Whether investor or member owned, there’s a never-ending quest for clubs to improve. The goal could be as simple as making the club more financially successful or as complex as improving in a variety of areas that not only enhance finances but also improve the overall experience of patrons and members. Most of us are familiar with SWOT (Strengths, Weaknesses, Opportunities & Threats) analyses. Whenever we do an appraisal, club consultation or market a golf course property for sale, we undertake a SWOT analysis to learn the property’s potential for maximizing performance. We typically ask club ownership or management what they perceive as the club’s “SWOTs” and then during our site visit analyze the club’s facilities, performance and market, add our own input and use that information in completing our assignment.
A look back through our files over the years highlights those areas most frequently indicated or observed that clubs feel good about (strengths) and those that could use some work (weaknesses & opportunities) as well as noting those things that clubs see as potential threats to success.
Strengths
Almost all clubs cite their golf course as a strength. Most (if appropriate) also touted their playing conditions. Since playing conditions are often mentioned by golfers as the number one element of the golf experience, that’s no surprise. Of course, some sported great locations, a great staff and a variety of attractive facilities complementing the golf course, as well as strong, supportive and stable membership at some of the private clubs. As a strength, location can be the determining factor between success and failure as golfers, especially at private clubs look for a short commute.
Weaknesses
It seems as though most of the courses we visit (especially older ones) have physical issues of some sort. These most often include dated irrigation systems beyond their normal useful life, deteriorated cart paths with potholes or root damage and dysfunctional bunkers as the three most common items, but others are also prominent. We’ve observed aging infrastructure (roof, HVAC, parking lot, etc.) and a recently prominent issue with tree management relating to on-course safety and the increase in violent weather events.
Many clubs have a history of deferring normal maintenance which eventually shows up (remember the Fram Oil Filter commercial of “pay me now or pay me later”) and don’t update their properties in a timely manner. Some (mostly private) clubs are known to be very rules intensive, which often results in member dissatisfaction. Some courses are designed in a way that makes maintenance very labor-intensive and costly.
There are courses that are perceived as too difficult or unwalkable, contrary to their appropriate market position and their sites can have terrain or waterway challenges that result in frequent flooding.
The deferral of normal maintenance, or capital reinvestment is often due to the desire to maintain dues or fees at what ultimately become artificially low levels. Conversely, some clubs, as well as daily-fee courses increase rates to the point of no longer providing value and can lose members or patrons. A history of either artificially low or artificially high dues and fees can make it difficult for a club to react when necessary as their market may have identified more suitable alternatives.
We often see a club’s location as being an incurable weakness that can often require that club to suppress dues and fees to attract members, golfers, and reliable, stable staffing.
Opportunities
Of the thousands of golf properties I’ve visited, I’ve never seen one that had no opportunities for improvement. In just about every case management or leadership had room for improvement, even at the best clubs. Marketing is often noted as weak at many properties and clubs often need to add facilities to market effectively. The latest rage being Pickle Ball has many private clubs adding that activity, along with other racquet sports, fitness and enhanced aquatic facilities. In general, non-golf activities at private clubs can often be the determinant for a prospective member joining or not.
One area I’ve always observed as a great opportunity at many clubs is either establishment of or enhancement of existing golf practice facilities. I grew up at and played for many years at a club with no practice range. It’s a void. In his book “A Course Beautiful”, renowned Golden Age architect A.W. Tillinghast stated that a club without an adequate practice ground in an incomplete club. Today, those clubs with practice facilities are expanding and enhancing them with technology, indoor hitting bays and expanded short game areas. If land is available, many clubs are establishing practice facilities. These increase a club’s capacity for members and patrons and take pressure off the golf course. Some clubs are even developing “short” courses which provide an opportunity for beginner golfers, those seeking an extra “fix” and more casual golfers the opportunity to play a shorter course in a smaller time window.
Diversity in both staff and membership is an opportunity many clubs (especially private) indicate as both a weakness and opportunity, along with improved employee programs, infrastructure and work and break spaces to enhance the work experience. This can include mental health assistance for those that need it.
At many clubs and courses, the food & beverage service (F & B) is considered a loss leader. It’s often seen by those more skilled at F & B as an opportunity to create not only revenue and profit, but also increased activity at the club.
Threats
Above all else, the courses I’ve visited of late mention “the economy” and “competition” as the two most prominent threats to their success. While most economists would say that the economy is favorable right now (November, 2024) and has been for the past few years, we avoided what many thought would be a recession and nobody knows what upcoming political changes will bring. Hopefully, there will be more prosperity for the golf industry, as well as the country in general.
Competition, and the threat thereof has long been a concern for golf courses and clubs. The late 90’s and 2000’s experienced a surge in golf course development that created an oversupply. Subsequently, many courses closed but golf participation declined. The COVID surge has suppressed that concern to some degree but fears of new additional supply still exist as the increase in recent play has motivated some new construction. Combined with the somewhat limited cultural diversity in golf, additional competition for some clubs could pose a significant threat if economic conditions decline or the COVID golf surge subsides and people return to their pre-COVID activities.
Additionally, with political change (nationally or locally) can come regulatory change. Climate change and environmental issues pose the threat of limits on water and chemical usage that could impact superintendents’ abilities to maintain the pristine conditions we’ve come to expect and the cost of same.
Clubs also often mentioned staffing, rising wages and costs and lack of capital for catching up with deferred maintenance as potential threats.
The issues mentioned herein are by no means a comprehensive list of the strengths, weaknesses, opportunities and threats to golf courses. However, they do represent those I’ve observed or heard mentioned most frequently in my extensive travels to golf courses. I’d love to hear from anyone who has others and happy to start a conversation on social media.