50 clubs ‘could close this spring’
The chairman of the Organisation of Golf and Range Operators has warned that as many as 50 private members’ British golf clubs could close down this spring.
Colin Jenkins PGA, who is also the owner of Staplehurst Golf Centre in Kent, said that the tough economic conditions that golf clubs, like most businesses, have operated under for the last few years have become significantly worse due to the wet weather last year.
The rain resulted in golfers playing the game less, which will mean that club members, who clubs are financially reliant upon, will question whether their annual subscriptions, many of which are renewed in the coming weeks, are good value for money, said Colin.
“Fifty clubs could go bust this spring as their renewals fail,” he said.
“With the terrible weather from last year having already been factored in for most proprietary clubs, we may well be about to see a dreadful period for some membership clubs, because if the members don’t think that their membership is good value for money, they won’t renew – simple!”
Colin added that, with membership of golf clubs falling throughout the UK over the last decade, clubs need to offer different types of membership schemes to suit customers’ needs in order to survive.
“Membership of traditional golf clubs will fall off dramatically if more flexible schemes are not made available; only retired golfers can make sense of a traditional membership these days – no wonder, then, that the average age is rising,” he said.
“We need clubs to look at an annual fee of £100 to £295, which gives certain membership benefits including off-peak access and the sense of belonging to a club.
“The excellent points-based membership system run by the De Vere Group has over 11,000 golf members and is growing very fast; a similar scheme is operated by Tony Pennock at Rye Hill, where they have gained large numbers of new members in the past 12 months – despite the awful weather.”
Colin also stated that clubs that offer discounted green fees to guests of members are particularly at risk of losing members.
“The problem is exacerbated by the semi-ridiculous attitude that clubs have members’ guest green fees, which are often a fraction of the normal green fee,” he said.
“A member may well decide that he could be signed in several times by his friends for far less than the cost of renewing his subs, if he or she plays less than 20 times a year.”
He also said that some golf clubs will secure the members they need if they change how they are perceived.
“There is no way that golf club membership need be as unpopular as some clubs are making it seem – perhaps they could also loosen up the formality a bit too,” he stated.
“Some would argue that golf needs fewer courses, but in truth golf needs more family-oriented golf centres, where everyone is welcome and golf is part of a leisure experience. The sport needs to move with the times.”
We need to get more new people playing the game and getting the GOOD FOR YOUR HEALTH points over. More Ladies and more beginners at 40, great way to keep fir for the next 40 years. I think sometimes we concentrate too much on Juniors which are really hard to keep with uni, work, girls and babies taking priorities until they are perhaps 35. Managing golf clubs has become a rat race as people try and nick other members with tempting offers, we end up stealing off ourselves, we are all guilty of it when we go into survival mode. More appealing memberships, taster sessions to get new blood. 1 New customer is worth a lot for 40 years.
“@DynamicsGolf: » 50 clubs ‘could close this spring’ http://t.co/sReSjj0AWd” @gmmygc ouch
If only !! For once I can agree with Brian Inglis. 50 clubs closing or perhaps 500 closing would be great for the long term health of commercial clubs. Most of “so called” these private clubs are hardly private or non profit making. Most contribute nothing to the Treasury in the form of VAT, many are abusing the CASC legislation to avoid business rates and I can’t find any that are paying Corporation Tax on their taxable Green Fee income. It is this tax avoidance / evasion and all this subsidy of posh clubs from the UK taxpayer that is keeping them alive and if despite all this they are still struggling then please let’s let nature take its course. We need at least a 25% reduction in the number of UK courses and if the wet weather speeds that process then so be it. But government should really be helping the commercial industry by withdrawing the subsidies from the Private Clubs. 8 of our 12 local private club competitors abuse CASC to get an 80% rates subsidy, none pay VAT on subs, and none pay any CORP tax. Let’s not feel sorry if any of these Private Clubs or NotforProfits like the disgraceful MytimeGolf fail but spare a thought for the struggling commercial operator having to compete with them.
“………For once I can agree with Brian Inglis……..”
I’m not having that………I reckon 50 clubs could close this spring….
I remember when I first found myself agreeing with Brian Inglis too.. a strange sensation that I never thought I’d experience!
Cheers Al……sorry I’ve been quiet recently, too busy working! An awful lot of clubs doing some great work out there just now and there is a definite shift in attitude at board and committee level which is great to see. Some clubs will be left behind of course, some will flounder quite badly but as someone who “gets around” on both sides of the border I can tell you that it’s not all bad news out there! I’ll write you a piece soon giving some examples of really good practice out there, and I can assure you the clubs seeing the benefits are the ones who are not desperately trying to reinvent the wheel. All the best for now.
» 50 clubs ‘could close this spring’ http://t.co/42CLvs4p9u Similar to the Pub Industry !!!!!
I predicted this disaster several years ago. The golf business at club level is a complete shambles! Some clubs are completely out of touch with their membership – very sad really. Committees egos prevent progress! If clubs do not revise their business models and re-invent themselves many will fold. By the end of 2013 I see at least 150 clubs gone!
A lot of things “Could happen this spring” but 50 golf clubs closing is not one of them. Times are hard but let’s not get carried away.
50 clubs ‘could close this spring’ http://t.co/jcBrdyN18C
Bad news – 50 clubs ‘could close this spring’ http://t.co/RVEu32MqrV
» 50 clubs ‘could close this spring’ http://t.co/fQ9oYtVLOg …Rethinking Your Business to Grow!! #GrowGolf #UrgentNeed
Very hard to disagree with any of that. Clubs should look at their members as their family and you give ‘your family’ the best price, getting a tenner in for a green fee just because there is a space will backfire. Say NO to Groupons, and the companies that want to ponce 20% of your green fee for selling your ‘cheap times’. YOUR MEMBERS should get best price. Never create back door routes for people to play cheaper…it will come back to haunt you. A membership should be based on about 20 but never more than 30 times your green fee. Memberships at £800 versus £20 for casual golf will lose you members, most people do the sums, sadly most clubs are controlled by people that do get their value so don’t see the problem, often half your membership is made up of members that play not more than 20 times.
Fingers crossed for them all, but economic times have made it very difficult for the small club. Good luck http://t.co/uvqp8bu5If
@philsurridge,@geoffbillngton interesting article about membership retention and flexible memberships http://t.co/IlBJnYvD3W
“@AlDunsmuir: 50 UK golf clubs could go bust due to low renewal rates’.
Please monitor this – interesting story. http://t.co/3u2DOW2LI9“