Page 11 - GBC summer 2016
P. 11

reciprocal play
decreased labour
purchasing power
Golf course management models are a moving target. They always have been. The latest trend in Canada’s golf market appears to imply that the next evolution is toward consolidation into more multi-course operators (MCO) managing more properties.
neW buSIneSS mODeLS
This trend could be good news or bad news, depending on your perspective of threats and opportu- nities, and how the moving target plays out over time. However, the likelihood of the golf industry remaining status quo is nil. Evolving economic factors will continue to drive the business models of our future.
The Old Tom Morris days prompted the member-owned pri- vate club, managed by a volunteer board and GM, catering primarily to the upper-class. That model flourished and contributed to the expansion of golf across the western world. Although that business model still exists today, such clubs are now the minority and many are under pressure to innovate.
Over the years, the growing popularity of the game diversified itsappeal,openinguptobusinesses investing for ROI to their owners. Public golf models, resort, municipal, equity share, and real estate golf development emerged.
As these new business models were introduced to the golf market, the majority were positioned as independent operators. The success of some and the challenges of others began leading to some initial consolidation, spawning the early multi-course management companies.
ClubCorp, based in Dallas, was one of the first to scale up the model to a large portfolio of golf courses. As the golf business became more competitive over time, the efficiencies of such multi-course operators became more evident and further expansion ensued, with numerous management com- panies emerging.
multi-Course Owners and management Companies expanding in Canada
rISe OF mCO In CAnADA
In Canada, unlike the earlier prog- ress in the USA and Europe, almost all of the newly built golf courses to meet the growing demand were still independent golf courses until the early nineties. Enter ClubLink.
Bruce Simmonds had a vision to solve a problem. Cherry Downs was a great golf club in the GTA, but not proving to be financially viable. The recession at the time had temporarily taken its toll on golf and many other industries, including the equity share business model that had been golf’s latest evolution in private clubs.
So, Simmonds researched the success of American multi-course management companies, then added the first full reciprocal golf membership model, and set out to acquire other struggling high-end golf clubs. ClubLink went on to gain considerable traction, now operating 54.5 18-hole equivalent championship and eight nine-hole academy courses at 41 locations in Ontario, Quebec, and Florida.
performance benchmarking
yield management
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