Golf Clubs Are Social Hubs For Communities – Don't Bleed Members Dry For A Healthy Bottom Line

A phrase you will hear haughtily spouted at golf club AGMs up and down the country is that “golf clubs must be run like businesses.” It’s normally received with positive exhalations and nods of approval. But I don’t think it’s wholly correct.

In many cases, member-owned golf clubs remain as unincorporated associations. The members have set the rules and the operating procedures in a constitution. Their objective is not to make a profit, and surpluses go back into the club.

A number of member-owned clubs have, in recent years, moved to become incorporated. This takes the liability away from the members as the club becomes a distinct legal entity.

Most clubs choosing to become incorporated are limited by guarantee. Members agree to pay a nominal sum if the company is unable to meet its obligations.

These clubs, both unincorporated and incorporated, are technically businesses with obligations. But they are not, or should not be the “businesses” the vocal few at the AGMs are calling for them to turn into.

Unlike in those “businesses,” profit should not be/is not the primary driver for member-owned golf clubs.

The primary objective should be/is delivering value for money to members and guests. That is done by providing a welcoming and enjoyable environment where members, visitors and employees are happy and secure.

A golf club is not a heartless corporate entity run predominantly with quarterly targets and dividends in mind. Golf clubs are social hubs for communities where people go to enjoy extra-curricular activity away from the mercenary cut and thrust of the daily grind.

Golf clubs should have a more altruistic, charitable approach to management and running procedures than a profit-hungry business. You are paying to be a member of an organisation that looks after people, not one that bleeds them dry for a healthy bottom line.

I do think, though, that some member-owned golf clubs could be run a little more like the lauded “businesses,” if not as one.

All clubs should take influence from the business world when it comes to achieving efficiencies in procurement, effective contract management, savvy marketing and careful financial administration. Many clubs do this already.

But it shouldn’t be forgotten what the club is all about – like-minded individuals coming together to enjoy a sport and facilities that are of benefit to those who make use of them and those who work at them.

Keep Things Simple

Staff should be viewed as part of the fabric of a golf club. We as members are responsible for the working lives of these people and we have a responsibility to be fair and generous where possible.

They are “our” steward, secretary, greenkeeping team etc. They are not simply employees with KPIs who are looking to stretch the envelope with their blue-sky thinking.

Members don’t necessarily understand the language of business and being blinded by jargon and pie charts does not sit comfortably with many.

To run a club like a modern corporate entity alienates large sections of the membership who want things to be far simpler.

And clubs should be simple to run in comparison to the average corporation. Most members clubs have two main cost centres – the course and the clubhouse. That means two main budgets to stay on top of.

Set those budgets, stick to those budgets, meet basic revenue targets for membership and visitor income, break even for the year and repeat…

That’s all the membership really wants to know about and it’s a fairly effective, and simple strategy for management.

Those in charge of golf clubs should be aiming for preservation, not to re-invent the wheel (to use some more hateful management speak.)

All member-owned clubs will have experts on their committees from all walks of life and those from the world of business have a huge amount to contribute to help the club run as efficiently as possible.

Others from different spheres will also add to the healthy mix to create a great team of custodians – doctors, teachers, lawyers, builders, artists. All will have skills that can be utilised to make golf clubs as good as they can be.

I say take the best bits of business and use them to strengthen golf clubs – a clear structure and transparent and strong strategies on expenditure, marketing, sales and employee management. Leave the flow charts in the office.