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The Golf economy today is a mixed bag, while some areas of the golf
business are very strong, other parts are suffering.
Part of the reason is that young people do not seem to be taking
to the game as the older generation did. With the variety of
activities available to the X and Y Generations, other sports
seem to be more attractive
A slow walk around a golf course can’t compete with mountain
biking or zip-lines.
Check any public golf course green fee sheet from 15 years ago
and the odds are that the cost for a 9-hole or 18-hole round was
higher than it is today. Cost incurred by a golf course for
fuel, seed, fertilizer and labor have increased, not decreased.
On the other hand, the PGA of America is flush with cash from
its Ryder Cup and other income producing activities. The PGA
Tour is flooded with Fortune 500 Companies lining up to pay in
excess of $6 million to sponsor a tour event. The total purses
on the PGA Tour this season will top $285 million for the
regular season, plus another $65 million will be divided up for
the FedEx Cup bonus pool and the four playoff tournaments. The
USGA will begin its new contract with Fox that doles out over $1
billion over the next 12 years.
Meanwhile, Calloway Golf has not made a profit in five years and
lost $19 million last year. Local golf retailers and golf clubs
are realizing a decline in league play as well as fewer walk up
green fees.
Every industry experiences business cycles and local golf owners
have not fully recovered from the economic recession of
2007-2009. Too many golf courses were built with a declining
population interested in playing golf.
One of the golf courses I enjoyed playing as a young man has
announced it will not open its doors in 2015, after 51 years
serving golfers in their small community. A difficult decision
for sure, but one based on the economics of the times.
I was playing that course on a warm July, Sunday morning in
1977, when the Assistant Pro came out to the 13th hole to convey
the message that my wife had summoned me home to take her to the
hospital for the birth of our first child.
Although I will never be able to enjoy a round of golf at that
course in the future, I will have the wonderful memories of
searching for pars and playing with Tanker, Donny, Hawk, Patch
and the rest of the hacks at Hickory Grove.
Support your local golf course and pro shop. They need it.
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