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Certainly the hot topic of the day is "entrance fees" at private golf clubs.  It's a mighty big issue and one which could and should change the landscape on how private clubs operate for evermore.  To begin, it is no secret the game of golf has been contracting for the past decade.  Rounds are down, membership enrollments especially at private clubs have weakened and balancing revenues to expenses at all facilities has gotten to be a very tough equation.  The hard reality is blending rising costs with declining revenues...a nasty recipe indeed!

It goes without saying, growing a membership is not an easy nor simple task, especially in slow economic times.  Lots of factors come to bear, from age demographics to course appeal, to golf course conditioning etc. etc.  It's all about the net number, are you attracting and retaining more folks than you are losing?  A tough assignment indeed!   

I spoke recently with a Director of a local private club and he framed the problem very succinctly; our membership enrollment has weakened and we need to grow our membership ranks.  The dramatic changes we have made in our initiation fee has attracted nearly 75 new enlistees; I agree, it's tough to argue with that success. Nevertheless, short term happiness can sometimes be misleading.  I worry such radical measures may in fact be more radical than needed.  I must ask too...how are other neighbouring clubs going to react?  Also it should be noted, do these changes alter the structural dynamic of the

membership population itself, especially when there is such a significant divergence in initiation fees having been paid by fellow members...only time will tell.  Certainly, on a positive note, perhaps the best aspect of these changes is the "degree of affordability" to a greater amount of golfers.   

                                                         Interesting golf promo in the UK

So it's really very simple...golf clubs need a steady "cash flow" to thrive, and a growth in monthly dues is basically the primary fix that will work to cover operating costs.  It should be noted historically most dollars directed to initiation fees are usually ear marked for capital projects.  That being said, I would think most capital projects (like course and clubhouse improvements) will be shelved or postponed for another day.  From where I see it, all private clubs (in my town) currently have 1st class presentations. 

Anyhow, hats off to the boards who have been pro-active in addressing this most difficult issue.  It's a very tough decision and as always not all folks will be happy!  Nevertheless, time will only tell as to it's success or failure.  Be assured this is not a local issue, but a world wide phenomena.  Times are changing laddie!  Good luck to all! 

I have attached a couple of interesting articles on the subject... (please click)  

Saying goodbye to golf clubs' hello money

Golf's private clubs drive to survive