THE GOLF CLUB
MANAGER ISSUE 18 | SEPTEMBER 2018
THE OFFICIAL JOURNAL OF THE GOLF CLUB MANAGERS’ ASSOCIATION
EDUCATION
RETAIL PARTNERSHIPS
COULD COMBINING FORCES SAVE YOU TIME AND MONEY?
SPECIAL FOCU MONEY MATTES:RS AND CLUB FINANCES
REGIONS
HERE COME THE GIRLS
WHY LADIES ARE FLOCKING TO JOIN SALE INTERVIEW
MASTERFUL
SECRETARY STUAR T CHRISTIE WELCOMES THE E U R O P E A N TO U R ’ S E L I T E TO WA LTO N H E AT H
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Le Golf National has been in partnership with Jacobsen since 2011. The quality of machinery, the back-up support, and the shared culture of innovation are the reasons we choose Jacobsen year after year. Together, we have created a world-class golf course that will host the 2018 Ryder Cup. Alejandro Reyes, Golf and Courses and Estate Manager,
Le Golf National
WHEN ONLY THE BEST WILL DO.
To arrange a demo on your course, please contact your local dealer. www.jacobsen.com Š 2018 Textron Specialized Vehicles Inc.
CONTENTS ISSUE 18 | SEPTEMBER 2018
GCMA
CAREERS
04
GCMA chief executive Bob Williams
26
10
Just what is Foxhills famous for?
The latest jobs for GCMA members
INDUSTRY
EDUCATION
12
How you can transform your driving bays
28
Selling land? Here’s what your club need to do
16
Keeping you In The Loop with industry news
34
How partnering could transform your retail ops
INTERVIEWS
REGIONAL
18
62
Meet the Manager: Scarcroft’s Mick Thorpe
64
Sale’s John Jackson on the rise of lady members
Walton Heath’s Stuart Christie
18
34 64
WELCOME
THE OFFICIAL JOURNAL OF THE GOLF CLUB MANAGERS’ ASSOCIATION GCMA Bristol & Clifton Golf Club, Beggar Bush Lane, Failand, Bristol, BS8 3TH Tel: 01275 391153 | hq@gcma.org.uk CHIEF EXECUTIVE Bob Williams - bob@gcma.org.uk COMMUNICATIONS MANAGER Mike Hyde - mike@gcma.org.uk GOLF MANAGEMENT RESEARCHER Jim Cunning - jim@gcma.org.uk EDUCATION COORDINATOR Niki Hunter - niki@gcma.org.uk FINANCE ADMINISTRATOR Shirley Edmondson - shirley@gcma.org.uk COMMUNICATIONS EXECUTIVE Marie Taylor - marie@gcma.org.uk PRESIDENT JR (John) Jones 2018/19 CAPTAIN Cameron Dawson BOARD OF DIRECTORS Gary Steele, Phil Grice, Eddie Bullock, Amy Yeates, Andrew Rankin THE GOLF CLUB MANAGER IS PUBLISHED BY: SPORTS PUBLICATIONS LTD 2 Arena Park, Tarn Lane, Scarcroft, West Yorkshire, LS17 9BF, UK Tel: 0113 289 3979 | info@sportspub.co.uk PUBLISHER Tom Irwin - t.irwin@sportspub.co.uk EDITORIAL DIRECTOR Dan Murphy - d.murphy@sportspub.co.uk OPS DIRECTOR Will Shucksmith - w.shucksmith@sportspub.co.uk EDITOR Steve Carroll - s.carroll@sportspub.co.uk CHIEF DESIGNER Andrew Kenworthy - a.kenworthy@sportspub.co.uk DESIGNERS Vicky Jones - v.jones@sportspub.co.uk Becky Clark - b.clark@sportspub.co.uk Paul Barnett - p.barnett@sportspub.co.uk Every effort has been made to ensure accuracy, but the publishers cannot accept responsibility for omissions and errors. All material in this publication is strictly copyright and all rights are reserved.The views expressed in The Golf Club Manager do not necessarily represent the views of the company or the editor. Every care is taken in compiling the contents but the publishers assume no responsibility for any damage, loss or injury arising from participation in any offer, competition or advertising contained within The Golf Club Manager.
IN OUR PREVIEW
Meet the
RYDER CUP 2018 In association with
TEAMS
Can the US end 25 years of hurt in Europe?
GREAT DANE
Thomas Bjorn’s blueprint for wrestling back the trophy
The art of
captaincy
Monty’s guide to building a winning team
IN THE DRIVING SEAT
AN IN-DEPTH PEEK AT THE NEW TITLEIST TS WOODS
001 NCG Cover September 18.indd 3
ON THE COVER: The Old course at Walton Heath
29/08/2018 13:26
ISSUE 18 | SEPTEMBER 2018
L
ooking back at my column last month, my final paragraph sympathised with greenkeepers over the unusually hot and dry conditions. In fact, the very last word I used was ‘rainfall’ – now I’m not sure that was the best way to finish. Since then we have seen a return to normal conditions and the golf courses I have visited are beginning to return to some form of normality. I am aware of a number of course fires that have resulted over the summer. If you are one of those courses that have had to deal with such an event, I would be extremely grateful if you could let me know more. Looking to the future, we are preparing a case study on the effects that such natural disasters have on the business. Looking ahead, I am pleased to announce that Julie Knight will be joining the team at HQ as Membership Services Coordinator. Julie will start on September 10 after undertaking a similar role at the Kendleshire Golf Club, in Bristol. Continuing to look ahead, how quickly has the spectacle of the Ryder Cup crept up upon us? I know this is the one event that truly inspires a lot of club golfers and certainly at my own club, Clevedon, there is a real anticipation for the event. Again we would certainly like to hear from any members who are attending the Ryder Cup and please share your experiences and images with
us. Over the next month we will also be announcing the selected venues for the 2019 National Conference, as well as next year’s AGM, which I know creates a lot of interest for those who try and incorporate it into a golfing break. With regard to the conference, if you want to make a note of the dates it will start on Sunday, November 10 and finish on Tuesday, November 12. And continuing my theme, we are presently in the planning stages to run a half-day workshop at BTME, in Harrogate this coming January, on the effects of a summer like we have just had. So on that note my final words this month are ‘bring back the sunshine’. Bob Williams – chief executive
“The Ryder Cup is the one event that truly inspires a lot of club golfers and at my own club there is a real anticipation“
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What you
NEED TO KNOW Relevant news, opinion and expert insight from around the industry. Plus what’s happening around the UK in the world of the GCMA
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Picture
OF THE MONTH
1
With next year’s Open at Royal Portrush sold out, there will be an avalanche of golfers descending on Northern Ireland next year to experience the delights of what is a stellar golfing region. Among the
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crown jewels there is Portstewart and this stunning picture was taken by GCMA communications manager Mike Hyde. To find out what we were up to in Northern Ireland, check out next month’s issue of The Golf Club Manager.
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This GCMA club is famous for…
FOXHILLS
This little corner of Surrey, where Chris Fitt is director of golf, is known for more than just golf. In fact, Foxhills has played an interesting role in history...
I
t’s almost a cliché to call something historic these days. Every time anyone does anything of any note, it’s historic. Any building that’s managed to survive since, well, the 1960s is historic. But at Foxhills, the golf club and resort based in Surrey, this isn’t just an idle boast. The site boasts a pedigree that dates back to the Middle Ages. It was originally heath and woodland owned by Chertsey Abbey, the Benedictine monastery that was founded in the seventh century. Foxhills really came to note in the 18th century, though, when the politician Charles James Fox came to live in the area with his mistress Elizabeth Armistead in 1780. Fox, who it will cause no surprise is whom the estate is now named after, was a rising star in Parliament but a man with a predilection for gambling, drinking and the high life in general. Foxhills’ website tells the story of how he once made a bet with the Prince Regent as to the number of cats they would see on Bond Street. Another legendary tale involved him surviving a duel in Hyde Park, arguing that he would have
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died from his wound had his opponent, William Adam, not used government issued gunpowder. Following his death, the estate passed through several hands down the decades. It was even used as a home for wounded officers during the Great War. A generation later, as Britain went to war with Hitler, the farm, which is now the site of the Bernard Hunt course, was handed over to the Dig for Victory campaign. Even today, Foxhills are still happily making news – though this time in the sporting arena.
Because aside from the two championship courses, and the first par 3 course of its kind in Britain, the estate also hosted Team GB’s ultra successful road race cycling team during the London Olympics six years ago.
What is it that makes your club special? Every club has something that makes it unique, that sets it apart from everywhere else. Why not let us know what it is? Email s.carroll@sportspub.co.uk
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Are you looking for a solution to add value to your membership and provide protection for your members and golf club? Our brand new policy can cover: • Requests from members to suspend their membership due to injury or ill health • When a member hits an errant shot into the car park, neighbouring road or houses • Your members hit another person whilst playing or practicing golf • The customary round of drinks after a hole in one during organised competition •Members’ personal golfing holidays, cover at any golfing facility up to 120 days worldwide • If a member has their clubs stolen or damaged outside a Pro shop PLEASE NOTE: Terms and conditions apply, for full details of policy cover/benefit limitations and exclusions, please refer to our policy wording and summary of cover, a copy of which is available upon request.
Take this policy out at your golf club today and cover your members as beneficiaries. Stand out from the industry and add these members benefits into your membership package for next season. Call Alex today to find out how: 01527 868160 |golfplan.co.uk Golfplan is a trading name of A-Plan Holdings, which is authorised and regulated by the Financial Conduct Authority. Registered Office; 2 Des Roches Square, Witney, OX28 4LE • Registered in England • Registration Number 750484
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Tracing the
RANGE
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Toptracer has transformed the way we watch golf on TV. Could it now transform your range?
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D
rooling over the ball flights of the best golfers in the world is something that has become synonymous with how we watch the game on TV. Never before have we been able to get such an insight into the majestic way the likes of Rory McIlroy and Dustin Johnson launch their ball off the tee. Put simply, it has revolutionised the way in which we consume the sport. Now that same technology is available for driving ranges and clubs up and down the country, with the aim of introducing golf to a whole new audience. Toptracer tracks the shots of all the best players in the world on the PGA and European Tours and golfers of all ages and abilities can now share in that experience. Owned by Topgolf® Entertainment Group, it uses two cameras mounted above driving range bays to capture data on every shot and relay it – via image analysis software – onto screens that display stats in a number of game modes. “In Toptracer Range I see a genuine opportunity to grow the game and introduce golf to a new audience with a product that lives up to its reputation and delivers an extraordinary experience through gamification,” said Toptracer president Ben Sharpe. “You hear lots of chatter about growing the game and introducing it to a new audience, but this product is the first thing I’ve seen that has the potential to
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live up to the hype.” With different games and skills challenges, as well as virtual golf on simulated versions of the world’s most famous courses, Toptracer Range can transform traditional driving ranges and bays at clubs into entertainment destinations. It aims to make golf a fun and sociable experience. “It is no stretch to say that everyone from scratch players to absolute beginners can tremendously benefit from Toptracer Range,” added Sharpe. “For the avid golfer, the system is incredible at tracking performance data and actually saves information on every shot hit to a user profile. “So good players can practice all season long and see how their game is evolving, or how it changes with new equipment, lessons and so on. “Data is becoming a huge part of improving athletic performance in all sports and we’re able to help golfers harness stats that are crucial to helping them understand their strengths and weaknesses. “For beginners or casual players, the games are immensely fun and help build the basic skills that players can take from the range to the course. “It’s also an excellent way to introduce children or non-golfers to the sport in a very low pressure and enjoyable environment.” It’s led to more and more driving ranges and golf clubs opting to adopt the Toptracer Range technology – with bespoke packages tailoring to the individual needs and demands of venues. “What these facilities are reporting is that on average the Toptracer Range-enhanced bays are nearly doubling the revenue of non-Toptracer bays,” said Sharpe. “Not only are people practising more and staying longer, but
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“It’s also an excellent way to introduce children or non-golfers to the sport in a very low pressure... environment” they are bringing their friends, buying food and beverages and generally treating the range as an entertainment hub. It is a true paradigm shift in how facility owners and operators can turn a profit.” Sharpe believes Toptracer Range is transforming the traditional image of golf practice and helping to unlock the secrets of golf for a new audience. “Technology is completely changing everything, in a very good way,” he continued.“Golf’s participation numbers are healthy and climbing thanks to the hard work of companies like Topgolf, and we’re very bullish on the future. The experience of and entry point into golf is changing, but there are millions more people worldwide who want to try their hand and see what golf is all about.” The range revolution has begun.
Toptracer Range The Toptracer Range is available for a monthly fee, with no payment upfront. The equipment, including camera sensors, hardware and displays, is leased. Software, free installation, unlimited maintenance and marketing support, along with an account manager, is also provided. To run the system, all that is needed are power outlets and a data connection installed between the servers, camera and screens. For more information, contact Paul Williams, general manager of Toptracer Europe, at paul.williams@topgolf. com or visit toptracer.com
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In the
LOOP 1. Women and Girls’ Golf Week proves a huge hit... What’s happened: Governing bodies across the UK promoted a week of activities to increase participation and the results were very promising. What does it mean? Georgia Hall capped off the week by winning the Ricoh Women’s British Open at Royal Lytham & St Annes and her uplifting success certainly did the cause of increasing women and girls’ participation no harm at all. But, even accounting for that, England Golf, Scottish Golf, Wales Golf, the Irish Ladies Golf Union and The R&A will have been more than happy with the overall results. The twitter hashtag #WhyIGolf generated more than 12 million impressions on the social media network, and reached 2.5 million people. England Golf’s figures revealed there had been more than 200,000 views of video content on Facebook, with 1,000 people sharing their stories on Instagram – the spectrum covering four-yearolds on the range to experienced lady captains. North of the border, Scottish Golf
The news you need to know from the last month in the golf industry…
even asked Scotland’s First Minister, Nicola Sturgeon, and her cabinet to give the game a try. Andrew McKinlay, chief executive, said:“The reaction to Women and Girls’ Golf Week has been fantastic and shows what can be achieved when the GB&I governing bodies work together. “This campaign was about raising awareness of the amazing players, volunteers and coaches currently involved in the game as well as inspiring women and girls everywhere to give golf a try.
“The response we’ve had has been unprecedented and we intend to continue to work to ensure this enthusiasm carries on, promoting opportunities that encourage women and girls to get involved in the sport at all levels.”
recognises the club’s commitment to maintaining excellent standard of operations in the industry. Thank you to everybody involved. @Trentham_Park
The GCMA have more female members than ever before. We hope with great coverage (Georgia Hall’s British Open win) and, hopefully, eventually reaching
2. BTME gets even BIGGA What happened: BIGGA announced new innovations for BTME, in Harrogate next January, the highlight being Golf Course Construction Live. What does it mean? It’s often
@GCMAUK We’re delighted to announce that we are now a GolfMark accredited club. The national award from @EnglandGolf and @ Sport_England’s @SEClubmark
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We want to hear from you! Send your correspondence, on any subject, to letters@gcma.org.uk
difficult for us to envisage what’s exactly required in a golf course renovation or reconstruction project but at BTME club and course managers, as well as greenkeepers, will be able to see such work taking place in front of their eyes. There will also be an area of the exhibition that’s dedicated to new products, a golf simulator and a theatre where short seminars will take place. It’s all part of the evolution of the event, which will increase in size by up to 25% after BIGGA chiefs earlier this year announced moves to expand the annual exhibition. 3. David Leadbetter opens European academy HQ at GCMA member club What happened: The legendary coach, who transformed Nick Faldo into a major winner during the 1980s, cut the ribbon at his new academy at Stoke Park. What does it mean? Leadbetter described Stoke Part as “one of the world’s premier golf facilities” as he unveiled the latest of his more than 30 training academies around the world.
the same column inches as Tiger, more high calibre women will join the GCMA community. @GCMAUK
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Many of the world’s top golf coaches have gone through the Leadbetter Golf Academy certification and Stoke Park’s team of professionals have been undergoing the training programme and will now deliver it to members and visitors. Stoke Park’s director of golf, Stuart Collier, who is a member of the GCMA, said:“This is wonderful news for all connected with Stoke Park, for David Leadbetter is a legend in golf coaching. “Few, if any, in the world game can match his track record in golf coaching - or the success his students have achieved. “The opening of his academy’s European headquarters here at Stoke Park is a further exciting development and will be of great benefit for golf in the south”.
Welcome to our newest GCMA members Darran Clark, at Aberdare, in Wales region Devon Greenslade, at Downes Crediton, in South West region Charlotte Hollingdale, at Cherry Lodge, in South East region Phil Jones, at Collingtree Park, in Midland region Mike Lovegrove, at Datchet, in London & Home Counties region Jeffrey Mills, at Taunton & Pickeridge, in South West region John Palmer, at Shirehampton, in South West region Peter Smith, at Tyneside, in Northern region Susan Turner, at Seacroft, in East Midlands region Graeme Whitfield, at Kendal, in North West region Welcome to our newest affiliate members Paul Adams, at Newport, in Wales region Mel Bashford, at Whitstable & Seasalter, in South East region
Look forward to having this to read with my morning coffee next week @GCMAUK always full of great information. @managemyGC
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The interview...
STUART CHRISTIE
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One of Britain’s most venerable courses, Walton Heath, hosts the British Masters next month. Golf club secretary Stuart Christie talked to Mark Townsend about the event, the club and the impact of the Ryder Cup…
H
ow did the link come about with Justin Rose and how did you get the British Masters? We’d had discussions with the European Tour over a number of years about the British Masters and when they rebranded it (the tournament) and had Ian Poulter, Luke Donald and Lee Westwood as the hosts, it rather fitted perfectly that Justin Rose wanted to come here. He has no great association with this club. He’s obviously a North Hants boy but North Hants, in itself, couldn’t host it. It isn’t big enough and so on. I asked him (about Walton Heath). I said ‘why?’ and he said ‘I just love the place. I love the golf course’. So it’s wonderful that he chose Walton Heath to host the British Masters and it is fantastic for us. We can’t wait, really. He has been down once and is coming down again to have a look at the course and give some ideas. His (previous) ideas were minimal – a few tee changes. Really, he is saying ‘look, I love it out there but do you mind thinking about this, this and this?’ They are, in the greater scheme of things, minor. It’s ‘build a new tee here. Can you make that a little bit larger? Could we hit it off here?’ It’s not a lot else. So he clearly loves the place.
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He’s got a good brain, hasn’t he? The way he talks about courses, such as when he’s at The Open… He has. He’s very sensible and shrewd. How big a job is this for you, logistics wise, compared with other years? It’s ratcheting up now. Fortunately, I spent 11 years at Wentworth so I did over 30 Tour televised tournaments. This is not a breeze but at least I know what’s coming and that’s the advantage. Am I worried about parking 5,000 or 6,000 cars? Yes I am but, equally, I have done it before and been involved. However, I am under no illusions. There will be a lot of extra work and a lot of extra infrastructure. Yes, the European Tour are involved and dealing with most of it. We make sure the members are happy and make sure all the site stuff is correctly done. I have an advantage, having that history, but there is a lot more work. How many members do you have? We have around 950. Of the golfing members, 20 per cent are ladies, which is about the national average. We have about 80 juniors, which is a lot. We started a ladies’ academy a couple of years ago – because we recognise that we need to arrest any problems that are out there. We are pre-emptively doing that.
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We have changed our policy on entrance fees. Some two years ago, if you were under 30 you would have to pay x. You now have to pay y and it is a third less. We’ve recognised that 30-yearolds are the next generation and that has been successful. It means the competitions are a bit busier. How do competition days run? You’ve obviously got the two brilliant courses, but how would they operate? The ladies have their competitions on a Monday, traditionally, and the men have theirs on a Saturday. In a normal club competition, you start at 7.30am and the last tee off time is around 3pm and it is rammed, which is great. Do you have to run separate
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competitions, concurrently, or does everyone play on the Old, for example? Everybody plays the same golf course. The weekend ladies would play on a Sunday and then go, which is fairly standard within golf, on a Monday but the men on a Saturday is full and really competitive. We’ve got so many category 1 players here. It’s something frightening, like 80 or even more, so we are very competitive. But, equally as a club, you can’t just pander to the category 1. You’re a club and so it’s important that we care about everybody. So if you just want a casual game on a Saturday you can get a game on the other course? Absolutely. When there is a
Who is Stuart Christie? Stuart Christie studied psychology at the University of Warwick and spent nearly eight years as a regional secretary for the PGA before moving to Wentworth in 1998. He was at the Surrey club for just shy of 11 years, holding the roles of club secretary and director of operations, before becoming golf club secretary at Walton Heath in November 2009.
competition on then sometimes there is some pressure. But, basically, the pressure is off by 10am or 10.30am. With so many clubs, and I remember my time at Wentworth, Saturday and Sunday afternoons
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Your Local Rules are changing... *Some expected changes known about at the time of writing
*
There will be a complete change of wording for all local rules to correspond with the new rule changes as of January 1st.
*
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Eagle will provide a service to help regarding your Local Rules t +44 (0)1883 344244 e info@eagle.uk.com www.eagle.uk.com
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can be very quiet. It can be. It’s amazing, isn’t it? The members must love watching their course on TV, and being talked about as a US Open qualifying venue. How hard is it to keep them happy, as a golf club with hundreds of people? It’s a very good membership.You know when you go to some clubs, and you go in as a visitor, you get the eyes on you and the feeling of being unwelcome. That is not the case here. As I have only been here nine years, I can still somewhat be an outsider. I remember when I started, thinking ‘the members are genuinely welcoming’. Some are more welcoming than others, of course they are, but they recognise that someone is coming to play on their course and they want them to have a nice time. This is not a sound bite I’m giving you, that is the truth. They are genuinely warm. There is no animosity – ‘this is our course, what are you doing here?’ – and, therefore, with that foundation,
you are pretty strong. Of course you are going to get complaints now and again but, really, it is a lovely club to work at with lovely members.
There always have to be rules but the clubs that are going bust, going to the wall and struggling, are those who are hanging on to some ridiculous archaic tradition.
If someone said they hadn’t heard of Walton Heath, because it hasn’t been on TV for years, how would you like the club to be known? It’s a good question. Firstly, it has to be the quality of the golf courses We’re a top 100 in the world with the Old and a top 100 in UK and Ireland with the New and without your golf courses you can give up. But as a club, (we want to be) one with tradition but that’s welcoming and also forward thinking. For instance, Sunday lunches, children under 12 come free. It is not a stuffy club. There might be a perception out there but it isn’t at all. There is no need for jacket and tie in the clubhouse, unless you are in the dining room after 12. It is a relaxed atmosphere but it maintains traditions.
You’ve been in golf a long time. To get away from the resorttype courses and play these old classic heathlands, how important is that for the Tour? It’s very important. I worked for the PGA for eight years in the 90s and I always used to say that the pros would play down the M25 if the money was right and that’s not a criticism of them. That is true. For so many years, pros have gone to courses that perhaps weren’t the best but it was a financial decision for the Tour and I don’t blame them. They said ‘we can go and play on x but you aren’t going to be playing for as much. We can go and play on y and you are going to be playing for more’. I understand the commercials I really do. But to come here must be wonderful for players. The players are playing a proper, traditional golf course and it’s testing them. There was one pro, during the US Open qualifier that we had here a couple of years ago, who came up to the USGA official and said ‘thank you so much for continuing to play your qualifier on a course of this quality and tradition’. They were grateful to the Tour and I think it’s fantastic for them to do it and to come here. The players, I am certain, will appreciate it. How important is the Ryder Cup, staged here in 1981, in your marketing and selling of the club? How much would you play on that and the European Opens of the 80s? The Ryder Cup came because The
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Belfry wasn’t ready. The Ryder Cup was 37 years ago. It is a wonderful thing to have hosted but it was another era of Ryder Cups. Of course we play on the fact that we hosted it. The European Opens less so, but I think it’s two generations ago. So how much do we play on it? It’s at the bottom of our letter heading but it was nearly four decades ago so this British Masters will give us a hell of a boost. If the European Tour, and the Ryder Cup committee, said ‘we’re thinking about bringing it back to a venerable old heathland like yourselves. Could you host a Ryder Cup?’ What would you say? I don’t think we could, for various reasons. One: the finance wouldn’t work and that would stop it dead. I think you’d find any private members’ traditional club would be stopped dead on that. But let’s say, hypothetically, the finance did work. I’m not sure we’d get the crowd movement these days. We expect 15 to 20,000 a day for the British Masters. The Ryder
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Cups are 30 and 40. I don’t think we could do it. I’m not a world expert, but I would say it would be very difficult to get the spectator movement. We’ve got enough room to put in a big tented village and that sort of thing but I don’t think it would work. Look at The Open and look at the disruption to the golf course. I think it’s the same for the Ryder Cup. I don’t think the members would want it. Obviously it’s not my decision. It’s a board decision but, and this is completely hypothetical, I don’t know if they would want six months of disruption. There are so many reasons why not. That’s not saying it’s not a wonderful event. It will be fantastic at Le Golf National. Are you hopeful the British Masters field, through Justin, and US Open qualifying, will be particularly strong? I am hopeful. It’s a 120 start as opposed to, say, 156 at Wentworth. It’s two weeks after the Ryder Cup. The FedEx Cup has finished. You could argue some might say ‘I don’t want to play, I want to rest’. But I think you’ve alluded to Justin
Walton Heath Founded in 1903, Walton Heath has a rich and prestigious history. The first captain became King Edward VIII, while James Braid was the first professional – and stayed for some 45 years. Their two courses, the Old and New, are regarded as among the finest in the UK and, in the case of the former, the world. The club staged the European Open from the 1970s to the 90s and witnessed one of the greatest American teams ever – an outfit packed with major champions - win the Ryder Cup in 1981. Walton Heath host US Open qualifying every year, while the Walton Heath Trophy sees top class amateur talent descend on Tadworth. They will host the British Masters next month.
Rose as the host and he will want to bring some good players, if he can. I understand that so I am hopeful. I suspect what you mean is ‘will there be a couple of Americans?’ and I am hopeful. But I genuinely don’t know.
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The course hasn’t changed much from 1981? Not really. The odd bunker might have been reconfigured, and teeing grounds, but otherwise it is pretty much as it is. Is there anything material? Well, there’s the M25 but, even then, it wasn’t dramatic. The essence of your question is ‘is it a similar golf course to that played in the Ryder Cup?’ Yes, it is. How did the Walton Heath Trophy, as it now known, come about? It was known as the South of England Open Amateur Championship which, on
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reflection, is a long title. It started in 2005 and has been successful as an amateur event and it takes time to build things up. But we thought ‘we’ll change the title’, for various reasons, and, obviously, the club’s name straight away is there. I think it’s probably a better title. Amateur golf is not well publicised. People aren’t interested in watching amateur golf and I do understand that. But when you see what comes out of amateur golf and Tyrrell Hatton and Danny Willett would be the obvious (previous participants), although there are countless others. We held the Palmer Cup here in 2014, when Andrew Coltart won
with the European team against the Americans, and at the time I remember not knowing a lot about the Palmer Cup. Jon Rahm played and, on the other side, Bryson DeChambeau. You also had Ollie Schneiderjans, Trey Mullinax and Paul Dunne, the defending British Masters champion. The Trophy was the inception of two or three members and Michael Lunt, who died very soon after that. The trophy has his Eisenhower medal in the middle. They wanted an amateur event and they thought Walton Heath had a duty to commit to golf and that’s what they’ve done. It’s now in its 14th or 15th year.
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PRACTICE Advice on golf club management issues – from finance to clubhouse rules and employment law to staff morale – from our panel of experts
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Making the most of ...
YOUR LAND SALE
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So you’ve sold off some land, but do you really know how to manage the proceeds and the regulations you have to follow? Frilford Heath chairman Alistair Booth explains how you can maximise the return for your club
W
ith three courses set within 500 acres in Oxfordshire, Frilford Heath are determined to set themselves apart as one of the UK’s “favoured golf destinations”. Key to that mission statement is investment, not only in their principles and people but also in their facilities as well. When the club, who have around 1,200 members, decided to sell some of their land, they went through a detailed process to make they got the most of the sale – both in terms of revenue and delivering the capital projects they wanted to build. Alistair Booth, chairman of Frilford Heath, explains how the club managed the sale, how they invested the proceeds and why they took that route… The decision to sell We had a short practice area, which was on the right-hand side of the drive as you entered the complex. We’re fortunate to have three practice grounds, but this was only really large enough for play up to an 8-iron. We sold three quarters of it and left a border of about 50 metres coming down the drive. The idea was for a developer to build five executive houses that were in keeping with those which run along the main road. We employed a land agent and
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FRILFORD HEATH With 500 acres of undulating heathland and three courses – the Red, Green and Blue, along with the 6-hole Yellow – Frilford Heath is one of the best venues in the South of England. Aiming to be one of the UK’s favoured golfing destinations, and to be the leading club in a 40 mile radius for members, the proprietary outfit pride themselves on “first class golf courses, off-course facilities and service”.
talked about what we wanted to do and why. He undertook some preliminary investigations with the local authority about the likelihood of getting planning permission. He gave us a valuation of what the land would be worth and drew up a brief, which went out to a number of different developers, inviting them to tender and giving them an indicative value. He presented the responses to us and any plans drawn up for the development of that land had to be agreed with us before they went for final planning permission. The project We wanted to improve and enhance our facilities. But you could draw up a list as long as your arm of what you wanted, or needed, to enhance and it was a case of prioritising them. The clubhouse is a converted
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country house and our main concern was that anyone coming to Frilford Heath for the first time would see a blue door in the corner of this building and they didn’t know if that was the way they went in. We also realised that our golf shop, at the rear of the building and in a corner, was in totally the wrong area. We felt we could kill two birds with one stone, which was to have a golf facility which was more appealing to our members and that also acted as a visitors’ hub. So anyone who came to the club would see this new building and they would know where to go. From there, they would be directed to the clubhouse, the changing rooms or the courses. Why a new building was so important
As it was a brand new building and facility, it was eligible for Business Asset Rollover Relief. When you sell land, you either pay tax on the profit you make on selling it – circa 20% - or you reinvest it into the business. You have do that within a threeyear period and if you do that you get Rollover Relief, which means you do not pay (capital gains) tax. The very first thing we wanted to do was build this new golf facility for our members and visitors – while also acting as additional office facilities to relieve the load we had in the clubhouse. Rollover Relief was important but not the driving force. We didn’t, though, want to give a substantial sum to the taxman when we could invest it in the business. It was important we built something that was relevant, pertinent and also provided us
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with some Rollover Relief as well. We also carried out a second project very quickly as well. The comments that came back from some members was that we had taken a short practice facility away from them. We had some land at the end of a car park that was a spinney and, with the general manager, I went in there and thought ‘what if we cleared this out and turned it into a par 3 facility?’ It would mean members had a place to practice their short game around six holes. It would mean we could open it to members who had family that didn’t play golf but wanted to introduce them to it. It’s a facility where we could introduce children to golf and where older members, before they hung up their clubs, could say ‘I’m going to play the par 3 course’. We had to clear away 90 trees
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and get permission for that and we planted 90 other trees in the estate. It was a brand new facility in which we were also able to obtain Rollover Relief because it was something we didn’t have. Managing expectation We want to engage with our members. We are a golf club. We’re not a health club, a country club or a sports club. We shared with them why we wanted to build a new golf shop. We shared the plans, all the details and showed various presentations. In the main, they were very supportive and excited about this new facility they were going to have. A pattern for investment The members did not have to pay for it. That was important because we’ve got a number of
WHAT IS BUSINESS ASSET ROLLOVER RELIEF? Businesses can delay paying Capital Gains Tax if they sell, or dispose of, some business assets or use all or part of the proceeds to buy new assets.They don’t pay any tax until they sell the new asset – and then are required to pay tax on the “gain from the original asset”. They can also claim relief if they use the proceeds to improve assets they already own and claim provisional relief if “planning to buy new assets with…proceeds but haven’t done (so) yet.” Qualification rules include buying new assets within three years of selling or disposing of the old ones and using the old and new assets in the business.The relief can be claimed on assets including land and buildings. For more, visit gov.uk/ business-asset-rollover-relief
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“Every club has got to have a clear strategy about what they want to do with their business”
capital projects planned and our philosophy is to get the financial resources to do those without turning to the members and saying ‘right we want to levy you £5,000 or £10,000 because we are going to do this’. We’ve got an estate of 500 acres. We’ve got plots we believe that, over a period of time, we can sell and which do not interfere with the golf course. That will release funds for us to do the capital projects we need and improve the facilities for members and visitors without them having to pay for it. My advice to other clubs… Every club has got to have a clear strategy about what they want to do with their business and a golf club is a business – whether it’s a private members’ club or a proprietary. What is the strategy? If
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it’s a private members’ club – what do the members want? What is best for the golf club business? That’s not just looking at the present, but in five and 10 years’ time as well. If you are fortunate enough to own your land and can dispose of some, it’s important to look at what it is your customers want and whether that is part of your strategy. How can you use that to drive the business forward and enable not only its survival but its success going forward? You are ensuring, as much as possible, that you can maximise your tax relief on the land you sell. But I don’t hold myself up to be either a financial or a property guru. I would also advise people to speak to a proper, and appropriate, financial advisor in this area.
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Perfect
PARTNERS? An increasing number of clubs are moving away from the traditional pro shop model and partnering with retail organisations. So what’s in it for your club? Elliot Fleming, head of new business development at American Golf, explains…
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I
t’s always been the way. The golf club professional runs the retail side of the business in their shop. But times seem to be changing. More and more clubs are starting to look at a different model, and considering partnering with specialist businesses to run their retail offering. On the face of it, there are obvious benefits. Clubs and professionals lose the stress of having to be stocktakers, potentially giving them more time to invest in other areas of the business, and members can spend their competition vouchers knowing they’ve got the catalogue of a big retail arm from which to choose. But is it as simple as that? What happens to existing staff if clubs decide to take this path and how does the process work? We asked Elliot Fleming, head of new business development at American Golf, to explain… A lot of clubs are now looking
at different ways of providing their retail offering. How can American Golf help? We are finding that a number of golf facilities are evaluating how they build their business for the future. One of the things that is paramount to that is having the right retail offering. As clubs look at what they are doing, they might be finding that retail can be quite difficult, time consuming and there isn’t enough expertise. They might look to contact the likes of ourselves to see if we are interested in partnering with them to run the retail part of their business – using our industry expertise – to make that proposition stronger than it might have been. There is also the opportunity to have a larger reach and bring more people to their location, which can help their other endeavours. How does the partnership agreement with clubs work?
Traditionally, if you think of American Golf, you might think of an A-road or a retail park, with 3,000 to 5,000sq ft, and a model that fits within that. The interesting thing with golf club partnerships is that they are all more individual. We’ve found solutions to suit all manner of sizes and shape and operations. We have a principle that we don’t rule anything out and we investigate. Principally, though, if a partnership is reached American Golf would take over the retail space – or perhaps expand that – and TUPE over any existing staff and start to run the retail business completely. That is done in partnership with the overall site as it’s important that we fit into the environment that we take on. What are the benefits for a club in partnering with American Golf? What can they expect to get out of it? I think there are quite a lot of
“As clubs look at what they are doing, they might be finding that retail can be difficult, time consuming and there isn’t enough expertise”
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benefits. Principally, we’re bringing expertise in retail to their location and some great people along to the facility. Talking to people, there are two main reasons they do it. The first is to get great awareness for their site and to get more reach through marketing and through our brand. Secondly, it allows them to focus their management time on other aspects of their business. That can probably help them derive more profit and assist them in future proofing their club. That freeing up of management time and focus, whether it is at a proprietary or private members’ club, is a big thing for clubs. They are not worrying about stock, administration and it can also ease the financial burden on golf clubs substantially. Is there a profit share for the clubs that participate? Yes. We’ve got various models because, at each individual partner,
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there are issues that are unique to them. There are occasions where we can pay a base rent, which can be appropriate, and other times where we share part of the revenue and it means everyone is striving for the same goals – the more revenue that is taken, the more beneficial it is for us and the partner. We have got the ability to be flexible but, principally, sharing the revenue is one of the biggest things we can do. For members, would the usual competition pay out structures still apply? Would they have a much wider choice on which to spend their vouchers? I’ve been right up and down the country and visited hundreds of golf clubs and, while everyone is trying to do a good job, what we find in most is one – or possibly two – major brand names and supplemented by some of the smaller brands. That’s understandable because
the stores simply cannot afford to stock all the major brands with the minimum buys that are attached to them. You can understand why people don’t want to expose themselves to that risk. We can offer a far more comprehensive range to the members of that club and their customers. That then means the club are more likely to retain these people. What you start to get is a ‘don’t need to go anywhere else’ environment where the members can get what they need at their own club. They can practise and play there and they can buy their golf equipment there. The reasons to go somewhere else are lessened. The access to the brands and to our extensive inventory has been important for members and customers at the facilities with which we have partnered. Have you found a potential
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knock on effect for visitor numbers – with customers looking for the nearest American Golf store and then visiting the club because that’s the closest outlet? Hugely. Our online site grows massively every year and the most visited page is our store locator. As soon as clubs partner with us, and start to appear on our store locator, it gives people more reason to visit. Something that is hugely popular with visitors to our site is reserving and collecting, as well as delivering to a store to collect. The convenience is huge in that so as soon as that new venue appears on the American Golf store locator customers become informed and it gives them a reason to visit. They may never have visited before, even though they may live very close. That gives the club a chance to expose themselves to a new audience.
For clubs that are wavering, this is not necessarily an unusual situation. Many professionals, for example, are tied to a buying chain… The biggest reservation golf clubs have when they approach us is their concerns about the people who already work for them. That’s one of the reasons we always take the time to visit and meet as many people as we can. We are massively invested in making sure we retain as many of the people already in place as wish to remain so. We’re very interested in retaining the services of the PGA professionals, or having representation of PGA pros, because we believe in that and we want that to be part of it. Usually, one of the first questions people ask is ‘what’s going to happen to the people who work here already?’ Once we assure that, if anything, their life is going to get better – in terms of their working
CASE STUDY - High Legh Gavin Beddow, general manager of High Legh in Cheshire, explains why they teamed up with American Golf The vision I had for the Academy at High Legh was to create a specialist offer that would give golfers access to the very best coaches for every aspect of the game. To complete the offer I needed to find a retail partner who could deliver a customer service that would support this. After researching the market, it became clear to me American Golf not only had the right expertise, but more importantly the right ethos. They want the customer to have the best experience and to get the right product for their game. American Golf took over the retail aspect of the Academy three years ago. Immediately we could see the benefits. My team had more time to invest in developing our core business and the members loved the new shop because they had access to all the latest technology and products. It gave us a professional edge. What we didn’t anticipate was the effect that our association with the brand would have. When golfers and non-golfers see the American Golf logo they identify with it and it makes them feel more welcome to come in. It’s given us a public persona and has made us and the club much more approachable.
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environment, their conditions, the education programmes to which they will be exposed, the promotion opportunities they may not have previously had – that reassures people. Golf is a small industry, people care about people, and we want to play our part in that. We always offer to bring people across on, at least, their existing terms. I believe we are the biggest employer of PGA professionals in the UK and it is a huge part of our offering at a golf club. This is not to the detriment of a PGA professional. I think that it enhances them. What we’ve found, and we’re looking to build on massively, is that where PGA professionals are relieved of the huge administration and stress of retail, they are then able to concentrate on helping to grow the game at their club. They are able to help grow the membership, the ladies’ section, and juniors and become entrenched more in the golfing side of the club
“We’re very interested in retaining the services of PGA professionals because we believe in that and we want to be part of that”
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WHO ARE AMERICAN GOLF? • American Golf was founded by two brothers in 1978 • The head office is based in Warrington, where the original business was established • American Golf is the UK’s biggest online retailer • The first on course store was at Ashton-in-Makerfield GC • American Golf have 132 stores across the UK and Ireland • A third of those are in golfing locations • There are 42 active retail partnerships • American Golf employ more PGA professionals than any other retailer
“Conversations I have with PGA professionals, owners and operators and clubs is that they were spending 80 per cent of their time dealing with something that returned far less than the 20 per cent of their actual profit at the end of the year”
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as opposed to the retail. Retail isn’t a simple operation either… There are numerous examples up and down the country of people doing an exceptionally good job. But, for a lot of people, it is taking up too much of their time. Conversations I have had with PGA professionals, owners and operators and clubs is that they were spending 80 per cent of their time dealing with something that returned far less than the 20 per cent of their actual profit at the end of the year. So by being able to focus on the things that are actually going to make a difference to them, their profits increased. If I’m at a club that’s interested in partnering with American Golf for retail, what’s the process? It’s not an intimidating process. Typically, there’s an expression of interest that would come through to our team here.
I would then make contact and we would have a discussion. We would ask for some figures, which would help educate ourselves about the usage of the venue – so how many rounds are played, how many members there are, what facilities are on site, and we have a pretty sophisticated model which will take that information and gives us an idea of the size of the potential retail revenue that we could return from a partnership. We are interested in all shapes and sizes and that doesn’t rule anyone out. What it does is help educate us on what type of proposition might be right. If we can agree there is the appetite for a discussion, I would come along and have a very informal chat and a very discreet one as well. After that point, we mutually decide whether we wish to take it any further and, if we do, that’s when we can progress things.
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From the
DIPLOMA We take a closer look at how to manage the finances of a golf club
I
T might be stating the obvious but it is essential to have clarity around the golf club’s business model and value proposition. Is it a commercial venture that needs to generate operating profits for its owners or shareholders, or is it the more traditional semi-private ‘not for profit’ organisation - where any surpluses are re-invested into the fabric of the club on a continual improvement programme? It is important to establish the club’s financial model, rules and responsibilities, processes and safeguards along with financial objectives and also build appropriate relationships with members, visitors, suppliers and financiers to ensure financial success and sustainability. Golf clubs, like any business, need money to operate - both in terms of the availability of sufficient funds to manage day-to-day operations in the near-term and to achieve business development plans in the mid to long-term. One of the main reasons businesses cease trading is inadequate capital or finance in the business. Over recent years, some clubs have been forced to close due to poor financial control, diminishing membership or business opportunities to sell off land.
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So a number of reasons underpinning why a business ceases trading relate to financial management – or the lack of it. This places an emphasis on someone being able to understand how to manage and interpret finances. It is important to have clarity and ownership around cost structures and revenue streams for the business. There are several key factors that impact on the financial viability of a golf club: Calculating what needs to be charged for the service or product offering – whether that’s a cup of tea, a round of
golf or a wedding party Understanding what finance is needed to operate the golf club – and how to justify that to others, both within and outside of the club Understanding the cost structure of the business and the ways in which costs can be effectively managed or additional income raised Planning the cashflow of the club Cost structures relate to the costs incurred in the delivery of the service to the customer. This will include salaries, payments to suppliers, equipment charges, rents and rates, utility charges, insurance, taxation,
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marketing and branding costs. Conversely, income, or revenue, will result from successfully offering a good service to the customer. Most clubs, at some point, will need to invest in the business - either to move it forward and expand their offering, or develop the bricks and mortar of the facility.
There are a range of different needs for financing beyond the standard day-to-day processes: Starting a new project or developing new business needs Developing new products and services Marketing of the club Hiring and developing people Acquiring supplies Acquiring and /or maintaining land, premises and equipment These needs will vary in their complexity and urgency and they will be shaped by the underpinning motivations and strategic plan of the golf club.
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There is also a difference between reactive and strategic motivations or actions. This unit explores the potential sources of income. These can vary in their availability or sustainability, such as grants or apprentice schemes, and accessibility to funds can also be predicated on the size or location of business or sector. There have been numerous case studies featured in The Golf Club Manager of innovative ways of marketing the facility to raise more income. Golf is still a governmentfunded sport, with Sport England awarding grants on a regular basis to try and improve participation or for development projects. It is important to understand the appropriateness of schemes focused to raise income i.e. information/documents required from the business to support funding decisions, monitoring and review criteria and even the legal status of the club. This is particularly important if using more innovative schemes such as membership loans, equity injections or crowd funding. Traditionally, the bank is the most obvious route to raise cash through overdrafts or loans. Clubs tend to have good working relationships with their bank manager and it is probably one of THE most important business relationships they have.
About the Diploma in Golf Club Management Representing a fundamental shift to the approach to professional education in golf club management, the three partner organisations of the Golf Club Management Partnership – GCMA, PGA and BIGGA – combined forces to create the ASQ L5 Diploma in Golf Club Management. Open to all levels of experience, the golf specific qualification is suited to existing managers and those looking to move into the profession. The Diploma can be studied at your own pace, over a maximum of three years, to accommodate the varying schedules of working managers, or aspiring industry professionals. With an emphasis on flexible learning, it is delivered through a combination of online and face-toface workshops. Training and education that has been previously undertaken, and is relevant to this qualification, can be recognised through a formal process in order that course work is not unnecessarily repeated. The Diploma covers all the core skills required to manage a club and, notably, is an ASQ externally quality assured qualification, visible on the framework of regulated qualifications. To find out more about the Diploma, visit gcma.org.uk/ diploma/faqs
Banks can be influenced by: The size and legal status of the club Aspirations for development and growth – which harmonises with government policy and therefore can support applications for investment
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The type of finance needed The degree to which you communicate and manage the relationship with the bank The discussion around the relationship between bank and business lending highlights an important distinction between the availability, accessibility and appropriateness for sources of financial assistance. While bank finance is available to businesses, the evidence would suggest that accessibility and appropriate is highly variable. Key influences include: The nature of the business and its activity The ability of the provider of finance to assess the viability of the proposition from the business The attitudes of the management team towards the conditions associated with accessing finance
The issues around the availability, accessibility and appropriateness of different sources of finance are evident in the types of finance used by businesses to support development and growth. In a seminal piece of work, Myers and Maljuf (1984) proposed the notion of ‘A pecking order hypothesis’ – that is how to get money out of people who understand us! While this has been reviewed extensively over the last 30 years, with a number of studies providing evidence to support its existence and other work challenging its value, it does provide a useful framework for looking at the sources of finance that can be used in the development and management of the golf club. It can be used by clubs trying to understand the challenges and opportunities for different financial providers when they are seeking to finance business development. This notion has two aspects –
empathy and trust. Effective management of the club finances is imperative to its survival, development and growth. So planning for a golf club’s needs to be undertaken so that... Financial needs can be anticipated and undertaken Product and service quality can be sustained or improved Market position can be managed Assets can be managed to create an appropriate return Obligations of the golf club can be met The confidence of owners, shareholders, staff, customers and suppliers can be maintained. While sharing the financial health of the business makes good sense and may form part of the club’s legal responsibilities via an AGM, all too frequently financial performance is not shared with
Myers and Majluf (1984)
LOW
LOW
FORMAL EQUITY FINANCE
INFORMAL EQUITY FINANCE
OTHER LOAN PROVISION (e.g government)
BANK FINANCE
HIGH EMPATHY & UNDERSTANDING
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SUPPLIERS
INTERNAL FINANCE (retained profits)
HIGH TRUST
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the different stakeholders, such as staff and franchisees within the club. Individuals do not then feel encouraged to take ownership of finance within their business areas to perform to the best of their ability. The workshop will help demystify the terminology of accounts, demonstrating the difference between Gross and Net profits, Turnover and Investments, Fixed costs versus variable costs and cash conversion and working capital. Key elements of the working capital cycle for golf clubs relate to: Payment of wages for staff within the business Contracting with the PGA professional and/or franchise caterer Purchasing of equipment and machinery to maintain the
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physical infrastructure Purchasing of supplies for retail operations (for example, food and beverages) Payment of taxes, including corporation tax, value added tax and national insurance Understanding the different terminology is important to help correctly analyse and interpret accounts to understand trends. Financial planning and forecasting helps demonstrate a level of control and shows the financial health of the golf club. A range of financial forecasts can be used to assist managing the working capital and cash conversion cycle. The four most commonly used forecasting tools are: Profit and loss statement
This measures the profits or losses earned by the business over a period of time and enables operational costs to be deducted from sales income The profit and loss statement provides information on what has been happening to the business in terms of sales income, costs and profits It also helps identify the difference between profit and cash Balance sheet This provides a snapshot of the assets and liabilities of the business, on a given date, balanced by the capital invested by owners and shareholders and retained earnings and profit. It provides useful information on the financial status of the club in terms of the way money is used, what it owes and what it owns But it is a record of past
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performance Cash flow forecast This shows the movement of cash in and out of the business at a point in the future The cash flow forecast enables actual movements of cash in and out of the golf club to be compared to predictions when the cashflow forecast was created It may be useful to prepare a cash flow forecast and a breakeven analysis for the different operations of the business Budgeting The budget is a financial plan of a future period (usually a year) and represents a realistic way of achieving the desired results for the business Budgeting is the translation into monetary terms of a business plan to act as a basis for guiding and controlling the activities of a business The advantages of developing a budget include: Encouraging forward planning and the setting of realistic and worthwhile goals Providing a basis for controlling the activities of a club so that its goals are achieved Helping co-ordinate the activities of the various people and teams within a golf club Improving the credibility of the management of a club with external stakeholders A number of steps to consider when developing the budget include: Develop a sales budget in the light of past results, likely
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future demand, the actions of competitors and conditions within local economy and the game of golf Determine a profit target Produce a cost of sales budget from the sales forecast, a knowledge of stock levels necessary to service production and sales, and details of production/purchase costs Produce an expenses budget Prepare a budgeted profit and loss statement for the period Develop a capital budget based on requirements for adding to and replacing the fixed assets in the club Produce a cash budget Prepare a budgeted balance sheet for the end of the period Prepare a budgeted funds statement for the period Golf clubs are cyclical and so the accounts will tend to remain constant year on year with little variation until major projects are started. Seasonal variations, or external economic factors, may affect financial performance but, ultimately, the majority of decisions in a club will have a financial implication. It is critical to understand both the sources of revenue and different funding models and opportunism in addition to cost implications. Clubs now expect their managers to display a good knowledge of accounts as well as a sound financial and business acumen to move their club forward and ensure its future.
What will you learn from this unit of the Diploma in Golf Club Management? Finance can cover everything from the mundane to the exciting – from counting money to spending it. This unit from the Diploma in Golf Club Management allows learners to better understand the terminology, processes, practices and pitfalls involved in managing the finances of a golf club and exploring options for financing the development of that business. The supporting workshop highlights the key finance concepts and the associated assignments will help learners reflect on these and develop the skills needed to review systems for successful financial management and planning along with monitoring income, expenditure and profitability against business objectives. The major learning outcomes from this module are: 1. Understand the options to finance the development of a business 2. Understand the types of banking facilities available for a business 3. Be able to review the effectiveness of systems for managing finances in a business 4. Be able to monitor income and expenditure against the objectives of a business
Are you ready for that, or should you consider looking at this finance unit to expand your knowledge?
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Why video should be at the heart of
YOUR BUSINESS If you’re not using video effectively, argues Sports Publications’ commercial director Tom Irwin, your club is missing out on huge revenue and marketing opportunities
E
ven for those of us rooted in the Internet age, the figures are astounding. Dreamgrow.com, who source social media and content marketing information, revealed that 90% of all Internet usage is now video. Think about that. For every 10 people who look at a website, nine are there to watch a video. When it comes to buying products, the power of the moving image is not lessened – with smartphone usage doubling year on year and putting shopping in the palm of our hands. It’s the potential of video to influence and shape both our opinions and our buying patterns that should make it so attractive to the golf industry. And for club managers, where the course is the ultimate asset, there are clear advantages to using video to show it off at its finest. “Most golf clubs these days have realised that the website is very much the front door to their business and it’s their opportunity to showcase their club and its facilities and, of course, the golf club in as attractive a way as possible,” said Sports Publications commercial director Tom Irwin. “Video is increasingly the best way to do that.
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“There are lots of stats widely available on lots of different websites to back that up. “Trust is one of the major factors: video builds trust with people and 57% of people say video builds confidence in a product. “From a golf club’s point of view, if people can see the tremendous views that you are claiming, if people can see the brilliant off course facilities, if they can see all
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that in moving pictures then they are much more likely to trust what you are saying and are much more likely to visit.” Video is something of an allencompassing term but, when it comes to clubs, there are a number of different formats that can be successfully utilised to build both brand and business. Whether that is through course flyovers, a home page video or
corporate and society films, Irwin reckons all can drive traffic to websites and get the cash tills ringing. He explained:“Golf club managers are under increasing pressure these days to get people on their website, to engage with people through social media and to increase the conversion rates of people enquiring about coming to visit them. “Increasingly, the answer to all these questions is through great content. “If you want people to come and spend money at your facility, people’s number one source of video is often Google. “They’ll be typing things in like ‘best golf course in Yorkshire, best golf course in England’. “If you can surface at the top of those rankings then that can make a huge difference and video is going to help you do that. “We can provide that backbone content, such as course flyovers where a drone will glide down individual holes showing people the layout and the routing of your courses. “We can provide home page videos, which are a snapshot of what is available at your facility. They sit on your home page and are loved by search engines. “We can provide you with a sales tool to send to big parties, societies, corporate groups and people enquiring about coming to visit you. “All those videos will increase the engagement you have with these people. “It’s much better to send a video than a dry PDF with a load of words on that people never bother to read. “We can also provide many iterations of those videos – shortened formats and social
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The 18th hole and clubhouse at Alwoodley
CASE STUDY
ALWOODLEY Leeds heathland Alwoodley, one of Britain’s finest courses, engaged Sports Publications to provide video content. Here they explain how the partnership has worked for them. “At Alwoodley we have very specific requirements. “We are a club with significant heritage and a small, affluent membership who are rightly protective of our MacKenzie course and the relatively unencumbered access they enjoy to it. “To create a visitor programme that
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fits in with that ethos is no easy task. Sports Publications have worked hard to understand the culture of our club, profile our potential audience both near and far, and then crucially created a suite of content that is both practical and professional. “They have worked alongside our in-house team and tip-toed through the minefield of committee sign-offs to produce a digital kit that we are able to send to potential visitors, tour operators and media. We can choose from a glossy brochure, professional pictures and, of course, video. Video content has really lifted our offer.
“We have shot 18 hole-by-hole flyovers which sit on the website, but where they really offer us value is by giving us great, visually appealing rich content to use on our social media channels. “Of equal importance is a corporate video which this winter will give us a real point of difference when trying to convert enquiries from large groups and societies. “Away from the content creation, Sports Publications have been invaluable in the consultancy and advice they have offered to create and market club-appropriate packages.”
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Hole flyovers can be hugely popular video content on social media
media edits – that you can use on your twitter feed and on your Facebook page or any other social media channels you use, as well as on your newsletters. “So you are getting massive value out of the investment you have made in creating the core product.” If the power ushered in by the rise of video has yet to really hit home, did you know that nearly three quarters of consumers who watch an ‘explainer’ video – those that help sell a product or business - will go on to buy that product or a similar one? “That’s absolutely massive,” added Irwin.“In general terms for a golf club, that means if you get somebody on your website watching a video about your course, more than two thirds of
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those are going to go on to book.” So if your club is considering revamping their existing video suite, or commissioning new products, what is the process? Irwin explained:“We’ll talk to you and your committee about what it is that makes your golf club unique and what it is that you want to tell the world about your golf club. “Have you got any famous members? What is the heritage of the club? What is the history of the club? “We will work with you to tell that story as succinctly as possible in video format. “We add value to the process because we are also a commercially minded publisher. We can help advise you on how to use the content we create for you to maximise your return on
The power of video 90% of all internet usage is now video 74% of consumers who watch an ‘explainer’ video go on to buy that product or a similar one 83% of businesses say that investment in video was worthwhile Websites with video are 53 times more likely to rank No 1 on a Google search 76% of consumers are more likely to share a social post which also includes a video Video usage on smartphones is increasing by 100% year on year Clubs that offer video content on their newsletters can expect to double their click-through rates Stats from dreamgrow.com
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Tournament management company Golf Genius have commissioned video solutions from Sports Publications
investment. “Often the process begins with us talking to committee members about the importance of video and why it is worth investing in. “That’s an important stage in the process because we are getting the buy-in of the decision makers in the golf club as well as the club manager. “It’s not simply the secretary or manager who is solely hanging their hat on the purchasing decision. The second part is to work with committee members and the manager, along with any members interested with an opinion, on the type of content they want to create. “Would they want voiceovers on their flyovers? Would they like us to commission a famous person
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or do they have any relevant or famous members? “We talk about how we annotate those videos, so that’s any features they want to pull out on those flyovers. “From a corporate, or homepage, point of view it’s just about a very consultative approach. It’s about speaking to the golf club to find out what they think makes their club unique.” With every passing day, the importance of video and its prevalence as a way of consuming media, only grows. That won’t be changing anytime soon. So if your club isn’t thinking about taking the plunge, it’s a fair bet your competitors are. Those who don’t get involved are in danger of being left behind.
Sports Publications Sports Publications, based in Leeds, are the publishers of several golf magazines and websites. Their flagship title is National Club Golfer and their portfolio includes both consumer and trade-facing titles. With a growing speciality in video and digital media, they can create assets for use on advertising campaigns, social media, websites and email campaigns. These can be created either on a bespoke, individual, basis or as part of a full-service contract solution. Owned, run and staffed by passionate golfers, Sports Publications truly understand the golf market. sports-publications.com
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Your content partner
Sports Publications are specialists in digital and print content creation. With a portfolio of in-house titles and websites, including the industry-leading National Club Golfer, we have a growing roster of contract clients including GolfBreaks.com, BIGGA, Golf Genius – and your very own GCMA.
• VIDEO PRODUCTION • FLYOVERS • CORPORATE VIDEOS • COURSE PHOTOGRAPHY • MEMBER MAGAZINES • CONTENT WRITING
YOU CAN EXPECT TO DOUBLE YOUR CLICKTHROUGH RATES ON NEWSLETTERS BY OFFERING VIDEO CONTENT
57% OF CONSUMERS SAY THAT VIDEO BUILDS CONFIDENCE IN A PRODUCT
Learn more at sports-publications.com or contact Tom Irwin on 07973 628 781 or t.irwin@sportspub.co.uk
WEBSITES WITH VIDEO ARE 53 TIMES MORE LIKELY TO RANK NO 1 ON A GOOGLE SEARCH
76% OF CONSUMERS ARE MORE LIKELY TO SHARE A SOCIAL POST THAT CONTAINS VIDEO
ADVERTORIAL FEATURE
Giving something back
TO THE MEMBERS
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Specialist golf insurance firm Golfplan are introducing a new policy allowing clubs to give their members comprehensive cover. Alex Kotlarzewski, a PGA professional turned insurance expert, explains how it works
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his is a brand new policy for the golf insurance industry. Can you explain what it is and how does it work? We are launching our Club Membership Insurance Policy, which we think can add huge value to a club’s membership proposition, for relatively little cost. Traditionally, insurance has all been done on an individual basis. With our product, the golf club simply becomes the policy holder and all their members are beneficiaries of the policy. It offers a club’s members industry leading insurance while they are playing and practising golf anywhere in the world, all as a low cost add on to the membership product. Overall, it’s a pretty small premium that is tied into the club policy – especially relative to an annual golf subs – and aims to give members a really comprehensive level of insurance cover. What areas does the policy cover? It covers virtually every aspect of golf. We’ve tried to provide cover for every aspect of a golfer’s life – from when they get their clubs out in the morning until they finish at night, whether they’re at their own course, visiting another club, or on holiday. So we provide protection for golf equipment.
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In the event of loss, theft or damage, we can replace with brand new equipment. No matter how old a member’s clubs are, we would replace with brand new clubs as they would find in their pro shop. We offer public liability cover so, if a member hits someone with a club, ball or buggy, they are covered.
“With our product, the golf club simply becomes the policy holder and all their members are beneficiaries of the policy”
There was a case through the courts where a stray shot was hit and the golfer shouted fore. The player heard the shout, ducked, but was still struck by the ball. Golfers were under the impression for many years that taking such actions negated liability. In this case, though, the courts decided that hundreds of thousands of pounds were to be paid out and that both the club and the golfer who hit the shot were partly liable for the costs.
This cover protects against that. When it comes to striking vehicles, if a member hits the high slice into the car park and plays pinball, they are now covered in such circumstances up to £2 million. If a member leaves a golf club on the side of a green, technically they’ve lost it. If the club isn’t handed in within a week then the loss would be covered by this policy. It doesn’t matter where a member’s vehicle is parked. Their equipment in the boot of the car is also covered, 24/7. If their clubs are stolen from their home, members would be able to claim on their golf, rather than their home, insurance. This is an important point. A lot of people, when looking to insure golf equipment, look to cover it on their home policy but the nature of that is the cover may only offer up to a certain amount. Like skiing equipment, golf clubs often have to be treated as an extra. If a claim on home insurance is then made, the premium may go up the following year. Obviously, it’s better in this case to have specialist golf insurance. Membership fees are another important aspect for both clubs and golfers. Golf clubs across the country have been asked to suspend or refund membership where there has been injury or ill health. Our policy protects the club by offering a refund on those
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ADVERTORIAL FEATURE
membership fees due to injury or ill health. That’s also for accidents that have happened both on and off the course. So if you went skiing, broke your leg and weren’t able to able to play golf for six months you could claim back the fees minus a month of excess. Hole in one cover is also extended. As long as a member is playing in a competition they’ve paid for – whether that’s Medals and Stablefords but also inter-club matches, knockouts, captain’s away days – then the customary round of drinks following the game will be paid for and there’s no excess for that. This is a worldwide policy. It will cover members at any golfing facility, while they are playing or practising golf. On trips abroad, members are covered for public liability but also for the option of overseas
Who are Golfplan? Golfplan are proud to be one of the longest standing specialist golf insurance provider, having been trusted by UK players for 30 years. They are a PGA partner. They employ PGA Professionals. Their premium range of golf insurance products aim to offer total golfing piece of mind – whether that’s for equipment, cover for buggies or third party liability protection. Golfplan’s products also offer ‘new for old’ replacement of equipment through a network of more than 2,000 PGA professionals – all while aiming to provide the highest levels of customer service. For more information, visit golfplan.co.uk
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equipment hire. So if they go to Spain but their clubs go to Turkey, it won’t ruin their golfing holiday. They can hire a set to keep their golf going and be covered. Golf club insurance has previously been a matter of individuals. Presumably this policy requires clubs pay. Why would they bear that cost? The golf club can choose to pay. It takes some of the hassle, and some of the ownership, away from the members. Golf clubs can be happy their members are covered in the event of a problem. It helps a club stand out from the competition as well. If they are offering a service that someone else can’t – especially when it comes to retention and recruitment of membership – it’s going to add value to that membership. Some clubs are passing the costs on, and the members have been more than happy to pay for the extra cover. Others absorb the cost themselves, knowing that spread over the entire membership, the cost is equivalent to just a few new members. The third option is to compromise, and split the cost, which means both parties only have to cover a small increase in expenditure. Either way, we’re finding that clubs are really enjoying being able to add our cover into their list of membership benefits. Is it imperative for a club to make sure members on the course are insured? Is there a liability issue? Or this an added benefit a club can provide?
If they are using self-propelled buggies now, and bring their own buggy onto the golf course, there has been a push towards trying to provide a certificate of insurance to cover them while they are on the course. To play golf at this stage, there is still no mandatory requirement, but we believe it is best practice. And, while we are all concerned with hitting someone or something, we worked hard to offer additional benefits beyond personal liability. It is a fantastic members’ benefit. Aside from piece of mind for clubs and members, what are the other advantages of managers and secretaries signing their clubs up for this new policy? Anything that stands out from the competition is great. This is a new way they can be proactive, forward thinking and offer something to their members. If they include it in the members’ subscription, they can offset the price they will have to pay while the members get the benefit. We are seeing clubs signing up new members who report the cover as being the thing that persuaded them to join over another club. PLEASE NOTE: Terms and conditions apply, for full details of policy cover/benefit limitations and exclusions, please refer to our policy wording and summary of cover, a copy of which is available upon request. Golfplan is a trading name of A-Plan Holdings, which is authorised and regulated by the Financial Conduct Authority. Registered Office; 2 Des Roches Square, Witney, OX28 4LE • Registered in England • Registration Number 750484
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From the
HELPDESK This month: What you can watch on the TV in the clubhouse and... septic tanks We’ve received a letter from MPLC (Motion Picture Licensing Company) saying we need a licence through them (similar to PPL/PRS, but for TV). Having done some research, it appears we don’t require this if just showing sport, music and news on the TV. Have you had any dealings with this company or any advice? You are correct. If you are only broadcasting sports, rolling news or music channels, either terrestrial or subscription, then you do not need a licence. You need to write to MPLC to confirm this and tell them you have taken all necessary steps to ensure you are not broadcasting any other moving images. For further information please see our email article: gcma. org.uk/news/motion-picturelicensing/
systems. I suggest you check out this link: gov.uk/permits-you-needfor-septic-tanks/general-bindingrules as there are other regulations you need to be aware of as the users of a septic tank.
We are in the countryside and not connected to the mains sewer system, so we use a septic tank system. I have been told by our HSE director that, as of 2019, every septic tank will require a bio plant/filter bed. Do you have any information about this? There are many regulations surrounding septic tanks, but I have not found any regarding bio plant/filter beds on existing
I have a query regarding ‘social membership’ at golf clubs. We have a number of such members, who simply have use of the clubhouse facilities and members’ discount on food and drink purchases. Is there a limit or restriction in terms of the numbers, or proportion of social members we can have for us to maintain our ‘club’ status? There are no restrictions on private
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Have the GCMA ever looked into recycling golf balls? You will find that local authority recycling programs and your local recycling centres typically do not accept golf balls (or most other types of sporting balls for that matter). That is because there is no true way to recycle a golf ball at present. However, there are companies that put golf balls back to use. See money4golfballs.co.uk/ or replaygolf.com/en. There is also this company: terracycle.co.uk/enGB/zero_waste_boxes/sportinggoods, who claim to recycle them, but it will cost you.
members’ clubs regarding the make-up of the membership, unless the club is a CASC, which I presume you are not, when 50% of the total membership must play at least 12 times per year. This would obviously prove difficult for those CASCs who have a high percentage of social/nonplaying members. We are holding an EGM and our board have agreed to proxy voting by email as long as the returned form comes from the same email address to which it was sent. Is this action okay? You are allowed to appoint proxies under the Companies Act: see legislation.gov.uk/ukpga/2006/46/ section/333 and legislation.gov. uk/ukpga/2006/46/section/333A and, as you say, the reply should come from the email address to which the initial information was sent. You should appoint someone to scrutinise the votes, prior to the meeting, and that person should not be an employee or member of the board nor should they divulge the results until informing the chair of the meeting immediately prior to the commencement of the meeting. An online helpdesk offers an advisory service. Visit gcma.org. uk/members
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Meet the
MANAGER
Sponsor of the 2017 GCMA Manager of the Year award
With Mick Thorpe, club manager at Scarcroft in Yorkshire
Scarcroft
H
ow did you get into golf club management? I was in the print industry for 30-odd years and was made redundant. I’d been involved at Horsforth for many years. I was on the committee for 11 years – green chairman and various other sub-committees – and I enjoyed the environment. I’d been in print management and thought
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I could combine that with my golfing knowledge as a player and a committee member. I put myself through the GCMA course at Weston-super-Mare, came back and managed to get a part-time position at Dewsbury District GC. That got me up and running. I was doing that for 20 hours a week and I was doing driving instruction. I was bitten by the golf management bug and it took off from there. I’ve loved every minute.
How are things going at Scarcroft? The last few months have been very good for us – people have been out playing and enjoying golf. Even though we’ve had the extreme drought, the course has been in good nick and we’ve had really good feedback. We made sure this year we weren’t going to do any major work on the course itself, in terms of aesthetics, and we just wanted
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people to come and enjoy their golf. We’ve made sure they got full value out of their membership and it has paid off. It has been very good. What do you like most about your role? Every day is different. It has also been about the change golf clubs have had to embrace. I like a changing environment and being part of that – as long as there is a reason for it and there are going to be benefits from it. It is very frustrating at times. You come up against the establishment, if you like, and getting people to understand why you need to change things and evolve can be challenging. Every club sets its standard and people have got to constantly revisit and assess that. Clubs are doing it now. For many years, they wouldn’t face up to those sort of challenges but they are doing it more and more. How do you see the state of golf at the moment? About five or six years ago I was quite vociferous about it. I sat on a couple of panels with England Golf. It was just after the Olympics in London and I looked at cycling and how that sport sold itself really well for a good few years on the back of that event. There were so many people out on their bikes and I said we didn’t sell ourselves in our industry. I remember sitting in a meeting at Aldwark Manor, in an open
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discussion with the GCMA and England Golf, and trying to come to a plan of action going forward. It was very evident that changes had to be made but it was going to be difficult because of the traditionalists.
“The last few months have been very good for us people have been out playing and enjoying golf”
Mick Thorpe
Has that now changed? I think there have been some big changes. Some clubs have embraced it more than others. I can look around and see some clubs where I never thought I would be able to walk into and get a game – purely because it was hard to get in there. It was by invitation only – and now the
industry is much more open than it was. In the wider public domain, I think golf is still perceived a little bit snobbish and it’s an image we’ve got to shake off and freshen up. What opportunities are ahead for the GCMA? I’m actively involved with the GCMA but it’s quite a difficult time. They’ve got to embrace change and the noises that are coming out is that this is needed and will be taken head on. As an organisation, we have to accept that challenge. We’ve got to look at our own houses and get them in order before we move forward. It’s important we’re seen to be doing that. What’s your proudest moment in golf? It’s probably when I won the club championship at Horsforth. It was my club for 31 years and I’ve got my name up there in gold leaf a few times. When you set out in golf, that’s your first objective and I managed to do that. I’ve had a few hole-in-ones, which I’m very fortunate for, but you need a bit of luck. I’ve had a lot of good times in golf. In the 11 years I’ve been in the industry, I’ve made a lot of good friends and contacts and long may it continue.
Get In Touch To contact Scarcroft, visit scarcroftgolfclub.co.uk
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My success story...
JOHN JACKSON
Sponsors of My Success Story
Finding ways to increase female membership is a question that’s stumped many a club manager. But at Sale, general manager John Jackson is the architect of a scheme that is bringing in big results...
T
he figures have vexed those at the top of golf for quite a while – only 15 per cent of golf club members are female. England Golf have made it a priority area and recently held a Women and Girl’s Golf Week to try and raise awareness. They may care, though, to focus their attentions on Lancashire to share the example of how one club have massively expanded their female section over the past couple of years. At Sale, general manager John Jackson has been the architect of a Get into Golf scheme that has borne huge fruit. Last year, the club ran a series of ladies taster sessions followed by a four-week coaching programme led by professional Mike Stewart. Nothing unusual there. But the club then backed that up with a three-month Get into Golf membership that included two lessons with one of the professionals, free use of the practice facilities and the chance to play on the course with a full member. Sale’s ladies’ section responded enthusiastically, with members taking out their new colleagues for practice sessions. Bonds were quickly formed and
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the results were impressive. Of the dozen ladies that joined the initial Get into Golf membership, nine went on to become full members of the club. The first taster session this year saw 22 turn up – 19 of those going on to the four week programme and 16 signing up as Get into Golf members. It’s a phenomenal return and, for Jackson, proof that the pathways to full membership for ladies at
“We wanted to give them good value for money. Then, at the end of three months, they think ‘I’m enjoying this too much’”
Sale are working. “We split into two groups with myself taking one and our pro Mike Stewart taking the other,” he said of that latest successful taster. “It was meant to last an hour but went on for over an hour and a half as all the ladies were enjoying themselves so much. “In February, we were given the GolfMark Award by England Golf and the reason we went down the coaching path was because it doesn’t really cost us anything in terms of advertising and when you’ve got that face-to-face contact with people you’ve got a lot more chance of converting someone into a member. “At the end of one free taster session, no one knows if golf is for them – do they? “Hopefully, at the end of a four week course, they would have a bit
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Sale’s taster sessions for ladies have been hugely popular and driven members to the club
more of an idea if it’s something they want to pursue.” Key to the project’s success for Jackson has been building up those social bonds, and that was part of the reason behind the introduction of the three-month membership. It gave time for the ladies to meet other members, get an understanding of the club environment and forge crucial connections. Jackson explained:“If you look at the normal cost of a membership, it’s quite expensive, really. We wanted to give them good value for money and then, at the end of the three months, they think ‘I’m enjoying this too much. I just want to carry on’. “It’s all about making it a really welcoming place to be. That’s one of the things in our marketing
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plan. “It’s one thing recruiting members but you want to retain them. If you can make them feel part of the club then that’s what you want to do.” Jackson’s strategy has also brought the club other financial benefits – outside of the revenue boost that comes with adding three month and then full members to the fold. His marketing strategy was two pronged, with a second strand aiming to reduce the money the club were spending with outside companies on advertising. “We were spending a lot of money on marketing but not really getting anything back in return,” he said.“Now we’ve reduced the marketing cost dramatically and the revenue has gone up.” Not that Jackson and his staff
are resting on their laurels. There is still plenty of work to do. While the club has had enormous success with the taster sessions for ladies, the same hasn’t necessarily been true of the men. He said:“We need to try and figure something out there. While we had 22 ladies for the taster session, for the men we had six. Maybe we need to change our approach slightly. “Opening them up to couples would be good, or having a family course to get everyone involved. That said, it’s an encouraging start and we really can’t complain.”
We want to hear all about the success stories at your club. Get in touch by emailing s.carroll@sportspub.co.uk
GCMA.ORG.UK | 65
GCMA | INDUSTRY | CAREERS | EDUCATION | REGIONAL
July 2018
STATISTICS UK&I 28,613
Hole-in-ones made in qualifying events during July
Total competitions recorded
GENTS:
LADIES:
17,075 11,538
529
196 Unclaimed BOSS hole-in-one watches. They can be claimed with the code at h1club.co.uk
926,357 total rounds of golf recorded
LOWEST EXACT HANDICAP
Gents
Ladies
-5.4 -5.3 31,259 total HowDidiDo Order of Merit sign ups for 2018
8,343
eagles or better
66 | GCMA.ORG.UK
404,707 birdies
3,387,584
Stats provided by HowdidIdo.com
pars
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