A new survey has found that 144 private members’ golf clubs in the UK and Ireland are now in a ‘critical financial position’, following the Covid-19 lockdown.
Eight per cent of the 1,800 clubs surveyed said their finances were now ‘critical’.
A further 29 per cent of clubs, or 522, classify their situation as ‘concerning’.
This comes as all golf clubs in the UK have been closed since late March due to coronavirus, although all courses in England can reopen this week, and some of those that are have reported unprecedented demand. Courses in Ireland can reopen from Monday.
The research, carried out by global consulting firm GGA Partners, surveyed 1,800 golf, leisure and private club leaders across the UK and Ireland. This is the company’s second survey identifying some of the impacts of COVID-19 (Coronavirus) on the sector.
“It is impossible to anticipate every challenge clubs will face in the months ahead, but we can say with certainty that long-term financial stability is an issue confronting every club leader,” said Rob Hill, managing partner at the firm’s EMEA practice based in Dublin.
“The survey results highlight that now more than ever it is imperative that club leaders have access to the critical information which impacts their business, and plan diligently to secure their financial future. In the midst of a crisis, prudent financial stewards should embark on a phased approach to financial planning and analysis focussing on cash preservation, sustainability, and opportunity”.
GGA’s survey also reveals the scale and challenge facing club leaders in implementing the much needed cultural, operational and strategic change clubs will rely on to thrive in the future.
Hill notes: “Our survey attracted submissions from golf, leisure and private club leaders immersed in the implementation of change projects across their organisations and the results demonstrate that change isn’t merely a constant for clubs and leisure businesses today, but it is exponential.”
The majority of clubs are currently implementing changes to their governance model or practices (62 per cent), in capital planning capabilities (52 per cent) and in technological enhancements (51 per cent). A high degree of change is also evident across a spectrum of operational functions such as food and beverage, staffing, as well as in aspects of club culture and capital management.
“Unfortunately, what the research also confirms, is that clubs find implementing change extremely difficult and rarely achieve the outcomes they intend,” Hill continued, “which consequently greatly hinders their club or organisation’s overall success.”
Implementing Change, conducted with the support of GCMA (Golf Club Managers Association) and the England region of the CMAE (Club Managers Association of Europe), can be download at www.ggapartners.com/insights.
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