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HAPPY 2015! IS GOLF TOO HARD?
As we begin 2015 at Golf Property Analysts, we will mark our 35th year in business. We're quite proud of our longevity and plan to be here for many years to come offering our clients the continued benefit of our experience in the golf course and club consulting, appraisal and brokerage disciplines.
One of the challenges we face in the golf industry is growing the game after more than a decade of declining participation and several years of more golf course closures than openings. A couple months ago, while on a golf trip with a longtime client and friend, he remarked that "if more courses were as user-friendly as this one golf wouldn't have so much trouble retaining players." Understand that the course we were playing is not easy and counts among its membership an extraordinarily high number of skilled golfers, including touring professionals. However, despite numerous forced carries and a variety of hazards, golfers of all abilities seem to enjoy it and want to come back, because it gives everyone a chance to succeed and because the atmosphere is void of inhibiting rules.
Just this morning, I saw this article on ideas to grow golf and comparing golf to other, more accessible sports. The comments referenced from Facebook are telling. Of particular interest is that many come from non-golfers and people outside the game. So many clubs and courses become occupied with the establishment and implementation of so many rules that seem designed to protect the integrity of the game and in the process discourage those we hope to encourage to join us. No doubt, rules are essential in all pursuits but my take is that if those of us vested in the game want it it to grow and prosper, we need to encourage a new breed of golfer who will respect the game's wonderful traditions while helping it move forward. It's those who foster and embrace change and innovation that risk the potential wrath of others satisfied with the status quo who we remember the most.
Interestingly, I read some statistics from fellow course rater Bob Fagan on Facebook this past weekend that summarize to some extent the economics of many golf courses. First, I was surprised to see that members of the American Society of Golf Course Architects (ASGCA) have designed less than 33% of all US golf courses, and that just 47 of their members built more than 25% of US courses. Additionally, according to this post the median EBITDA of public golf courses in 2013 was $200,000 ($142,000 for munis). Obviously, if the operator wants to make a living it doesn't leave much for capital reserves. The numbers are "skinny". If we don't grow the game, many more courses could die. Certainly, there is a place for the most upscale clubs and facilities for those willing to pay the freight. However, most golfers are not as consumed by the game and play for recreation. It's those golfers we need more of. I believe the most important term in golf for 2015 is SUSTAINABILITY. I see it more and more as water, insurance and taxes squeeze more and more from the bottom line. For sure, golfers need to be willing to pay for what they want, but if we want to attract the beginners, the recreational players and kids, it has to be affordable while allowing the operator to be profitable. That profit is what creates value and makes it possible for investment in golf.
To me, this means more courses that offer a simpler, yet enjoyable experience. I wouldn't suggest for a minute that golf is dead, like so many others have. I think the game has a great future - if we adapt to the times and expand our market.
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