prize money.

3-1/4 Cash Prize to Club of Player Making Hole-in-One

Q. May a Club give a prize, not exceeding the maximum under Rule 3-2, to a player making a hole-in-one at a particular hole and, in addition, a cash prize to the player's home Club?

A. Yes.

Award of Prize to a Club by a Commercial Sponsor — see 3-2a/8.

3-1/5 Prominent Golfer Taking Part in Other Sports to Win Cash Prize for Golf Union or Association

Q. A contest is being promoted where eight leading sportsmen from different sports compete in seven sports other than the one at which they are proficient. It is proposed that a prize of $1,500 will go to the Governing Body of the winner's sport.

Is it a breach of the Rules for a leading amateur golfer to take part in this contest?

A. No. The amateur golfer is not playing golf for prize money in breach of Rule 3-1. In addition, he may receive expenses in connection with his appearance as no golf competition or exhibition is involved — see Exception to Rule 6-3 (Personal Appearance).

3-1/6 Amateur in Televised Match with Professionals for Money Prizes; Proceeds Donated Directly to Charity

Q. May a prominent amateur golfer accept an invitation to play in a televised exhibition match, for which there are cash prizes for professionals, without infringing the Rules?

A. Yes, provided that he nominates a recognized charity in advance and the organizer pays any prize money to which the player might be entitled direct to that charity. The player may accept a trophy or similar presentation as a memento of the match or a prize of retail value not exceeding the limit established in Rule 3-2.

The amateur golfer may receive expenses in accordance with Rule 4-2f (Exhibitions). (Revised)

3-1/7 Amateur Plays for Cash Prize in Televised Challenge

Q. May an amateur golfer of skill or reputation take part in a televised "golf skills challenge" with a cash prize?

A. If the challenge involves golf skill, the amateur golfer would forfeit his Amateur Status if he accepted a cash prize.

3-1/8 Shares or Stock as a Prize

Q. May an amateur golfer take part in a competition where there are shares, stocks or bonds as a prize?

A. No. As such shares, stocks or bonds are readily convertible into cash, the format would be considered the equivalent of playing for prize money in breach of Rule 3-1.

Voucher to Open Investment Account — see 3-2b/3.

PRIZE LIMITS: GENERAL

3-2a/1 Symbolic Prizes

Q. There is no limit placed on the retail value of a "symbolic prize." A symbolic prize is defined as "a trophy made of gold, silver, ceramic, glass or the like which is permanently and distinctively engraved." What is the relevance of the prize being permanently and distinctively engraved?

A. The reference to engraving is important (e.g., a Club seal or appropriate lettering) as engraved prizes are distinguished from prizes for mainly utilitarian purposes, such as watches, music systems, luggage, golf bags, clothing or other merchandise, even though they may be marked so as to be identifiable as prizes. Acceptance of one of the latter non-engraved prizes exceeding the limits of Rule 3-2 would be a breach of the Rules.

Symbolic prizes or awards must not be used as a means to circumvent the Rules.

3-2a/2 Whether "Retail Value" Includes Discount Prices

Q. The sponsor of a Pro-Am, who is a dealer in electrical goods, wishes to offer the best amateur a prize of a television set. The television is available to him at below the limit laid down in Rule 3-2, but would normally sell at more than the limit. Is this permissible?

A. No. The definition of "retail value" of a prize is "the price at which the prize is generally available from a retail source at the time of the award." This includes discount sources, but the merchandise must be available over a reasonable period of time, from a number of outlets, be publicly advertised and available to everyone. Specially discounted or short term offers, or those restricted to certain customers, do not fall within this definition.

3-2a/3 Participation in Event with Improper Prize

Participants in closest to the hole and long drive contests that offer non-conforming prizes (including cash) are not in breach of the Rules unless they accept such prizes because such contests are not a match, tournament or exhibition — see Rule 3-1.

Participants in a competition (e.g., an 18 or 36 hole competition) which offers a non-conforming prize other than cash are not in breach the Rules unless they accept such a prize.

Closest to the Hole, Long Drive and Putting Contests Offering Prize Money — see 3-1/1.

3-2a/4 Non-Conforming Prize Donated to Charity by Sponsor

If an amateur golfer wins a prize that does not conform to Rule 3-2, he may suggest that the competition organizer or the sponsor donates it to a recognized charity. The competition organizer or the sponsor must be under no obligation to do so, and if he does the amateur golfer must not benefit, directly or indirectly, from the donation.

3-2a/5 Prize for Quiz Not Involving Playing Golf

Q. An amateur golfer wins a golf quiz, which does not involve playing golf. Does the prize limit referred to in Rule 3-2 apply to a quiz of this kind?

A. No. The Rules of Amateur Status do not apply to such a quiz. (But see Decision 4-1/1.)

Magazine Competition — see 6-2/6.

3-2a/6 Prizes at Driving Ranges or Golf Simulators

Q. Do the Rules of Amateur Status in general and Rule 3-2 (Prize Limits) in particular apply to competitions held at driving ranges or on indoor golf simulators?

A. Yes. The Rules of Amateur Status apply to all competitions where the player is asked to replicate a shot similar to that he would encounter during a round of golf, whether at a golf course, driving range or golf simulator. The Rules of Amateur Status do not apply to activities involving golf feats not encountered on a golf course (e.g., pitching a ball into a bucket or striking a moving target) which take place at a carnival, fun fair or fund-raising event where the playing of golf is not a major factor in attracting people to the event as a whole.

Clarification of Hole-In-One Exception — see 3-2a/22.

3-2a/7 Definition of "Golf Course"

Q. With regard to Decisions 3-2a/6 and 3-2a/22 and the application of the Rules of Amateur Status, what constitutes a "golf course"?

A. Although the term "golf course" is not defined, it is generally accepted to be an area of ground which has been specifically prepared for the purpose of playing golf.

For example, if a sports stadium has six golf holes temporarily laid out within it (i.e., with tees, greens, hazards, etc.), this would be, for the purposes of applying the Rules of Amateur Status, considered a "golf course."

3-2a/8 Award of Prize to a Club by Commercial Sponsor

Q. Is it permissible for a company sponsoring an event to award a prize to the Club of the amateur golfer winning the event, in addition to the individual prize won by the amateur golfer under Rule 3-2?

A. A Club may accept a prize based on the performance of its members in a golf competition provided the value of the prizes accepted by both the player and the Club in the aggregate is not greater than the prize limit laid down in Rule 3-2.

Cash Prize to Club of Winning Team — see 3-1/3.

Cash Prize to Club of Player Making Hole-in-One — see 3-1/4.

3-2a/9 Maximum Permitted Prize in Foursome, Four-Ball or Team

Q. Does the prize limit in Rule 3-2 apply to each individual player in a foursome, four-ball or team competition or to the partnership or team as a whole?

A. Each individual player may accept a prize of retail value up to the maximum as laid down in Rule 3-2.

For example, in an 18-hole team competition each player in a four-man team may accept a prize of retail value not exceeding the prize limit. However, the players must not jointly accept a prize of a retail value in excess of the prize limit.

3-2a/10 Clarification of "Total Prizes or Prize Vouchers in Any One Competition or Series of Competitions"

Q. How does the prize limit in Rule 3-2 apply to the total prizes won in a single competition or series of competitions?

A. The total in a competition would include the primary competition as well as any secondary contests (e.g., longest drive, closest to the hole, etc.). Please note the Exception to Rule 3-2 for hole-in-one prizes.

The prize limit in Rule 3-2 would also apply to the total prizes won in two concurrent competitions (e.g., low gross and low net) even if there is a separate entry fee for each.

Each qualifying stage of a tournament constitutes a separate competition provided there is a realistic entry fee at each level. (Revised)

3-2a/11 Two 36-Hole Competitions Also Run as 72-Hole Event; Prizes

Q. An event is run over the two days of a weekend. It consists of:

(a) a 36-hole individual stroke play competition played at X Golf Club on the Saturday;

(b) a 36-hole individual and team stroke play competition played at Y Golf Club on the following day (Sunday); and

(c) on the basis of the results, a 72-hole aggregate trophy is awarded to the best individual score among competitors who compete in both (a) and (b).

Competitions (a) and (b) are completely separate, with separate entry fees and optional sweepstakes; it is only when a competitor plays in both that he is eligible for (c).

Rule 3-2 refers to the retail prize limit "for any one competition or series of competitions." Does this mean that prizes up to the limit can be awarded for each competition?

A. As (a) and (b) are completely separate competitions played on different courses and with separate entry fees, the maximum retail prize limit applies in each case, e.g., a competitor may win a voucher for the maximum in (a) and the maximum in (b).

However, if a competitor in (a) also plays in (b) and thereby qualifies for an award in the aggregate trophy competition (c), he may only accept a prize or voucher for (c) up to the amount which, when added to the value of the prizes he has won for (a) and (b), does not exceed the maximum in Rule 3-2a. On the other hand, if he has already won prizes of the maximum in (a) and (b), he can accept a prize of symbolic value in (c) as such prizes, e.g., an engraved silver salver, trophy, etc., are not included in the maximum retail value of prizes.

With regard to the individual and team competitions in event (b), the maximum overall prize limit covers both competitions. (Revised)

3-2a/12 Prize for Order of Merit

Q. An "Order of Merit" is based upon a player's performance in a number of pre-selected, but otherwise separate individual events. In addition to any prizes a player may have won in the events themselves, may he win a prize due to his position in the Order of Merit?

A. Yes, provided it is a genuine order of merit and not a method of circumventing the Prize Rule.

3-2a/13 Policy on Raffles, Prize Draws, Etc.

General

The Rules of Amateur Status do not apply to a raffle or prize draw run in
conjunction with a golf event provided:

(a) it is a genuine draw;

(b) it is open to a substantial number of people;

(c) golf skill is not a factor in being allowed to participate in the draw; and

(d) it is not a subterfuge for circumventing the Prize Rule.

If the raffle or prize draw is limited to those who achieve a hole-in-one while playing golf, Rule 3-2 is not applicable provided the hole-in-one meets the
criteria set forth in see 3-2a/22.

Therefore, the limit referred to in Rule 3-2 is not applicable to the prizes of such a raffle or prize draw. (But see Decision 4-1/1.)

The following are examples of raffles or prize draws where the Prize Rule applies:

Raffle or Prize Draw Limited to Players in Event for Skilled Players

If a raffle or prize draw is limited to the players in a golf event where golf skill is a condition of entry, the Rules of Amateur Status apply and an amateur golfer must not accept a prize in such a raffle or draw of retail value in excess of the limit laid down in Rule 3-2.

In addition, when the retail value of such a raffle or draw prize is added to any other prize won by the same person in the same event, this must not total an amount in excess of the limit laid down in Rule 3-2.

Raffle or Prize Draw Limited to Players in a Golf Event Who Achieve Longest Drive, Nearest the Hole, etc.

If a raffle or prize draw is limited to those players in a golf event who achieve a particular feat (such as a longest drive and nearest the hole), golf skill is an entry requirement.

Therefore, the Rules of Amateur Status apply and an amateur golfer must not accept a prize in such a raffle or draw of retail value in excess of the limit laid down in Rule 3-2.

In addition, when the retail value of such a raffle or draw prize is added to any other prize won by the same person in the same event, this must not total an amount in excess of the limit laid down in Rule 3-2.

Quiz Limited to Players Who Achieve a Hole-in-One — see 3-2a/24.

3-2a/14 Policy on Mementoes, Giveaways and Equipment

Irrespective of prize values, a sponsor may give a memento or gift to competitors provided such a memento is offered to all competitors, and is not made as an inducement to play in the competition.

3-2a/15 Scholarship as Prize

Q. May an amateur golfer accept a scholarship as a prize?

A. No, regardless of the amount of the scholarship.

3-2a/16 Prize Limit - Foreign Currency

Q. May the Governing Body of golf in any country establish the prize limit in its own country and in its own currency?

A. Yes, under Rule 3-2 the Governing Body of golf in any country may set the prize limit for its own country, provided it does not exceed the local currency equivalent of the specified limit. Other than in Great Britain and Ireland the Governing Body may set the prize limit in its own currency.

Note: The calculation for conversion should be reviewed annually.

3-2a/17 Prize of Invitation to Play in Pro-Am

Q. May an amateur golfer accept an invitation to play in a Pro-Am as a prize in a golf competition?

A. Yes, provided the Pro-Am's normal entry fee does not exceed the limit laid down in Rule 3-2.

3-2a/18 Club Permitting Competition for Excessive Prizes

Q. What action could be taken by a Union or Association in a case where a Club or Society is aware of, but makes no effort to discourage, competition for an excessive prize?

A. Any sanctions which might be taken will depend on the constitution of the Union or Association. For example, a constitution may state that Clubs which do not enforce the Rules of Amateur Status are subject to disaffiliation. Alternative sanctions may include refusal of entries from members of that Club for County and National Union or Association events and removal of recognition of their handicaps.

Deferring Acceptance of Excessive Prize — see 7-2/1.

3-2a/19 Conditions Under Which Expense-Paid Trip as Prize Permissible

An amateur golfer may accept an expenses-paid trip as a prize provided it is worth no more than the prize limit and it is not for the purpose of participating in a golf competition, including a subsequent stage of the same event. Furthermore, no part of the prize may be in cash. Rather, it should be in the form of airline tickets, hotel vouchers, etc. (But see Exception to Rule 3-2b and Rule 4-2g for sponsored handicap competitions). (Revised)

Guidelines for Organizers and Commercial Sponsors of Amateur Golf Events, Whether Expenses May be Paid — 4-2g/2.

3-2a/20 Acceptance of Non-Conforming Prize in Relative's Name

Q. May the winner of a non-conforming prize accept it in the name of a relative and therefore not forfeit his amateur status?

A. No.

3-2a/21 Prize for Longest Drive, Nearest the Hole, Etc.

Q. May an amateur golfer accept a prize of a car for a nearest the hole contest?

A. No. An amateur golfer may not accept a prize or award for a particular feat in which golf skill is a factor, either on a golf course (such as a longest drive and nearest the hole contest) or at a driving range (such as longest or most accurate shot(s)), in excess of the limit laid down in Rule 3-2.

Therefore, if an amateur golfer wins such a prize, he must make the choice between accepting the prize causing forfeiture of Amateur Status and refusing to accept the prize enabling retention of Amateur Status.

Alternatively, an amateur golfer may retain his Amateur Status if he accepts an improper prize, but at the same time makes it a condition of his so doing that it is donated directly to a nominated and well known charity. If this is done the winner must not handle the prize or check, but the proceeds must be paid directly to the charity.

3-2a/22 Clarification of Hole-in-One Exception

Q. The Exception to Rule 3-2 provides that a prize won for a hole-in-one "while playing golf" may exceed the prize limit. What is meant by "playing golf"?

A. The phrase "playing golf" is intended to include situations where the hole-in-one is incidental to a round of golf (including a partial round). The following are examples of formats to which the exception applies:

• During a round;

• On a "19th hole."

The following are examples of formats to which the Exception does not apply (and therefore a player would forfeit his amateur status if he accepted a prize whose value exceeded the prize limit):

• A contest in which a player is allowed more than one opportunity on a hole to win the prize;

• A contest conducted other than at a golf course (e.g., a simulator or driving range);

• A putting contest.

3-2a/23 Insurance Policy for Hole-in-One

Q. May an amateur golfer insure himself against achieving a hole-in-one?

A. Yes.

3-2a/24 Quiz Limited to Players Who Achieve a Hole-in-One

Q. A quiz is limited to those amateur golfers who achieve a hole-in-one. Does Rule 3-2 concerning prizes apply to a quiz of this kind?

A. No, provided the hole-in-one meets the criteria set forth in Decision 3-2a/22. However, if entry into the quiz were limited to those who have achieved a feat of golf skill (e.g., score, longest drive, closest to the hole), the Rules of Amateur Status apply.

Policy on Raffles, Prize Draws, Etc. — see 3-2a/13.

3-2a/25 Hole-in-One Sweepstakes

Q. May a Club organize a hole-in-one sweepstake in conjunction with its competitions with the money collected accumulating from one competition to the next until a participant achieves a hole-in-one?

A. Yes.

PRIZE LIMITS: EXCHANGING PRIZES

3-2b/1 Exchanging or Selling Prize

If the terms of the prize so permit, a player may exchange one prize for another. However, the conversion of a prize into cash would constitute a breach of Rule 3-2b. (Revised)

3-2b/2 Policy on Prize Vouchers

The guidelines on prize vouchers are as follows:

1. It is most important that the Club Committee should define accurately on the voucher itself the purpose for which it may be used e.g.,
purchase of goods in the Club professional's shop, or any professional's shop or sporting goods shop, or from any retail source.

2. When making payment in respect of the voucher, it is the duty of the Committee to satisfy itself that the conditions of the voucher have been complied with and that it has not been converted into cash.

3. If the value of the voucher, is, say $200, the Committee may, at its discretion, issue two vouchers for $100, four vouchers for $50 etc., if it considers that these would be simpler to administer.

4. To redeem the voucher it must be handed over by the winner to the retailer in exchange for goods purchased. If the Committee has not already paid the retailer, the retailer will send his bill directly to the Committee for payment. The winner does not handle any cash.

5. While vouchers may not be used for such items as a bar bill or Club dues, they may be used for the purchase of clothes, shoes, furniture, suitcases, pictures, cameras, crockery, cutlery, glassware, radios, and other items which might normally be presented as prizes in a golf competition. Vouchers may also be applied toward use of a practice area, use of a golf cart, and green fees.

6. A voucher must not be used in such a way that it is the equivalent of money in breach of Rule 3-2b e.g., it cannot be used for the payment of entry fees, crediting to a Club account, or paying for Club dues, travel or hotel expenses, bar bill, electricity bill and so on. However, in accordance with the Exception to Rule 3-2b an amateur golfer may submit a voucher to his state or regional golf association and thereafter be reimbursed from the value of that voucher for expenses incurred when competing in a golf competition. Therefore, following the production of receipts, an amateur golfer could be reimbursed for expenses such as travel and accommodation costs, entry fees, etc. which relate directly to participating in the competition concerned.

7. It is permissible for a Committee to award a "gift card" or "gift voucher" that can be used at a number of different retail sources. However, the card or voucher must be used otherwise in accordance with the above points. (Revised)

3-2b/3 Voucher to Open Investment Account

Q. May a voucher be used to open an investment account with a bank or equivalent?

A. No. This would be equivalent to playing for a cash prize (see Rule 3-1).

3-2b/4 Prize of Year's Dues to Golf Club

Q. Will a player forfeit his Amateur Status if he accepts as a prize a year's dues to a golf club even if the amount of the dues payable by other club members is less than the prize limit permitted by the Rules?

A. Yes. In the same way that an amateur golfer may not use a voucher to pay for his golf club dues, he is not permitted to accept a prize of a year's dues to a golf club as this would be the equivalent of converting his prize into money in breach of Rule 3-2b. Acceptance of a prize of an honorary membership of a club would also constitute a breach of Rule 3-2b. (Revised)

TESTIMONIAL AWARDS

3-3/1 Examples of Testimonial Awards

Testimonial awards relate to notable performances or contributions to golf, as distinguished from tournament prizes.

It would be permissible, for example, for a state or county union or association to give an award of retail value up to the prize limit to its Golfer of the Year and for the national union or association to do the same. See also Decision 3-2a/12.