Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions

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Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
Why golf entertainment centers are booming   |     Advisers of the Year

                                                 Ryan Doerr
                                                 President/Owner
                                                 Strategic Club Solutions
  MAY/JUNE 2019

 Renovation
 of the Year

                           Adare Manor in Ireland takes top honors
                                with infrastructure-focused design.
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
How much
    ›› WATER
    ›› LABOR
    ›› MONEY
could your facility
save with a Toro
Irrigation System?
  ———————
 LET’S FIND OUT.

     Toro.com/irrigation
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
STAFF
                                                         Editorial Team
                                                         Jack Crittenden
                                                         Editor-in-Chief
                                                         Jack@CypressMagazines.com
May/June 2019   Volume No. 28 Issue No. 3                877-Golf-Inc
                                                         Keith Carter
                                                         Managing Editor
                                                         Jim Trageser
                                                         Assistant Managing Editor
OPERATIONS
                                                         Mike Stetz
                                                         Katie Thisdell
   4   News: More golfers in 2018, but                   Robert Vasilak
       weather puts damper on year                       Senior Editors

   7   Trend: Drones give courses an eye in
                                                         James Prusa, Editor-at-Large, Asia
       the sky
                                                         Tiffany Porter, Copy Editor
  10   Feature: Why everyone’s investing in              Shannon Harrington, Art Director
       golf entertainment centers                10
                                                         Richard Steadham, Senior Designer

                                                         Publishing Team
                                                         Katina Cavagnaro
                                                         Publisher
                                                         Katina@CypressMagazines.com
OWNERSHIP & MANAGEMENT                                   Shelley Golinsky, National Account Representative
                                                         Mindy Palmer, Marketing and Sales Consultant
  16   News: Troon acquires OB Sports                    Elizabeth Callahan, Audience Development Director
  20   Trend: It’s becoming a seller’s market            Aleisha Ruiz, Audience Marketing & Event
                                                         Coordinator
  22   Feature: We spotlight the year’s top              Trish Newberry, Accounting
       consultants and advisers                  22

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DEVELOPMENT & DESIGN                                     subscription to the top decision-maker at
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  30   Trend: Olazabal aims for greatness with           Change of Address:

       new designs in Greece                     32      Please send your information to
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  32   Feature: Renovation of the Year winners
                                                         Reprints:
       put focus on infrastructure
                                                         Please call Katina Cavagnaro, 301-825-9848
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                                                      May/June 2019       www.GolfIncMagazine.com       3
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
Operations

           Number of golfers increased in 2018,
           but poor weather blamed for drop in rounds
           The health of the golf industry may be

                                                                                                                                                     UDO KROENER/ADOBESTOCK
           trending up after several years of decline.
           While the total number of rounds played
           decreased slightly in 2018 for the third
           straight year, bad weather was the pri-
           mary cause, according to the National Golf
           Foundation’s (NGF) annual Golf Industry
           Report.
              Pellucid Corp., an independent indus-
           try analyst, also found that the weather in
           2018 was largely to blame for the drop in
           rounds. Pellucid founder Jim Koppenhaver
           said that it was the worst year for weather
           in the past eight years but that utilization
           improved from 52.5 percent to 54 percent.
           Utilization measures the number of rounds
           played compared to the number of avail-
           able rounds.
              The average green fee increased by 0.8       Rounds played (in millions)
           percent to $52, according to Pellucid. The
           median fee was $44.                                   2014              2015              2016              2017               2018
              The NGF reported that the number of
           players rose and that off-course golf partic-
                                                                 458               466               469               456                434
           ipation continued to increase. Off-course       An estimated 434 million rounds of golf were played across the U.S. in 2018,
           participation includes golf entertainment       a 4.8% year-over-year decline. For many regions, 2018 was among the top 10
           centers such as Topgolf, stand-alone driv-      wettest years on record. The average weather-related fluctuation typically
           ing ranges and computerized golf simu-          ranges between 2% and 3% either way, as Mother Nature has a major influence
           lators. That market grew by almost 10           on a game played entirely outdoors.
           percent in 2018 to 23 million participants,     Source: NGF Golf Industry Report 2019
           9.3 million of whom play off course exclu-
           sively.                                         that the current totals of roughly 16,000     golf participation is at 10 percent, which
              As for traditional, on-course golfing,       courses and 24 million golfers are about on   is higher than the numbers for basketball,
           the annual survey found that 24.2 million       par with figures from 20 years ago, before    tennis, baseball or skiing.
           Americans played in 2018, up a tick from        the boom in popularity and course devel-         The NGF is a nonprofit trade associated
           2017 but down from a peak of 30 million         opment.                                       founded in 1936. Its mission is to promote
           in 2003. Last year, 434 million rounds were        Koppenhaver figures that the industry      golf and provide members with informa-
           played, down 4.8 percent from 2017 and          will reach equilibrium in nine years if the   tion from its research team.
           below the 10-year median, which is about        number of rounds remains flat.
           458 million.                                       “Rounds used to be tied with popula-       Chambers Bay reopens
              Golf course closures continued at a          tion growth, but that stopped in 2000,”
           strong pace. There were 198.5 course clos-      Koppenhaver said at the PGA Merchandise
                                                                                                         with renovated greens
           ings, compared to only 12.5 openings of         Show in January. “Population growth is        Chambers Bay Golf Course has finally re-
           18-hole-equivalent courses in 2018. That        now being driven by diversity, which plays    sodded its greens, five years after PGA play-
           brings the current total to 16,693 courses      away from our base.”                          ers complained bitterly at the U.S. Open.
           at 14,613 facilities in the U.S., and 38,864       He said the golf participation rate has    The old fescue greens had also received
           courses worldwide.                              dropped from a high of 12 percent to 7        negative feedback from regular customers,
              The Golf Industry Report pointed out         percent. The Golf Industry Report said        who complained about uneven surfaces.

4   Golf Inc.   May/June 2019
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
In golf, it’s important to choose
                           your partner carefully.
Photo by Wood Sabold

                             No. 16 at Bandon Dunes, Bandon Dunes Golf Resort, managed by KemperSports

                            Turn-key services in golf course development,
                                   marketing and management.

                                                                      True to the game         ™

                                                                      500 Skokie Blvd., Suite 444, Northbrook, IL 60062
                                                                      847.850.1818 | www.kempersports.com
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
The $230,000 project to replace the      National High School Golf Association,           The resort, which includes an 18-hole
           fescue with poa annua grass required        the National Collegiate Club Golf             golf course managed by KemperSports,
           closure of the publicly owned course for    Association and the Nextgengolf City          will close June 4 for a year-long renova-
           seven months.                               Tour. It runs more than 200 team-based        tion. The Golf Club at La Torretta will
              Course operator KemperSports and         golf tournaments nationwide.                  remain open during that time.
           Pierce County, Wash., which owns the          A PGA of America spokesperson said             Slated to reopen in the fall of 2020, the
           track, coordinated with the United States   that while details are still being ironed     venue will be called Margaritaville Lake
           Golf Association on the project after       out, the initial expectation is that the      Resort, Lake Conroe. Two of the din-
           three greens developed turf health issues   PGA of America brand will be licensed         ing facilities will be rebranded as Buffett
           leading up to the U.S. Amateur Four-        for use with Nextgengolf operations.          concept restaurants: a LandShark Bar &
           Ball Championship. (The event ended up                                                    Grill and a 5 O’clock Somewhere Bar &
           being moved from 2019 to 2021).             Texas resort to have                          Grill. There will be 360 guest rooms, a
              KGMI Radio reported that Chambers                                                      tennis center, a spa, multiple pools and
           Bay officials hope to be awarded another
                                                       Margaritaville theme                          a 45,000-square-foot conference center.
           U.S. Open in the future and felt upgrad-    Jimmy Buffett’s leisure-lifestyle hospital-      The par-71 course measures 6,900
           ing the greens was necessary in order to    ity company, Margaritaville Holdings,         yards and was designed by Dave Marr,
           be considered.                              will open its first resort in Texas in        Jay Riviere and Jeffrey Blume. It opened
              When the Robert Trent Jones Jr. course   2020. A deal has been signed to convert       in 2008. Gensler is the project architect,
           opened in 2007, it was one of only a few    La Torretta Lake Resort & Spa north of        and McCarthy Building Cos. is the gen-
           courses in the U.S. with fescue greens.     Houston.                                      eral contractor.
           It has since been determined that poa
           annua is better suited to the climate at
           Chambers Bay, south of Tacoma, Wash.
                                                         Golf-club vending machine
           PGA purchases
           Nextgengolf                                   gets first try in Florida
         The PGA of America has acquired                 Cadi           recently
         Nextgengolf, a Boston-based player              unveiled an auto-
         development company, as part of its             mated golf club kiosk
         efforts to grow the game, especially            at The Legends at
         among younger players. Financial terms          Orange Lake Resort
         were not disclosed.                             in Florida, where it
                           Nextgengolf,      which       has just finished its
                         was founded by Kris             first     introductory
                         Hart, conducts team-            use.
                         based    golf     tourna-          The Cadi kiosk is
                         ments and experiences           a vending machine
                         for young adults, col-          that allows a cus-
                         lege students and high          tomer to use a credit
                         school students across          card to rent a club
    Kris Hart            the country. It also pro-       or clubs to try out.
                         vides innovative digital        If you like the club,
         content and platforms that support those        keep it and your
         efforts.                                        credit card will be
            Designed to enhance golf ’s long-term        charged the purchase price. If the club     within the rental period at no additional
         growth, Nextgengolf also fills a genera-        isn’t for you, you can return it and only   cost.
         tional gap by providing playing oppor-          be charged $10 for the trial. And if you      Participating manufacturers include
         tunities in urban markets that target           don’t like the first club you try, return   Titlist, TaylorMade, Callaway, Cleveland
         millennial and Gen Z players.                   it to the kiosk and you can try another     and Scotty Cameron.
            Nextgengolf has three platforms: the

6   Golf Inc.   May/June 2019
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
Drones are helping
                                                                                                                                                   make course operations
                                                                                                                                                           more efficient.

                              An eye in the sky
                              A few innovators are using drones to cut water use and pinpoint turf issues. Some
                              predict that use of the technology will grow rapidly. BY ROBERT J. VASILAK
                              Most every weekday, just before noon,           document the progress of a renovation         of an undertaking that Hauschel calls
                              Kevin Hauschel carries his drone to             project. The Secret Service has consid-       “still mostly experimental” but capable of
                              its designated launch site, attaches its        ered using them to provide “spy-in-the-       radically changing the way golf courses
                              propellers and sends an all-systems-go          sky” security for the president when he’s     are maintained. It enables him to make
                              text to a pilot more than 2,500 miles           golfing.                                      informed decisions about where and
                              away. Promptly, the drone launches and             What Hauschel is doing, however, is        when to water and fertilize, and it spots
                              begins its GPS-programmed, 20-min-              completely different. His drone is outfit-    diseases before they become visible from
                              ute flight across Meadow Club’s 18-hole         ted not only with a camera but also with      the ground.
                              golf course in Fairfax, Calif. It’s a routine   sensors and other sophisticated equip-           “I learn something new about our golf
                              that might, for some, get tedious. But          ment that can measure the amount of           course every day,” Hauschel said. “It’s
                              Hauschel, golf course superintendent at         moisture in Meadow Club’s soil and diag-      darned near bulletproof technology. It
                              the San Francisco-area club, watches in         nose the health of its grasses and plants.    allows me to stay ahead of problems.”
                              wonder. Every time his drone takes wing,        When the drone completes its mission, it         It also helps Meadow Club save
                              he sees something most other superin-           flies back to its launch site and automati-   money. Hauschel began working with
                              tendents cannot: the future.                    cally uploads the data it has collected       GreenSight in the spring of last year, and
                                 On the rare occasions when drones are        to GreensSight Agronomics, a Boston-          within months he was able to move a
PHOTO © KALYAKAN/ADOBESTOCK

                              operating at U.S. golf properties, they’re      based company that operates what it           member of his irrigation team to a differ-
                              usually making the flyovers we watch on         describes as a “next-generation agricul-      ent job. While he thinks it will take two
                              YouTube. After storms, drones might be          tural intelligence platform.”                 or three seasons to fully determine the
                              dispatched to search for downed trees,             Within hours, GreenSight digests           cost savings, he’s knows the club is get-
                              broken fences and other damage, or to           Meadow Club’s data and posts an analy-        ting a return on its investment.
                              identify holes that may not be playable.        sis, which Hauschel can access via a com-        “We know we’ve saved on water,” he
                              Superintendents sometimes use them to           puter or smartphone. The analysis is part     said. “Last year we had the hottest sum-

                                                                                                                                   May/June 2019   www.GolfIncMagazine.com   7
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
mer on record, and we had our best irri-        “If you aren’t flying,” Hauschel said,       a complete turnkey package, including
           gation efficiency ever.”                      “you’re falling behind.”                       the drone, the cameras and sensors, the
               Although drone technology has been                                                       analytics platform, the cloud-based data
           used by farms and vineyards for years,        Partnerships pay off                           storage, FAA compliance and the insur-
           it’s only slowly being adopted by golf                                                       ance. GreenSight, which has 64 U.S. cus-
           courses. Thomas Bastis, one of the PGA        While Meadow Club’s drone flights are          tomers and 11 in Canada, typically leases
           Tour’s competition agronomists, esti-         controlled by GreenSight, Hauschel             its equipment and services for $825 a
           mates that fewer than 100 U.S. golf prop-     keeps his eyes on the drone whenever           month.
           erties are deploying drones to monitor        it’s in the air. He’s obliged to because the      But most of all, Hauschel said, he
           their turf conditions.                        Federal Aviation Administration (FAA)          chose GreenSight because it offered daily
               “This is emerging technology,” said       prohibits commercial drones from flying        flights, which are crucial to reducing
           Bastis, a former superintendent of            without ground-level supervision by a          Meadow Club’s annual $300,000 water
           California Golf Club in San Francisco.        licensed pilot.                                bill. The data he receives is always up
           “People are just starting to find a comfort       When it comes to adding a drone to a       to date, so he can target areas in need
           level with it.”                               course-maintenance program, FAA cer-           instead of irrigating indiscriminately.
               Bastis said he thinks most superinten-    tification is just one hurdle to clear. The       “In California, water is gold,” he said.
           dents still view drones the way people        other major one is the expense. A drone        “This technology has the potential to
           once viewed the first airplanes, the first    like Meadow Club’s costs thousands             change how we think about irrigation.”
           automobiles and the first computers.          of dollars, and the required insurance            Water savings may be the most sig-
           They see them as curiosities that aren’t      brings an additional cost.                     nificant benefit that drone technology
           particularly relevant to their livelihoods.       Those obstacles may lead superinten-       offers to golf courses. Last year, The
           But that’s not how he and Hauschel and        dents to partner with providers such as        Toro Co. became a minority investor in
           other early adopters view them. They’re       Drone Elevations, MapGage, NexDrone,           GreenSight, and Bastis said engineers
           tapping drones for all they’re worth, and     Summit Drones and Texas Drone Co.              from all the major irrigation companies
           they believe that the rest of America’s       Hauschel considered such options, but          are testing ways to integrate their systems
           superintendents will eventually follow.       he chose GreenSight because it offered         with imaging data collected by drones.

                “Golf is played mainly on a five-and-a-half inch course
                . . . the space between your ears.”
                                                                                        –Bobby Jones

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8   Golf Inc.   May/June 2019
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
It’s possible that in the future, Toro and                 might be able to tap the full range of its             younger people accept the technology
GreenSight may integrate their technolo-                   capabilities.                                          right away. They have an affinity for it.”
gies so seamlessly that Toro’s irrigation                     GreenSight’s drones can fly autono-                    Given the golf industry’s resistance to
systems would operate autonomously.                        mously. They can be housed in canopies                 change, it’s no surprise that more super-
Superintendents would be free to tend to                   that double as charging stations, and they             intendents haven’t embraced drone tech-
other matters.                                             can be programmed to make flights auto-                nology. But in the 21st century, time
   Something similar might eventu-                         matically, weather permitting, at what-                waits for no one. Consider how quickly
ally happen in regard to the applica-                      ever time a superintendent wants them                  email supplanted snail mail, and how
tion of fungicides and pesticides. Today,                  to. Instead of watching his drone make                 digital maps have made paper maps
grounds crews often spread chemicals                       its appointed rounds, Hauschel could be                nearly obsolete. When digital tools
across entire fairways. But if a drone can                 doing something else.                                  enable people to do their jobs more effec-
identify a problem area and communi-                          But the FAA won’t let him, because                  tively, they’re adopted quickly.
cate its exact location (perhaps to a self-                it isn’t convinced that remote-con-                       “The golf courses that are using this
driving, GPS-connected sprayer), the use                   trolled drones will work as advertised.                technology are in the innovator stage,”
of chemicals could be greatly reduced.                     GreenSight has petitioned for a waiver                 Hauschel said. “We’re just learning how
   “We’re revolutionizing how mainte-                      on the regulations that prohibit autono-               to use it. We still have to prove that the
nance can be done and turfgrass can                        mous flights, and VanBuskirk hopes to                  technology works, and that’s the hardest
be managed,” said Jason VanBuskirk,                        get it sometime this year. The thing is,               part.”
GreenSight’s vice president of sales and                   he’s already been waiting for months.                     The handwriting is on the wall, how-
marketing. “Superintendents who under-                        Even without the waiver, though,                    ever. In an era when lowering the cost of
stand the data that’s being delivered can                  GreenSight expects to have 2,000 cus-                  course maintenance could spell the dif-
do more than they ever imagined.”                          tomers within the next five to 10 years.               ference between black ink and red ink on
                                                              “It’s a process,” said VanBuskirk, a                a balance sheet, operators are looking to
Overcoming obstacles                                       former superintendent. “I’m happy that                 drone technology. And a generation from
                                                           younger generations of superintendents                 now, superintendents may be wondering
One of these days, Meadow Club’s drone                     are coming into the business, because                  how they ever got along without it.

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                                                                                                                         May/June 2019   www.GolfIncMagazine.com   9
Renovation of the Year - Why golf entertainment centers are booming | Advisers of the Year - Golf Maintenance Solutions
Why everyone’s investing
in golf entertainment centers

                  Arcade-style         On a typical day, Del Mar Golf Center is        Matt Clay, general manager of the Del
                                       busy with golfers and even some non-golf-       Mar Golf Center in Del Mar, Calif., with
               driving ranges and      ers. The driving range and teaching facility    the popular new Toptracer technology
                                                                                       in use at the facility.
              high-tech simulators     has long been one of the primary training
                                       centers for golfers in the San Diego area,
              are introducing golf     including PGA Tour professionals such as        play golf, enjoy a beer. It complements our
               to new customers.       Pat Perez.                                      existing range . . . doesn’t steal from it.”
                                         But 18 months ago the facility added             Toptracer was developed to make it eas-
            But how can traditional    Toptracer, and the new technology has           ier for viewers to follow the flight of shots
                                                                                                                                       PHOTO BY STUART HANDY

                                       expanded its clientele base.                    when watching golf matches on TV. But
                golf courses take        “This is more for groups. Half of them        Topgolf, which owns the technology, has
            advantage of the trend?    won’t even be golfers,” said Matt Clay, the     adapted it for driving ranges and is quickly
                                       facility’s general manager. “It’s a different   adding facilities across the U.S. and in
                     BY JIM TRAGESER   experience. You can go with your friends,       Europe.

10   Golf Inc.   May/June 2019
“I’ve very happy with how we’ve done,”
said Clay, who installed six Toptracer bays
at Del Mar Golf Center. “We’ve been able
to expand our food and beverage ser-
vice because of the new clientele, and we
expanded our café.”
   That’s not unusual. Topgolf has 49 facili-
ties in the U.S., and many of them have set
records for alcohol sales in their areas.
   Customers are more focused on the
social experience than on improving their
golf game, prompting Topgolf to adopt the
slogan, “Creating moments that matter for
everyone.”
   It’s that wide appeal that has caught the
interest of other companies.
   ClubCorp acquired Topgolf competitor
BigShots Golf in the fall. Dave Pillsbury,
CEO of ClubCorp, said Topgolf has proved
that the model works.
   “These golf entertainment concepts have
provided the marketplace the lowest-fric-
tion environment to be exposed to golf,” he
said. “All you need is a credit card, and you
can enjoy the magic of our sport.”
   BigShots is also marketing golf simula-
tors. Companies such as TruGolf, about-         most important, new avenues to attract          BigShots gives the experience of being
Golf, Golfzon, Full Swing and SkyTrak           non-golfers to the sport.                       inside a giant pinball machine with neon
offer an extension of golf training and            Topgolf, BigShots, Drive Shack (formerly     lights and loud music, brightly colored
coaching as well as an arcade-like experi-      American Golf Corp.) and other entrants         targets and sound effects to let players
                                                                                                know when their ball has found a target.
ence translatable to non-golfing venues.        into the golf entertainment center sector
   At Del Mar Golf Center, the arcade-style     all feature some common elements: multi-
games included in the Toptracer software,       deck driving ranges, computerized scoring,      go-karts, video arcades and newer entries
such as closest to the pin, longest drive       food and beverage service and big-screen        such as rock climbing, trampoline centers
and target practice, are increasing busi-       TVs showing live sporting events.               and even ax-throwing.
ness more than serious golfers looking to          In a 2017 interview in Golf World               All of them follow the basic blueprint
improve their game.                             magazine, Topgolf ’s largest investor, Tom      established by Huish Family Fun Centers in
   “We don’t compete against the golf           Dundon, compared golf entertainment             the 1960s and boosted by Nolan Bushnell,
courses in San Diego,” Clay said. “We’re        centers to bowling centers.                     the founder of Atari, when he started
competing with the beach and other things           “What’s key is making the game acces-       Chuck E. Cheese in 1977. They combine
a family can go do together.”                   sible,” he said. “You can just show up with     food and beverage service with a variety of
                                                nothing and start playing. Other than           active entertainment options where fami-
Welcome to golf                                 bowling, I can’t think of another sport that    lies and friends can have a shared experi-
                                                offers that accessibility. I don’t think golf   ence.
entertainment
                                                was that way 10 years ago.”                        Toptracer President Ben Sharpe said
Golf, a sport grounded in centuries of tra-        Golf entertainment centers aren’t only       those examples of social entertainment are
dition, has been slow to adapt to change.       competing against each other; they’re           what his company is modeling.
But interactive driving ranges and comput-      also fighting for customers in an increas-         “What you need to do is build a business
erized golf simulators are turning that ste-    ingly crowded entertainment market, with        that’s sustainable, that gets people to want
reotype on its ear. This new technology is      established family entertainment centers        to come back again and again,” Sharpe said.
creating new revenue streams and, maybe         built around bowling alleys, miniature golf,       He said the Topgolf team is constantly

                                                                                                      May/June 2019    www.GolfIncMagazine.com   11
Topgolf customers are more                      With Topgolf, you can have eight people at
                                                           focused on the social experience                one of these stations playing a game and
                                                           than on improving their golf game,              your colleagues are in the next booth.”
                                                           which shaped the company’s
                                                           slogan: “Creating moments that
                                                           matter for everyone.”                           Simulating golf
                                                                                                           Golf simulators are a marriage of 1970s
                                                           ters have grabbed the attention of other        club-fitting swing monitors and golf video
                                                           family entertainment centers.                   games. But today’s technology offers an
                                                              “You’re going after an entertainment dol-    immersive re-creation of the golfing expe-
                                                           lar. There’s a whole world of entertainment     rience. With a 6-foot-high screen showing
                                                           out there,” he said. “Topgolf seems like        your ball heading onto a fairway, hitting
                                                           something that could be in competition.”        into a simulator comes close to the feeling
                                                              Joe Poelking is the owner of a small         of playing golf.
                                                           chain of bowling centers in southwest-             Golf is far ahead of most participatory
                                                           ern Ohio and a former board member of           sports. Only running and bicycling, with
          looking at new ways to bring in new folks        the Bowling Proprietors’ Association of         their programmable treadmills and sta-
          and to bring regulars back. In addition to a     America. He said golf entertainment cen-        tionary bikes, have realism similar to what
          wide variety of regular activities at the ven-   ters share the same traits that make family     golf simulators offer.
          ues, they present theme nights and special       entertainment centers successful.                  And the same computer software that
          programs to excite people.                          “If you go out and play a round of golf,     allows a golfer to play a simulated round
            Keith Hamilton, president of Luby              you’re looking at four or five hours,” said     at St. Andrews’ Old Course or Pebble
          Publishing, which publishes Bowling              Poelking, an avid golfer. “With Topgolf,        Beach Golf Links also allows for all kinds
          Center Management and Entertainment              [it’s] two hours. When you go out and play      of arcade-style games, such as aiming for
          Center News, said golf entertainment cen-        golf, you’re playing with three other people.   targets and longest drive contests. It can

12   Golf Inc.   May/June 2019
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  Bringing business leadership and golf expertise to
  Belfair Golf Club, General Manager/COO Ken Kosak, PGA,
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  strategy and long-term growth.

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© 2018 The PGA of America. All rights reserved.
amateur players? Pretty soon we’ll have         people in.”
                                                        networks of players, and people will want          Henry said simulators’ popularity took
                                                        to watch that.”                                 off about 15 years ago when a new genera-
                                                           He points to NBA 2K, a simulation game       tion of computers and graphics cards made
                                                        that is attracting viewers.                     a big step forward in visual realism.
                                                           “The Utah Jazz have their own gam-              Now, not only are driving ranges buy-
                                                        ing division: five-on-five NBA 2K teams.        ing his firm’s simulators but so are bowling
                                                        People go online and watch the Utah Jazz        alleys, cruise ships and family entertain-
                                                        2K team take on the Philadelphia 76ers 2K       ment centers.
                                                        team,” he said.                                    Henry said it’s in those non-golf venues
                                                           Erik Anderson, executive chairman of         that simulators have the greatest ability to
                                                        TopGolf, has said his company looks more        attract new players to golf.
                                                        like a sports league than anything else.           “They think they need to be a golfer to
                                                           “We get 80 million visits, more than any     enjoy it, but they can have fun whether it’s
                                                        other major league sport except for base-       their first time or they’re experienced,” he
                                                        ball,” he said. “We are trying to broaden       said. “It’s less intimidating than going out
                                                        that, and Topgolf has the scale and scope to    on a golf course.”
                                                        grow the game.”                                    The challenge, though, is that in some
                                                           But despite 74 million fans globally and     areas, progressive businesses have already
                                                        11 million people playing on Toptracer,         cornered the market.
                                                        Anderson still worries about the competi-          Last summer, Mike Wieck and his fam-
                                                        tion.                                           ily purchased two 9-hole tracks in Grand
                                                           “Most people worry about their big com-      Island, Neb. He said they looked at install-
                                                        petitors,” he said. “What keeps me up at        ing simulators to provide an option during
                                                        night is, ‘How do I get kids off Fortnite?’”    the winter when the courses were closed.
                                                           Anderson believes in golf ’s social inter-   But nearby was Bearded Buffalo Golf, an
                                                        action and the act of hitting something.        indoor facility with three aboutGolf simu-
          Dave Pillsbury, CEO of ClubCorp, said
                                                           “Topgolf aspires to be a brand that you      lators.
          ClubCorp acquired BigShots as part of
          its strategy of growing the sport.            can’t live without,” he said. “We are trying       Nick Papke, owner of Bearded Buffalo,
                                                        to put golf at the center of this connected     said he had been looking for an opportu-
                                                        sports and entertainment place.”                nity to start his own business, and the golf
          even provide live, head-to-head competi-         Topgolf backed that up with its 2016         simulator facility filled a niche. He said his
          tion over the internet with players spread    acquisition of the multiplayer online           first year was busiest during the cold winter
          around the world.                             World Golf Tour game for PCs and mobile         months.
             Some simulators can be converted to        devices. And the company announced at              “Not being a part of the golfing commu-
          other sports. Soccer, baseball and hockey     the 2019 CES Consumer Technology Expo           nity made me a little nervous,” he said. “But
          players can practice kicking, pitching and    that the first Topgolf Lounge virtual gam-      they have welcomed me to the industry. I
          shooting with systems from TruGolf and        ing nightclub will open outside Seattle later   have had multiple owners and pros from
          High Definition Golf.                         this year.                                      courses in and around Grand Island come
             TruGolf and aboutGolf both began their                                                     in to play.”
          corporate lives as publishers of golf video   Growing golf                                       Bearded Buffalo is hardly alone. Both
          games for home computers, and that gam-                                                       aboutGolf and TruGolf have sold simula-
          ing heritage is coming to the fore in their   Some people say the golf industry has           tors to standalone simulator venues across
          latest models.                                reached a tipping point in regard to simu-      the country.
             Mason Jones, brand manager for             lation technology and gaming.                      Golf entertainment centers and simula-
          TruGolf, said his company is looking to          “It’s now something you have to have         tors are big and shiny. But the question for
          online games such as Fortnite for inspira-    to compete,” said Randall Henry, CEO            the golf industry is how – or if – they will
          tion.                                         at aboutGolf. “People expect to have            affect the business of golf.
             “No one probably wants to watch some-      an indoor experience. The outdoor golf             Pillsbury said the whole point of
          one play click golf ” on a video game con-    course shouldn’t look at it as competition      ClubCorp acquiring BigShots was to grow
          sole, he said. “But what if you have good     but look at it as an additional way to draw     the sport.

14   Golf Inc.   May/June 2019
Tech for the
serious golfer
Sean Mehaffey is a Toptracer regular at
the Del Mar Golf Center for two reasons:
the experience of using the technology
and the data it gives him for his game.
   A serious golfer, Mehaffey uses his
Toptracer cell phone app to enter which
clubs he hits and the number of shots.
The cameras and software then track
each shot. The relevant information is
displayed on widescreen monitors, along
with a visual representation of the balls’
flight, and it calculates an average distance
for each club used.
   “Where else do you get numbers like
this?” he asked. “Where else do you get
this feedback?”
   After warming up for a few minutes, he
set the Toptracer device to simulate holes
at Spyglass Hill Golf Course. He was still       have landed, and showed him what his               Mehaffey said he finds the natural play-
on the driving range in real life, but the       second shot would look like.                    ing rhythm of hitting a drive, then hitting
widescreen monitor to one side showed              “Normally [on a driving range], you’d         a fairway wood or long iron, followed by
him a simulated view from the first tee          hit your driver 10 times, then your irons,”     an approach shot, is a much better way to
box at Spyglass. After he hit his drive, the     he said. “When will you ever do that on         practice golf than just hitting a bucket of
software calculated where the shot would         the golf course?”                               balls.

   “The published data from Topgolf is that      themselves bowling entertainment centers.       young adults and older teens, but that they
52 percent of the customer base is inter-           Hamilton, who publishes Entertainment        may want to expand their marketing down
ested in learning more about golf,” he said.     Center News, said golf entertainment cen-       the road.
“Those folks would not normally set foot         ters may need to offer more than just golf         “I think eventually they will aim for
into a regular golf facility. There’s too much   to thrive long term.                            families,” Maredia said. “You don’t need to
friction. Our goal is conversion, ultimately,       “If you’re going to build a center, you’re   know golf. You can just pick up a club and
to membership. It’s a funnel, and the top of     going to build it with the (family entertain-   start swinging.”
the funnel just got a lot bigger.”               ment center) in mind,” he said. “We are            Pillsbury said the entire golf entertain-
                                                 not seeing any traditional bowling alleys       ment concept, both the interactive driving
Branching out                                    being built. They’re building it with (family   ranges and the simulators, are very much
                                                 entertainment centers) in mind. It’s like an    in flux, and things are changing rapidly.
As aboutGolf ’s Henry points out, simula-        entirely new industry sprung out of an old         “It’s a little bit like the wild West,” he
tors are increasingly allowing golf to reach     industry.”                                      said. “There’s a rush going on. It’s great for
beyond the golf course or driving range.            Nuresh Maredia wrote a recent white          consumers, and it’s great for golf. There
  Golf simulators are starting to show           paper on entertainment centers for Hotel        are several competitors in the space, and
up in family entertainment centers and           & Leisure Advisors. He said that golf enter-    everyone’s moving quickly to tie up mar-
at bowling alleys, which are now calling         tainment centers are catering primarily to      kets. It’s an interesting time.”

                                                                                                       May/June 2019     www.GolfIncMagazine.com   15
Ownership & Management

                                                                                                   TROON recently closed another big
                                                                                                   deal, acquiring OB Sports. From
                                                                                                   left are OB Sports COO Phil Green,
                                                                                                   Troon CEO Tim Schantz and OB
                                                                                                   Sports President C.A. Roberts III.

                                                                                                   division where they can do projects like
                                                                                                   bunker renovations on an in-house basis.
                                                                                                   That’s intriguing to us.”
                                                                                                      Most of OB’s courses are in the West
                                                                                                   or Midwest. It manages two outside the
                                                                                                   U.S.: Royal Blue Golf Club in Nassau, the
                                                                                                   Bahamas; and Dumbarnie Golf Links in
                                                                                                   Scotland.
                                                                                                      Green Golf Partners strengthens Troon’s
                                                                                                   presence in the Midwest. The company
                                                                                                   is based in Indianapolis and has courses
                                                                                                   in Illinois, Indiana, Iowa, Wisconsin and
                                                                                                   Florida. Matt McIntee, a former executive
                                                                                                   with Crown Golf, founded the company
                                                                                                   in 2011.
                                                                                                      “The addition of Green Golf Partners,
          SALES RECAP                                                                              combined with Troon’s existing portfolio

          Troon acquires OB Sports                                                                 in the Midwest, will serve as the catalyst
                                                                                                   to opening a new Troon office in Chicago,
                                                                                                   designed to service current and future cli-
          and Green Golf Partners                                                                  ents throughout the region,” Schantz said.
                                                                                                      McIntee and other Green Golf Partner
          Troon, the world’s largest golf manage- advance and grow with Troon,” Green              execs will continue to serve their exisitng
          ment company, has added to its heft by said. “Troon’s resources, combined with           client base.
          acquiring OB Sports and Green Golf the company’s worldwide marketing                        These latest deals follow Troon’s
          Partners in separate transactions. With reach, will help our existing clients while      acquisition of Boston-based RealFood
          the additions, Troon provides managed also providing a wonderful opportunity             Consulting in February and the July 2018
          services to more than 475 18-hole-equiv- for our OB Sports associates to grow and        purchase of Cliff Drysdale Management,
          alents at 450-plus locations around the prosper.”                                        the nation’s largest tennis management
          world.                                         OB Sports had been looking for a way      company. Troon previously acquired
            OB Sports was the ninth-largest man- to allow Vincent to retire and leave with         Honours Golf and Caddiemaster.
          agement company with more than 70 golf his equity. Troon was looking for a way to           Schantz said the deals were driven by
                                                 Tam O’Shanter
          courses at the time of the acquisitionCountry
                                                   on expand
                                                        Club its offerings.                        the caliber of people.
          April 1. Green Golf Partners operated 18       Troon CEO Tim Schantz said OB Sports         “One strategy we have is building a
          public and private courses in five states fills several niches at Troon that were pre-   company that’s filled with great talent and
          when it was acquired on April 30.            viously not strengths.                      great people, making sure you have the
            OB Sports will continue to operate           “They do more daily fee and certainly     best talent to deliver your management
          under its existing brand. Phil Green, have more municipal locations than we              services,” he said.
          chief operating officer of OB Sports, and have inside the broader Troon brand,” he          Schantz, who took over as CEO of
          C.A. Roberts III, president, will remain said. “They’re in the Pacific Northwest in      Troon on April 1, said OB Sports and
          in their roles. Both were principals of the a really heavy way, which is an area we’re   other Troon brands will not bid on the
          company along, with Orrin Vincent, who not in but are interested in. They do some        same contracts, as business development
          founded OB Sports in 1972.                   maintenance-only contracts. They have       efforts will be coordinated. OB Sports will
            “We are truly excited about the new some things that weren’t exactly where we          maintain its office, which is across the
          collaboration and for the opportunity to were focused. They have a construction          street from Troon’s corporate office.

16   Golf Inc.   May/June 2019
Arcis closes deal for                        Blake Walker, who continues to lead the
    Dominion’s five remaining                    company as CEO. It began by acquiring
    courses in Texas                             the three courses of BrightStar Golf, and
                                                 after a series of individual course pur-
    Arcis Golf in April purchased Dominion       chases, bought CNL Lifestyle’s 46 clubs in
    Golf Group’s remaining properties, pick-     September of 2014.
                     ing up five new Texas          Dominion was founded in May 2006
                     courses. The acquisition    by Steven Held and was headquartered in
                     brings Arcis’ total port-   Austin. Its portfolio grew to six clubs at one
                     folio to 70 courses.        point, but Dominion sold one of its prop-
                        The newly acquired       erties, Bridlewood Golf Club in Dallas, to
                     courses are Onion           Advance Golf Partners in 2017.
                     Creek Club, River Place
                     Country Club and Twin       Paul Allen course sells for
                     Creeks Country Club
Blake Walker         (all in the Austin area),   $11.3 million                                     Willows Run Golf Complex
                     along with Lantana          A multicourse golf center co-founded              Redmond, Wash.
                     Golf Club in Dallas and     and developed 25 years ago by the late
    Dominion Country Club in San Antonio.        billionaire Paul Allen was sold in March.        Complex in Redmond, Wash., to Sasada
      Arcis Golf was founded in 2013 by            Access Golf sold the Willows Run Golf          Sports International for $11.3 million.

                       www.golfappraisers.org
         The SGA/Society of Golf Appraisers (SGA) is a non-profit organization. SGA members
         provide comprehensive advisory & valuation services, educational programming, and
         informative publications to the golf industry. For more information about our members
         and the SGA, visit www.golfappraisers.org.

                                                                                                       May/June 2019   www.GolfIncMagazine.com   17
PHOTO BY DAVE SANSOM/COURTESY OF TROON
            Access Golf is a subsidiary of Vulcan
          Inc., the holding corporation that man-
          aged Allen’s business and charitable
          interests before he died last year.
            Allen, a co-founder of Microsoft, and
          his former brother-in-law, Brian Patton,
          bought the 296 acres on which the club
          was built for $1.5 million in 1993.
            Mike Whitton, the San Diego managing
          partner for Troutman Sanders LLP, repre-
          sented Sasada Sports in the deal. Whitton
          said the purchase was being negotiated
          with Vulcan last year before Allen passed                                                                       The Standard Club
          away.                                                                                                           Johns Creek, Ga.
            Willows Run includes two 18-hole
          courses, a 9-hole par-3 course, a miniature
          golf course and two clubhouses.                 MANAGEMENT RECAP

          N.J. township spends                            n Billy Casper Golf (BCG) has been            by Arthur Hills and opened for member
                                                          hired to operate the city-owned Stonetree     play in 1987. Golf course architect Mike
          $11.2M on country club                          Golf Club in Killeen, Texas, the second       Riley redesigned the course in 2005.
          The former Rock Spring Country Club has         Texas course for the Virginia-based com-
          been purchased by the township of West          pany.                                         n KemperSports has finalized a man-
          Orange, N.J., for $11.2 million.                  Under a five-year deal, the city will       agement contract with the Oneida Nation
             The acquisition will keep the 138-acre       pay BCG $90,000 annually to run daily         to manage the tribal-owned Thornberry
          site as open space — with the 18-hole golf      operations at the 7,200-yard, par-72          Creek at Oneida in Green Bay, Wis. The
          course open for public play for at least two    course, with additional bonuses offered       27-hole property is the official course
          years. It will be financed with a $12 million   for meeting certain performance               of the Green Bay Packers and hosts the
          bond sale.                                      thresholds.                                   Thornberry Creek LPGA Classic.
             Rock Springs Country Club merged with          The course has had an average annual          Thornberry Creek includes a
          Montclair Golf Club three years ago, and        operating loss of $318,000 during the         68,000-square-foot clubhouse with a
          earlier this year the unified club decided to   past five years, according to local media     sports pub and grill and multiple ban-
          sell the Rock Spring property.                  reports.                                      quet venues.
             Township         officials  have     hired
          KemperSports to run the course as a pub-        n Troon Privé signed deals to man-            n The owner of Royal Manchester Golf
          lic track for the next two years while long-    age two private clubs in Kentucky and         Links in Mount Wolf, Pa., has hired
          term plans for the property are determined.     Georgia. Hunting Creek Country Club           Brown Golf to run the course.
                                                          near Louisville, Ky., opened in 1964,           Royal Manchester is the fourth prop-
          OTHER SALES                                     with the initial track designed by a club     erty Brown has added to its portfolio in
          n     A group of current and former             member. The course was updated by             the past 15 months. It now operates 28
          members of Cleveland Country Club               Arthur Hills in 1989, with a full reno-       courses.
          purchased the Shelby, N.C., club. The           vation by Spencer Holt in 2010. The             John Brown, CEO of Brown Golf, said
          sale price was not disclosed. The mem-          club became member-owned in 1972              the firm plans immediate upgrades in
          ber group formed a nonprofit entity to          when the members purchased it from            the course’s booking technology to allow
          acquire and run the club.                       its founding partners, V.V. Cooke and         for text-based and web chat booking, as
                                                          Paul Semonin.                                 well as interactive voice booking.
          n The Walton County, Florida Board                 The Standard Club, a private club in the     The par-72 course is owned by Talen
          of County Commissioners in March                Atlanta suburb of Johns Creek, Ga., was       Energy. It was designed by Timothy
          approved the purchase of the 192-acre           founded in 1867 and relocated in 1987         Freeland and opened in 2010. It is 20
          DeFuniak Springs Country Club, a pri-           to its current north-Atlanta address. The     miles from Brown Golf ’s corporate
          vate club, for $48,000.                         club’s 18-hole golf course was designed       headquarters in Camp Hill, Pa.

18   Golf Inc.   May/June 2019
Golden Fork Awards
                                                                    2019

STONE & BARREL IronOaks at Sun Lakes
2019 GOLDEN FORK WINNER

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                                                                                                                $8M
          Moving toward
          a seller’s market
          Prices are gradually rising, which could slow redevelopment of golf course land.
          BY JIM TRAGESER

          It wasn’t too long ago that bargain seek-          “The typical buyers are looking for prop-   appreciably improved,” Main said.
          ers were scooping up golf clubs and that        erties that are either seasoned – that have      He said 2019 should be about the same
          developers were converting courses into         a stabilized property with $4 million in       for investors as 2018.
          residential lots. While there are still some    gross revenue or above – or upside down          Larry Hirsh, president of Golf Property
          bargains to be had, the market is shifting in   properties that are mismanaged and can be      Analysts and a member of SGA, said he,
          favor of sellers, albeit very slowly.           turned around,” he said.                       too, sees a calm year ahead.
             The capitalization rate strengthened in         Doug Main, executive vice president of        “Gross revenue multiples and cap rates
          2018, with an average cap rate of 10.1 per-     the real estate services firm CBRE, pre-       and things like that are still fairly stable,
          cent, compared to 10.6 percent the prior        pared the annual golf course sales survey      and it just depends on how a property is
          year, according to an annual survey by the      for SGA. He said there is a slight increase    performing,” Hirsh said.
          Society of Golf Appraisers (SGA). The net       in what buyers are paying compared to a          He cautioned against relying on reports
          income multiplier also improved, moving         course’s earning potential. He emphasized      that list average or mean prices for golf
          from 8.2 to 8.6.                                that conditions remain quite strong overall,   course sales.
             Earning potential is the strongest fac-      with the average income growth rate of 2.9       “That’s a very deceptive metric,” he said,
          tor in determining what a buyer is will-        percent outpacing the expense growth rate      “because it doesn’t really measure the com-
          ing to pay, said Ralph Brekan, a real estate    of 2.3 percent.                                mon denominators.”
          appraiser with the Brekan Nava Allen               “Golf has struggled for a number of           Reported sale prices can vary wildly year
          Group.                                          years, but over the past few years it has      to year depending on what is on the mar-

20   Golf Inc.   May/June 2019
SGA Survey of Golf Course Financials                                                            The township of West Orange, N.J., in April
                                                                                                purchased the Rock Spring Country Club
                                                            2019                2018            golf course, which had closed after the
                                                                                                club merged with Montclair Golf Club, for
Overall Capitalization Rate (Avg.)                         10.1%               10.6%            $11.2 million. The township reopened the
Net Income Multiplier (Avg.)                                 8.6                 8.2            Seth Raynor design this spring under the
                                                                                                management of KemperSports.
Discount Rate (Avg.)                                       14.0%               14.1%
Income Growth Rate (Avg.)                                   2.9%                2.8%
                                                                                                community resistance to the redevelop-
Expense Growth Rate (Avg.)                                  2.3%                2.6%            ment of golf courses – resistance that is
Marketing Period (Avg.)                                   9.5 mos.            9.3 mos.          likely to factor into the decisions of inves-
Broker Sales Commission (Avg.)                              4.4%                3.9%            tors who are considering buying courses
                                                                                                for conversion to other uses.
Loan-to-Value (Avg.)                                       66.1%               67.0%
                                                                                                   “There is more of a pushback from
Interest Rate Range                                      5.0-12.5%           5.0-13.0%          homeowners,” Main said. “They realize
Interest Rate Average                                       7.5%                7.3%            there’s going to be a loss in their value” if
Amortization Period (Avg.)                                21 years            20 years          the neighboring course is developed.
Source: Society of Golf Appraisers
                                                                                                   In cases where golf courses were built
                                                                                                as part of residential communities with
ket, he said.                                                                                   surrounding homes, homeowners are
  Hirsh said cash flow becomes the deter-       want to maintain the property and prevent       fighting conversions, arguing that the
mining factor of the price at $3 million-       it from being developed.                        course was an implied amenity tied to the
plus.                                              “There’s one that was purchased in           original sale. Brekan said that last year a
  Brekan said there is some disconnect,         eastern Pennsylvania within the last six        developer lost his bid to build on a course
with potential sellers wanting more for a       months that the municipality went in and        even though there were no covenants or
property than it’s worth. But in the end, he    bought for a lot more than it was worth as a    zoning to prevent it. The neighboring
said, if owners want to sell, they are lower-   golf course,” Hirsh said. “They’re trying to    homeowners argued that since the golf
ing their asking prices to market value in      preserve open space.”                           course had been built as part of the resi-
order to move the properties. He said few          Main said municipalities have access to      dential community, there was an implied
potential sellers are holding back and wait-    capital and they have residents with strong     contract to maintain the course, and the
ing for rates to rise.                          opinions.                                       court agreed.
  Main said the vast majority of sales              “A municipality looks at it as a form of       Brekan said the courses that can be
are at the lower end of the market, what        recreation . . . a service,” Main said. “It’s   redeveloped most easily are those not sur-
he called “mom and pop” operations –            cheaper to do it this way than to build it.     rounded by housing developments.
courses that sell for less than $3 million.     The person operating it now may not be             But Main said economic pressure to
He said a purchase of this type isn’t nec-      breaking even, but a municipality can           pursue conversion can still outweigh com-
essarily profit-driven. It may be a vanity      lower fees and spend less on quality and        munity resistance. In regions where the
purchase, the chance to own a golf course;      get more quantity.”                             housing market is tight and open land is
or it may be a desire to save a beloved            He said some communities are willing to      scarce, the pressure to convert a struggling
course from closing.                            run a golf course at a loss in order to pro-    course to residential use can be strong.
  Both Hirsh and Main have seen city and        vide an amenity for the community.                 “It’s not a trend, but it is top-of-the-mind
county agencies step in to do just that. They      There is also an increasing amount of        at every course,” he said.

                                                                                                       May/June 2019    www.GolfIncMagazine.com   21
Ryan Doerr
                                                                              President/Owner
                                                                       Strategic Club Solutions

                 Advisers Year                           of
                                                         the
                           Whether helping a club revitalize its slumping
                           membership, turning around a struggling F&B
                      operation or guiding a course owner through a complex
                                                                                              PHOTO BY KAT SCHLEICHER

                        financial transaction, these outstanding consultants
                              have made a difference for their clients.
                                  BY JIM TRAGESER AND KEITH CARTER

22   Golf Inc.   May/June 2019
Lots of things can go wrong at a golf facil-    what to do? Turn to experts for help. That’s   said the board interviewed three consult-
ity. But most problems fall into one of two     what both La Crosse Country Club and the       ing firms before deciding on Strategic Club
categories: a management or operations          city of Alameda did, and the end results       Solutions, headed by Ryan Doerr.
challenge or a physical facilities challenge.   were far better than they could have imag-       “We needed someone who was third-
   Fixing such problems is often far more       ined.                                          party, separate from the local community,
challenging than identifying them. And             That’s the power of a good consultant.      who could be objective and honest with
for many operators, the solution is outside        To identify this year’s top consultants     our comments and concerns,” Sahlstrom
their area of expertise.                        and advisers, Golf Inc. asked readers to       said.
   For example, at La Crosse Country            nominate experts who went above and              Part of the challenge was that the club-
Club in Wisconsin, membership rolls             beyond to help them meet their challenges.     house manager, the course superintendent
were shrinking and revenues were flat.          We narrowed the list down to seven.            and the head pro all reporting directly to
The board of directors wasn’t sure how to                                                      the board.
address either issue.                           Ryan Doerr                                       “They knew something wasn’t right, but
   Across the country, the city of Alameda,     Strategic Club Solutions                       couldn’t quite put their finger on it,” Doerr
Calif., faced a different challenge at its                                                     said. “At the end of the day, nobody was
Corica Park golf complex. Its courses           When board members at La Crosse                really managing the club. The board had
were showing their age and needed major         Country Club were trying to develop a          taught management to do as they’re told.
improvements. But city officials faced seri-    strategic plan to address declining mem-       The board was kind of reacting, because
ous financial pressures, primarily because      bership and revenue, they realized they        there wasn’t a plan.”
of the cost of reclaimed water.                 needed help.                                     Doerr helped the board understand the
   So what do you do when you don’t know           Tom Sahlstrom, a longtime member,           value of a strategic plan and the value of

                                         La Crosse Country Club in Wisconsin sought a third-party consultant independent from
                                         the local community to provide an objective, honest evaluation of members’ comments
                                                     and concerns. Club officials chose Strategic Club Solutions for its expertise.

                                                                                                     May/June 2019    www.GolfIncMagazine.com   23
about the club and what they wanted to see   reduced the cost by $18,000 a year, and not
                                                          improved?                                    one member noticed the change.
                                                            “The survey laid out the members’ opin-      In evaluating the club’s labor cost,
                                                          ion of where we can use some help,” Doerr    he found it was paying for more than
                                                          said. “We weren’t handing the keys over to   2,500 hours of overtime annually. After
                                                          the GM to do what he wants; we had a plan    Holtzman completed a labor analysis and
                                                          together.”                                   educated the Pelican Bay team on labor
                                                                                                       management, overtime was reduced to just
                                                          Mike Holtzman                                45 hours for the entire year of 2018.
                                                          Profitable Food Facilities                     The kitchen layout also had hampered
                                                          Worldwide                                    the club. On busy days members had to
                                                                                                       wait up to 45 minutes for their food. After
                                                          For many golf and country clubs, food &      a minor $20,000 remodel recommended
                                       Holtzman           beverage operations are one of the great-    by Holtzman, serving times on busy days
                                                          est expenses. But Mike Holtzman’s firm,      were reduced to an average of 20 minutes.
                                                          Profitable Food Facilities Worldwide, has
          having a strong GM to lead and manage           been advising and consulting clubs on F&B    Dean Wochaski &
          staff.                                          for more than 28 years. He knows not only
             He also helped with a GM search, bring-      how to keep costs under control but also     Bill Nauroth
          ing in R. Steve Watson, first on an interim     how to increase revenue and design kitch-    Golf Maintenance Solutions
          basis and then permanently.                     ens for maximum efficiency.
             Now, a year later, the club has seen its        One of his most successful assignments    It’s all about the team at Golf Maintenance
          membership grow, and food & beverage            was this past year at Club Pelican Bay in    Solutions (GMS). Dean Wochaski, founder
          income is up.                                   Naples, Fla. Holtzman was brought in to      and co-president, is quick to share credit
             Doerr said the strategic plan the board      review food and labor costs and to evalu-    for the company’s success with partner Bill
          adopted put an emphasis on the basics,          ate the kitchen operation. The goal was to   Nauroth and consultants Stephen Schendel
          such as ensuring that members know how          improve the numbers and speed up service.    and David Downing II, both part of the
          they can refer a potential new member.             He reviewed food-cost data for the        executive team.
             “Sometimes [members] don’t know how          club’s 350-seat restaurant and found that        All are former superintendents with
          to go about it, even if they’re confident and   while french fries was the most-purchased    many years of experience, which Wochaski
          proud in their club,” he said.                  item on the menu, the club was spend-        said provides valuable insight for clients.
             Watson said the strategic plan Doerr         ing $40,000 annually to make those fries.    And that experience, coupled with an
          helped craft emphasized social use of the       Holtzman revamped the specifications and     emphasis on balancing strong agronomic
          club grounds, even in the off-season.
             “Basically, food & beverage was shut
          down in the winter,” he said.
             The club converted the grill into a white-
          linen, candlelit dining area, which contrib-
          uted almost $40,000 in revenue last year.
          And the club has staged a variety of new
          events, such as cross-country skiing, bour-
          bon tastings, wine tastings and an indoor
          putting championship.
             “Anything we can do to keep the mem-
          bers in the habit of thinking, ‘We’ll go to
          the club first,’” Watson said.
             Doerr said the key to getting the board’s
          buy-in and support was to engage the
          membership in the process. The first step
          was to conduct an in-depth survey of the          Wochaski                                                                  Nauroth
          membership to find out what they liked

24   Golf Inc.   May/June 2019
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