In a new series looking at The Price of Club Golf, managers and industry experts reveal how much of the money you pay goes towards running the club
This article is part of GCMA Insights – topical content for golf industry professionals, discussing the things that matter to those who work in golf clubs.
How much are your membership fees actually worth? It might surprise you to learn your subscriptions may only provide around half the revenue your golf club needs to keep running every year.
In a new series for GCMA Insights called The Price of Club Golf, we asked a number of managers – representing all strands of the industry – what it cost to run their clubs, how the money was allocated, and a minute breakdown of their expenditure.
Over the coming months, we’ll get stuck into VAT costs, depreciation, staff wages and course expenditure, but first, we asked how much the subscriptions of members, be it full, 5-day, or flexible, put into the club coffers each year.
Get involved in the debate.
To join the GCMA, click here, or to organise a call with a call with a member of the GCMA team, just complete the form below.
And though our clubs represent both proprietary, and private members’, high-end and average, the answer was remarkably consistent – coming in at between 50 and 60 per cent.
Just as important to the overall prosperity of clubs is cash from visitor green fees and societies, along with food and beverage, and functions.
Kerry Alligan-Smith, the general manager at Redditch in Warwickshire, said: “50 to 60 per cent of income is from subscriptions at Redditch and I would imagine that is pretty consistent across a number of clubs.”
That’s also the case at prestigious private members’ Denham, in Buckinghamshire, which is led by GM Richard Penley-Martin.
“We budget on raising £2.3 million and golf club subscriptions contribute £1.3 million – so just over half,” he explained.
“That £1.3 million is what it costs us to open the doors. We actually went through this exercise quite a few times during Covid because we supported our staff 100 per cent through that time.
WHY JOIN THE GCMA?
Membership of the GCMA unlocks a network of like-minded professionals, provides you with support in your professional and personal development, and provides you with a multitude of benefits. Whether that’s the tools that will help you to excel in your profession, or a wide range of services to support your wellbeing, signing up to the GCMA is joining a community.
“We worked out what it took to prepare the golf course and have the clubhouse open – before we sold a pint of beer, took a casual round of golf – was what the subs were.
“So if we were to repeat the exercise now, it would be about £1.3 million just to open the doors before we did anything to have the place staffed and the way the members want it staffed.
And even at top dollar proprietary club Foxhills, whose three courses and extensive leisure and restaurant facilities can boast some 5,000 members and an annual membership revenue of close to £11 million, “golf represents maybe slightly more than 50 per cent,” said membership manager Marcus Weatherburn.
This article is part of GCMA Insights – topical content for golf industry professionals, discussing the things that matter to those who work in golf clubs.
Get involved in the debate. To join the GCMA, click here, or to organise a call with a member of the GCMA team, just complete this form and we’ll be in touch!
Enquiries
"*" indicates required fields
