An 18 hole proprietary golf club has downsized to nine holes and blamed its loss on a ‘VAT distortion’ in the golf industry that has caused it economic problems.
St Andrews Major Golf Club in Wales has removed half of its golf course following two years of what the club describes as a “severe financial downturn”.
[Tweet “We do not benefit from the 0% VAT relief that all-member clubs benefit from”]
A spokesman added that while all golf clubs have faced the challenge of a trend away from traditional golf club memberships, the same tax system does not apply to proprietary clubs as it does to private members’ clubs, as, for example, membership subscriptions at proprietary clubs incur VAT charges which they don’t at private members’ clubs.
The Edmunds family, which owns the 21-year-old club, wrote to its members to state: “Over the last couple of years we have experienced a severe financial downturn that has also been the case across the whole golfing sector, with many clubs struggling financially.
“We do not benefit from the 0% VAT relief that all-member clubs benefit from and we have no relief from the extortionate business rates that are levied on us.
“With the continuing, ever-increasing running costs and business not improving, we have reached a point where it is no longer viable to continue running as an 18-hole golf course.
“St Andrews Major Golf Club will return to being a nine-hole golf course, as it was when it opened in 1993.
“This is now the only way forward as it is no longer an option to continue as we are.”
While there is some evidence that nine holes attracts non traditional golfers to clubs, some of the members at St Andrews Major Golf Club said they were devastated at the loss of the holes.
“It’s very sad because the club is very much part of the community but the juniors probably haven’t got a future there with nine holes,” member Steve Thomas told WalesOnline.
“Going from 18 holes to nine means they won’t have enough of a course to improve on.
“It’s very sad. I had a meeting with the kids and their parents and none of them want to go. There’s a lovely atmosphere at the club.
“Golf is a luxury not a necessity and has suffered quite badly in the recession. St Andrews Major charges £500 a year membership compared to most which are £800 but fewer and fewer people are joining and more people pay and play.”
Members committee treasurer and former club president Roger Parsons said he was shocked by the news.
“We new it was struggling but we no one thought it would come to this. It’s a massive shock,” he said.
“I won’t leave because I am 69, I’ve been playing here 16 years and it’s where I always play golf, but members are very upset. It’s like a community club where rates are not that high.”
Brian Sullivan, a member for 10 years, said he would just go around the nine holes twice.
“I can understand the owner’s difficulty. It’s the only option open,” he said.
“The club is handy for older people who live nearby. The nearest 18 hole course would be Wenvoe or Brynhill so I’ll probably go around the nine holes twice.”
John Lock, former club captain for the 2012-2013 season was saddened by the news,
“The club has always been noted for its friendly banter and camaraderie,” he said.
“It is with sadness I heard the news that having failed to find a buyer for the site, then for financial reasons, the course will be reduced to a nine hole venue.
“This effectively turns it back into a ‘pay and play’ recreational centre.
“Unfortunately, the owners have no real option as the financial restrictions have taken their toll over the last couple of years but the flat, picturesque, 18-hole course was the training ground for many youngsters who learnt their skills there.”
The Edmunds family, which tried unsuccessfully to sell the club with a guide price of about £800,000, said they now wanted to introduce cheaper prices to attract new players and reducing the number of holes was part of that plan.
Club manager Andrew Edmunds said: “By returning St Andrew’s Major Golf Club back to its original setup of a nine-hole golf course, we hope to make golf more affordable and accessible to our local community.
“We will be introducing new, cheaper green fee prices and more affordable membership fees, with the aim of attracting new players and especially families to the game of golf.”
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