Private Golf Clubs Feel Effect Of Economy As Membership Declines
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Many Private Golf Clubs Have Discounted,
Delayed Or Waived Initiation Fees |
Many people in the U.S. have "relinquished their country club memberships to save money," and as a result many private golf clubs, "attempting to maintain their high levels of service and hefty operating budgets amid the recession, have responded by discounting, delaying or waiving initiation fees," according to Bill Pennington of the N.Y. TIMES. Annual dues, often ranging from $10,000-20,000, are being "restructured or offered in installment packages, and senior members are being solicited for short-term loans to keep some clubs financially stable." The nation's "best-known and most selective country clubs have been least affected, and private clubs offering discounted fees might be in the minority over all." But a National Golf Foundation (NGF) survey found that "at least 500 clubs nationwide are scrambling to raise their cash flow," and as many as 15% of the "roughly 4,400 private clubs reported serious financial challenges." Membership at these clubs is down about 30%, and 90% of them "reported that they had tried recruiting new members with discounted initiation charges." Industry analysts are predicting that "some struggling private clubs will close in the next year or two," but it "may not be a significant number because many of those will instead become public enterprises." NGF President & CEO Joe Beditz: "In the last 10 years, we've only seen 39 private courses close in America, but we've seen 400 open their doors a little, or a lot. For a golfer, there couldn't be a better time. But the private club isn't going away. In 10 years, there will be about 4,000 private clubs and about 12,000 other golf facilities, just like we have now." Pennington noted currently "far more people play golf at public courses than private ones." Of the estimated 28 million golfers in the U.S., only "about 2.1 million belong to private clubs" (N.Y. TIMES, 3/18).
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