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John Evans, a former professional at Chisholm Park Golf Club, said the New Zealand Legends Masters would be played in a strokeplay format at the links course.
The tournament was planned for February 25-26 next year.
Former British Open champion Todd Hamilton, of the United States, was a confirmed entry, along with Andrew Magee, who had won on the PGA tour. Both now played on the Champions Tour.
Hamilton won the British Open in 2004 in a playoff over Ernie Els. Magee is the only player on the PGA to have landed a hole-in-one on a par-4.
Both Magee and Hamilton travelled to Dunedin as part of a University of Oklahoma team which played a New Zealand team at the St Clair course in the early 1980s. Evans said four golfers from that Oklahoma team would be in the city.
Australians Rodger Davis and Peter Fowler were also set to line up, along with former New Zealand Open champion Greg Turner. A legends tournament was held at the Otago Golf Club more than five years ago but it failed to take off. Evans said professionals wanted to play links courses such as Chisholm Park and the course at Balmacewen was too steep for many older players.
Chisholm Park Golf Club chairman Grant McKenzie said the club approved the tournament in principle.