It’s been a month of intriguing financial reports – in which some clubs are still soaring from the participation boom since 2020 while others are facing an uncertain future due to inflationary pressures.
Many golf club operators are doing well at the moment
Carr Golf in Ireland has acquired its 24th club, Link Golf UK, which has more than doubled the number of clubs it operates just in the first half of this year, is now set to save Brackenwood Golf Club in Wirral, and BGL, which runs 10 golf clubs in England, has reported record six-month financial results, after announcing record revenues for 2023 earlier this year.
Group chief executive officer, Colin Mayes, says there have been “significant headwinds … particularly in 2024” but growth has been achieved by investing heavily in both golf and non-golf leisure streams last year.
All clubs can benefit when they work together
Research for a group of more than 30 Highlands golf clubs has found that visitor income to them has increased from £5.8 million per year to £9 million in the last six years.
According to Golf Highland’s founding member Willie MacKay, growth has been achieved partly thanks to the clubs working together. For example, nine-hole courses in the area have partnered to create a unique golfing challenge, and in 2016 the ‘Golf Highland Golf Strategy’ was rolled out, which encourages lesser-known clubs to piggyback on the success of the bigger clubs.
This means that while the big clubs generate the majority of visitor income, the smaller clubs also receive significant green fee income increases.
Several UK golf clubs are at risk of closure
Golf clubs have experienced a participation boom in the last four years but they have also seen rising maintenance, insurance and operational costs and now, for the first time, a report has been written that concludes that a staggering 433 clubs in Great Britain could close “without immediate intervention”.
Author of the whitepaper, Custodian Golf, says there is “urgent need for revolution in the industry … to create sustainable, inclusive and engaging golf facilities that adapt to the evolving needs of today’s golfers.”
An example of the revolution may come from Phil Grice, a director at Custodian Golf. When he was the general manager of Royal Norwich, the club relocated to a new site featuring a microbrewery, bakery and family nature trails, and the club successfully sold points-based memberships.
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