SUMMER 2013
NEWS A quarterly Golf NSW Newsletter
CHAIRMAN’S MESSAGE As we approach the end of another year, it’s a good time to reflect on the year just passed, and start to focus on the year ahead.
Since receiving the report, the Board has met to discuss the feasibility of adopting the recommendations, and rated adopted recommendations with a low, medium, and high level of urgency.
One of our main projects during 2013 was to undertake a full Governance and Structural Review of Golf NSW.
Further Board discussions and workshops have been facilitated by Sport Business Partners. Strategies in relation to the recommendations are being costed, and incorporated into the Golf NSW Strategic Plan 2014 – 2017.
The key objective of the review was “To assist Golf NSW in adopting an appropriate governance structure that will ensure its continued relevance and effectiveness for its members and golfers.” The review was conducted by Sport Business Partners, who have since provided a final report which lists a total of 32 recommendations for consideration. The full 122-page Report can be found in the Club Login section of our website, www.golfnsw.org.
Through this Strategic Business Plan, it is the goal of Golf NSW to provide more benefits to our members, with the focus to grow the game for all. Our CEO, Stuart Fraser, will elaborate more on the details of the Strategic Plan in this edition of Club News.
I would like to thank all our Council members, District Golf Associations, Member Clubs, and all the other key industry stakeholders for committing valuable time and information throughout the Governance and Structural Review process. I would like to thank everyone in our golfing family for your support throughout 2013. Our aim is to work even more closely with you in the New Year as we unveil and roll out our new strategic direction in 2014. On behalf of the Board at Golf NSW we wish you all a very Happy Holiday Season and a very Happy New Year. Yours in golf,
Chris Allen Chairman
CEO’S MESSAGE
What a fantastic summer of golf we have witnessed so far, with Adam Scott dominating the Australian Tour, and coming ever so close to completing a Masters, PGA and Open sweep. The most exciting aspect for me has been to witness the massive crowds of men, women, boys and girls, of all ages, that have followed Adam’s every step, drive, iron shot and putt. Speaking to those that have been around the golfing world longer than I, the size of this year’s crowd at the Australian Open in particular was as big as they had ever seen before at an Australian golf tournament! So is golf in Australia on the crest of a new wave of popularity?.....it certainly feels like it, but that said, we can’t lose sight of the fact there are still immediate and real challenges that face the Club, and golf industry in general. It is for this reason, that earlier in 2013 Golf NSW undertook an extensive Strategic Planning process, in conjunction with a Governance and Structural review. The Golf NSW Strategic Plan 2014 – 2017 has identified seven key issues, which Golf NSW will focus on over this period. These include: 1. Club Health - Club memberships and finances are in steady decline. 2. Industry Fragmentation - There are many competing sport/leisure options, and fragmentation of the Golf industry is affecting our ability to compete. 3. Communication - We are communicating ineffectively and not adapting to the changing social and economic environment. We have under-developed and underutilised technology. 4. Growth markets - There are many social golfers and an expanding mature population that represent the core market for the game and a growth potential for club membership. 5. Volunteers - We have a committed volunteer base, which underpins the viability of clubs, but little is done to maximise volunteer recruitment (including succession planning), train, recognise and support volunteers. 6. Financial Model - Golf NSW is in a strong financial position, however relies heavily on affiliation fees. 7. Governance Model - The current governance model is inflexible and restrictive. The Strategic Plan is currently in its final stages, with Board and management working on strategies to address the key issues that have been identified. This will be underpinned by a budget to ensure there is every chance of success for the strategies and initiatives that are implemented.
ACTIVE AFTERSCHOOL COMMUNITIES ‘GIVE GOLF A GO’ The 2013 JNJG season has come to a close. Congratulations to all of the winners at the JNJG Presentation and Sponsors Day held at Concord Golf Club, in particular to Isaac Noh, Celina Yuan, Kevin Yuan and Shelly Shin on their Junior and Sub-Junior of the Year titles. It’s also a great time to reflect on how much JNJG has achieved over the year. Although there are many to thank, we couldn’t have done it without Jack Newton OAM, who has been the driving force behind junior golf since the foundation was established in 1986. JNJG is now recognized as one of the leading organisations in junior golf in Australia. JNJG has been delivering golf to players under 18 years of age in New South Wales for more than 25 years. Clubs around the state are introducing juniors into their programs, and JNJG’s partnership with local communities, clubs and schools is growing by the day. A program that has been building momentum and coming to fruition is the partnership between the Active After-schools Communities and the JNJG Territory Managers. More recently, the AASC Regional Coordinators for the Western area Min and Tracey Quayle, have been very supportive of the working relationship that has unfolded with JNJG Territory Manager, Sharon Nott, and AASC country school sites in Western NSW. Min stated that, “The Active After-school Communities (AASC) and JNJG have established a receptive and productive relationship over the past few years working towards common goals, exposing more and more children to the sport of golf. In the Western region alone there has been a huge increase in the number of AASC sites delivering golf within their program. Golf is a great sport for most of my regional AASC sites to deliver as most towns have a Golf Club and therefore there is an opportunity for children to transition into playing golf both for leisure or competitively. Children participate in a 7-week AASC golf program receiving coaching from their accredited community coach, and then for most sites they attend their local Golf Club for the last session and participate in an Ambrose event against their peers.
Once complete, the Strategic Plan will be made available to all industry stakeholders, so that the golf industry has a clear understanding of the direction forward for Golf NSW. Whilst the Men’s Tour has just concluded, the Ladies Tour has just begun. I would encourage all of you that now have a taste for watching tournament golf to head out to Oatlands Golf Club from January 24 to 26 to watch a truly International field (headed by Laura Davies) tee it up to compete for the 2014 Bing Lee Fujitsu Women’s NSW Open Championship. May I take this opportunity to wish you all a very Merry Christmas and a Happy, Healthy and Prosperous New Year.
Stuart Fraser Chief Executive Officer
F or more information contact JNJG on: 9567 7736 or email jnjg@jnjg.com.au
NEW GA HANDICAPPING SYSTEM JANUARY 20 IS FAST APPROACHING The date for the introduction of the new GA Handicapping System is fast approaching. There has been a significant amount of information sent to Clubs. An online check list for Handicapping Administrators is available on the Golf NSW website under Handicapping/New GA Handicapping System. This will enable the person responsible for handicapping at the club to ensure they are ready and the Club has made the necessary decision prior to the implementation of the new system. The latest resource available is the Daily Handicap Look Up Chart, and this too is available on the Golf NSW website under Handicapping/Daily Handicap Look up Chart.
The following chart illustrates how Clubs, Districts and Councillors view the health of the game:
HEALTH OF THE GAME
Perceived health of golf in NSW
Golf NSW – Governance & Structural Review – Final Report – August 2013, pages 13-16. When stakeholders are asked about golf’s long-term viability in NSW, there is universal recognition that the game is under a level of duress. Whilst there are pockets of positive sentiment, the overall assessment is one of a tough environment. Pessimism is generally widespread, other than with Tier 1 Clubs. Six recommendations were provided in this section which include a 1) Social golf strategy; 2) Online Club support resources; 3) Equipment share initiatives; 4) Club advisory workforce; 5) Industry-wide promotion; and 6) Government Relations. EBITDA FINANCIAL POSITION >25%
CLUBS
Business flourishing: Ability to reinvest and reinvent as required
4%
15-25%
Solid position: Needs to critically evaluate capital purchases
11%
10-14%
Stable position: Sufficient to maintain current operations
22%
5-9%
Financial distress: Changes required to ensure viability
30%
<5%
Serious financial distress: Serious questions as a going-concern
34%
The snapshot above shows the level to which Clubs across NSW are struggling to not only prosper, but survive. For further information about the viability of NSW golf clubs, and an explanation on the measurement used in the table, refer to Appendix 1, Golf NSW – Governance & Structural Review – Final Report – August 2013. The statistical evidence supports the concerns members and constituents have about the state of golf. In the past 10 years, Golf NSW data reports that 49 Clubs have disaffiliated or closed their doors across the State. Over the same period, 21 Clubs have opened or chosen to re-affiliate. Member numbers continue to decline year on year, in both metropolitan and regional areas. The Clubs that continue to flourish are certainly in the minority, as evidenced by the 65% of NSW golf Clubs finding themselves in some form of financial distress (see Appendix 1). Only 7% of stakeholders assessed the health of the game as ‘very good’ or ‘excellent’, and even those who rated the health as ‘good’ largely went on to make negative comments.
Excellent Very good Good Average Poor Very poor
0% 7% 32% 47% 14% 0%
In metropolitan areas, the number of people playing the game is not necessarily decreasing, however the way golfers now consume the game is changing. A time-poor society with growing financial pressures has resulted in changing demographics within the game. For the younger and middle-aged golfer (25-50yo), time, financial pressures and changing family structures has resulted in fewer being able to justify an annual subscription. For many of these golfers, payfor-play is the latest trend, and “car-park golfers have become the norm”. Clubs are struggling to adapt to these emerging trends that require new offers to meet golfers’ diverse needs. Many Clubs can often identify the trend, but are looking for advice as to how best to adapt their current offers and business models. A common example of this question from many stakeholders – “How do we best capture the social golfer?” Through the interviews and survey, stakeholders overwhelmingly supported an initiative whereby Golf NSW would help Clubs with a strategy to engage these social golfers with local Clubs. The survey results are displayed below: Support for social golfer and Club strategy Strongly support Support Neither/nor Oppose Strongly oppose
37% 45% 12% 4% 2%
Although overall satisfaction with Golf NSW and its services was rated high across the board with 88% satisfaction rating, this does not mean we should continue doing things as we have been doing. The review has enabled us to shift focus on key areas so that we can work together as an industry to tackle issues head on. What better time to do it than now to make the most of the momentum that Adam Scott has created through his achievements and character to raise the profile of our sport.
FINE WINE PARTNERS BECOME ‘OFFICIAL’ WINE PARTNERS In a coup for member clubs and golfers throughout NSW, Golf NSW have come to an arrangement with the highly reputable Fine Wine Partners, the wine division of Lion Co who are the largest supplier of grocery and alcohol in Australia. Fine Wine Partners represent a portfolio of iconic fine wines and champagnes from regions around Australia and the world. There are over 600 wines from 64 well-known brand names, including Tatachilla, Stonier, Petaluma, Henschke and Knappstein to name but a few, and are rated the number one on-premise distributor for wine within NSW. An extended part of the new arrangement will be one of their key brands, St Hallett Wines, assuming the title of the Hole in One Club. An exciting new opportunity through Fine Wine Partners is for an on-line fulfilment service which will be available for all golf club members across the state, with extremely attractive pricing of wines which will include free delivery across NSW. Details on how individuals are able to register for this opportunity will be communicated to all clubs shortly. Naturally, Fine Wine Partners will be keen to discuss supply arrangements with all clubs, and have already commenced this activity with great success. No doubt their extensive range, including the valuable ‘house-wine’ offerings, not to mention highly competitive discounted pricing options, will provide substantial positive financial outcomes for all NSW golf clubs. We welcome Fine Wine Partners and look forward to all clubs being able to benefit from this broad opportunity throughout NSW to clubs and members alike.
GOLF NSW THANKS OUR PARTNERS Major Supporting Partners
Event & Business Partners
18 Hole Club Partners
screen c o r p AUSTRALIA'S PREMIER VIDEO SCREEN COMPANY
13oo 659 o93
A: 1a Duncan Street (PO Box 195) Arncliffe NSW 2205
P: 02 9505 9105 F: 02 9505 9199
W: www.golfnsw.org