Golf Industry & CMAA Shows - 2014
Week before last, I attended and presented (along with 3 of my colleagues) on improving golf course operations at the NGCOA 2014 Conference and Golf Industry Show.  I also attended the Club Managers (CMAA) show at the end of the week.  In recent years, the GIS and CMAA events have been full of doom amd gloom as many in the industry took their lumps from the recession and battled through the economic speed bumps.  This year, however I sensed a more positive disposition and had quite a few meetings with golf industry people who anticipate a much stronger 2014.  While most anticipate that golf course closures will outpace openings, the general consensus among most in the industry is that our recovery is underway. 

Some of the most interesting ideas presented by other speakers included:

• Offering the 5th year of an outing contract FREE
• Courting players in the 18-34 age group more aggressively
• Understanding that if golf courses "Get the kids, they'll win the moms and winning the moms means winning the dads"
• Using (not discouraging) cellphones as a tool in courting younger players
• Being more liberal with the use of rain checks
• Making golf more FUN - especially for new players and recreational players
• Using the real estate assets for more alternative uses (convenience store, office, outparcels, multi-function rooms)
• Developing an Exit Strategy

There are many more.  The most important thing that many courses and clubs can learn from is not to rely just on cutting expenses.  Revenues have to be developed and grown and clubs have to move forward and avoid playing "rope-a-dope".  A clear difference between successful clubs and those that continue to struggle among those I've observed is that the clubs that are recovering more quickly are moving forward.

As I see it, the biggest obstacle to industry growth, as it relates to golf course owners, buyers and potential developers is the lack of debt financing available in the marketplace.  While some is creeping into the market, it is still not enough and transactions and values will be limited by this lack of debt capital.  One particular item of encouragement was how many people I spoke with who were embarking on some type of improvment or enhancement plans.  One irrigation distributor told me that he had taken orders for the installation of several new irrigation systems and that 2014 was most definitely going to be a very good, if not their best year.  This atmosphere followed me to the CMAA show where I observed that many clubs, in an effort to develop membership, were considering or embarking on plans for enhancing and upgrading their clubs.  Since it is not likely that new course development will grow muchin the coming years, the renovation area is one of great opportunity for the golf industry as the golf consumer demands more and the successful clubs are eager to respond to those demands.  It's still All ABOUT VALUE and GPA welcomes your inquiries about how we can help your club/course move into the future.  We've studied the ECONOMICS OF RENOVATIONS extensively and can help make your plan a winner.

Events & Publications

GPA President, Larry Hirsh will be speaking to the Philadelphia Section PGA on March 6, 2014 and providing continuing education credit to local PGA Professionals.

Hirsh recently published the following linked article in "The Boardroom Magazine" and the following article on  Club Entrance Fees  in Links Magazine.

Hirsh also recently published a two-part series in "Parks & Recreation" on the management of municipal golf courses, which can be found at the following links - Part 1 and Part 2.

Under the heading of proud papa, the photo at right shows Jack Hirsh (16) putting on the 18th green at Twin Eagles in Naples, FL during the recent ACE Group Challenge as partner Jay Sigel and fellow Champions Tour player Bobby Clampett look on.  Jack represented the First Tee of Philadelphia along with Sigel and partner Victoria Martino in the alternate shot competition, won by the First Tee of Miami in a chipoff.

The Practice Tee

Golf Property Anaylsts has been privileged through the years and recently to be retained for some of the more interesting and challenging appraisal and consulting assignments ranging from purchase and sale consulting, renovation advisory, and litigation support for a variety of situations. 

These assignments have included marketing golf course properties for clents, advising on exit strategies, redevelopment and renovation plans and appraisals and consulting assignments.

To learn more about how GPA can help your golf course or club succeed, contact us by emailing Larry at Larry@golfprop.com, visiting our website at www.golfprop.com, calling us at 610-397-1818 or SKYPE at AIRLARR.

Some of our recent assignments: 

Connecticut - Market Value Appraisal of daily fee club in connection with potential litigation

Maryland - Market Value Appraisal of daily fee course as part of a residential community being redevloped for real estate tax assessment appeal

Maryland - Litigation support consulting for daily fee golf course, including appraisal review and advisory services

New Jersey - Market Value Appraisal of Private Club for refinancing for a bank lender

Vermont -  Market Value Appraisals for development of new base ski lodge and water infrastructure at major ski resort

GPA has completed more than 2,500 consulting, appraisal and brokerage assignments in 45 US states, Canada, the Caribbean and Europe.