Asian Club Business – October 2014

CLUB MANAGEMENT

Golf Trade

›› FOOD & BEVERAGE ›› CLUB SERVICES ›› TURF MATTERS ›› GENERAl NEWS

Golf Course Architecture & Developers

Turf Maintenance & Equipment

Golf Clubs & Resorts

Issue #69 OCTOBER 2014

Official Magazine for CMAA-Asia Pacific Chapter asiapacificgolfgroup.com | golfconference.org | cmaa-asia.com

BUSINESS LAW

101

BY JAMES PRUSA

SPECIAL FEATURES:

ENTER THE GOLF VIGILANTES! WHY GOLF WILL SAVE THE WORLD BY JAMES CRONK

Golf’s Asian Power List

ASIA PACIFIC GOLF SUMMIT 2014 SET TO SHOW NEW WAYS TO KEEP GOLF VIBRANT AND GROWING BRUCE WILLIAMS – THE GOLF SAGE // TRENDS IN TOURNAMENT PREPARATION

Manufacturers

PUBLISHER's OFFICE MIKE SEBASTIAN

mike@asiapacificgolfgroup.com

Watch Out For Anti-Trust Watchdogs!

Just in case some of you are wondering why ASIAN CLUB BUSINESS has turned the spotlight onto antitrust laws and fair trade practices, stop wondering!

For a very long time, Asia has been the so-called happy hunting ground for many multi-national corporations in the supply of golf equipment products, supplies and services. The majority of these corporations have indulged in a sort of “free-for-all” game plan totally oblivious of the laws that govern questionable trade transactions, unfair trade practices and even behavior typical of that of a cartel.

It can be said that most of these corporations and related organisations went along their merry ways thinking that they were beyond any punitive actions that could be taken against them under the prevailing anti-trust laws enforced by the U.S. Federal Trade Commission and the European Commission.

These are laws that have very sharp teeth and are also very pervasive and all one has to do is talk to corporations that have been taken to task under these laws.

These laws are not just limited to America and the European Union because similar laws are coming into force in various parts of Asia.

There are emerging risks for companies active in Asia which is the new antitrust frontier and the pace of change – the rapid proliferation of new competition regimes and increased enforcement by existing ones – could potentially catch out the unwary.

China is getting very tough in this area as the communist regime seeks to ‘safeguard the social public interest’ and ‘promote the healthy development of the socialist market economy’.

Current antitrust investigations demonstrate the Chinese authorities’ strategy to target large, well-established businesses and companies at the top of the

industrial supply chain to maximise the pro-competitive impact.

Japan is sharpening its long-established competition law, stepping up cartel enforcement and showing more interest in unilateral conduct.

Historically, the Japan Fair Trade Commission (JFTC) was relatively cautious in enforcing competition law in cases involving conduct outside Japan, but its enthusiasm to become involved in international cases is now very clear.

South Korea, with a sophisticated competition law regime, is one of the most active jurisdictions in the region. The Korean Fair Trade Commission (KFTC) routinely investigates anticompetitive conduct and transactions that affect South Korea – even if outside South Korea.

Hong Kong welcomed its long-awaited Competition Ordinance in June 2012, the first competition law that applies to the entire economy. The substantive provisions prohibit anti-competitive agreements and the abuse of a substantial degree of market power.

Malaysia’s competition law came into effect in January 2012, spearheaded by the Malaysian Competition Commission. Malaysia’s competition law forms part of a broader commitment by the Association of Southeast Asian Nations (ASEAN) member states to introduce national competition policy and law by 2015.

Six ASEAN members now have comprehensive competition laws in effect, and an enforcement authority: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The remaining four – Laos, Cambodia, Brunei, Myanmar – are at varying stages in the introduction of competition laws but look set to do so by 2015.

The message to the golf industry is a simple one - there is no safe haven in Asia. Traditional ways of doing business in Asia are being challenged by the new competition regimes and businesses must keep pace to avoid being caught out.

Publisher/Editor: Mike Sebastian Executive Director: Angela Raymond Art Director: Saiful Sufian Video EDITOR: Editor Wayne Lwee Finance: Myra Paras Marketing Executive: Alice Ho PUBLISHED BY: Asia Pacific Golf GROUP (2014) Pte Ltd Contact: mike@asiapacificgolfgroup.com CMAA – Asia Pacific Chapter: President: Mike Sebastian Director of education: LAWRENCE YOUNG OFFICIAL WEBSITE: www.cmaa-asia.com OFFICIAL AFFILIATED Websites: www.asiapacificgolfgroup.com; www.golfconference.org; ; www.asianjuniorGolffoundation.com; Office ADDRESS: Suite 05-06, Hong Aik Building, 22 Kallang Avenue, Singapore 339413 Tel: +65-6323 2800 Fax: + 65-6323 2838 ALL RIGHTS RESERVED. No part of Asian Club Business may be reproduced in any form or means without the written permission of the publisher. Opinions expressed by writers and advertisers within Asian Club Business are not necessarily endorsed by Asian Club Business. Asian Club Business accepts no responsibility for unsolicited manuscripts, transparencies or other materials. Manuscripts, photographs and artwork will not be returned unless accompanied by appropriate postage.

Asian Club Business

OCTOBER 2014  02/03

PG8 COVER STORY

AsiA'S 2014 Power Hitters The “Most Powerful People In Golf In Asia” enters its second year with the release of the 2014 “power list” published by Golf Inc. the influential North American magazine on the business of golf.

The Asian power list was first released in 2013 and it has since become an annual feature of the magazine. The Asian power list is part of the publisher’s world list which has served as the industry standard of gauging the influence of individuals who wield the greatest impact on the business of golf. Jim Prusa reports.

CONTENTS ISSUE #69, OCTOBER 2014 – GOLF'S ASIAN POWER LIST SPECIAL EVENT APGS 2014 Set To Show New Ways To Keep Golf Vibrant And Growing! Pg18 The 2014 Asia Pacific Golf Summit is truly living up to its mission which is an emphatic and declared commitment to help golf grow in Asia. While golf in most of the developed world is in a languid state, Asia, especially the emerging parts of this giant Continent, is showing tremendous promise of growth.

PRUSA'S POINT BUSINESS LAW 101:

Pg18

Constraining of Fair Trade Anywhere on the Planet is a Serious Business Crime Pg26 Just what is antitrust, constraint of trade and competition law? Why should you even care about such matters? What do these laws have to do with you personally, a small golf course business or a large golf company operating in the Asian golf industry?

Did you think that antitrust prosecution is only aimed at billionaires and big companies such as Microsoft or Apple Computer?

Balwant Grewal

Managing Director – Stadium Golf

Have you ever actually studied this important area of common business law to be professionally informed? Do antitrust laws in Europe, North America, New Zealand or Australia have any application when you are doing business here in Asia? Do Asian nations even have such laws and do they cooperate with occidental nations in enforcement in international business?

These are just a few starter questions that any manager or business person engaged in the Asian golf course industry should be asking – and whether a golf course owner, GM, superintendent or commercial purveyor, you should be expected to have knowledgeable answers to them.

Asian Club Business’s roving editor Jim Prusa explains the importance and relevance of this law in this special report. precise description that we are all referring to in our golf conversations.

ASIAN CLUB BUSINESS

Pg26 OCTOBER 2014  04/05

CONTENTS ISSUE #69, OCTOBER 2014 – GOLF'S ASIAN POWER LIST BRUCE WILLIAMS – THE GOLF SAGE Trends in Tournament Preparation Pg38

Pg38

The Players Championship, held at TPC Sawgrass in Ponte Vedre Florida, is an event that has become a proving ground for many superintendents around the globe that will soon be hosting their own events. Earlier this year there were six superintendents that came from Germany, Spain, Columbia, Scotland Peru, Chile and Malaysia.

All of these superintendents were working hard for 10 days to get an insider view of what happens behind the scenes.

One of the enterprising young superintendents at The Players this year is one of the better known superintendents in Asia. That would be none other than Mohd Nizam Othman who is the golf course superintendent at Kuala Lumpur Golf and Country Club.

Pg46

SPECIAL FEATURES Enter The Golf Vigilantes! Pg46 Two smart guys have got together to develop a dragnet which is designed to bust the problem of counterfeiting once and for all. The Singapore counterfeit busters are Steven Tan and Leonard Wee, young guys who possess the intelligence and tech savvy to use technology to corner and wipe out the bad guys!

Why Golf Will Save the World? Pg50

Pg50

If we stood on the first tee of any golf course in the world and asked the first ten golfers why they played golf, we would likely get eleven different answers! Show how we can sell, promote and grow a game that is un-definable?

The answer … Celebrate the Spirit of Golf! James Cronk gives his views.

GENERAL NEWS  The Chinese are Coming Pg54

Pg54 06/07  OCTOBER 2014

ASIAN CLUB BUSINESS

No Wonder Golf’s Industry Captains Talk To Us!

Look Who Is Talking To Us!

John Solheim

www.asiapacificgolfgroup.com

Bob Bettinardi

Tim Clarke

Only The Captains Of The Golf Industry – That’s Who! It’s quite an achievement to have

Solheim Sr.; Bob Philion, President

state of golf today. These are the

landed exclusive interviews with

of Cobra Puma Golf; Cindy

people who are moulding the

the men and women who are at

Davis, President of Nike Golf; Bob

future of golf and no one can read

the pinnacle of the golf industry

Bettinardi President of Bettinardi

the pulse of the industry better

today.

Putters and Tim Clarke, President of

than these industry captains.

Wilson Golf.

The movers and shakers of golf

Only Asian Golf has been able to

who have spoken to Asian Golf

Powerful men and women who

bring you this treat – yet another

include Callaway Golf’s CEO Chip

have shared with us their thoughts,

measure of our standing in the

Brewer, PING’s Chairman, John

views and perspectives of the

global golf industry.

Asian Golf – A Product Of Disruptive Innovation Pushing The Boundaries Of Change Beyond The Limit! A member of the Asia Pacific Golf Group Print  Digital  On-line  Apps  Video Streaming  Conferences  Education

COVER STORY GOLF'S ASIAN POWER LIST

Asia's 2014 Power Hitters!

By James Prusa Asia Editor – Golf Inc.

The “Most Powerful People In Golf In Asia” enters its second year with the release of the 2014 “power list” published by Golf Inc. the influential North American magazine on the business of golf. The Asian power list was first released in 2013 and it has since become an annual feature of the magazine.The Asian power list is part of the publisher’s world list which has served as the industry standard of gauging the influence of individuals who wield the greatest impact on the business of golf.

2014 has not been a very good year for the golf industry especially in the developed world. Golf equipment manufacturers have been hit by poor sales and golf courses continue to be either sold or shut down.

This negative trend has been a feature for a while and will be a year many in the golf industry will want to forget quickly and move on.

However, this gloomy outlook is not generally shared in Asia which by many accounts is about the only bastion of hope and progress for the global golf industry. The “confident mood” in Asia is best reflected by what the most powerful and active are doing and achieving for golf.

Golf Inc. has profiled the industry leaders who are taking the steps necessary to

develop new players, build new courses and bring sophistication to management and operations.

These pioneers are making an impact in their home countries and all across Asia.

And it is this list of power hitters who should determine the extent of growth for the industry into the future.

THE TOP-15 “Most Powerful People In Golf In Asia” 1. Dr. Ken Chu and Tenniel Chu

6. Santi Bhirombhakdi

11. Masato Mizuno

2. Ryusuke Kamata

7. Conrad L. Benitez II

12. Paul Burley

3. Kim Young Je

8. Brian Curley

13. Le Van Kiem

4. Arihiro Kanda

9. Wang Jun

14. Murdaya Widyawimarta

5. Mike Sebastian

10. Dilip Thomas

15. Admiral Tan Sri Dato' Setia Mohd Anwar Mohd Nor

Mission Hills Group China Accordia Golf Co. Japan SKY72 Resorts Korea

Pacific Management Japan

Asia Pacific Golf Group (2014) Pte Ltd Singapore

ASIAN CLUB BUSINESS

Singha Corp.

Thailand

The Orchard Golf and Country Club Philippines Schmidt-Curley Golf Design United States of America China Golf Association China Asia-Pacific Golf Confederation India

Japanese Olympic Committee Japan IMG Golf Course Services, Asia Pacific Singapore Long Thanh Golf Investment and Trading Co. Vietnam Indonesian Golf Association Indonesia

Malaysian Golf Association – Malaysia

1 Dr. Ken Chu – Chairman & Tenniel Chu – Vice-chairman Mission Hills Group – China (Previous Ranking in 2013: #1) Today, Dr. Ken Chu and Tenniel Chu are the most powerful Asians in golf, respected for their leadership and efforts to develop the game. But not too long ago, the brothers were new to golf, as was most of Asia.

The innovation that Ken and Tenniel brought to their Canadian backyard is now being employed as they seek to improve the marketability of golf and attract juniors to the game.

As boys, they lived in Canada and their home was adjacent to a golf course, which meant errant balls would litter their backyard. “We decided to take these unclaimed stray golf balls and set up our own little putting course in our family’s yard, employing the strategic course design creativity of young kids,” Tenniel said. “After setting out our holes, we were ready to play. However, we did not have putters. So, in a true Canadian, hockey-loving way, we decided to simply use our hockey sticks.”

The brothers took over the Mission Hills Group when their father, Dr. David Chu, passed away in 2011. Ken had been involved with the company since he graduated from college in 1995, and Tenniel joined him six years later. They spearheaded the planning and execution of Mission Hills Haikou with the Chinese government, starting in 2008.

When complete, it will have 22 golf courses.

Dr. Ken Chu leads the organization as chairman and CEO. The company’s operations

reach outside of golf into spas, resorts, hotels, shopping malls, entertainment, dining and business centres — and they are extremely influential in promoting professional tour events as well as world golf competitions for amateurs, professionals and kids.

6

While the brothers stay keenly focused on first servicing China, the Chu’s leadership reaches out to all of Asia. Tenniel, vice chairman of Mission Hills, concurrently serves as the deputy commissioner of the OneAsia Tour, and this brings him and the Mission Hills Group into a powerful leadership role, dealing with multiple governing bodies of golf in China, Asia and throughout the world.

He is also the first member from China in the R&A, which sets rules for all of Asia.

OCTOBER 2014  08/09

COVER STORY GOLF'S ASIAN POWER LIST

Ryusuke Kamata

3

4

8

9

11 Kim Young 12 Je 13 President1and Chief Executive Officer 2

14

Chief Executive Officer Accordia Golf Co. – Japan

1

2

(Previous Ranking in 2013: Not Ranked) What a difference a year can make. Ryusuke Kamata, who has served as CEO of Accordia Golf since May 2012, recently made a bold move to sell off a major portion of the public company’s golf courses, but to continue as a third-party operator.

6

7

In June, shareholders approved the sell-off of 89 golf course properties to a newly formed investment trust in Singapore which could net US$626 million.

Improving the capital position will strengthen Accordia’s balance sheet and make it near impossible for its arch rival, Pacific Golf Management, to attempt a hostile takeover. Accorida had to fend off such a move earlier in the year.

Accordia, with approximately 10,000 employees, currently manages 137 golf courses and 24 driving range centres and has 755 affiliated driving ranges, hotels, restaurants and branded merchandise.

SKY72 Resorts – Korea

3

(Previous Ranking in 2013: #3) It has been another intense year for Kim Young Je, who has a reputation for being ‘Mr. Intense’ in everything he does. He’s been an entrepreneurial leader, golf journalist, principle golf course owner and a powerful influence for golf in Korea and Asia.

Kim is the brains and endless energy behind SKY72 golf resorts. For a guy who defines no-limit entrepreneurship in golf, he has no concerns about thinking outside the box. There is no box big enough to restrict Kim’s creativity in the golf business. In a region where the private membership golf course business model predominates, he has built one of the few daily-fee, public golf operations. His operations boast annual green fee revenues between US$80 million to US$100 million.

6

7

8

SKY72 company’s golf courses are some of the busiest in the world. With five golf courses and a mega learning centre, it’s a leader in utilization. Two of the courses are lighted and push annual rounds of 120,000 each per year, with two others steady at 90,000 rounds. Play is so heavy that the cups are changed five times a day to spread the wear from golfer traffic. Under construction for 18 months, a 385-room boutique-service hotel close to SKY72 golf courses and adjacent to the Incheon International Airport was opened recently. This was a strategic move that will allow the facility to serve both air business travelers and the SKY72 golf customer base. Rather than wait for the Asian golf industry to develop professional training and continuing education for golf course management, Kim gave orders to start SKY72’s own annual winter seminars and even opened them up to all other Korean golf courses in the nation’s best interest.

11

12

13

Arihiro Kanda

Chairman 2

3

4

Pacific Golf Management – Japan

5

(Previous Ranking in 2013: #2)

Arihiro Kanda is the chief executive of PGM, the mega operator of 153 18-holeequivalent golf courses, hotels, cemeteries and highway hospitality and service areas.

Similar to, and a competitor with Accordia, PGM Holdings was set up by Lone Star Funds, an American private equity firm and then very successfully tendered its IPO in December 2005.

7

8

9

10

While rival Accordia has made dramatic business moves in 2014, PGM has seemed to trip and fall. After losing its bid for an attempted leveraged buyout of Accordia last year, it has had to regroup.

Early this year PGM made a deep reduction in workforce at its headquarters, jettisoning many long-term employees.

1

12

13 Mike Sebastian 14 15 Owner &3 Chief Executive Officer4 2 Asia Pacific Golf Group 2014 Pte Ltd – Singapore

5

(Previous Ranking in 2013: #6) During the past 12 months, Mike Sebastian has further advanced his influence on the Asian golf industry by forming an alliance with the CMAA to establish CMAA Asia Pacific Pte Ltd.

6

11

7

As part of this collaboration, he has entered into partnerships with various institutes of higher learning in the region to bring quality education, training and certification to the club industry. This is an initiative that will have a long term effect and impact on improving the general standard of club management in the region.

8

9

10

The Asia Pacific Golf Group is the owner of the region’s leading golf magazines which include Asian Golf, Asian Club Business, Asian Golf Tourism, Asian Golf TV and the highly regarded Asia Pacific Golf Summit.One of his qualities is his bold vision to grow the game of golf and make it more family friendly and in this regard, he is currently working on a project designed to make golf more accessible, playable and affordable and details are expected to be announced at the 2014 Asia Pacific Golf Summit.

12

With his various alliances, Sebastian has established a Pan-Asia industry operation that offers Asia’s golf course operational decision makers a venue for networking and ongoing, professional development.

13

14

15

2014 will also go down as a historic year as Sebastian has been instrumental in launching the Inaugural Southeast Asian Golf Facility Survey and the Inaugural Asian Golf Consumer Survey.

OCTOBER 2014  10/11

COVER STORY

1

2

3

6

7

8

12

13

GOLF'S ASIAN POWER LIST

Santi Bhirombhakdi President & Chief Executive Officer Singha Corp – Thailand (Previous Ranking in 2013: #7)

Santi Bhirombhakdi, the most influential golf businessman in Thailand, has seen his power grow as the common market of Southeast Asia, the ASEAN Economic Community, officially comes online in 2015.

Bhirombhakdi is president of Singha Corp., a top beer company in Thailand founded by his father. Exports throughout Asia have propelled Singha Beer as a powerful and influential sports sponsor in golf and other sports.

11

This has served as a huge base for engaging in golf course and player development in Thailand. Singha Beer is the primary sponsor of golf tournaments at every level and a key sponsor of most all major sports events in Thailand, around the ASEAN region and East Asia.

Founder of the Thai PGA, Bhirombhakdi served as its president until recently and still wields considerable influence in directing the organization. His golf course assets include three golf courses in Thailand. He is not shy to quietly use his sports marketing influences in pressing for further development of golf and golf courses in Asia.

1

Conrado L. Benitez II Founder & President

6

The Orchard Golf & Country Club – Philippines

2

7

(Previous Ranking in 2013: #10) The Philippine economy continues to grow at a brisk pace, and that has positioned the country for further golf course development.

This has helped Conrado Benitez gain power. The founder and president of the 36-hole Orchard Golf & Country Resort, he was recently elected vice president of the National Golf Association of the Philippines, which will serve as the country’s representative for the 2016 Summer Olympics.

11

12

The Orchard Golf & Country Resort will serve as the venue for the 2014 Philippine Amateur Match Play Championship and will, once again, host the nation’s annual Golf Course Management Conference.

1

2

3

4

5

6 7 Schmidt-Curley Golf Design – USA

8

9

10

3 14

4 15

8

9

Brian Curley Partner

(Previous Ranking in 2013: #8) Brian Curley remains the sole person not living full-time in Asia on our list, a testament to his influence over design on the continent. Having long ago forged a relationship with Mission Hills founder David Chu, Curley has continued the relationship with Chu’s sons and the Mission Hills Group.

1 12

11

2 13

Schmidt-Curley base their design business in Scottsdale, Ariz., but Curley spends a lot of time in Asia. Curley is credited with 20 golf course designs at Mission Hills properties alone including 10 located at Mission Hills Haikuo on the southern Chinese island of Hainan. While many design firms struggle now in Asia, SchmidtCurley is proceeding with new projects and keeps chalking up multiple awards and recognitions.

Wang Jun

6

7

Vice Chairman

China Golf Association – China (Previous Ranking in 2013: #4)

3

4 11

Dilip Thomas

8

Secretary General Asia Pacific Golf Confederation

5

Wang Jun is one of the most powerfully connected men in China’s golf business.

An influential figure among China’s industrial elite, he helped to found two of China’s biggest leviathans: the state-run investment conglomerate of Citic Group Corp. and the mammoth China Poly Group Corp. (military weapons and oil exploration).

However, development of golf courses in China has slowed considerably during the last 18 months.

12 9

13

14

10

(Previous Ranking in 2013: #14) Dilip Thomas, the most connected and visible face of golf in India, chaired the ninth Sir Michael Bonallack Trophy — the prestigious amateur team event that pits Asia Pacific against the best amateurs of Europe this year. In September, he supported the golf events for the 2014 Asian Games in Incheon, Korea. As the secretary general of the Asia-Pacific Golf Confederation, he heads up an organization that represents the 36 national governing bodies of amateur golf throughout the entire region of Asia and the Pacific.In India, Thomas is an influential council member of the India Golf Union, where he chairs the coaching committee. He’s an active member of the administrative committee of the International Golf Federation, which is in charge of golf’s participation in the 2016 Olympic Games.

13

14

15

OCTOBER 2014  12/13

COVER STORY

1

6 2

7 3

6

11 7

12 8

GOLF'S ASIAN POWER LIST

Masato Mizuno Japanese Olympic Committee Japan (Previous Ranking in 2013: #9)

1

2

Paul Burley Vice President IMG Golf Course Services, Asia Pacific Singapore

6

(Previous Ranking in 2013: #13)

11

3 12

7

Le Van Kiem

11 Chairman 12 Long Thanh Golf Investment

13 8

13

and Trading Co. – Vietnam (Previous Ranking in 2013: Not Ranked) Mr. Le stands out as a shining example of a man who has devoted the rest of his life to philanthropy. Turning seventy years old soon, the Vietnamese entrepreneur is also very passionate about golf. He owns two golf courses in Vietnam and Laos respectively and is also committed to helping the development of junior golf in the ASEAN countries.

For his commitment to golf and charity, the Asia Pacific Golf Group has elected to honour Mr. Le with a special award – The Asia Pacific Philanthropy And Golf Personality Of The Year Award for 2014.

To date, Mr. Le has given away more than US$40 million to charity and he has also pledged US$5 million to the Bill and Melinda Gates Foundation to establish The Vietnam Health Fund.

7

8

Murdaya Widyawimarta

12 Indonesian Golf Association President

13

Indonesia

(Previous Ranking in 2013: Not Ranked) 2 3

9

10

14

15

4

5

The President of the Indonesian Golf Association, Mr. Widyawimarta will be inducted to the prestigious Asia Pacific Golf Hall Of Fame.

He will be honoured during the Gala Awards Banquet of the 2014 Asia Pacific Golf Summit which will be staged on November 14-15 at the iconic Marina Bay Sands Hotel in Singapore.

The Indonesian billionaire who owns golf courses in his country, has helped initiate various initiatives to grow the game of golf in Indonesia, including the promotion of golf tourism.

7

8

9

10

Admiral Tan Sri Dato' Setia 12 13Mohd Nor 14 Mohd Anwar

15

Under his leadership, golf has experienced exponential growth in the sprawling republic.His flagship company is Central Cipta Murdaya which is a diverse conglomerate and one of its companies is well-known for being the Indonesian manufacturer of Nike shoes.

President Malaysian Golf Association – Malaysia (Previous Ranking in 2013: Not Ranked)

OCTOBER 2014 

Knowledge Gets Ready To Flow In Singapore!

Some of the most innovative minds in golf will be descending on Singapore to share their revolutionary thoughts on the future of the game at the 2014 Asia Pacific Golf Summit.

APGS 2014 is the perfect platform for this exciting discourse on how golf should be managed in the rapidly changing growth dynamics of the region.

Singapore, the host nation for APGS 2014, a truly dynamic and forward thinking global hub is the perfect setting for the event’s theme which calls for a “New Drive. New Energy. A Revitalised Industry”.

APGS 2014 is the ideal event for likeminded executives from the golf club industry and golf trade to come together

and network for the common good of golf.

The venue for APGS 2014 is the spectacular Marina Bay Sands hotel, one of the true wonders of the modern world. To share in new knowledge and discover new ways to grow golf in Asia, there’s no better conference anywhere in the region than APGS 2014.

See you in Singapore! Book your seat for APGS 2014! CLICK HERE TO REGISTER ENDORSED BY

OFFICIAL VENUE & HOTEL

OFFICIAL BUSINESS PARTNER – BEVERAGES

ALBATROSS SPONSORSHIP

STRATEGIC BUSINESS PARTNER

EAGLE SPONSORSHIP

PREFERRED BUSINESS PARTNER

OFFICIAL MEDIA PARTNERS golfbus nessnews Essential intelligence for the business of golf

golfbus nessnews Essential intelligence for the business of golf

BIRDIE SPONSORSHIP

INTERNATIONAL TV PARTNER

SPECIAL EVENT ASIA PACIFIC GOLF SUMMIT 2014

APGS 2014 Set To SHOW NEw Ways TO KEEP Golf Vibrant and Growing The 2014 Asia Pacific Golf Summit is truly living up to its mission which is an emphatic and declared commitment to help golf grow in Asia. While golf in most of the developed world is in a languid state, Asia, especially the emerging parts of this giant Continent, is showing tremendous promise of growth.

Living up to this promise is perhaps Asia's golfing flagship – the Mission Hills Group.

What this group is doing to grow golf in Asia is nothing short of being truly spectacular.

The group's "golf and more" philosophy will be showcased at APGS 2014 by its vicechairman, Tenniel Chu who will share his thoughts on how Mission Hills has invested heavily and is very bullish about the future.

"No pain, no gain," is how his brother, Dr. Ken Chu, chairman of the group views the future.

So, the stage for the future of golf in Asia is set! It is an exciting future and yet another tangible sign of how Asia is leading the way for golf's growth.

"Mission Hills is taking the lead role and promoting a new lifestyle, writing the rules and methodology for golf and leisure development. We are offering something for everyone. You don't have to be a golfer to visit Mission Hills. If one member of the family chooses to go for a round, other members can find plenty of alternative things to do."

"All of us in the industry know what the challenges are and we don't need to be reminded of the problems. Instead, we need to get excited and engaged with the opportunities that abound to help all of us seize the moment and grow the game of golf in Asia," said Mike Sebastian, chief executive officer of the Asia Pacific Golf Group, the

ASIAN CLUB BUSINESS

In keeping with the theme of APGS 2014 which is "New Directions. New Energy. A Re-vitalised Industry" – the programme has been structured to look at trends and solutions designed to help the industry in Asia stay ahead of its challenges.

producer and owner of APGS 2014.

"The Asia that we know today is young and vibrant and totally ready for change and growth and this is fertile ground for new ideas and innovative thinking to attract new players to the game and to keep the industry on the right path towards growth," he added.

Innovations that will be launched at APGS 2014 include a revolutionary concept called "Stadium Golf". Conceptualised and developed entirely in Singapore, Stadium Golf is the brain-child of golf entrepreneur Balwant Grewal, Managing Director of Stadium Golf. "Stadium Golf is a platform that brings golf indoors utilising advanced golf simulation techniques – the primary thrust of this concept is to create a realistic and immersive experience for all level of players,

Tenniel Chu (left) and Dr. Ken Chu

Balwant Grewal

"Stadium Golf is a platform that brings golf indoors utilising advanced golf simulation techniques – the primary thrust of this concept is to create a realistic and immersive experience for all level of players, especially juniors and beginners using the best golf simulation technology in the market made available through our exclusive technology and equipment partners."

– Balwant Grewal, Managing Director of Stadium Golf

OCTOBER 2014  18/19

SPECIAL EVENT ASIA PACIFIC GOLF SUMMIT 2014

Artist impression of Shenzhen Centreville.

Dongguan Hotel

Golf Clinic with Annika Sorenstam

ASIAN CLUB BUSINESS

Golf Clinic with Nick Faldo

Artist impression of Haikou Lan Kwai Fong.

"Mission Hills is taking the lead role and promoting a new lifestyle, writing the rules and methodology for golf and leisure development. We are offering something for everyone. You don't have to be a golfer to visit Mission Hills. If one member of the family chooses to go for a round, other members can find plenty of alternative things to do."

Blackstone Course in Haikou.

Movie Town

Appearances andperformances by celebrities.

OCTOBER 2014  20/21

SPECIAL EVENT ASIA PACIFIC GOLF SUMMIT 2014

"Our concept creates a TOTAL golfing experience that is designed to be very accessible, affordable, fun, easy to learn and play and our commitment is to introducing golf to the masses and to ensure that it is sustainable." – Balwant Grewal

especially juniors and beginners using the best golf simulation technology in the market made available through our exclusive technology and equipment partners."

Her teaching technique is based on her exclusive programme which enabled her to learn golf in 18 months prior to turning professional on the Ladies Asian Golf Tour.

"Our concept creates a TOTAL golfing experience that is designed to be very accessible, affordable, fun, easy to learn and play and our commitment is to introducing golf to the masses and to ensure that it is sustainable." Grewal added.

Another innovative programme is AuthentiGolf, a Singapore hightech company that is the first in the world to provide authentication of golf clubs.

According to Director of Stadium Golf, Gane Ramachandra, "Stadium Golf will be a 24/7 facility and the plan calls for Stadium Golf to be available in areas of high population density and plans are in place to roll this business model out throughout the region very soon. In that regard we are seeking regional partners as part of our development and expansion plans.

"Central to Stadium Golf's programme will be its method of teaching the game to juniors and beginners. "We have developed an accelarated teaching system that is guaranteed to help juniors and beginners play golf at our Stadium Golf facilities within four-hours of being exposed to the basic principles of the game," said former LAGT professional, Nicole Liu Xiaoyan, a Director of Stadium Golf.

The developers, Leonard Wee and Steven Tan, keen golfers themselves saw an opportunity to help put an end to counterfeiters producing fake golf clubs. "There are too many counterfeit golf clubs in the market. There is a need for a company to be the authentication bureau of choice for consumers to have peace of mind when purchasing new or used golf clubs," said Wee. The revolution that the Mission Hills Group together with Stadium Golf and AuthentiGolf have started are just some of the examples of the exciting trends that are taking place in the evolution of golf in Asia. "Everywhere in the region, exciting new ideas, innovations and change initiatives are being launched and this activity only goes to prove that golf is not only growing in Asia but is also serving as the beacon for the future of the game," added Sebastian.

FOR MORE DETAILS ON AuthentiGolf Click Here 22/23  SEPTEMBER 2014

ASIAN CLUB BUSINESS

Prusa's PoINT

This article is the first in a series of articles that will examine and inform on important business law essentials for the golf industry.

Fair Trade laws and pRACTices Video on the The Truth About Monopolies and Anti-Trust Laws by Mark Hendrickson

The Sherman Act 1890 – Keeping American Business On The Straight And Narrow Ask any American corporation about the Sherman Act and you will draw an immediate reaction and acknowledgement of its role and function. The Sherman Act which embodies the United States anti-trust law is a collection of federal and state government laws, which regulates the conduct and organisation of business corporations generally to promote fair competition for the benefit of consumers.

The main statutes are:  The Sherman Act 1890

 The Clayton Act 1914

 The Federal Trade Commission Act 1914

Collectively, these acts, first, restrict the formation of cartels and prohibit other collusive practices regarded as being in restraint of trade. Secondly, they restrict the mergers and acquisitions of organisations which could substantially lessen competition. Thirdly, they prohibit the creation of a monopoly and the abuse of monopoly power.

Given the growing presence of American corporations and trade associations in the club business in Asia, Asian Club Business decided to do a special focus piece on the U.S. anti-trust laws and the need for American companies and trade associations doing business in Asia to be fully aware of how they should conduct themselves in foreign markets like Asia.

ASIAN CLUB BUSINESS

Asian Club Business’s Roving Editor Jim Prusa explains the importance and relevance of this law in this special report:

BUSINESS LAW 101 Constraining of Fair Trade Anywhere on the Planet is a Serious Business Crime!

As a layman in legal knowledge, I must preempt this article with a proper notice that I am not an attorney nor am I providing any legal advice on the subjects herein. My purpose is only to express my personal estimation and experience in a manner that will draw attention to an area of the law that each of us should prudently be aware of in order to conduct our golf and club businesses in a fair, competitive and prosperous manner. I do strongly advise that every individual and company take heed of this important area of business law to study and seek continuing education as well as securing the advice and counsel of an attorney who is qualified, experienced and specifically practicing in the arena of competition law.

– J. G. Prusa Have you or your business ever been served a court subpoena or investigative demand related to a civil or criminal antitrust (competition law) action? Have you ever had to spend months of your time to respond to hundreds of interrogatories, provide thousands of original documents and even provide your mobile phone records and all email communications?

If you answered ‘no’ to these questions then you can thank your lucky stars and heed some prudent advice to make absolutely certain that both you, as an individual, and your company have taken prudent steps to be well educated, currently informed and well protected to

avoid such an occurrence from ever taking place.

Just what is antitrust, constraint of trade and competition law? Why should you even care about such matters? What do these laws have to do with you personally, a small golf course business or a large golf company operating in the Asian golf industry? Did you think that antitrust prosecution is only aimed at billionaires and big companies such as Microsoft or Apple Computer? Have you ever actually studied this important area of common business law to be professionally informed? Do antitrust laws in Europe, North America, New Zealand or Australia have any application when you are doing business here

OCTOBER 2014  26/27

Prusa's PoINT Fair Trade laws and pRACTices in Asia? Do Asian nations even have such laws and do they cooperate with occidental nations in enforcement in international business?

These are just a few starter questions that any manager or business person engaged in the Asian golf course industry should be asking – and whether a golf course owner, GM, superintendent or commercial purveyor, you should be expected to have knowledgeable answers to them. Take it from those who have had to manage the defense of any antitrust (competition) legal action, it is an immensely expensive and a terribly disrupting process for any size business that can go on for years – and even if you completely prevail with your defense in the end you will surely suffer immeasurably like a combat soldier who has survived on the winning side. When it comes to competition law, the best management practice is to aggressively avoid the quagmire of constraint of trade legal battles.

laws to rein in the power of these companies and people that were amassing fortunes by limiting access to markets, price fixing and unfairly destroying competition. These types of laws are usually referred to as ‘antitrust law’ in the USA and ‘competition law’ in the EU and other regions.

IT’S HUMAN NATURE & ECONOMICS AT A MICRO LEVEL "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.",

– Adam Smith, Father of Modern Economics

Concerns over antitrust and anti-competitive business practices came to life in the 19th Century, initially in the emerging industrial power of the USA. As smaller companies in the railroad, oil, tobacco and other industries were forcibly bought out by rapidly growing, massive companies, it got to a point where large monopoly companies and cartels began to control everything including consumer prices. Their wealth became so massive that they started to exert undue influence even on the US government and congress.

In order to allow the young country, the growing economy and the American people to continue to grow wealth inclusively, congress then took decisive action to pass anti-monopoly, antitrust competition

ANTI-TRUST – CASE 1 ANTI-TRUST – CASE 2 Deputy Assistant Attorney General Scott Hammond a press conference with Attorney General Eric Holder regarding Japanese companies and two execs plead guilty in auto parts price-fixing Scheme in 2013. For more details Click Here

ASIAN CLUB BUSINESS

Rooted back to the Enlightenment of the 18th Century in the writings of the Scottish philosopher Adam Smith (the father of modern economics) with his writing of “Wealth of Nations,” anticompetitive and unfair constraint of trade activities have been viewed as fundamentally immoral, a grave threat to commerce, and a peril to free societies and equitable prosperity. Smith knew well of the vagaries of human nature and their potential to damage economies.

So in response to growing threats of monopoly and cartels beginning in the late 19th Century, the United States Congress began passing the Sherman, Clayton and Federal Trade Commission (FTC) acts.

These were the basis of powerful enforcement that made it illegal for competitors to conspire in manners that diminished fair competition

"Survival of golf courses depends on controlling expenses by getting the most competitive price, products and services – and having fair access to innovative, emerging products and services that are often brought to the market by new, small companies that can help a golf course business. End users and buyers at Asia’s golf courses have a right to demand unfettered access to supplies, all equipment lines and services through a fair marketplace with a level playing field for all channels of distribution including ‘parallel’ channels. Parallel distribution channels are often illegally attacked as being ‘grey market’ competitors even though such distribution is completely legal. This means competition amongst venders and suppliers must not be illegally constrained. Thus any efforts or systemic behaviors to unfairly impact prices of goods or services or to limit access to the end user market of golf course users can well cause failure of golf course businesses. And if golf courses fail, so too will golf, since the game only organically exists at golf courses." and stunted commerce of a growing new nation and have since been buoyed by the Robinson-Patman and Ceiler-Kefauver acts in the USA. All of these laws allowed for small companies and individuals to file anonymous complaints or bring lawsuits against competitors or large companies trying to unethically choke them out of business – and it allowed the federal government and separate states to prosecute both individuals and companies for criminal constraint of trade.

These antitrust laws gave wide latitude to prosecution of competition claims – and to emphasize how detrimental constraint of fair trade is to a nation and healthy commerce, the US congress saw fit to not only provide damages as relief to a complainant, but monetary damages awarded are then subject to being trebled (multiplied times three!) as punishment.

So how is all of this applicable to golf course businesses here in Asia or anywhere?

Simply, golf course operations everywhere are under severe business pressure today. Golf courses and clubs themselves must survive today in a contracting and strongly competitive marketplace. For golf courses in an increased competition there is not only a need to generate revenue, but also the essential need of any business

to control its operating and capital costs. Survival of golf courses depends on controlling expenses by getting the most competitive price, products and services – and having fair access to innovative, emerging products and services that are often brought to the market by new, small companies that can help a golf course business.

End users and buyers at Asia’s golf courses have a right to demand unfettered access to supplies, all equipment lines and services through a fair marketplace with a level playing field for all channels of distribution including ‘parallel’ channels. Parallel distribution channels are often illegally attacked as being ‘grey market’ competitors even though such distribution is completely legal. This means competition amongst venders and suppliers must not be illegally constrained.

Thus any efforts or systemic behaviors to unfairly impact prices of goods or services or to limit access to the end user market of golf course users can well cause failure of golf course businesses. And if golf courses fail, so too will golf, since the game only organically exists at golf courses.

Make no mistake to assume that laws with teeth only exist within the United States or that there is not powerful enforcement that can reach here into Asia. Every advanced and emerging Organization for Economic Co-operation and Development (OECD) nation in the world has enacted similar antitrust competition laws – and (note this particularly) nations are cooperating in enforcement prosecutions. Even China, Korea, Japan, Singapore and other nations

OCTOBER 2014  28/29

Prusa's PoINT Fair Trade laws and pRACTices EU Trade Policy Explained

are cooperating in competition prosecutions and are signing MOUs amongst one another to this effect. There is now strong convergence between antitrust (competition) law and enforcement in the EU and the USA, while, at the same time, this legal convergence is also becoming ubiquitous amongst Asian nations too.

Further more, the laws in North America, Europe and other countries have very long arms – it does not matter if an occidental company or its owned subsidiary is operating in Asia or on the moon, because jurisdiction and enforcement remains in place from its home-base nation. And Asian companies conducting commerce in North America or the EU are also subject, or may avail themselves relief, to the competition laws of those regions.

Trade Associations – A Serious Source of Constraint of Trade Issues “A trade association is by definition a group of competitors who get together to share common interests and seek common solutions to common problems. The members of a trade association, singly and as a group, are sitting on an antitrust powder keg!”

– Anne K. Bingaman, Assistant Attorney General Antitrust Division , U.S. Department of Justice

A VIDEO ON ANNE K. BINGAMAN

Trade associations are wonderful organizations that can do much

ASIAN CLUB BUSINESS

social good, but they are also fertile ground for constraint of trade and predatory activity. It is in these association arenas where this author has seen and gained first-hand experience in preventing competition law problems and managing litigation. Speak to any respected legal counsel who deals with antitrust, constraint of trade, competition law and they will confirm the realities for you.

It would be fair to suggest that most people in the golf course industry have paid little attention to this aspect of business law.

Too many have never had the most basic education and some may have been damaged by predatory actions yet remain unaware of competition laws. Some may even dare, at great peril, to ignore the laws or think they can pursue back-room, cronyism dealings. You may be surprised to find out that there has been a history of serious antitrust litigation in golf that snarled associations internationally.

It is important to note that when it comes to trade associations (including professional membership organizations) and anticompetitive, constraint of trade activities, there is no hard and fast list of rules and regulations for associations to firmly cite.

The laws have been written in many nations to provide wide latitude for enforcement and a trade association really needs to utilize the guidance of an attorney who is specialized in this area of the law – particularly as it applies to associations of major competitors who collectively control substantial market share in the golf industry or a niche.

While large companies may well have an anti-trust lawyer or even a special department to guide them, too few take a close look at what

What are the EU-US Trade Talks (TTIP) About?

goes on in each association in which the company may participate until after the fact – and it is through trade associations that some of the greatest exposures exist in competition law.

Golf courses and business end users of goods and services in the golf course industry need to also be aware of how groups of competitors can form to cause a reduction of competition in the marketplace that drive up operating costs.

Trade associations, with individual and company members, need to especially avoid becoming dragged into the lurking dangers of predatory behaviors. Ignorance will not serve as defense, particularly with articles such as this being published and widely available.

First, illegal conspiracy to agree to constrain trade and competition does not require a written or formal agreement amongst competitors.

A wink, a nod and a smile of agreement, even in an informal social gathering of association members, are adequate to establish collusion to violate the laws of fair trade. After all, criminals do not usually write down their intentions to conspire illegally – antitrust (competition) laws are thus written broadly and prosecutors know how to use their power.

Associations in particular are widely advised by numerous antitrust lawyers to implement clear, detailed and written guidelines that require members to avoid certain behaviors and situations that can be construed as illegal. Activities that are even perceived to be per se illegal can wind up attracting undue scrutiny or dragging association members and individuals into litigation – prevention in advance is the best legal strategy to employ.

Meetings and discussions amongst a trade association’s members are activities that are rife for stepping over the line and into a civil lawsuit or criminal prosecution by an enforcement authority. It is fair to say that some individual association members with a zealous entrepreneurial, sales passion may think that they should be allowed to do certain things that are, in fact, illegal per se.

Activities that must be avoided in an association include, but are not limited to:  Discussing pricing, business strategies, advertising, trade show participation, timing of marketing, distribution.  Discussing who, or whether, to do business with any supplier, service provider, media entity, competition, distributor, customers, or a manufacturer ‘unauthorized,’ parallel equipment distributor.  Discussing complaints about competitors and potential competitors. Using disparaging terms such as ‘grey market’ against legal competitors and complaining about their pricing strategies.  Discussing or actually conducting boycotts against businesses. Individual companies may avoid doing business with a company, but it becomes illegal when any members of an association of competitors do this as a group action against another competitor – or attempt to pressure or threaten a secondary boycott against another business to force it to comply with an illegal constraint of competition against another competitor. Suggesting that an individual will be blackballed, lose business opportunities or not given access to participate in an association or its activities if they continue to conduct business with a 3rd party is per se illegal on its face.  Systemic combinations of any number of these activities are especially unfavorable to a defense.

OCTOBER 2014  30/31

Prusa's PoINT Fair Trade laws and pRACTices BOYCOTT OF TRADE SHOWS Another activity that may well be found to be illegal constraint of trade is when groups or associations of competitors decide they will boycott a trade show or industry event. Promoting or structuring a trade show owned or partnered in by an association that causes detriment to a competing trade show by implying a boycott also enters into perilous constraint of trade waters.

Additionally, negotiating arrangements with trade show organizers as a group of competitors applying combined pressures may also step over the line if such arrangements disadvantage other, non-member competitors.

such opportunities to meet end users (golf courses) are very limited AND when such access to golf course customers is necessary for nonmembers to fairly compete.

If no possible alternative events providing access to golf course end-user / buyers exist in a market (such is the clear case in most Asian nations), a trade association would be well advised to prevent even the appearance of constraint of competition by permitting non-member competitors access at a reasonable and equitable fee structure. And there is plenty of case law that has held trade associations liable for restricting market access that supports this prudent recommendation.

Decisions to exhibit or even attend a trade show or industry event should only be made on an individual company basis – and having an agreement that each company will only participate at an agreed upon level of contribution may also step over the line. Are you ready to risk litigation or prosecution over such illicit agreements?

Is it worth the risks?In the case where an exhibition has limited physical space to accommodate exhibitors, then it is also well advised to follow a fair and equitable system for allocating space to members and non-members alike.

EXCLUSION OR RESTRICTING ACCESS OF NON-MEMBER COMPETITORS

INFORMATION COLLECTION AND DISSEMINATION

Another serious exposure and evidence of conspiring to constrain trade by an association can occur when services such as market event gatherings of buyers for conferences or trade exhibitions are restricted only to association competitor members in markets where

It has been said that information is power – and this is certainly also true in illegally restraining competition as well. Trade associations of competitors must especially be vigilant to prevent mishandling of information as applied to market research or insider handling of even

"Association insider information is also a source of unfair competition that may drag individuals and associations over the legal competition limits. Such insider information can include knowledge of upcoming marketing promotion strategies, scheduling of events and venues, and group actions in the marketplace."

ASIAN CLUB BUSINESS

"Another serious exposure and evidence of conspiring to constrain trade by an association can occur when services such as market event gatherings of buyers for conferences or trade exhibitions are restricted only to association competitor members in markets where such opportunities to meet end users (golf courses) are very limited AND when such access to golf course customers is necessary for non-members to fairly compete. If no possible alternative events providing access to golf course end-user / buyers exist in a market (such is the clear case in most Asian nations), a trade association would be well advised to prevent even the appearance of constraint of competition by permitting non-member competitors access at a reasonable and equitable fee structure. And there is plenty of case law that has held trade associations liable for restricting market access that supports this prudent recommendation."

industry events and timely, broadly disseminated announcements.

Just because others have gotten away with these things does not mean that you will.

Market Research Information research on markets is especially sensitive when data is collected by groups of competitors or shared amongst competitors.

Any data collected must have strict controls on it and be kept confidential from competitor members. Market research information should only be provided to any member competitors in an aggregate form – and preferably first reviewed by antitrust (competition) legal counsel. Specific data responses collected should, in most cases, likely be destroyed once information is aggregated to a degree that does not provide association members that would provide them with unfair competitive advantages in the market place.

Insider Information Association insider information is also a source of unfair competition that may drag individuals and associations over the legal competition limits. Such insider information can include knowledge of upcoming marketing promotion strategies, scheduling of events and venues, and group actions in the marketplace.

Image for illustration purpose only.

OCTOBER 2014  32/33

Prusa's PoINT Fair Trade laws and pRACTices

Understanding Competition Laws – The Cartels

ASIAN CLUB BUSINESS

"Prevention is the proper and wise defense when dealing in competition law. Members should demand to see an association’s written policies and detailed guidelines on competition law.

Educate yourself, do not allow or participate in any actions or situations that may be construed as anti-competitive in business, and seek competent antitrust legal advice. If a group or association cannot demonstrate that it is doing all of these things, then it is wise to stand clear of what Anne K. Bingaman called the association “antitrust powder keg!”

Announcements and details of association sponsored market events must be provided simultaneously to all association members in an equally timely manner – and in some cases even to non-members if the information would provide unfair advantages only to association member competitors in limited access markets such as Asia.

In planning and scheduling education events that are concurrently marketing opportunities, it is prudent to provide all parties long lead times for scheduling market events to all members and non-members who may wish to participate in order to avoid giving unfair strategic planning advantage to insider competitors who alone have strategic information. Even withholding of important event information of market gatherings by groups of competitors may be construed as illegally constraining trade.

BUSINESS REVIEW REQUEST One method to help trade associations avoid illegal activity is to make a Business Review Request to the US Department of Justice, Antitrust Division or an equivalent enforcement agency in Europe as well as OECD nations.

These are usually voluntary program services offered that are similar to a test audit and are designed to correct antitrust legal exposures before an implementation of a program or action is undertaken.

Trade associations are well advised to avoid becoming unnecessarily exposed to litigation or anti-competition enforcement.

Emotional, pompous stances by those in governance or shifty attitudes by a few can bring down not only the long arm of the law, but also can bring debilitating legal fees and business distraction to many disinterested members and individuals who may well wish they had not ‘associated’ in an association at all.

Prevention is the proper and wise defense when dealing in competition law. Members should demand to see an association’s written policies and detailed guidelines on competition law. Educate yourself, do not allow or participate in any actions or situations that may be construed as anti-competitive in business, and seek competent antitrust legal advice. If a group or association cannot demonstrate that it is doing all of these things, then it is wise to stand clear of what Anne K. Bingaman called the association “antitrust powder keg!”

OCTOBER 2014  34/35

Prusa's PoINT Fair Trade laws and pRACTices Review of Competition Law Best Practices for Associations  Associations should always have written, clear guidelines to prevent violations of competition laws available to members and the general public. Broad pronouncements about good business practices alone are arbitrary and meaningless. Detailed competition law guidelines that specifically spell out what is and is not acceptable by an association should be reviewed by competent antitrust legal counsel before they are promulgated and thereafter on an ongoing basis.  Systemic behaviors or activities that may even be perceived as cronyism collusion amongst competitors must be avoided.  Staff and governance volunteers of associations should receive regular training in competition law and such should be well documented. Untrained people can walk an association directly into the fire of a competition law prosecution.  Any exchanges of market information should be in an aggregate form and highly detailed data or forward looking strategic data should be avoided and destroyed.  Avoid allowing insider information to develop in the hands of a few. Associations should avoid allowing members of boards, committees and subcommittees to effectively become perpetual members or to remain in charge over extended periods to the point where they are effectively in control of strategic event schedules. This is particularly so if a committee is composed of those who represent a major market share in an industry or niche.

In sum, illegally restricting competition is in actuality detrimental to commerce and the universal welfare of any industry or nation. If you think that your business is being subjected to unfair competition in the marketplace by another entity or group, you have very significant recourse and support available.

Complaints can be investigated by enforcement agencies on your behalf while not disclosing your identify or anonymous complaints can be filed.

Once the long arm of competition law descends upon a group of industry competitors suspected of collusion in the field of competition law, antitrust lawyers will tell you that such tremendous pressures are placed on defendants that often times once-thought-inviolate crony relationships disappear amongst those individuals or companies involved and inevitably some will quickly provide evidence, settle damages and negotiate ‘consent decrees’ with prosecuting authorities to save themselves and their companies from years of legal morass.

Golf courses worldwide must assert their legitimate business interests

36/37  OCTOBER 2014

 Association meetings of competitors should be well regulated, as such formal or informal gatherings are the most fertile ground for competition law violations.

Agendas should be made in advance and reviewed by a competition law attorney – in many cases such special counsel should be present in meetings, especially between major competitors. Agendas should be strictly followed and precise minutes should be written and made available broadly to members – and in limited access markets to the public.  Avoid pricing and fee structures for association memberships, activities and services that highly favor larger companies – or that shut out non-member participation in restricted access markets.  Avoid designing bylaws that are crafted to provide control to large, powerful competitors with predominant market share in highly restricted access markets.  In all cases, actions or perceptions that harm the competitors of association members should not be permitted. Most seriously experienced competition law defense lawyers will tell you that a great many antitrust, competition law legal actions are initiated on suspicion that a group of competitors has established an association to constrain other competitors and control markets. When a targeted competitor’s business begins to fail they become highly motivated to initiate direct or anonymous litigation.

more strongly if the game of golf is to prosper – especially during challenging business times.

Owners and professional management must make efforts to rise to a sophisticated level of understanding of competition law and the impacts of constraint of trade on the prosperity of our golf course businesses. If suspected or perceived antitrust activities and violation of fair competition law business patterns are observed, especially widely systemic patterns over time, such individual perpetrators, businesses, groups of competitors, or trade associations must be immediately called on with forceful demands to cease and desist.

If the patterns continue then one should not hesitate to bring such concerns to the attention of international enforcement agencies for the common good of golf.

While on an overall litigation percentage basis there are few competition law prosecutions, such actions are so devastating that it only takes the hanging of one coyote on the fence to keep other coyotes well clear of an entire industry.

ASIAN CLUB BUSINESS

THE WORLD’S ONLY ILLUMINATED BOOK ON THE GAME

‘A truly beautiful book

that I am honored to add to my library.’

Jack Nicklaus

Introducing GOLF, a rare leather bound and gold gilded publication, capturing the true spirit of the game.

A lovingly detailed 18 chapter journey through the past, present and future of the great game,

A TREASURED GIFT AND A WISE INVESTMENT { Only 500 copies of GOLF are available throughout Europe and Asia } Prices start at:

$1,299 USD / 7933 CNY (Chinese Yuan) / 129669 JPY (Japanese Yen) The Bible Of GOLF is the partner book to the St Andrews 600th Anniversary celebrations.

www.wonderlandpublications.com

BRUCE WILLIAMS THE GOLF SAGE FOCUS ON AN ASIAN SUPERINTENDENT

Trends in Tournament Preparation ASIAN CLUB BUSINESS

While most of us sit back and watch golf events on television there is a lot more that takes place behind the scenes than we can ever imagine. It is for that reason that many golf course superintendents take the opportunity to visit one or more tournament events prior to their own hosting of such an event.

The Players Championship, held at TPC Sawgrass in Ponte Vedre Florida, is an event that has become a proving ground for many superintendents around the globe that will soon be hosting their own events.

Earlier this year there were six superintendents that came from Germany, Spain, Columbia, Scotland Peru, Chile and Malaysia. All of these superintendents were working hard for 10 days to get an insider view of what happens behind the scenes.

The beauty of the training at TPC Sawgrass is that The Players Championship is held every year at this same course. That allows for a variety of system to be put into place that can be either duplicated or modified for use at other golf courses for national or PGA Tour events in other countries.

Mohd Nizam Othman Course Superintendent Kuala Lumpur Golf and Country Club

One of the enterprising young superintendents at The Players this year is one of the better known superintendents in Asia. That would be none other than Mohd Nizam Othman who is the golf course superintendent at Kuala Lumpur Golf and Country Club.

He has a major challenge ahead of him with 3 significant tournaments being held at KLGCC including the Maybank Malaysian Open, Sime Darby LPGA tournament and the CIMB Classic event of the PGA Tour.

The last two of those events are back to back.

It was my good fortune to interview Nizam and find out his thoughts on The Players and also what he learned that he can apply for his upcoming events. I plan to volunteer for the CIMB Classic and will follow up with Nizam on what it means to host such a prestigious event.

Being goal oriented Nizam shared with me that he wanted to learn more about the daily course set up. That not only included the hole locations and length but also measurement of firmness and green speed.

Spending each day on every green allowed him to see things first hand and also to develop his own game plan for his upcoming tournaments.

His second goal was to network with people from all around the world so he could reach out to them not only during The Players but also in the future.

By far Nizam travelled the furthest of any volunteer for The Players. He estimated that it was about 10,000 miles in the air and close to 30 hours to get to Ponte Vedre, FL. Taking all that into account Nizam was always cheerful working the 12 hour days for 10 days in a row!

For those who volunteer their time you ever know what to expect in the days that lead up

OCTOBER 2014  38/39

BRUCE WILLIAMS THE GOLF SAGE QUALITY FOCUS SERVICE ON AN ASIAN SUPERINTENDENT

ASIAN CLUB BUSINESS

"Nizam indicated that “he learned a lot about the irrigation system technology and the moisture management required for such an event”. He also learned a lot about coordination with the Rules Officials and TV coordination as there is not only a golf event going on but so many more things that are funneled through the golf course superintendent and that he must delegate to others. Staff motivation was a key to the success of the tournament according to Nizam."

OCTOBER 2014  40/41

BRUCE WILLIAMS THE GOLF SAGE FOCUS ON AN ASIAN SUPERINTENDENT 2014 John Deere TPC Sawgrass Volunteer Program for the Players Championship

TPC Sawgrass Agronomy relies on a large network of volunteers to help prepare the course for the Players Championship, the number one event on the PGA TOUR. John Deere is not only the official equipment supplier to the PGA TOUR but also sponsors the TPC Sawgrass Volunteer Program for the championship. to the tournament. With inclement weather it can be all hands on deck and this year that was the case with close to 7 inches of rain leading up to the event. Lots of sand needed to be shoveled and raked in bunkers and Nizam and his international friends assisted with that. Once the rains passed Nizam was involved in all aspects of producing world class putting surfaces. For those who do not know it greens are mowed up to 8 times per day. That is done before and after play. The greens are also rolled up to 4 times per day making them smooth and slick. Moisture management is monitored several times per day to create the firmness required for players that are the best in the world.

After 10 days of volunteering there are always a few key takeaway points and this event was no different.

Nizam also worked with “magic sand” that is a green dyed sand that masks any ball marks or scalped areas and creates not only a smooth surface but one that is pleasing to the eye and TV camera!

There were about 45 staff members from TPC Sawgrass and another 60 people that were part of the John Deere Voluteer Program.

42/43  OCTOBER 2014

Nizam indicated that “he learned a lot about the irrigation system technology and the moisture management required for such an event”. He also learned a lot about coordination with the Rules Officials and TV coordination as there is not only a golf event going on but so many more things that are funneled through the golf course superintendent and that he must delegate to others. Staff motivation was a key to the success of the tournament according to Nizam.

Keeping over 100 people motivated with

music, inspiration, special speakers, etc. is no easy task. It is also a challenge to coordinate all the logistics of housing, travel and daily coordination of all those individuals.

In closing, Nizam shared that he will replicate some of the things he learned at TPC Sawgrass. He knows this will require significant daily bunker work and that the rough will be very uniform but not a desirable place for players to be.

KLGCC will have a volunteer program and that will have an educational program with guest speakers. For golf course setup it will likely be similar to what KLGCC has done before for big events including double mowing and rolling.

Something tells me Nizam will have the golf course in perfect condition to test the best players in golf!

ASIAN CLUB BUSINESS

WATCH VIDEO ON i25TM DRIVERS

SPORTY EXTERIOR. Lightweight hosel: Adjustability with no loss of performance.

CUSTOM-ENGINEERED INTERIOR.

On the outside, the new i25TM adjustable driver says performance and control. Inside, the multi-material driver has the horsepower to match. A CG positioned low and back reduces spin and delivers an extremely high MOI for forgiveness while stabilizing launch conditions to give you the distance you demand. To get the perfect À W ZH RIIHU WKH 3:5 VKDIW IDPLO\ ² VKDIWV HQJLQHHUHG E\ ZHLJKW WR help keep you in the fairway. Of course, there’s a lot more to it, so WHVW GULYH RQH DW \RXU 3,1* )LWWLQJ 6SHFLDOLVW RU YLVLW SLQJ FRP

3,1* 3 2 %2; 3+2(1,; $=

Fueled by patented Turbulator Technology and a new face material, the G30 adjustable driver is PING’s longest, most forgiving driver ever. In wind tunnel testing, crown turbulators are proven to reduce aerodynamic drag and increase clubhead speed. The T9S titanium face is thinner for higher ball speeds, and it’s lighter to keep the CG low and back for optimal launch and spin. The low/back CG – a proven PING innovation – also increases MOI for unmatched consistency. With 5 loft settings and high-balance-point shaft technology, the G30 is the fastest way to longer, more accurate drives. Visit a PING Fitting Specialist or ping.com. You’ll be better for it. ®

WATCH VIDEO ON G30® DRIVERS G30® TURBULATOR TECHNOLOGY ©2014 PING P.O. BOX 82000 PHOENIX, AZ 85071 AGM814

New T9S face material

5 loft adjustments

SPECIAL FEATURE AUTHENTICATINg TECHNOLOGY

Rouge Counterfeiters Busted In China!

The U.S. Golf Manufacturers Anti-Counterfeiting Working Group, the industry watch-dog has reported that Chinese law enforcement units have flushed out counterfeiters in June and July and seized about 62,000 counterfeit pieces of golf merchandise, golf club heads, shafts and grips in addition to golf apparel and other accessories.This problem has been persistent over the years and there seems to be no end to counterfeiting. Is this really the case? Well, we don’t think so! There is a solution and it’s just waiting to be discovered in Singapore.

ENTER THE GOLF VIGILANTES! Steven Tan (left) & Leonard Wee

ASIAN CLUB BUSINESS

Two smart guys have got together to develop a dragnet which is designed to bust the problem of counterfeiting once and for all.

The Singapore counterfeit busters are Steven Tan and Leonard Wee, young guys who possess the intelligence and tech savvy to use technology to corner and wipe out the bad guys!

They call their company “AuthentiGolf” – get it? Cool! They are all about authenticating the real thing so that you can be darn certain that you’ve got the real McCoy when you put down your cash on the counter to purchase a golf club anywhere on the Planet.

How fascinating – why has it always got to be young guys who get all the bright ideas! Seriously Steven and Leonard are experts at what they do. “As golfers ourselves, we have often heard about how people have been duped into buying fake clubs and this triggered an action plan which sent us on a seek and find adventure for a solution,” said Leonard.

So, what was the solution? Now, get a hold of this – just conceal an RFID chip in a golf club at the point of manufacture! That’s it? Brilliant idea! Why should ideas like this only percolate and bubble over through young heads? It’s not fair!What the heck – who cares so long as the golf industry can grab the bad guys and lock them away for good!

“There is an urgent need for a company to be the authentication bureau of choice for consumers so that they can have peace of mind when purchasing new or used clubs and we are that company,” declared Steven.

According to Lawrence, they have conducted extensive R&D to ensure that their RFID chips do not affect a club’s playability and that it is robust enough to withstand high heat and impact.

So how does AuthenticGolf work? Great question!

And here are the answers:  RFID chips, in the form of labels measuring 5x5cm and a thickness of 0.4mm are inserted into golf clubs during the manufacturing process.  Using a near field communication (NFC) enabled phone or a compatible RFID reader with Authenticlub software installed, users can scan the tag which then connects with the company’s cloud server.  The cloud server searches for the unique tag ID and if it exists in the database, it will display the data which could include, date of manufacture, brand, type, weight etc.  If the tag data is not present in the server, you’ve been dealt a dud!  If a tag is present but no data is held on the company’s server, it will not be authenticated by ATC .

And in the unfortunate circumstance that this happens, you’ve got a bum deal on your hands! “We use RFID tags with unique identity and encryption codes and unlike barcodes, QR Codes or holographic stickers, our tags are not visible to the naked eye and cannot be photocopied or re-printed,” revealed Leonard.

“We use RFID tags with unique identity and encryption codes and unlike barcodes, QR Codes or holographic stickers, our tags are not visible to the naked eye and cannot be photocopied or re-printed,” – Lawrence Wee

Hey, that’s the work of a genius – the ATC RFID chip is counterfeitproof! Leave it to the young guys to come up with revolutionary ideas to rock the world! “We make it extremely difficult and costly for counterfeiters to try to counterfeit these tags,” Steven stressed.

So, what’s the golf industry waiting for? C’mon guys, beat a path to Singapore (if you haven’t been here yet, you’d love it) and strike a deal with Lawrence and Steven. After all, as they claim, “we are one of the first in the world to use secure and reliable technology which is readily available to businesses and end-users, using RFID and cloud technology.”

OCTOBER 2014  46/47

VIEW VIDEO ON LOFT FOR DISTANCE

VIEW VIDEO – DISTANCE FOR ALL

SPECIAL FEATURE WITH JAmes Cronk GROW THE GAME

 Why do we play golf?

To lower our handicap? To get exercise? To enjoy nature?

To display our status and wealth? To spend quality time with our spouse? To spend quality time away from our spouse?

ASIAN CLUB BUSINESS

James Cronk – Principal, Cronk Group is a highly regarded speaker and consultant and his work takes him around the globe, helping clubs and organizations improve their people, their products and their profits. His clients include private, resort and daily fee clubs of all sizes and also national and international organizations such as NGCOA, CMAA, CSCM, EGCOA, PGA and GOLF 2020. For more information visit www.cronkgroup.com or contact him at james@cronkgroup.com

If we stood on the first tee of any golf course in the world and asked the first ten golfers why they played golf, we would likely get eleven different answers!

SO… HOW CAN WE SELL, PROMOTE AND GROW A GAME THAT IS UN-DEFINABLE? The answer…. Celebrate the Spirit of Golf!

 To grow the game we must speak to the heart of consumers and find new ways to explain how it ‘feels’ to play the game.  To grow the game we need to stop ‘selling’ it, and instead communicate 'why' the game is great.  To grow the game we need to better understand why people who play golf love it, and why others don't.

Those who play golf know the benefits that come from it, and the core values that golf offers are extremely important in today’s world.

In Asia, and in North America and Europe, societies are facing the ever-increasing challenges brought on by a

fast-paced, technology-driven, ‘me’ generation.

Studies show that people, especially youth, are becoming increasingly challenged by a lack of exercise, increasing divorce rates, moral confusion and even attention deficit issues caused by the immediate gratification that comes from technology.

While saving the world might not be high on the to-do list of the average golf course operator, the reality is that golf is the antidote that might just solve some of the problems faced by many of us each and every day.

Imagine a world where families can communicate uninterrupted for hours on end, where exercise is required and where self-governance is a choice!

Imagine a world where kids can learn important life lessons simply by playing a game.

In today's challenged industry, those facilities that are able to articulate their passion for golf will be successful in growing the game, growing their customers and growing their profits.

OCTOBER 2014  50/51

LONG THANH GOLF RESORT, HO CHI MINH CITY, VIETNAM

DECEMBER 6 & 7, 2014

In Celebration Of Fathers And Sons The inaugural Asia Pacific Father and Son Golf Tournament is on the cards. Fathers and sons or direct related members of a family will do battle to see who emerges as the best of the best in the region.

The tournament is open to any combination of family members – father and daughter, uncle/aunty and nephew and niece. This arrangement provides for a wider family involvement and participation.

This prestigious tournament will be staged on The winning team will walk away with the December 6 and 7, 2014 and the host venue Asia Pacific Father and Son Trophy presented is the award winning Long Thanh Golf Resort by Vietnamese philanthropist Le Van Kiem. in Ho Chi Minh City, Vietnam.

Come and be part of the region’s first ever total family golf event ...

The Inaugural Asia Pacific Father and Son Golf Tournament!

Entry fee is set at US$450 per player and this will include:  Daily two-way transfer from the Sheraton Hotel to the golf course.  Lunch, refreshment and dinner on both days.  Prizes and goodie bags.  One practice round on December 5.

The Father and Sons Tournament is designed to promote greater family involvement in golf and clubs are encouraged to enter club teams to participate in that promises to become an annual tournament.

ONLINE Registration is open at: http://tinyurl.com/fsgt2014

DOWNLOAD PDF – RULES & REGULATIONS: http://tinyurl.com/fsgt-rr2014 For enquiries, please contact Alice Ho at alice@asiapacificgolfgroup.com or call +65-63232800

Organised by: Long Thanh Golf Resort

GENERAL NEWS CLUB AQUISITIONS

Wentworth Golf Club

THE CHINESE ARE COMING! First it was the Japanese who scooped up choice golf courses with their bulging check books.

Then came the Koreans (well, to a lesser extent). And now the Chinese are doing their number on the world’s golf courses.

Seriously rich Chinese individuals and corporations are picking up golf courses at bargain basement prices in Australia, North America and Europe.

The latest to go is the prestigious Wentworth Golf Club, the course that is home to the annual PGA Tournament. It has been sold by restaurant entrepreneur Richard Caring to Beijing-based Reignwood Investments for £135m.

"Wentworth is a key strategic acquisition for our rapidly growing

52/53  OCTOBER 2014

luxury lifestyle division," said Chanchai Ruayrungruang who claims to have founded the group behind China’s first private golf club.

According to him, “Reignwood would draw on the club's "exceptional expertise" to inform its other golf operations across Asia and preserve its unique culture”.

Wentworth is home to professional and celebrity golfers ranging from Nick Faldo and Ernie Els to Bruce Forsyth who own multimillionpound homes in neighbouring Virginia Water.

ASIAN CLUB BUSINESS

Golfers d a i r s e a P Come and Discover What Playing Golf in Paradise Really Feels Like Long Thanh Golf Resort is a true paradise for any golfer.

Two world-class golf courses – one that traverses hilly terrain while the other meanders through spectacular lakes.

Both the Hill Course and the Lake Course are fascinating showcases of breath-taking landscapes

populated by a wide array of flora and fauna.

Golfing in Long Thanh Golf Resort is an experience of world-class golf combined with a unique brand of service and the warmth and friendliness of Vietnam.

All this delivered in a tranquil setting located in the southern economic triangle and just 40 minutes from Ho Chi Minh City’s centre.

Long Thanh Golf Resort -A Golf Paradise Like No Other! www.longthanhgolfresort.com National Highway 51, Tan Mai 2 Hamlet, Phuoc Tan Village, Dong Nai Province, Vietnam Tel: +84 61 3 512 512 Fax: +84 61 3 512 513

Marina Bay SandS® SinGaPOrE

24/7 Redefined