Loading...

Sunday, December 29, 2013

The Year That Was, december 29, 2013


Part 1: Of Mice & Men

     After crunching numbers with statisticians from Clarkson University, in 2013 Barney Adams concluded that golf participation in the United States will fall dramatically -- perhaps by as much as 50 percent -- over the next 30 years or so. “The long-term forecast stinks,” said the founder of Adams Golf. Adams’ prediction has been dismissed by golf’s institutional powers, but a question lingers: What if he’s right? Because if he is, the implications for golf are grave. Today we bemoan the fact that we have only about 25 million golfers. Would you like to try on 20 million for size? Do you think we could squeeze into a 15?

      You know you’ve reached the pinnacle of your profession when you can claim commissions from both Mike Keiser and Donald Trump. And that’s only part of what Bill Coore and Ben Crenshaw did in 2013. On top of agreeing to design tracks for Keiser in Wisconsin and Trump in Virginia, Coore & Crenshaw broke ground on a layout in Nova Scotia, worked up a routing for a PGA Tour-worthy track in Texas, and saw its course in China crack Golf magazine’s top 100.

     While most other golf developers remain curled up in the fetal position, the nation’s most courageous developer continues to thrive. Mike Keiser announced a sixth course for Bandon Dunes, mused about creating a Bandon-like complex on a mystery site north of the existing resort, outlined plans to build “the Pine Valley of the Midwest” in Wisconsin, broke ground on a second course at Cabot Links, and secured approval for the pseudo-municipal complex he aims to build south of Bandon Dunes. When does he get his career achievement award?

     As the demand for “lifestyle” golf has waned, celebrity and “signature” architects have scrambled to find new sources of income. In 2013, Jack Nicklaus agreed to put his name on sunglasses, golf balls, and a line of apparel produced by Perry Ellis International. PEI asserted that its contract would “take Jack’s legacy to the next level,” but that’s true only if the next level is a step down.

     Why is George O’Grady still the CEO of the European Tour? If O’Grady truly believes that “any hint” of racism “has no place on the European Tour,” he should have disciplined Sergio Garcia for making Tiger Woods the butt of an offensive joke about fried chicken. Even a short, ultimately meaningless suspension would have signaled that the business of professional golf takes this issue seriously. Instead, O’Grady forgave and forgot, ensuring that golf’s darkest proclivity would live on. Is it any wonder that golf has trouble attracting minorities?


     At the age of 77, Gary Player became the oldest athlete to pose nude for ESPN the Magazine.

     In 2013, Donald Trump enhanced his reputation as a golf developer with few peers. He wrapped up his overhaul of the Blue Monster at Doral, gave the green light to his second course in Aberdeenshire, completed the major construction at the city of New York’s layout in Ferry Point Park, broke ground on a Gil Hanse-designed track in Dubai, proposed to build a Coore & Crenshaw course in Virginia, and floated an idea for a third company-owned course in New York. If he hadn’t wasted so much time tilting at Scottish windmills, he might have achieved even more.

Part 2: The Good, the Bad & the Ugly

     In 2013, only 119 years after it was established, the U.S. Golf Association figured out that slow play is bad for golf.

     The PGA Tour rendered its verdict on anchored putting, revealed plans for TPC Shanghai, and, most importantly, identified new worlds to conquer. The new worlds are in Europe and Asia, as Tim Finchem and his fellow empire builders initiated efforts to take control of the financially drained European Tour and decided to underwrite 12 events in China beginning in 2014. Since they already control the Canadian Tour and PGA Tour Latinoamerica, it’s easy to see the broad outlines of a World PGA Tour taking shape. And yes, Greg Norman is justifiably steamed.

     It was bad enough that Sergio Garcia made a self-acknowledged “totally stupid” joke about serving fried chicken to the only African-American golfer on the PGA Tour. What made it worse was


that he went over to the dark side at a big dinner party attended by virtually every VIP in golf, and not one of them raised a public stink. This sad incident is no laughing matter, because the joke is ultimately on us.

     As part of an effort to provide its sports network with live programming, in 2013 Fox Sports purchased the rights to broadcast the U.S. Golf Association’s national championships, including the U.S. Open, the U.S. Women’s Open, and the U.S. Senior Open. The price, according to Golf Digest, is $93 million a year for 12 years, a windfall if there ever was one. If things don’t get better for golf pretty darned soon, the USGA’s only excuse will be a poverty of ideas.

     By becoming an advisor to China’s national golf program, Greg Norman found yet another way to market himself. In related sports news, Dennis Rodman became an advisor to North Korea’s national basketball program.

     In an attempt to shore up its bottom line, ClubCorp went public. The nation’s largest owner of private golf properties raised $252 million, money that it’ll use to retire some of the debt that’s slowed its growth.

     The First Tee concluded a fundraising campaign that raised more than $100 million, money that will enable it to teach its “core values” to 10 million children by 2017. Unfortunately, the self-proclaimed “force for good in today’s society” has failed to grow the game, as today our nation has fewer junior golfers (2.5 million) than it did in the mid 1990s (2.8 million), before the group was created.

     In 2013, Pacific Links International established itself as a force that U.S. golf can’t ignore. The Chinese-Canadian company added to its U.S. portfolio by purchasing its first course in California and agreeing to buy its third in Las Vegas, and it inked a deal to provide its vacation club members with access to more than two dozen properties in the PGA Tour’s TPC network. And more growth is on the horizon, because within three years the company aims to offer its members an international stable of 200 properties.

     An estimated 200 golf properties changed hands in 2013, and three of the transactions can legitimately be described as blockbusters. The government of Singapore’s investment arm reportedly paid $1.5 billion for properties that include PGA West, La Quinta Resort & Club, and the Great White track at Doral. Omni Hotels & Resorts picked up five top-of-the-market resorts, among them the Homestead in Virginia, Barton Creek Resort & Spa in Texas, and La Costa Resort & Spa in California. And, in a deal that was scheduled to close by the end of the year, Arcis Equity Partners agreed to buy American Golf Corporation, which owned close to 100 U.S. properties.

     Despite complaints from a surprisingly small number of architects, in 2013 the Old Course at St. Andrews was renovated. So far, the modifications don’t appear to have damaged the layout’s standing with critics or its ranking among the world’s elite.

     The long-simmering debate over men-only golf clubs came to a boil in Scotland, as the nation’s top government official refused to attend the Open Championship in protest of Muirfield’s discriminatory membership. In response, the Royal & Ancient promised to reconsider its practice of awarding golf’s premier championship to all-male clubs such as Muirfield, Royal Troon, and Royal St. George’s. That was in August. The R&A still hasn’t announced its decision.

Part 3: Words of Wisdom

    “If golf were invented today, it would be a nine-hole game.” -- Jerry Tarde, Golf Digest’s editor in chief

     “We’re scared to open our mouths in case we say something that isn’t kosher in 2013. Somebody should tell us what to say, because no one is quite sure what’s right and wrong.” -- Colin Montgomerie, in defense of Sergio Garcia

     “We believe food is going to be the new golf” -- Davis Senza, the CEO of Cliffs Communities’ new management group

Part 4: Lies, Damned Lies & Statistics

     The number of U.S. golfers continues to fall, though the pace of the decline has eased. According to a brief from Pellucid Corporation, the golf industry lost nearly 2 million players in 2011 and 400,000 in 2012. Pellucid estimates the total number still standing is something over 24 million, while the National Golf Foundation counts 25.3 million.

     In 2013, U.S. golf courses didn’t get the weather-related bump they got in 2012. Through September, the number of rounds played nationally was down by 5.2 percent, and the National Golf Foundation suggests that the industry will record a 4 percent decline at year’s end.

     The hottest golf market on earth is no longer churning out courses the way it used to. In China, 52 new courses opened in 2010, 45 in 2011, and 39 in 2012, according to figures provided by Forward Management Group. The Chinese deserve credit for opening roughly 600 courses since 1984, but at the current pace the nation’s inventory won’t hit 1,000 until 2023.

     If a Canadian group’s calculations about net worth are accurate, Arnold Palmer and Tiger Woods are, among golfers, in a class of


their own. Palmer is worth $675 million, according to The Richest, while Woods is worth $600 million. Greg Norman checks in at number three ($300 million), followed closely by Jack Nicklaus ($280 million) and distantly by Phil Mickelson ($180 million).

     In a reflection of continued hard times for golf architects, Greg Norman cut his design fee by roughly 30 percent, from $1.25 million to $900,000, according to Forbes Life.

     Nearly 1,300 U.S. golf properties have been sold since 2007, said the National Golf Foundation.

Part 5: May They Rest in Peace

     Lloyd Clifton capitalized on Florida’s residential boom of the late 1980s and 1990s like few of his contemporaries. His architectural career is exemplified by the work he did at the Villages, a huge retirement community near Leesburg, where he and his partners in Clifton Ezell & Clifton Golf Design Group have so far produced or co-produced 11 “championship” venues and 30 nine-hole, executive-length tracks. They’ve also designed more than 40 other courses in the state, among them Grey Oaks Golf & Country Club in Naples, Hunters Creek Golf Course in Orlando, and Remington Golf & Country Club in Kissimmee. Clifton was 89.

     Jaime Ortiz-Patiño, one of the best-known and most-liked people in Europe’s golf business, died in Marbella, Spain at the age of 82. “In many ways, he has been the ‘soul’ of golf in Europe,” the vice chairman of the European Tour said in an obituary. Ortiz-Patiño’s major legacy is Club de Golf Valderrama, his destination golf course in Andalusia, the venue where the Ryder Cup matches were first played in continental Europe. Those matches, in 1997, put the Costa del Sol on the world’s golf map.

     David Pfaff, who worked for both Pete Dye and Landmark Land Company, established his own firm in the mid 1990s but didn’t really make a name for himself until last year, when Royal Isabela Golf Course in Puerto Rico was unveiled. The Golf Channel called the track “possibly the most interesting golf course in the world,” and Forbes said “it is impossible not to be moved” by it. Pfaff was hoping to design Royal Isabela’s second course, but he died while on a golf holiday in New Mexico at the age of 74.

     Dave Thomas was a major influence on the golf industry in Great Britain and Europe. He turned pro in 1949 and played on four


Ryder Cup teams before arthritis prematurely ended his career. Later, as a golf architect, he designed or redesigned a reported 100 courses, among them the Belfry’s Brabazon track, which has hosted four Ryder Cup championships -- more than any other layout on earth. It also seems that he enjoyed himself when he wasn’t working. “He was good company and over-indulged, certainly on good food and good wine,” recalled Peter Alliss, an occasional design collaborator. “How he lived to be 79 is a miracle of the human spirit.”

      Ernie Vossler had a hand in creating one of the most enviable development portfolios in golf history. With colleagues at Landmark Land Company and Landmark Golf Company, Vossler developed at least a dozen golf courses at some of the best-known golf communities in Southern California’s Coachella Valley, among them PGA West, La Quinta Resort & Club, and Mission Hills Country Club. Elsewhere, the group’s creations included Kiawah Island in South Carolina, Palm Beach Polo & Country Club in Florida, and Oak Tree Golf Club in Oklahoma. Vossler died at 84, after an eight-year battle with dementia.

Friday, December 27, 2013

Transactions, december 27, 2013

     Pine Brook Country Club, a 60-year-old facility in Winston-Salem, North Carolina, is expected to have new owners by the end of the year. Lynn Murphy and Lynette Matthews-Murphy agreed to buy the private club from their fellow members last month, at a price that hasn’t yet been disclosed. The Winston-Salem Journal reports that the prospective owners have hired Signature Real Estate to oversee an overhaul of the property’s clubhouse, food-and-beverage operation, and 18-hole, Ellis Maples-designed golf course. Sutton Slawter, Signature’s president, told the newspaper that the planned course renovation “will be aesthetically-pleasing and will return the course closer to its original design.”

     An entity affiliated with the University of Louisville has reportedly “reached a deal” to acquire Cardinal Club, a facility whose centerpiece is a Spencer Holt-designed golf course. The club made its debut in 2001, as part of a chain known as University Clubs of America, and it’s served as the home of the university’s golf teams since that time. U of L Card Game reports that the university group will buy the property, in suburban Louisville, Kentucky, from Tom Musselman’s Champion’s Way LLC. Champion’s Way bought the club from Arnold Palmer Golf Management in 2003.

     A home owners’ group in Newport News, Virginia has closed on its planned purchase of Kiln Creek Golf Club. “We now have the opportunity to control our own destiny and protect home values for our residents,” the president of The Villages of Kiln Creek Owners’ Association said in a comment published by the Williamsburg Yorktown Daily. The association paid $3.5 million for an 18-hole, Tom Clark-designed golf course, an abandoned nine-hole course, a 15-room hotel, two restaurants, and the usual recreational amenities. The assets acquired by the association reportedly have an assessed value of $6.3 million. The seller was Dick Ashe, who’d hoped to build houses on the defunct nine-hole course. The home owners will maintain the track as open space and may put a conservation easement on it. Affinity Management has been hired to operate the golf course, which will be open to the public.

     If the city of Middletown, Ohio winds up selling its municipal golf complex, it may not have many options to choose from. Only one prospective buyer, Howard Jackson of Midd Cities Partners, showed up at the open house for Weatherwax Golf Course, a 36-hole facility that reportedly loses about $150,000 a year on top of $250,000 in debt service. Middletown, which is broke and desperate, wants to sell the complex so it can focus on “core city services,” according to the request for proposals it recently issued. Midd Cities is a local real estate management firm with industrial and business parks in its portfolio. Jackson told the Hamilton Journal-News that his company planned to maintain the golf courses, which were designed by Arthur Hills, and called Weatherwax “a good fit for us.” The city is accepting proposals until January 15, 2014.

     A group of more than 100 home owners in rural Norfolk, Nebraska have reportedly raised enough money to buy the centerpiece of their community. The Eldorado Hills Community Association won’t say what it agreed to pay for Eldorado Hills Golf Club, but earlier this year the sellers, Eric Waddington and Mark Mooberry, were asking for $1.4 million. The club features an 18-hole course that opened in 1987. The association, a non-profit group, was aiming to take possession of the property in early December. It plans to lease the course to Dave Johnson, its pro.

     Twin Lakes Golf Course, a non-operational 18-hole golf course in Arab, Alabama, may soon be purchased and revived by one of its former superintendents. “I’m pretty sure this is going to happen,” David Chastain told the Arab Tribune. The newspaper reports that Chastain and the course’s owner, Bill Pike, “essentially have agreed upon the details of a possible deal,” although no specifics have been revealed. Pike has been down this road before, however, and a sale is no sure thing. He bought Twin Lakes in 1973, sold it in the mid 1990s, and, as the mortgage holder, took possession of it again in 2010. Since then, several prospective owners have come and gone, including one who wanted to build apartments on the property. The golf course has been closed since 2011. If Chastain follows through on the purchase, Pike has agreed to provide financing.

      The city of Edinburg, Texas is negotiating to buy Ebony Hills Golf Course, a track that it’s operated via a lease for the past half-century. “It makes great sense,” the city’s mayor told the McAllen Monitor. The city expects to pay about $2.25 million for Ebony Hills, which features a nine-hole layout that opened in 1927. By buying the property, the city controls its future. The mayor believes that municipal operation is “a service for the community, to provide a quality of life.” The course’s owner, a group led by William Minyard, believes that the property is worth more than $4.5 million.

     The end is near for Cypress Bay Golf Club, a 41-year-old facility in Little River, South Carolina, as the club will breathe its last breath on February 28, 2014. Cypress Bay has been sold to Mungo Homes, which intends to replace its Russell Breeden-designed golf course with houses. The Myrtle Beach Sun-News reports that the course occupied “the low end of green fees in the Myrtle Beach golf market.” Mungo bought Cypress Bay from a group led by Ralph Teal, a local developer. The price wasn’t disclosed. Teal’s group owns Wild Wing Plantation, a 27-hole complex in nearby Conway.

     Just days before Christmas, Tom Day signed on as the new owner of Elks Country Club in West Lafayette, Indiana. The property will henceforth be known as West Lafayette Golf & Country Club, a name that echoes the one it was born with, West Lafayette Country Club. Day, a long-time member, didn’t disclose the purchase price. However, he told the Lafayette Journal & Courier that he plans to create a “family-oriented” club with golf, swimming, and tennis options. “I believe the community needs something like this,” he said. The club says that its 6,256-yard course was designed by Bill Diddel and opened in 1930. Other sources say the track was designed by Pete Dye and opened in 1940.

Monday, December 23, 2013

The Week That Was, december 23, 2013

     More than 100 members of Japan’s Professional Golfers Association have lost their jobs in the wake of a scandal involving two of the group’s top executives. The executives had played golf and shared a meal with the head of an organized crime group earlier this year, and they were dismissed in October. Now, the PGA has effectively cleaned house, as its chairman, its four vice chairmen, 20 board members, and all 91 of its area representatives have resigned en masse. The officials reportedly took the action to restore public trust in the PGA. “We take the matter very seriously,” the group’s current vice chairman said in a comment published by the Guardian. “We want to do our utmost to prevent something similar from happening again.” A new slate of officials will be elected next month.

     The Indian government may discipline some of the nation’s top army officials, who’ve been accused by a public-accounts committee of building as many as 90 golf courses on properties that were supposed to be used exclusively for military training purposes. The committee also appears to be ticked off that the army sold golf memberships to civilians and foreign diplomats and pocketed the revenues generated by the courses. “The committee deplores the gross misuse of golf courses and recommends that [the] entire policy of golf courses be revisited and remedial action be taken to ensure that facilities for armed forces personnel are not abused in any manner,” the committee’s report concluded. The committee has recommended that India’s defense ministry hold an inquiry and make the officers involved accountable.

     The city of Midland, Michigan hopes that Billy Casper Golf can heal its ailing golf course. BCG will take over management of Currie Municipal Golf Course, a 45-hole facility, on January 1. Currie has posted losses in four of the past five fiscal years and is currently almost $2.1 million in the hole. Rounds have fallen from nearly 60,000 in 2008 to less than 40,000 in 2013. According to a report by WSGW News Radio, however, BCG has promised to turn a profit within five years.

     A Raleigh, North Carolina-based investment group has purchased Grande Dunes, a golf community in Myrtle Beach, South Carolina that was begun by Burroughs & Chapin just after the turn of the most recent century. For an undisclosed price, LStar Management has acquired a 2,200-acre spread that includes, among other things, a marina, a waterfront café, 770 acres of developable property, and an 18-hole, Nick Price “signature” golf course. (The track, which is private, was co-designed by Craig Schreiner.) “It’s really a one-of-a-kind facility,” LStar’s managing partner, Steve Vining, said to the Myrtle Beach Sun News. “It was just a great opportunity, frankly.” LStar has appointed McConnell Golf to oversee the golf course and other operations at Grande Dunes. McConnell owns seven golf properties in the Carolinas (among them Treyburn Country Club in Durham, North Carolina and Musgrove Mill Golf Club in Clinton, South Carolina) but the contract at Grande Dunes is the first for its recently established management wing. LStar didn’t buy Grande Dunes’ 18-hole Resort course, which is still owned by B&C.

     ClubCorp has also completed an end-of-year transaction, picking up Chantilly National Golf & Country Club in Washington, DC’s Virginia suburbs. The seller was Wimsatt Farms, an entity based in Kentucky. ClubCorp prides itself on “building relationships and enriching lives,” a phrase it saw fit to trademark. The publicly traded firm has promised to upgrade Chantilly National’s Ed Ault-designed course, which opened in 1960 and was remodeled by P.B. Dye in the early 1990s. Eric Affeldt, ClubCorp’s president CEO, said that the purchase and the forthcoming renovations demonstrate the firm’s “strategic pursuit of growing through value-enhancing acquisitions, reinvention through capital investments, and adding reciprocal benefits for our more than 370,000 members.” Chantilly National, which calls itself “a place you call home,” is the third golf property that ClubCorp has purchased this year. The others: Oak Tree Country Club in Edmond, Oklahoma and Cherry Valley Country Club in Skillman, New Jersey.

     Like a latter-day Friedrich Nietsche, the head of the Scottish Golf Union believes that what doesn’t kill a golf club makes it stronger. Hamish Grey, the union’s long-time CEO, has seen many members go out of business since the onset of the Great Recession, and he concedes that others will follow. But he aims to slow the losses by persuading the union’s 576 remaining clubs to adopt business practices that can maintain their financial health. “Clubs are now having to ask themselves, How can we run ourselves better?” he said in a conversation with the Scotsman. “If clubs can get their houses in order in these tough times, then they can come out in a much stronger position on the other side.” In particular, Grey is urging the union’s members to market themselves aggressively, create more welcoming environments for prospective new members, and replace one-size-fits-all membership plans with a range of flexible options tailored to their prospects’ needs. Still, however, the losses mount. Grey has a big job ahead of him.

     The new owners of Woods Valley Golf Club, in Valley Center, California, aim to offer their customers “a cleaner course, and a course that’s in better condition.” The San Pasqual Band of Mission Indians, which purchased Woods Valley in October, will make unspecified improvements to the club’s 10-year-old, Dave Ginkel-designed layout and, within two years, build a new clubhouse. In addition, in the hope of creating “a more professional atmosphere,” it’s installed JC Resorts as the club’s manager. “Our plan is to put a little money into this course, because we want to be one of the top golf courses in San Diego,” the president of the tribe’s economic development agency told the Valley Roadrunner. Among the items on the to-do list: The tribe aims to get all seven of the layout’s waterfalls working again. At this time, only three are said to be operational.

Friday, December 20, 2013

Vital Signs, december 20, 2013

     A year after an early spring helped to boost the annual number of rounds played by 5.7 percent, U.S. golf course owners and operators got no such weather-related luck in 2013. Through October, according to PGA PerformanceTrak, the number of rounds played nationally has dropped by 4.4 percent. The National Golf Foundation appears to be hoping for a year-end loss of about 4 percent. As a result of this decline, revenues from greens fees at U.S. facilities have fallen by about 3 percent, although PerformanceTrak reports that owners and operators are seeing some slight increases in their merchandise and food-and-beverage sales.

     It’s been “a modestly successful year” for golf course owners and operators in central Oregon, according to the Bend Bulletin, but it was filled with “peaks and valleys” that couldn’t easily be explained. “It seemed like an odd year,” said a pro in Redmond. “I never really felt that there was a reason for periods of time during the year that we did well and periods of time when we did not do well.” The director of golf at a course in La Pine said, “It was strange as far as when the highs and lows were and how it would change. It’s not as consistent as it used to be.” Such comments beg a question: Is this the new normal?

     Morgan Housel of the Motley Fool believes that 2013 was “a breakthrough year” for the U.S. economy. In a letter to investors (sorry, it isn’t available online), Housel identifies three important economic factors that he says have largely been overlooked. First, in what he describes as “the most significant statistic I've seen in at least five years,” he points out that Americans currently have the lowest debt burdens on record, which in his mind sets the stage for “the kind of lasting economic growth we haven't experienced since the 1990s.” Second, health-care costs have fallen dramatically, which to him suggests that the national debt isn’t likely to reach catastrophic levels anytime soon. And third, the federal budget deficit has declined by 60% over the past three years, an indication that Uncle Sam is doing a better job of living within his means. “I’m confident that the economy has far more going in its favor today than risks stacked against it,” Housel writes. Finally, the economy appears to be turning the proverbial corner. Let’s hope the golf industry is right behind it.

     Will fast-aging populations in Asia create opportunities for the development of Sun City-style golf communities? By 2017, India is expected to have roughly 118 million residents over the age of 60, and China will have 217 million. What’s more, Bloomberg reports that “an increasing number of those retirees will be wealthy,” because by 2018 the Asia-Pacific region is expected to get a 75 percent increase in millionaires, to 11.5 million. But communities for active adults are an anomaly in cultures built on close family ties. Can developers persuade senior citizens to live in places so alien to them?

     When it comes to golf development in Cuba, nothing ever seems to change. The operative description remains “all talk, no action.” Now more than ever, however, the nation may need the kind of spark that golf might provide. In what is disappointing news for a nation whose economy increasingly depends on tourism, through the first 10 months of this year the total number of international travelers to Cuba fell by 1.2 percent from the same period in 2012. Might this decline finally grease the wheels in Cuba’s approvals process?

Sunday, December 15, 2013

The Week That Was, december 15, 2013

     Las Vegas Sands has abandoned its plans to build EuroVegas, its pie-in-the-sky resort outside Madrid, Spain. The massive resort had been master-planned to have six casinos, a dozen hotels, three golf courses, and lots of other attractions. Sheldon Adelson, the 80-year-old multi-billionaire who controls Las Vegas Sands, pulled the plug on it partly because he wasn’t given the tax relief he demanded and partly because he believes there are greener pastures in Asia. “There is a time and place for everything,” he said in a comment published by the New York Times, “and right now our focus is on encouraging Asian countries like Japan and Korea to dramatically enhance their tourism offering through the development of integrated resorts there.” The Spanish government rolled the dice on EuroVegas in the hope of creating thousands of desperately needed jobs. But the odds were stacked in Adelson’s favor, and, as he knew, the house always wins.

     The people at the National Golf Foundation are getting positively Orwellian. As part of what appears to be a re-education program, the trade group now contends that two-thirds of the nation’s 21 million “lapsed” golfers -- a group it defines as people between the ages of 18 and 69 who haven’t played for two years -- “aren’t really golfers at all.” These folks aren’t really golfers, the NGF argues, because they “were never committed to the game.” If they’d truly been committed, the logic goes, they’d still be golfers. Such redefinition is enough to make your head spin, because it suggests that what matters nowadays to the NGF is not how a person spends his time and money but what he feels in his soul. And it begs two questions: First, if lapsed golfers aren’t really golfers, then why did the NGF count them as golfers before they lapsed? And second, how many of the nation’s current crop of golfers -- 25.3 million of them -- aren’t really golfers?

     Lloyd Clifton, who capitalized on Florida’s residential boom of the late 1980s and 1990s like few other golf architects, died last week. Clifton’s architectural legacy is arguably the work he did at the Villages, a gigantic retirement community near Leesburg. He and his partners in Clifton, Ezell & Clifton Golf Design Group -- his son George and Ken Ezell -- have so far produced or co-produced 11 “championship” venues at the community, along with 30 nine-hole, executive-length tracks. Others will follow. They’ve also designed more than 40 other courses in the state, among them Grey Oaks Golf & Country Club in Naples, Hunters Creek Golf Course in Orlando, Remington Golf & Country Club in Kissimmee, and West Orange Country Club in Winter Garden. “The only day he didn't get up out of bed was the day he died,” his son George told the Daytona Beach News-Journal. “His body just wore out.” Clifton was 89.

     At long last, the cash registers have begun to ring at Chambers Bay, the course in suburban Tacoma, Washington that will host the U.S. Open in 2015. Chambers Bay, which opened in 2007, is “on pace to have its best year since 2008 and may be close to escaping a cycle of borrowing to pay off debt,” according to the Tacoma News Tribune. The course broke even in 2008 but has operated in the red until this year, when it finally began to generate the interest its proponents predicted. Through the first nine months of 2013, the Pierce County-owned property has rung up more than 32,500 rounds, 15 percent better than it did during the same period in 2012, and revenues from greens fees and other golf operations are up by nearly $1 million, a 27 percent increase. Local officials attribute the financial boost to increased play from non-resident golfers, who are willing to pay a premium -- as much as $219 -- for the privilege of playing a U.S. Open venue.

     The end is near for Jeff Silverstein’s Carolina Trail. Silverstein, the principal of IRI Golf, has agreed to place the trail’s five remaining properties into foreclosure, with a bankruptcy filing and a sale to follow. “They should be sold pretty quickly,” he told the Charlotte Observer. “Within 60 or so days.” The group consists of four company-owned venues in metropolitan Charlotte, North Carolina -- among them Birkdale Golf Club in Huntersville, The Divide Golf Club in Matthews, and Waterford Golf Club in Rock Hill, South Carolina -- and Tradition Golf Club in Charlotte, which is leased. The other Carolina Trail courses, Skybrook Golf Club in Huntersville and Charlotte Golf Links in Charlotte, were placed into receivership last summer. Last month, Traditional Golf Properties took over management of the trail’s final five.

     Greg Norman, the “signature” golf course architect, credits his success to “vertical” thinking -- the kind of how-can-we-capitalize-on-this exploitation that he says made Ralph Lauren what he is today. Here’s how Norman explained the shape of his mind in an interview with Golf magazine: “When someone comes to me with millions or even tens of millions of dollars to design a course as part of a real-estate development or resort, I know I can leverage it by, say, stocking the cellars with my wine, the pro shop with Greg Norman Collection clothing, the kitchen with my Greg Norman Australian Prime steaks. They’re already investing in the value of my brand, so why not add some scale to it?” It’s unfortunate that Norman views Lauren as a role model, for Lauren built his success on a fake name, WASP idolatry, and the vacant gazes of beautiful models. Today, he’s known mostly for producing a line of over-priced goods that nobody with good taste would ever buy. Is that the kind of legacy Norman intends to leave? Because while he thinks vertically of squeezing money out of his clients, his competitors are thinking horizontally about producing great golf courses.

     The Jewish Heritage Fund for Excellence, Inc. has reportedly paid $4.7 million for Standard Country Club, one of the oldest private enclaves in Louisville, Kentucky. The club, which was founded in the 1870s, is said to be $4 million in debt. Standard features an 18-hole golf course that was designed by Robert Bruce Harris and opened its first nine in the early 1950s. The fund, which reportedly has more than $90 million in the bank, has previously invested in medical real estate and local health-care operations. For the time being, it plans to continue operating Standard as a private club, under a lease agreement. It’s begun to evaluate its options, however, and early next year it expects to engage the local community to determine the future use of the 150-acre property.

     A company founded by Hale Irwin wants to buy a semiprivate golf club in Colorado’s Animas River Valley. Irwin Golf Management has submitted an undisclosed offer for Dalton Ranch Golf Club, which features an 18-hole, Ken Dye-designed golf course. The club is the featured attraction of a community just north of Durango. The club’s members now have 30 days to match Irwin’s offer, according to the Durango Herald. If they choose to proceed with a purchase, they’ll have an additional 30 days to secure financing and close on the transaction. Irwin’s company manages one golf property, Terradyne Country Club in Andover, Kansas.

     The Red Headed Stranger wants to sell his golf course. Willie Nelson, a legend in American music, hopes to get $3 million for Pedernales Golf Club in Spicewood, Texas. The country-music singer and songwriter reportedly bought the club and its nine-hole, 45-year-old golf course out of bankruptcy in 1979 (at the time, it was known as Briarcliff Yacht & Golf Club) and has reportedly been covering its losses of late. “Whoever buys this will have to have deep pockets,” said the course’s pro. “It’s expensive to run.” The club, which is also known as Willie Nelson’s Cut ’n’ Putt, includes a recording studio.

Friday, December 13, 2013

The Pipeline, december 13, 2013

     Mike Keiser isn’t the only developer who believes that coastal Oregon is America’s links land. Jim Haley, the shaper for Keiser’s first course at Bandon Dunes, has announced plans to build an 18-hole, stand-alone layout -- no hotel or houses -- on Knapp Ranch, a 1,100-acre spread outside Port Orford. The sandy, oceanfront property, just 30 miles south of Bandon Dunes, features “rocky cliffs that recall Pebble Beach or Cypress Point,” according to a press release, along with “gorse-filled ravines that resemble those at Pine Valley” and “views unmatched anywhere else on the West Coast.” Dave Esler, an architect based in Chicagoland, has promised to deliver “something extraordinary, because the site deserves it,” and he believes his 18-hole, au naturel track “may even become the best one in the neighborhood.” Haley’s LLC hopes to begin construction next summer, provided that it can secure financing.

     The mother of Andy Murray, the British tennis star, has teamed up with Colin Montgomerie to build a sports complex in suburban Glasgow, Scotland. “My aim,” Judy Murray told the Daily Record, “is to create a real community hub that links with local clubs and schools to grow both tennis and golf in the Stirling area and can deliver a pathway to excellence for the most promising players and coaches.” The Park of Keir Centre will take shape on the Park of Keir estate, a historic, 270-acre spread. It’ll consist of a dozen tennis courts (half of them indoor courts), several sports fields covered with artificial turf, hiking trails, and a nine-hole golf course. Montgomerie hasn’t been identified as the course’s architect, but he seems to be a likely candidate, as he’s designed 16 golf courses in Wales, the Netherlands, Vietnam, Bahrain, Kazakhstan, and at least a half-dozen other nations. Public hearings on the project have been scheduled. The sports complex has been warmly received, but some other expected development -- houses and a hotel -- has not, because the Park of Keir estate is part of a protected greenbelt. Pending approval by local officials, the partners hope to break ground on the facility next year.

     The original version of the preceding post first appeared in the October 2013 issue of the World Edition of the Golf Course Report.

     Can Nebraska accommodate another links-like, minimalist-inspired golf venue? The Santee Sioux Nation sure hopes so, because, after a two-year delay, it’s officially broken ground on an 18-hole course on property it owns in Niobrara, a town hardly anyone has heard of (estimated population: 370) in the northeastern part of the state. The track has been designed by Paul Albanese, who intends to produce “a natural golf course that fits with the beautiful surroundings,” even though those surroundings will include a casino, a conference center, and other commercial attractions. Naturally, the tribe is hoping that Albanese’s creation compares favorably with the highly regarded layouts at Nebraska’s established golf destinations -- Sand Hills Golf Club, Dismal River Club, and Prairie Club. But those are stand-alone properties built by passionate people for the love of the game. Will Albanese’s work be discredited by its context?

     A shaky economy may be putting the jitters in India’s housing market, but a residential developer has nonetheless announced plans for a golf community in Goa. Zuari Infraworld India, the real estate arm of Adventz Industries, Ltd., owns three properties totaling 517 acres in the state made famous by wandering hippies in the 1960s. The company hasn’t specified the location of its properties, but it told the Times of India that it intends to build houses, a convention center, a “hospitality project,” and a golf course. Zuari Infraworld is currently developing houses in suburban Mysore, Karnataka, and next year it aims to break ground on houses outside Delhi. Its parent company is said to own 5,000 acres of developable property.

     The original version of the preceding post first appeared in the October 2013 issue of the World Edition of the Golf Course Report.

     A development group in British Columbia has teed up a master plan for a four-season resort that will offer year-round snow skiing. The resort will take shape on 2,500 acres just west of Valemount, a village in the Canadian Rockies that’s roughly 250 miles west of Edmonton, Alberta. Its developer, Valemount Glacier Destinations, Ltd., says the ski area will feature the world’s longest ski runs as well as the world’s biggest vertical drop -- more than 7,800 feet. It’ll also have North America’s only ski-in, ski-out airport, vacation houses, hundreds of hotel rooms, a shopping area, places to eat and drink, and a variety of recreational amenities, including an 18-hole golf course. So far, VGD’s proposal has elicited strong community approval. “Backcountry skiers have long known that this area, so close to Valemount, is a ski mecca,” the village’s mayor said in a press statement, “but not many of us envisioned such an amazing project.” VGD is hoping that local officials approve the master plan in 2014. If they do, construction could conceivably begin in 2015.

     The original version of the preceding post first appeared in the July 2013 issue of the World Edition of the Golf Course Report.

     The new owner of Blue Skies Golf Course, in Yucca Valley, California, has set out to end the tyranny of 18-hole golf. Bill Brehm, Sr. has hired Landscapes Unlimited to rip out the 18-hole, nearly 60-year-old layout at Blue Skies and replace it with a water-conserving, player-friendly 12-hole track that’s been designed by Cary Bickler. Brehm, the owner of the Hi-Desert Star, has suggested that he’s leading “the new revolution in golf,” and his spokespeople are trying to sell the notion that “12-hole courses are a trend now.” In the golf business, however, those who break with tradition do so at their own peril. Local golfers will decide whether to join the revolution in early 2015, when the new course is scheduled to open.

     One of Ethiopia’s most celebrated athletes has reserved space for a nine-hole golf course near a training center he’s building for elite long-distance runners. Kenenisa Bekele has won three Olympic gold medals and countless other track and field championships, but it appears that the backbone of his second career will be real estate development. He’s already built a world-class running track outside Addis Ababa, the nation’s capital, along with two small hotels. Next, he plans to add a 100-room lodge to his property, plus the golf course and various other recreational amenities. Kenenisa hopes not just to attract the planet’s top runners for high-level competitions but to leave a legacy for those who follow in his footsteps. “If I’m not sharing with other people,” he said in a story distributed by Agence France Presse, “it’s no sense.”

     The original version of the preceding post first appeared in the October 2013 issue of the World Edition of the Golf Course Report.

     DMB Associates has begun to promote Victory, the oddly named, seniors-only community it’s building in Buckeye, Arizona, but its lips remain sealed on matters related to the property’s forthcoming golf course. Many moons ago, however, a commentator at GolfClubAtlas.com identified the track’s architect as Tom Lehman, the co-designer (with John Fought) of DMB’s Country Club at DC Ranch in Scottsdale. As it happens, Lehman also designed The Raven at Verrado, an 18-hole layout at the master-planned community that Victory will be part of. Is there a point in sitting on this news any longer?

Sunday, December 8, 2013

The Week That Was, december 8, 2013

     Welcome to the National Golf Foundation’s new, redefined era of golf! Before the Great Recession began to suck the life out of the U.S. golf industry, the NGF believed that quantifiable statistics -- the number of rounds played in a given year, for example -- accurately reflected truths about the state of our business. Today, however, the group is focusing less on the cruel, sharp edge of hard numbers and more on an ambiguous concept: the love of the game. It’s suggested that we measure our relative health by our customers’ “commitment to the game as opposed to their frequency of play.” And guess what: This alternate balance sheet offers plenty to be optimistic about. As the NGF cheerfully notes, there are “many more committed golfers than you would be led to believe existed by looking only at frequency of play.” In addition, nearly 60 percent of the golfers who play fewer than eight times annually are in actuality committed golfers who “just don’t play very often.” The NGF deserves credit for thinking outside the box. Unfortunately, the nation’s course owners and operators remain trapped in the nitty-gritty of dollars and cents.

     When it comes to China and golf, it’s often difficult to distinguish between truth and fiction. Asia Golf Monthly, for instance, reports that China currently has “over 5 million” golfers, an absurdly high estimate. Most sources suggest that the actual number is closer to 1 million, and the director of Troon Golf’s operations in Asia believes it might be in the neighborhood of 700,000. The magazine doesn’t offer a source for its inflated estimate, but the likely culprit is Ken Chu, the CEO of Mission Hills Group, who gave the keynote address at the recent Asia Pacific Golf Summit. In his speech, Chu claimed that the number of existing golf courses in the People’s Republic now “exceeds 900.” Most everyone else thinks 600 is a more accurate reflection of reality.

     Via an entity called Borriol Golf, Sergio Garcia has taken control of the beleaguered private club where he learned to play golf. Details are sketchy, but the Spanish golf star and some partners (including Rafael Nadal, the world’s top-ranked tennis professional) have agreed to lease Golf Club La Coma, in Valencia, with an option to buy. The club is deeply in debt and had been in danger of extinction before Garcia stepped up. Since 2008, it’s reportedly lost more than half of its 1,300 members.

     Greg Coffey’s on-again, off-again golf venture appears to be on again. In mid 2012, the retired hedge-fund manager hired Bob Harrison to design a links course on a coastal slice of his 11,668-acre Ardfin Estate, which lies along the southeastern coast of Scotland’s Jura Island, in the Inner Hebrides. Earlier this year Coffey abruptly abandoned his development efforts and gave no explanation for why he did so, but now he’s lodged a formal application with local planning officials. He hasn’t provided any details about his new plans, and one of his representatives has said that “we are not discussing anything about it.” Harrison spent the better part of two decades serving as the “ghost” architect in Greg Norman’s Australian practice and is largely responsible for its best work. When he won the commission, he said that “nothing I’ve seen anywhere in the world competes with the sheer beauty of the Jura site.”

     In Western Australia, global climate change is having an impact on waterfront golf development. Responding to revised predictions about rising oceans and the likely loss of coastal real estate, state officials have decided to re-evaluate the amount of land allotted for development at the Western Australia Beach & Golf Resort. The community has been master-planned to include nearly 800 houses and overnight accommodations, a marina, and a nine-hole golf course, but its footprint will almost certainly shrink. State planning officials believe the waters off the community, in Port Kennedy, will rise by nearly a meter over the next century. According to the West Australian, the Western Australia Beach & Golf Resort is “the first development to be affected by new sea level predictions.”

     After two years of management by its member/owners, Loch Lomond Golf Club appears to be finding its financial bearings. In 2011, when the exclusive Scottish club was on the brink of insolvency, it was in a £132 million ($215.6 million) hole. Now, according to the Herald, it’s reduced its debt to £37 million ($60.4 million), only £5 million of which ($8.2 million) is owed to banks. The club, which counts Sean Connery among its members, reportedly has an initiation fee of £70,000 ($114,000).

     A development group in the Catskills has floated a proposal to build a casino-centered resort community that will be complemented by an 18-hole golf course. Robert Berman and Joe Bernstein, operating as RH Land Development, want to build the Catskills Entertainment City & Casino Resort on 527 acres in Rock Hill, New York. In addition to the casino and golf course, the community will feature a hotel, several live theaters, a Catskills Comedy Hall of Fame, and what the Times Herald-Record describes as “a Woodstock Revival.” RH Land is one of at least five groups vying for one of four casino licenses that will be issued in northern New York. The winners will be chosen next summer, according to the newspaper.

     Africa is beginning to make a name for itself as a golf destination. More than 1.6 million people took a golf vacation in 2012, according to the International Golf Tour Operators Association, and 320,000 of them (20 percent) visited Africa. The fastest-growing nations on the continent are said to be Kenya and Nigeria. All in all, golf travelers spent $2 billion last year.

Friday, December 6, 2013

Operations, december 6, 2013

     The city of Louisville, Colorado’s storm-ravaged golf course is closed until further notice, and it’ll reopen with a new operator. The city has decided to end its relationship with Western Golf Properties for failing to “take prompt, responsive action” and “carry out duties and responsibilities” after September’s floods inflicted $3.5 million worth of damage on Coal Creek Golf Course. WGP’s response, according to the Boulder Daily Camera, was to lay off most of the course’s staff and to hold what’s been described as “a dramatic sale of inventory in the golf club.” WGP had managed Coal Creek for more than a decade. For now, the city intends to turn over the course’s operations to its parks and recreation department, but things could change between now and 2015, when the 18-hole track will likely be ready for play again.

     In an effort to add some pizzazz to their membership marketing efforts, a pair of private clubs in greater Philadelphia, Pennsylvania have tapped into the ClubCorp network. Members of Talamore Country Club in Ambler and Applecross Country Club in Downingtown, both owned by Bob Levy, now have access to some of ClubCorp’s more than 150 golf, business, and sports clubs, along with a concierge service that will help them secure tickets to sports events, Broadway shows, and concerts. “We think this new benefit is extraordinary,” the general manager of Talamore said in a press release. “When our members are traveling, they don't miss a beat.” Such “reciprocal” golf privileges have become very popular of late, as private clubs pull out the stops to add value to their memberships. But how much are they really worth? ClubCorp owns only two golf properties within an hour’s drive of Philadelphia, and dozens of the properties in its portfolio aren’t truly special. Membership may have its privileges, but some of them are offer less than meets the eye.

     Two parties have submitted proposals to operate the city of Savannah, Georgia’s deteriorating Bacon Park golf complex. The most vocal bidder -- O. C. Welch, a local auto dealer and the owner of Black Creek Golf Club in nearby Ellabell -- believes the facility needs a dramatic overhaul, and he’s floated a plan to close nine of the facility’s holes and invest $9 million to restore its 18-hole, Donald Ross-designed layout. The other bidder -- Michael Collins, the complex’s manager -- told the Savannah Morning News that “spending millions of dollars is not necessary” because the complex “is so close to where it needs to be.” The city, which is offering a 12-year contract, believes the complex needs at least $4 million worth of improvements. It expects to decide between the suitors early next year.

     By a slim vote (4-3), council members in St. Paul, Minnesota have decided to seek private-sector managers for their Como and Phalen golf courses. More than a dozen groups have already contacted the city about the opportunity, reports the St. Paul Pioneer Press, though not all are guaranteed to respond to the city’s request for proposals. Golf operations have become an intolerable financial burden in St. Paul, as the city’s three properties are said to be $8 million in the hole. The goal is to have new operators in place by sometime in February.

     Premier Golf Centers has won a five-year contract to manage the municipal golf course in Lynnwood, Washington. The 18-hole track become the 11th property in Premier’s portfolio, joining 10 municipal properties in Seattle, Everett, Bellevue, Maple Valley, and other cities on the Puget Sound. The Everett Herald reports that Lynnwood has agreed to pay $96,000 a year for the firm’s services and might also pay bonuses if revenue goals are met.

     The city of Duluth, Minnesota is evaluating its golf operations and plans to seek bids for the management of its 27-hole golf properties. The complexes, in Lester and Enger parks, have been run by a local firm, Professional Golf Management, since 2007. They operate at a loss, according to the Duluth News Tribune, and have accumulated a deficit of about $1 million. “We think we have an obligation to taxpayers and ourselves to put this out for bid every once in a while,” the city’s chief administrative officer told the newspaper. He noted that the courses “must pay for themselves, both operationally and in terms of debt service.” The city expects to issue a request for proposals next summer.

     In recent months, nearly two dozen firms have expressed an interest in managing the municipal golf course in Lynn, Massachusetts. Much to the city’s surprise, however, only one actually submitted a bid. A firm led by Stephen Murphy, the superintendent of Gannon Municipal Golf Course, has made what amounts to a take-it-or-leave-it offer: He’s willing to pay the city $2.1 million for a five-year lease. If his offer isn’t accepted, according to the Daily Item, next year the 18-hole, Wayne Stiles-designed golf course will be operated by Lynn’ s public works department.

Sunday, December 1, 2013

The Week That Was, december 1, 2013

     An elected official in Washington, DC has introduced legislation that could transform RFK Stadium into a world-class sports and entertainment venue, complete with a redesigned Langston Golf Course capable of hosting high-profile professional tournaments. With visions of Super Bowls, Final Fours, World Cups, and U.S. Opens dancing in his head, Councilmember Vincent Orange thinks the stadium and surrounding property can accommodate a 100,000-seat domed stadium, hotels, an indoor water park, a sound stage for movie producers, and other revenue-producing attractions. According to an online report, he’s “talking with Donald Trump” about the venture, and “they both hope to get Tiger Woods involved.” It’s important to note that Orange has merely floated an idea and that, given the condition of the capital city’s economy, nothing will likely come of it. But it’s nice to see people dreaming big again, isn’t it?

     Phil Mickelson wants to buy a bankrupt golf property in suburban Tucson, Arizona. Inside Tucson Business reports that Mickelson and Steve Loy, his business partner/agent, have submitted an offer on Stone Canyon Club, the centerpiece of a private subdivision within the Rancho Vistoso planned community in Oro Valley. Stone Canyon features a 13-year-old golf course that its architect, Jay Morrish, has described as “the best desert course I’ve ever designed.” Entities affiliated with Mickelson and Loy already own four golf properties in Arizona, among them McDowell Mountain Golf Club in Scottsdale, Palm Valley Golf Club in Goodyear, and The Golf Club at Chaparral Pines in Payson. Earlier this year, they failed in an attempt to acquire FireRock Country Club in Fountain Hills.

     By this time next month, OB Sports Golf Management will likely begin the task of digging the city of Tucson, Arizona’s golf operations out of an extremely deep financial hole. More than a dozen management firms came a-calling when the city began its search for a private-sector operator, and OB Sports has been given the first crack at negotiating a contract. In return for an annual fee of $240,000, it’s promised to immediately boost the number of rounds played at the city’s five properties from around 180,000, the number they currently generate, to almost 189,900. By 2018, the company believes the number will increase to 205,471 and the courses will show a profit of roughly $713,000. It’ll be a while before the city can cover its accumulated losses, however, because the Arizona Daily Star reports that the golf operation is currently $8 million in the red.

     Brutal, cutthroat, risky, and sad -- those are among the words that characterize the current state of Australia’s golf design business, according to Darius Oliver. “It would be fair to say that making a living from course design in Australia has never been more difficult,” writes the architecture editor of Australian Golf Digest. Citing data provided by Jeff Blunden of Sandringham, Victoria-based JBAS, Oliver reports that roughly 80 new golf courses opened Down Under during the 1980s, 61 in the 1990s, and 49 between 2000 and 2009. He believes that “there may be fewer than 25 new courses built this decade.” And with the pipeline running ever drier, the nation’s increasingly pessimistic architects don’t expect a recovery anytime soon. “I can’t see a boom in golf construction like we saw 10 to 15 years ago happening again for a very long time,” said Ben Davey, who, like many of his Australian colleagues, has focused his marketing efforts on China. The grass is still a little greener there.

     Turkey appears to have a Tiger by the tail. Tiger Woods has committed to playing in the Turkish Airlines Open for the next three years, reportedly for a guaranteed appearance fee of almost $3 million a pop. The world’s most famous golfer pocketed $3 million for participating in the event this year, and the nation’s golf promoters believe it was money well spent. “You get your money back with him and more,” the head of the Turkish Golf Federation note in a report published by SB Nation. As recently noted, Turkey will get a major return on its investment if it can nab either the Ryder Cup in 2022 or the European Tour’s championship event in 2016.

     Kutscher’s, the last remaining Borscht Belt resort in the Catskills, has been purchased by an Indian group that intends to make it a destination for “yoga sciences,” “biodynamic restaurants,” “ayurvedic” medical treatments, and other “health-driven activities.” Oy vey. The heirs of Milton and Helen Kutscher have sold their 1,300-acre spread outside Monticello, New York -- Mel Brooks, Milton Berle, Joan Rivers, Jackie Mason, Jerry Seinfeld, Billy Crystal, and many others used to entertain there -- to a company controlled by Subhash Chandra, the media mogul who’s worth $2.35 billion, according to Forbes. The sales price hasn’t been announced, but Chandra’s Veria Lifestyle bought a run-down hotel, houses, a bingo hall, sports centers, and an 18-hole, William F. Mitchell-designed golf course that dates from 1958. The buildings will soon be demolished, and the new Nature Cure Lifestyle Management Center is scheduled to debut in the spring of 2014. The golf course will continue to operate and may be spiffed up.

     Just weeks after he bought one of the two 18-hole golf courses The Communities at Branson Creek, Johnny Morris has bought the other. In late October, the billionaire owner of the Bass Pro Shops chain purchased Murder Rock Golf & Country Club in greater Branson, Missouri. Now he’s followed up by acquiring the community’s Tom Fazio-designed Branson Creek layout, which spent more than a decade (2000 to 2011) atop Golf Digest’s list of the top public courses in the state. Morris intends to operate the courses as amenities for his nearby Big Cedar Lodge, which features a nine-hole, Jack Nicklaus “signature” course. All three of Morris’ courses are currently closed for renovations. A press release from Big Cedar Lodge promises that Branson Creek will reopen in the late spring of next year, but the others appear to be closed indefinitely. The Top of the Rock course at the lodge has been shuttered since 2010, if not before.

     Billy Casper Golf is negotiating an early exit from a municipal management contract in Black Mountain, North Carolina. “Everybody is in favor of severing the relationship,” the town’s mayor told the Asheville Citizen-Times after council members voted unanimously to end the relationship, which was supposed to last until September 2016. The town put BCG in charge of it 18-hole track in September 2011, hoping that professional management would generate profits. Instead, the course has lost $254,000, and BCG has worn out its welcome. The newspaper reports that the town is obliged to pay a severance fee of about $100,000, although the amount could conceivably be reduced.

     So far this year, Jack Nicklaus has introduced a line of golf balls and announced an endorsement deal for over-priced sunglasses. Now he’s licensed his good name to Perry Ellis International, which aims to sell Nicklaus-branded clothing and accessories in North America. “They are a company with ideas that are fresh and innovative,” said Nicklaus, without specifying what those ideas might be. “This is an important step for my brand as we look to expand into a variety of lifestyle categories in a quality way.” PEI, which mistakenly believes the contract will “take Jack’s legacy to the next level,” already has similarly innovative licensing arrangements with Callaway Golf, Ben Hogan, the PGA Tour, and the Champions Tour.

Sunday, November 24, 2013

The Week That Was, november 24, 2013

     The venue for the 2016 Olympics won’t be completed next year, as originally planned, but Tim Finchem appears to be nevertheless pleased with the construction strides made of late in Rio de Janeiro. “Actually, the progress is reasonably good,” the relieved commissioner of the PGA Tour told Reuters. “We think the time line is in order. We were really concerned there, as you know, for a good period of time.” The new schedule calls for the Gil Hanse-designed course to open in 2015, although perhaps not until the second half of the year. That doesn’t leave much of a margin for error, but at least Finchem can now see the light at the end of the tunnel.

     Finally, Mike Keiser has secured approval for the next leg of his Oregon Trail. Last week, after getting a nudge from the governor, the state’s parks commission unanimously endorsed the land swap Keiser needs to build Bandon Links, a pseudo-municipal golf complex, on property south of his Bandon Dunes resort. Some significant changes are on the horizon, however, for Keiser now apparently plans to build 36 holes instead of 27. Matt Ginella, a correspondent for the Golf Channel, has tweeted that Gil Hanse will design the first 18 and that four architects with a minimalist bent -- Mike DeVries, David McLay Kidd, Kyle Phillips, and Jim Urbina -- are vying to win the commission for the second.

     Acknowledging that a recent exposé about water use in California’s Coachella Valley had “lit a little fire under us,” an official with the Southern California Golf Association has announced the formation of a task force committed to water conservation. Craig Kessler, the SCGA’s director of governmental affairs, told the Desert Sun that the valley’s 124 golf properties need to “step up to the plate as an industry and figure out how to do business in a way that uses less water, uses it more efficiently.” The task force will include representatives from the valley’s courses and officials from the Coachella Valley Water District. One of its primary goals will be to identify cost-effective ways to bring either recycled or Colorado River water to more of the valley’s courses. As we all know, however, it’s easy to establish a task force. It’s much harder to turn talk into action.

     Donald Trump may soon add a second North Carolina golf property to his fast-growing golf empire. Eric Trump, a major voice in the family’s golf acquisitions, recently told the Charlotte Business Journal that he’s “looking at one other big project” in the Tar Heel state. He offered no details, but he noted that “water is something that we gravitate to” and, in a comment that might have been mouthed by his father, “we do whatever it takes to make the place the best.” Last year, the Trumps bought the Point Lake & Golf Club in Mooresville, a property they’ve branded as Trump National Golf Club Charlotte.

     When it comes to offering free rounds of golf, the operators of Pico Rivera, California’s municipal course are putting theories into practice. GolfLinks, the manager of the city’s nine-hole, executive-length track, allows kids under 18 to play for free and charges them only a dollar for a bucket of range balls. “A course that doesn’t let kids play for free is missing the boat,” Larry Taylor of GolfLinks explained to Golf Digest. “You’ll get more green fees from their parents and relatives, and you’re building supply for the future.” Of course, Taylor’s firm has an ace in the hole: The Southern California Golf Association reimburses it for the green fees and buckets it gives away. This summer, the SCGA chipped in for 474 of the former and 909 of the latter.

     More than 200 hopeful residents of suburban Charlotte, North Carolina have bought into a plan to reopen Cramer Mountain Country Club. The club, in Cramerton, has been closed since the summer of 2012, a victim of strangulating debt. Now, however, a group of home owners in the accompanying community has raised $3 million to buy the club, renovate its Dan Maples-designed golf course, and create what the group’s leader describes as “a much more progressive club -- more family-oriented, with tennis and swimming in addition to golf.” The revived, refreshed, and renamed facility -- it’ll henceforth be called Cramer Mountain Club -- will be unveiled next summer.

     The general manager of a golf property in suburban Phoenix, Arizona believes that the area’s winter golf season has gotten off to a welcome fast start. “The winter visitors are coming back earlier, and the reservations are coming in earlier than they have in the past,” Greg Ellis of Trilogy Golf Club in Peoria told KTAR radio. “Everything is looking like a very good picture for the future for us in golf.” Sure, it’s just an anecdotal report. But hope springs eternal.

     A family-owned golf property in Nebraska’s capital city has put its future -- its immediate future, at least -- into the hands of KemperSports. The Northbrook, Illinois-based management firm has assumed control of Wilderness Ridge Golf Club, the featured attraction of a 440-acre community developed by the late Jerry Schleich. Tom Schleich, a principal of the entity that owns Wilderness Ridge, was won over by what he called KemperSports’ “reputation, commitment to excellence, and focus in providing exceptional guest experience.” The club, which features a 27-hole golf complex, serves as the home of the University of Nebraska’s golf teams. “Wilderness Ridge has a reputation of being one of the best golf courses and dining experiences in the Lincoln market,” said Steve Skinner, KemperSports’ CEO. Those assets will be featured in KemperSports’ marketing pitch, as one of its primary tasks will be to pad the club’s membership rolls. KemperSports manages one other golf property in Nebraska, The Prairie Club in Valentine.

     Two’s company, three’s a crowd: On average, an English golf club has 25 members under the age of 16, and only three of them are girls. The CEO of England Golf, the group that conducted the research, called the data “sobering.”

Friday, November 22, 2013

Transactions, november 22, 2013

     The original home of the FedEx St. Jude Classic has avoided foreclosure by turning over its deteriorating assets to a familiar face. Colonial Country Club, a century-old facility in suburban Memphis, Tennessee, is now controlled by James W. Russell, a long-time member who paid $2 million for 372 acres appraised at $3.6 million. Russell aims to restore Colonial’s fading reputation and polish its featured attractions, which include a Joe Finger-designed, 36-hole golf complex and a 40,000-square-foot clubhouse. “Service and product -- we are going to make that second to none,” he told the Memphis Commercial Appeal. “We want to offer a Mercedes,” he added, promising that the club would “not try to compete with everyone on price, but be very aggressive on the quality of our product.” Russell’s bid for the club was endorsed by a unanimous vote.

     The wealthy owner of Conover, North Carolina’s Rock Barn Golf & Spa, a resort that hosts an annual event on the Champions Tour, is closing in on his second golf property. Next month, Don Beaver expects to buy and begin upgrading Statesville Country Club, a 70-year-old facility in Statesville with an 18-hole golf course and a clubhouse in need of improvement. The club defaulted on some loans earlier this year -- its president recently described it as having “run out of money” and “run out of options” – and it persuaded Beaver to save its skin. Beaver, who made his money in health care, owns two minor-league baseball teams in North Carolina and another in New Orleans, Louisiana. He made a national name for himself in the late 1990s, when he tried to buy the Minnesota Twins and move them to Greensboro. At Statesboro, Beaver said in a comment published by the Statesville Record & Landmark, “the emphasis will be to grow the membership so the club can have the revenues for a first-class facility.” To attract new members, Beaver has promised that “dues will remain reasonable.”

     In an effort to seize control of its destiny and preserve property values, a homeowners’ group in Zachary, Louisiana has voted to purchase the centerpiece of its community. Changing hands will be Copper Mill Golf Club, which features an 18-hole, “links-style” golf course that’s said to be “reminiscent of those in Scotland.” Ross Bruce, the developer of Copper Mill, had recently complained about the time and money involved in running the community’s nine-year-old golf course and had vowed to close it at the end of the year. He parted with the annoyance for $1.2 million. The home owners, who expect to close on the transaction next month, plan to invest as much as $1.7 million in improvements to the club. “We’re committed to providing an excellent golf experience, value to our residents, and a premier recreation destination in the Baton Rouge metro area,” the HOA’s president told the Zachary Plainsman-News. To achieve their goals, the prospective new owners may solicit a private-sector management company.

     After 20 years of operating Quail Hollow Golf Course, Dave Hendrickson is willing to give it away. And the city of Boise, Idaho seems poised to take it. “Quail Hollow is a well-managed business,” the city’s parks and recreation director told the Idaho Statesman. “The course is coming to the city in outstanding condition, both financially and structurally.” The 18-hole course, which opened in 1982, was co-designed by Robert Von Hagge and Bruce Devlin. Pending acceptance of the gift by elected officials, it’ll become the city’s second course.

     By the end of the year, a financially squeezed private club in Fort Smith, Arkansas will likely have new owners. Lance Beaty and Stephen Nelson are reportedly completing the due diligence on their planned purchase of Fianna Hills Country Club, a 40-year-old property. The club features an 18-hole golf course that was renovated by Carter Morris in 2004 and a clubhouse that one of the sellers acknowledges “is due for a major renovation.” Assuming that the transaction is completed, the prospective owners will attempt to “reposition” Fianna Hills and make it appeal to what Beaty calls “a younger audience and demographic.” He told the City Wire that “there will not be another venue in this market that will provide the range of amenities, event, and social activities that we will have here.”

     Northfield Mount Hermon School didn’t have to look far to find a buyer for its ancient golf course. The prep school, in northwestern Massachusetts, has agreed to sell Northfield Golf Club to Ed Snow, who’s operated the nine-hole track since 2011. The sales price hasn’t been announced, but the school, which has had the property on the market since March, had been asking for $1.25 million. The school says that the course was designed by Alex Findlay and that “the current layout opened for play in 1912.”

     As its members gradually disappear, an equity club in Marathon, Florida is anticipating a change of ownership. A group led by the city’s finance director has agreed to buy the 53-year-old Florida Keys Country Club, pending approval of its redevelopment proposal. In a nutshell, the proposal consists of replacing the property’s clubhouse with a hotel and some “vacation cottages,” building a new clubhouse, and making unspecified but “significant” improvements to its 18-hole, Mark Mahannah-designed golf course. If all goes as planned, the sale would take place in early 2014 and the bulldozers would arrive a few months later. The Florida Keys Reporter says that the club, which opened as Sombrero Country Club, once had as many as 280 members. It currently has 49 members with an ownership stake and 26 “club members.”

     A non-profit group created to preserve open space near Kenyon College has purchased an 18-hole golf course. In August, Philander Chase Corporation paid $450,000 for Tomahawk Golf Course, an executive-length track located a little more than a mile from the college’s campus, in Gambier, Ohio. The 3,605-yard layout, originally called Tomahawk Hollow Golf Course, has offered a “casual and welcoming atmosphere” since 1962, according to an online source. A spokesperson for PCC told the Kenyan Collegian that the property’s future would be determined sometime this winter.

Sunday, November 17, 2013

The Week That Was, november 17, 2013

     Turkey wants to be a major player in international golf circles, and it believes that hosting high-prestige professional tournaments is the way to do it. Although the nation isn’t yet an established golf market -- it had only 19 golf properties in 2011, according to a study by KPMG’s Golf Advisory Practice, and a mere 5,649 players -- it plans to bid on the European Tour’s season-concluding event in 2016 and the Ryder Cup in 2022. “Turkey would have as good a chance as anywhere,” the tour’s CEO said in a comment published by the Telegraph. “This is a country where anything is possible.” To sweeten its proposal, Turkey is willing to build a new course specifically designed for the event it wins.

     Peter Nanula wants to buy a prominent, financially strapped golf club in Oklahoma City, Oklahoma, but he may have to fend off a committed group of club members to do so. In August, the Newport Beach, California-based investor acquired the first mortgage on Gaillardia Golf & Country Club, a property currently in receivership. Control of the loan would seem to give Nanula’s deep-pocketed Concert Golf Partners the inside track on a purchase, but a bid from Jeff McDougall, an oil man who owns a 17,500-square-foot mansion in the Gaillardia community, might be favored by a second lender involved in the proceedings. “We’re just a group in the club that would like to see it locally owned,” McDougall told the Oklahoman. “We think it’s the best thing for the community.” Neither suitor intends to spell out his plans for the club until the foreclosure process concludes, and nobody seems to know when that will happen.

     In an effort to drum up business, some of the best-known golf courses in Gujarat, India have become marketing partners. The 12 founding members of the Gujarat Golf Association include Kensville Golf & Country Club in metropolitan Ahmedabad, Gaekwad Baroda Golf Club in Baroda, and Aalloa Hills Resort & Golf Course in suburban Gandhinagar. “Many of us are struggling hard to stay afloat, as golf is picking up very slowly here and the golf properties are expensive to maintain,” the managing director of Gulmohar Greens Golf & Country Club told the Indian Express. “So we decided to come together under one umbrella and promote it in an organized manner.” The golf business has become very competitive in Gujarat, thanks in part to construction related to residential development, and the newspaper reports that “very few golf enthusiasts” are “taking up the game.”

     Eric Trump, who now effectively runs his family’s golf empire, has faith in the future of ultra high-end golf operations, as long as the properties are located in metropolitan areas. “During the boom, everybody was building golf courses and doing them in crazy locations,” he explained to Cybergolf.com. “Some amazing golf courses got built, but they happen to be in the middle of ‘you name the place’ and weren’t near any metropolitan city, not near any highway. You had to take a prop plane and then a helicopter to get there. The notion that those would be successful was a little fictitious.” To review, the Trumps own a close to a dozen U.S., golf properties, all of them near the cities of New York, Philadelphia, Los Angeles, West Palm Beach, Miami, Charlotte, and Washington, DC.

     Troon Privé has added the oldest golf club in central Ohio to its collection of “private clubs of distinction.” Troon Golf’s private-club division has taken the reins at Columbus Country Club, an old-line property that was established in 1903 and was once a favored retreat for many of the capital city’s most prominent citizens. Today, the club’s initiation fee tops out at $2,500. “Columbus Country Club is an exceptional private facility with an outstanding reputation,” said Jim McLaughlin, one of Troon’s senior vice presidents. One of Troon’s primary tasks will be to restore the club’s membership. In 2011, in an effort to add value, CCC began offering joint memberships with the Athletic Club of Columbus. “We all need to attract a new generation of members and retain our present ones,” the club’s general manager at the time told Columbus Business First. An attraction that prospects will surely notice is a Donald Ross-designed golf course that hosted the 1964 PGA Championship in 1964.

     John Fought, an architect based in Scottsdale, Arizona, has won the commission to oversee a renovation of a golf course owned by the city of Wilmington, North Carolina. Fought will receive $105,000 (plus up to $16,000 in travel expenses) to prepare a master plan for greens-related improvements at Wilmington Municipal Golf Course, an 18-hole, Donald Ross-designed track that dates from the late 1920s. The city expects to rebuild the layout’s greens, greens approaches, and greenside bunkers, and other upgrades may be done as well. “There is little doubt that these improvements will elevate your reputation and enhance the playability of the course,” Fought said in a comment published by the Port City Daily. The work will likely cost about $700,000. It’ll begin next year, but the city hasn’t yet decided to complete it in one phase or two.

     After what’s been described as a “disastrous” and “devastating” golf season, the city of Edina, Minnesota may consider closing or privatizing one or both of its golf courses. The city’s Braemar Golf Course consists of a 27-hole regulation complex and two nine-hole executive-length tracks, one of them operated as Fred Richards Golf Course. Through the end of September, according to the Minneapolis Star Tribune, net earnings at the courses were down by roughly $325,000 from the same time in 2012. As a result, according to the city’s director of parks and recreation, golf operations will be examined “to make sure we’re doing the best we can to operate as efficiently as possible.” The Fred Richards course, which caters mostly to seniors and beginners, will be scrutinized most closely and may be on the chopping block. The city hopes to make some decisions about its golf operation early next year.

     Municipal golf operations in Minnesota may be experiencing declines, but at least one city in Wisconsin is seeing a slight uptick in rounds and revenues. Despite losing 40 playing days to poor weather, the four golf properties in Madison rang up 81,000 rounds through late October, a 1 percent increase over the full-year performance in 2012. What’s more, the courses have so far generated $287,000 in profits, a better than 40 percent boost over 2012. “It has been a great year for the golf courses,” a spokesperson for the capital city’s parks department told the Wisconsin State Journal. A major operational change accounts for a significant part of the profits: This year, the city ended its relationship with the pros who formerly managed the courses.

     You can add Rees Jones’ name to the list of golf-industry professionals who believe that brown is the new green. “I think we’re going to have to learn to deal with lesser conditions,” the Open Doctor said during a conversation with a reporter in Williamsburg, Virginia. “We’ve gotten spoiled.” Spoiled or not, in many parts of the nation brown still seems to be an acquired taste. How long, realistically, will it take the Powers That Be to change hearts and minds?

Friday, November 15, 2013

Vital Signs, november 15, 2013

     The largest owner/operator of golf properties in the United Kingdom gives a free introductory golf lesson to women, after which it hands them a brochure that outlines “8 Reasons Why Women Should Play Golf.” Crown Golf’s argument boils down to this: Golf is good exercise that offers women opportunities to socialize and build relationships, wear cool clothes, and get out into the sun and breathe fresh air. Such a pitch may not resonate deeply with men, but women appear to be listening. Crown Golf claims that most of its 25 golf properties have “a higher-than-average percentage of lady members” and that some have a female membership that approaches 20 percent. This is an achievement worth noting, because only about 14 percent of the club members in the U.K. are women.

     The San Diego Union-Tribune has documented the incredible shrinking initiation fees at some of Southern California’s premier private clubs. The Bridges in Rancho Santa Fe, which opened in the late 1990s with an initiation fee of $350,000, has cut its entry fee by nearly two-thirds, to $125,000. The levy at the Santaluz Club in San Diego, which charged $140,000 when it opened in 2002, is now $50,000. And the Farms Golf Club in Rancho Santa Fe, where members once paid more than $100,000, attracts just $20,000 today. “We’re out of the recession, really, but we’ve still got the over-saturation,” said Bruce Bennetts, the general manager of the Farms. “We’ve just got too many golf clubs. We need more of them to close, and then everybody would be healthier.” Of course, it’s important to note that lower prices attract members, and the name of the game in golf these days is monthly dues, not initiation fees.

     As a result of “the economic downturn, bad weather, and the long-term decline of the sport of golf,” the St. Paul Pioneer Press reports, city-owned courses in Minnesota “are hitting a rough patch.” Citing 2011 figures provided by the state auditor -- the most recent data available, believe it or not -- the newspaper says that only six of the state’s 40 city-owned tracks managed to turn a profit. Collectively, the courses lost $4.7 million in 2011, 20 percent more than they lost in 2009. “It’s a labor of love, not a labor of making money,” notes Tom Ryan, the director of the Minnesota Golf Association. Despite all the red ink, however, at least some of the state’s city-owned golf properties have reason to be optimistic. Because the recession has claimed so many privately owned properties, the municipals expect to benefit from decreased competition.

     On a golf course, a little rough goes a long way. Golfers get peeved when they have to waste time plodding through rough in search of their balls, according to a survey of golfers in the United Kingdom by Syngenta. More than 70 percent of the respondents to the survey, which was conducted in 2011, said that it was of “high importance” to find balls quickly, and 56 percent said that the rough on the courses they play is too thick. Syngenta has also determined that slow play is “a frustration for many players,” and that “discontent” begins to set in when rounds last more than three and a half hours.

     As well-heeled golfers show a greater willingness to travel, the people who organize and market golf tours are ringing up sales. Tour operators’ revenues grew by 9.3 percent in 2012, their second straight year of growth, and the International Association of Golf Tour Operators expects another increase in 2013. “I believe we can all look forward to a third consecutive year of golf tourism growth,” the group’s CEO said at a recent industry get-together.

     The growth of golf in China hasn’t only benefited U.S. designers and builders. E-Z-GO believes that it controls 40 percent of the market for golf cars in the People’s Republic, which has become one of its top five sales territories. “I think there are 500 golf courses in China right now, and we are working with more of them than anyone else,” Kevin Holleran, the company’s president, told China Daily earlier this year. E-Z-GO’s first Chinese customer was Mission Hills Shenzhen, which was an ideal place to start. In China, the average E-Z-GO car reportedly sells for about $7,200.

     In Fort Worth, Texas, the future of municipal golf is being debated. The city’s golf operations have been losing money since 2001, reports the Fort Worth Star-Telegram, and today the system is $8 million in the hole. What’s more, in 2012 the city’s golf properties -- now down to four, after the closing of Z Boaz Golf Course -- attracted just 142,000 rounds, down by nearly 50 percent from the 274,000 recorded in 1998. So city officials are asking themselves a question familiar to their counterparts from coast to coast: Should we invest in necessary improvements that might generate more play, or should we cut our losses by closing courses or finding private-sector operators for them? We could learn the answer to that question by the end of the year.

     Do nine-hole courses sell themselves short? Of the roughly 16,000 golf facilities in the United States, the National Golf Foundation counts about 4,230 nine-hole facilities, 27 percent of the total. On average, the nine-hole layouts charge $23 a round during their peak seasons, less than half of what 18-hole courses charge ($52).