As he begins his farewell tour, the chief executive of the R&A clearly has reservations about the future of golf in nations where the game is well established. “In mature golf markets, it will be pretty hard for golf to keep the market share it had of people’s leisure time years ago,” Peter Dawson said in a comment published by Reuters. “We’re still growing, but the growth will be in new countries, and established countries will have to fight to keep their market share.” Unfortunately, Dawson doesn’t give himself enough nearly credit for helping to put golf into this distressing predicament. While he sat in the industry’s principal seat of power, golf avidly marketed itself to newcomers in emerging nations instead of taking on the much harder task of maintaining the game’s popularity among those already familiar with the sport. It’s a pity that Dawson and so many other brilliant minds failed to recognize the dangers lurking along the path of least resistance.
Will golf make its triumphant return to the Olympics in Great Britain instead of Brazil? Don’t rule it out. A British newspaper says that panicked executives from the International Olympic Committee have “secretly” approached British officials to determine if London, which hosted the summer games in 2012, could stage them again in 2016. “It’s very unlikely, but it would be the logical thing to do,” an unnamed source told the Evening Standard. For months, the IOC has been complaining about the pace of construction in Rio de Janeiro, and the ownership disputes and construction delays that have slowed progress on the games’ Gil Hanse-designed golf course have been well documented. At least for now, however, the IOC insists that it won’t take the event from Brazil, a snub that would be unprecedented. A spokesman for the group told the Associated Press that the newspaper’s report contains “not a shred of truth.”
Directly and indirectly, the golf business was worth nearly $806 million to the state of Utah in 2012, according to a study by the Stanford Research Institute. The study, commissioned by the Golf Alliance for Utah, also determined that the state’s golf industry supported more than 9,600 jobs, provided more than $250 million in wages to its employees, and generated $11.2 million for charities. “We’re here to stay,” the director of the state’s PGA section told Fairways magazine, “and we’re serving a high percentage of our citizens.” Generally speaking, Utah’s golf industry favorably compares to its better-promoted ski industry. The golf business is said to be slightly larger, but skiers hit the slopes more than golfers hit the links (4 million to 3.7 million).
Thanks in part to an early spring, golf-course owners and operators in the United Kingdom registered a welcome increase in play during in the first quarter of this year. The number of rounds played were up by 6 percent from the same period in 2013, suggests a report by Sports Marketing Surveys. “A first-quarter increase of near on 6 percent is a good omen for golf participation for the rest of the year,” an SMS analyst said in a press release. “We know from our experience that if golfers are out on the course playing before the Masters, then the game can expect to play a larger part of their year, with further rounds to follow suit.” According to SMS, much of the increase was posted in March, when the number of rounds played in the U.K. was up by 30 percent.
Is John Paulson considering another golf investment in Puerto Rico? The world’s credit-rating agencies may have little or no faith in Puerto Rico’s economic future, but Paulson, the billionaire hedge-fund manager, thinks the U.S. territory is on the verge of becoming “the Singapore of the Caribbean.” Speaking at a recent investment forum, he claimed that Puerto Rico was “at the beginning of a turnaround” and that its capital city, San Juan, will soon become “the most vibrant financial center” in the region. Last year, Paulson bought a majority interest in the Bahia Beach resort community, which includes a Robert Trent Jones, Jr.-designed golf course and a St. Regis hotel, and Bloomberg reports that he’s “on track to invest $1 billion in the territory over the next two years.” Puerto Rico has close to 20 golf properties, and it’s possible that some of them are looking very attractive to a man of such faith.
Late last year, Robert Trent Jones, Jr. put the finishing touches on his first (and still only) golf course in Colombia. Mesa de Yeguas Country Club, which is said to offer “great drama,” is the centerpiece of a gated, upscale community outside Anapoima, a city known for having “the best climate in the country.” The course, which draws much of its clientele from Bogota -- the capital city is an hour’s drive east -- opened its first nine holes opened in 2010, and its second nine was scheduled to open in December.
If you have an urge to join the One Percent, maybe you should think about playing more golf. Tom Corley, the self-help guru who thinks the key to getting rich is to mimic the habits of rich people, has determined that 23 percent of wealthy Americans have been members of country clubs. “Quite simply, who you associate with is who you become,” notes the Street. For those who’d like to get rich quicker, Corley has other habits worth emulating: Wake up earlier, read more, stop eating junk food, exercise, create a to-do list, and shut off the TV.
Sunday, May 11, 2014
Friday, May 9, 2014
Vital Signs, may 9, 2014
The golf business in Europe, the Middle East, and Africa is stuck in “a period of complete stagnation,” according to a report from KPMG’s Golf Advisory Practice. In a recently released survey, KPMG notes that the number of golfers in the EMA increased by more than 5 percent annually between 1990 and 2008, the year of the world-wide economic crash. Since then: Nada. KPMG also notes that the number of courses in the EMA -- an area that includes two entire continents -- has grown by less than 1 percent annually since 2008. By comparison, golf construction and development in the region grew by an average of 3.3 percent annually between 1990 and 2008. At the end of last year, KPMG says, the EMA had roughly 4.5 million “affiliated” golfers (along with roughly 1.5 million “unaffiliateds”) and 7,300 total golf facilities, including practice centers.
Speaking of “complete stagnation,” the National Golf Foundation reports that the number of female golfers in the United States today is the same as it was in 1991 -- roughly 5 million, or 20 percent of the total number of players. In this regard, the United States pales in comparison to Germany, where 39 percent of the golf population is female, not to mention South Korea (38 percent), the Netherlands (35 percent), Sweden (33 percent), and Canada (30 percent). What explains this disparity? “The countries that do well with women are not afraid to break with tradition,” the NGF has concluded. “They’ve held on to important golf customs such as rules, sportsmanship, and honor, but they’ve also joined the 21st century by getting rid of things like dress codes and mandatory 18-hole rounds.” The NGF also points out that U.S. women are actively engaged in sports other than golf, among them skiing (49 percent female), tennis (48 percent), bowling (ditto), billiards (40 percent), fishing (31 percent), and even handgun shooting (29 percent).
Golf has become “the most lucrative game in Nepal,” according to a newspaper in Kathmandu. Golf pushed past cricket and soccer last month, when the Nepal Professional Golfers Association inked a record-setting, $416,000 (Rs 40 million) contract with Surya Nepal, the cigarette and clothing manufacturer that’s sponsored the nation’s professional golf tour since 2008. The new three-year agreement ensures that Nepal will have at least eight events annually. My Republica reports that Nepal, a nation with just one 18-hole golf course, has 60 professional golfers.
The grand old men of golf continue to cash in on their fame. Arnold Palmer, Jack Nicklaus, and Gary Player occupy three of the top seven positions in this year’s installment of Golf Digest’s Money List, and Greg Norman, who’ll turn 60 next year, checks in at number 10. None of the aforementioned superstars made even $10,000 on professional tours last year, but they were all rewarded handsomely off the course. Palmer took home $40 million, Nicklaus $26 million, Player $16 million, and Norman $14 million. As in previous years, Tiger Woods ($83.1 million) and Phil Mickelson ($52 million) stand head and shoulders above their contemporaries. Only one woman made the list, Paula Creamer at number 48. She earned a total of $5.3 million.
Pacific Links International, a Chinese-owned company, currently offers members of its vacation club access to roughly 100 international golf properties, and over the next three years it intends to establish a major presence in North America. Why is it building such a huge network? Because waves of Chinese vacationers are beginning to travel around the planet, among them golfers eager to play courses they’ve been reading about for years. By 2020, according to an estimate by Credit Lyonnais Securities Asia, 5.7 million Chinese will take holidays in the United States, a dramatic increase from the 1.6 million who visited in 2012. “You’ll be seeing huge growth in outbound Chinese travel,” a CLSA analyst said in a comment published by the New York Times. “Visitor numbers in some places are going to treble and quadruple in the next few years.” In total, says CLSA, the number of outbound Chinese travelers will double, to 200 million, by 2020.
In a recent conference call with investment analysts, Eric Affeldt of ClubCorp Holdings mentioned that his company has dozens of possible purchases in its sights. “The opportunity for acquisitions is greater than in the past,” he said in a comment published by Barron’s. “We will continue to make deals, likely at an accelerated pace.” The financial magazine obviously likes what it heard, because it’s given the company’s future two thumbs up. It notes that ClubCorp’s stock price has increased by 30 percent since the firm went public in September 2013, predicts a further increase (to $24, from the current $18), and believes that the company “will benefit from an improving economy, which could bring more members in the door.” Barron’s also thinks ClubCorp may eventually turn itself into a real-estate investment trust, a move that “could unlock value down the road.”
It appears that Australia isn’t the only nation with a growing number of people who think bicycling is “the new golf.” Money magazine reports that Americans have also begun to network at cycling events, which they view as “less time consuming,” “relatively less expensive,” and “a better way to stay in shape” than hitting the links. “Unlike golf, we’re not committing to a couple of hours and all kinds of expenses just to network,” said the president of a telecom company in Wisconsin. “This is a free gathering, very informal, and you’re done in two hours.”
Speaking of “complete stagnation,” the National Golf Foundation reports that the number of female golfers in the United States today is the same as it was in 1991 -- roughly 5 million, or 20 percent of the total number of players. In this regard, the United States pales in comparison to Germany, where 39 percent of the golf population is female, not to mention South Korea (38 percent), the Netherlands (35 percent), Sweden (33 percent), and Canada (30 percent). What explains this disparity? “The countries that do well with women are not afraid to break with tradition,” the NGF has concluded. “They’ve held on to important golf customs such as rules, sportsmanship, and honor, but they’ve also joined the 21st century by getting rid of things like dress codes and mandatory 18-hole rounds.” The NGF also points out that U.S. women are actively engaged in sports other than golf, among them skiing (49 percent female), tennis (48 percent), bowling (ditto), billiards (40 percent), fishing (31 percent), and even handgun shooting (29 percent).
Golf has become “the most lucrative game in Nepal,” according to a newspaper in Kathmandu. Golf pushed past cricket and soccer last month, when the Nepal Professional Golfers Association inked a record-setting, $416,000 (Rs 40 million) contract with Surya Nepal, the cigarette and clothing manufacturer that’s sponsored the nation’s professional golf tour since 2008. The new three-year agreement ensures that Nepal will have at least eight events annually. My Republica reports that Nepal, a nation with just one 18-hole golf course, has 60 professional golfers.
The grand old men of golf continue to cash in on their fame. Arnold Palmer, Jack Nicklaus, and Gary Player occupy three of the top seven positions in this year’s installment of Golf Digest’s Money List, and Greg Norman, who’ll turn 60 next year, checks in at number 10. None of the aforementioned superstars made even $10,000 on professional tours last year, but they were all rewarded handsomely off the course. Palmer took home $40 million, Nicklaus $26 million, Player $16 million, and Norman $14 million. As in previous years, Tiger Woods ($83.1 million) and Phil Mickelson ($52 million) stand head and shoulders above their contemporaries. Only one woman made the list, Paula Creamer at number 48. She earned a total of $5.3 million.
Pacific Links International, a Chinese-owned company, currently offers members of its vacation club access to roughly 100 international golf properties, and over the next three years it intends to establish a major presence in North America. Why is it building such a huge network? Because waves of Chinese vacationers are beginning to travel around the planet, among them golfers eager to play courses they’ve been reading about for years. By 2020, according to an estimate by Credit Lyonnais Securities Asia, 5.7 million Chinese will take holidays in the United States, a dramatic increase from the 1.6 million who visited in 2012. “You’ll be seeing huge growth in outbound Chinese travel,” a CLSA analyst said in a comment published by the New York Times. “Visitor numbers in some places are going to treble and quadruple in the next few years.” In total, says CLSA, the number of outbound Chinese travelers will double, to 200 million, by 2020.
In a recent conference call with investment analysts, Eric Affeldt of ClubCorp Holdings mentioned that his company has dozens of possible purchases in its sights. “The opportunity for acquisitions is greater than in the past,” he said in a comment published by Barron’s. “We will continue to make deals, likely at an accelerated pace.” The financial magazine obviously likes what it heard, because it’s given the company’s future two thumbs up. It notes that ClubCorp’s stock price has increased by 30 percent since the firm went public in September 2013, predicts a further increase (to $24, from the current $18), and believes that the company “will benefit from an improving economy, which could bring more members in the door.” Barron’s also thinks ClubCorp may eventually turn itself into a real-estate investment trust, a move that “could unlock value down the road.”
It appears that Australia isn’t the only nation with a growing number of people who think bicycling is “the new golf.” Money magazine reports that Americans have also begun to network at cycling events, which they view as “less time consuming,” “relatively less expensive,” and “a better way to stay in shape” than hitting the links. “Unlike golf, we’re not committing to a couple of hours and all kinds of expenses just to network,” said the president of a telecom company in Wisconsin. “This is a free gathering, very informal, and you’re done in two hours.”
Sunday, May 4, 2014
The Week That Was, may 4, 2014
Any other week, Donald Trump would have made headlines simply by securing the 2022 PGA Championship for his tony golf club in Bedminster, New Jersey. But this week, Trump made an even bigger splash: He purchased the historic Turnberry Resort, an 800-acre spread that overlooks the Firth of Clyde on Scotland’s Ayrshire coast. Trump bought Turnberry from Leisurecorp, a financially troubled real-estate entity owned by Dubai’s government. A price hasn’t been disclosed, but several news reports say that Trump paid in the neighborhood £35 million ($59 million). Turnberry has a 45-hole complex, including one of the world’s elite golf courses: the 108-year-old Ailsa track, which has hosted the Open Championship four times and is expected to host it again sometime during the next decade. Now that Trump has the Open Championship virtually in his back pocket, how long before he finally nabs the U.S. Open he so covets?
Tiger Woods has earned a second chance to design his first U.S. golf course. Beacon Land Development and Lantern Asset Management have hired Woods to produce an 18-hole track for Bluejack National, a private club in Montgomery, Texas. The club will take shape on property that was formerly home to Blaketree National, a venue that opened in 2001 but closed in 2012. “Bluejack National has one of the best natural settings for golf I have seen,” Woods said in a press release. “The opportunity is here to create a golf course unlike any other in the Houston area, and our goal is for it to be among the best in the nation.” Bluejack National will also feature a Woods-designed “short” course whose routing “will largely be left to the imagination of the players,” according to the press release. The developers expect to break ground on the club this summer and hope to open it in late 2015 or early 2016. Beacon Land’s press release says that Blaketree National “was popular with Houston-area players,” but the Houston Chronicle reports that it was shuttered because “it couldn’t attract enough business from Houston and surrounding areas.”
Today only one nation on earth truly qualifies as a hot spot for golf development, and it just barely makes the grade. In a poll of golf-course architects by KPMG’s Golf Advisory Practice, China alone received a gold star from at least half of the respondents. China’s score: 53 percent. The global development chill clearly hasn’t lifted, because only four other nations or regions managed to get votes from at least one-third of the architects. The upshot: Even though KPMG claims that it’s observed “a more positive attitude toward golf development in most regions of the world,” the architects -- all of them members of the American Society of Golf Course Architects or the European Institute of Golf Course Architects -- don’t necessarily agree. What’s distressing is that the places still in the deep-freeze are many of the planet’s established golf markets: the United States and Canada (cited by 10 percent of the respondents), Australia and Oceania (5 percent), South Africa (3 percent), Central Europe (3 percent), and Great Britain and Ireland (3 percent).
Just two months after acquiring Prestonwood Country Club, in Dallas, Texas, ClubCorp Holdings has purchased a pair of Tournament Player Club properties with “signature” golf courses. Joining the ever-expanding ClubCorp family are TPC Michigan, in Dearborn, and TPC Piper Glen in Charlotte, North Carolina. Both properties were formerly owned by Heritage Golf Group. The former features a 25-year-old Jack Nicklaus-designed course, and the latter has a 26-year-old Arnold Palmer-designed course. ClubCorp hasn’t announced what it paid for the properties, but Michigan was reportedly on the market for $3.25 million, Piper Glen for $4 million. In a press release, a ClubCorp official said that the purchases would give his company “an even closer relationship with the PGA Tour and its exceptional brand.” ClubCorp, a publicly traded firm, now owns and/or operates 160 clubs of various types in 25 states, the District of Columbia, Mexico, and China.
They’re happy to play nine holes instead of 18, and they’re especially happy when they can complement their rounds with music and, occasionally, a little pot. No, I’m not talking about the retirees in Sun City communities. I’m talking about millennials, the 18-to-34 generation that the golf industry so desperately needs to woo. After surveying 1,020 of its overwhelmingly male readers, Golf Digest has determined that younger golfers practice more often than older golfers do, care less about playing at top-rated courses, and are more inclined to smoke cigars and drink alcohol (though not beer) while they play. Surprisingly, although the vast majority of millennials (80 percent) currently play at public courses, just over half (51 percent) aim to join a private club someday, perhaps because they believe golf is the best sport for advancing a business career (69 percent). In addition, fewer millennials believe that jeans and cargo pants are appropriate linkswear, and 94 percent say they pay close attention to the rules. Such data isn’t easy to interpret, and for that reason the nation’s millennials may confound golf owners and operators for years to come.
It didn’t take long for Cabot Links to become the crème de la crème of Canadian golf venues. The two-year-old track in Inverness, Nova Scotia is the nation’s top-ranked modern (post-1960) layout, according to Golfweek. The publication’s 40-course list has a distinctly contemporary feel, as 23 of the tracks opened in 2000 or later, while 34 opened in 1990 or later. As one would expect, more than half of the courses were produced by Canadian architects, with Doug Carrick (nine) and Tom McBroom (seven) collecting the most credits. The top of this year’s list is virtually a carbon copy of the 2013 edition, but the remaining 30 courses on the list have been shuffled around considerably. Eleven have moved up or down in the rankings by three or more places, with the biggest upgrades going to Mad River Golf Course in Creemore, Ontario (up by 12 places), the Links at Crowbush Cove on Prince Edward Island (up by six), and Bear Mountain Golf & Country Club in Victoria, British Columbia (also up by six). The biggest downgrades: Taboo Resort in Gravenhurst, Ontario and the Predator course at Predator Ridge in Vernon, British Columbia, each down by six places. Finally, Golfweek’s raters added two new courses to the list, the Ridge course at Predator Ridge and Le Maitre in Mont Tremblant, Quebec.
With his recently unveiled course on the French island of Corsica, Kyle Phillips has gone where few other architects fear to tread: He’s challenging the tyranny of traditional 18-hole golf. Phillips’ 12-green layout is among the attractions at Domaine de Murtoli, a 6,000-acre working farm and rustic vacation spot on the French island’s southern coast. Murtoli’s guests are overwhelmingly recreational golfers, and Phillips’ track gives them plenty of options for three-, six-, nine-, 12-, and 18-hole play. Such a bevy of choices is in keeping with Murtoli’s motto: “Everything is offered, but nothing is imposed.” In some settings, such a course would stick out like a sore thumb, but at Murtoli it may very well fit like a glove.
The original version of the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
The ratings drop suffered by the Masters this year has led some golf-industry observers to contemplate life without Tiger Woods. And the prospect isn’t pleasant. Based on estimates provided by media analysts, Josh Sens of Golf magazine concludes that Woods is worth $15 billion to golf -- almost 22 percent of the $68.8 billion that our industry is currently said to be worth. Without Woods, Sens believes, golf would suffer declines across the board -- in television ratings, tee times, golf-related travel, and sales of tickets, equipment, and merchandise. It may be true that golf is capable of getting along fine without Woods, but there’s no reason to wish for his departure anytime soon.
Tiger Woods has earned a second chance to design his first U.S. golf course. Beacon Land Development and Lantern Asset Management have hired Woods to produce an 18-hole track for Bluejack National, a private club in Montgomery, Texas. The club will take shape on property that was formerly home to Blaketree National, a venue that opened in 2001 but closed in 2012. “Bluejack National has one of the best natural settings for golf I have seen,” Woods said in a press release. “The opportunity is here to create a golf course unlike any other in the Houston area, and our goal is for it to be among the best in the nation.” Bluejack National will also feature a Woods-designed “short” course whose routing “will largely be left to the imagination of the players,” according to the press release. The developers expect to break ground on the club this summer and hope to open it in late 2015 or early 2016. Beacon Land’s press release says that Blaketree National “was popular with Houston-area players,” but the Houston Chronicle reports that it was shuttered because “it couldn’t attract enough business from Houston and surrounding areas.”
Today only one nation on earth truly qualifies as a hot spot for golf development, and it just barely makes the grade. In a poll of golf-course architects by KPMG’s Golf Advisory Practice, China alone received a gold star from at least half of the respondents. China’s score: 53 percent. The global development chill clearly hasn’t lifted, because only four other nations or regions managed to get votes from at least one-third of the architects. The upshot: Even though KPMG claims that it’s observed “a more positive attitude toward golf development in most regions of the world,” the architects -- all of them members of the American Society of Golf Course Architects or the European Institute of Golf Course Architects -- don’t necessarily agree. What’s distressing is that the places still in the deep-freeze are many of the planet’s established golf markets: the United States and Canada (cited by 10 percent of the respondents), Australia and Oceania (5 percent), South Africa (3 percent), Central Europe (3 percent), and Great Britain and Ireland (3 percent).
Just two months after acquiring Prestonwood Country Club, in Dallas, Texas, ClubCorp Holdings has purchased a pair of Tournament Player Club properties with “signature” golf courses. Joining the ever-expanding ClubCorp family are TPC Michigan, in Dearborn, and TPC Piper Glen in Charlotte, North Carolina. Both properties were formerly owned by Heritage Golf Group. The former features a 25-year-old Jack Nicklaus-designed course, and the latter has a 26-year-old Arnold Palmer-designed course. ClubCorp hasn’t announced what it paid for the properties, but Michigan was reportedly on the market for $3.25 million, Piper Glen for $4 million. In a press release, a ClubCorp official said that the purchases would give his company “an even closer relationship with the PGA Tour and its exceptional brand.” ClubCorp, a publicly traded firm, now owns and/or operates 160 clubs of various types in 25 states, the District of Columbia, Mexico, and China.
They’re happy to play nine holes instead of 18, and they’re especially happy when they can complement their rounds with music and, occasionally, a little pot. No, I’m not talking about the retirees in Sun City communities. I’m talking about millennials, the 18-to-34 generation that the golf industry so desperately needs to woo. After surveying 1,020 of its overwhelmingly male readers, Golf Digest has determined that younger golfers practice more often than older golfers do, care less about playing at top-rated courses, and are more inclined to smoke cigars and drink alcohol (though not beer) while they play. Surprisingly, although the vast majority of millennials (80 percent) currently play at public courses, just over half (51 percent) aim to join a private club someday, perhaps because they believe golf is the best sport for advancing a business career (69 percent). In addition, fewer millennials believe that jeans and cargo pants are appropriate linkswear, and 94 percent say they pay close attention to the rules. Such data isn’t easy to interpret, and for that reason the nation’s millennials may confound golf owners and operators for years to come.
It didn’t take long for Cabot Links to become the crème de la crème of Canadian golf venues. The two-year-old track in Inverness, Nova Scotia is the nation’s top-ranked modern (post-1960) layout, according to Golfweek. The publication’s 40-course list has a distinctly contemporary feel, as 23 of the tracks opened in 2000 or later, while 34 opened in 1990 or later. As one would expect, more than half of the courses were produced by Canadian architects, with Doug Carrick (nine) and Tom McBroom (seven) collecting the most credits. The top of this year’s list is virtually a carbon copy of the 2013 edition, but the remaining 30 courses on the list have been shuffled around considerably. Eleven have moved up or down in the rankings by three or more places, with the biggest upgrades going to Mad River Golf Course in Creemore, Ontario (up by 12 places), the Links at Crowbush Cove on Prince Edward Island (up by six), and Bear Mountain Golf & Country Club in Victoria, British Columbia (also up by six). The biggest downgrades: Taboo Resort in Gravenhurst, Ontario and the Predator course at Predator Ridge in Vernon, British Columbia, each down by six places. Finally, Golfweek’s raters added two new courses to the list, the Ridge course at Predator Ridge and Le Maitre in Mont Tremblant, Quebec.
With his recently unveiled course on the French island of Corsica, Kyle Phillips has gone where few other architects fear to tread: He’s challenging the tyranny of traditional 18-hole golf. Phillips’ 12-green layout is among the attractions at Domaine de Murtoli, a 6,000-acre working farm and rustic vacation spot on the French island’s southern coast. Murtoli’s guests are overwhelmingly recreational golfers, and Phillips’ track gives them plenty of options for three-, six-, nine-, 12-, and 18-hole play. Such a bevy of choices is in keeping with Murtoli’s motto: “Everything is offered, but nothing is imposed.” In some settings, such a course would stick out like a sore thumb, but at Murtoli it may very well fit like a glove.
The original version of the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
The ratings drop suffered by the Masters this year has led some golf-industry observers to contemplate life without Tiger Woods. And the prospect isn’t pleasant. Based on estimates provided by media analysts, Josh Sens of Golf magazine concludes that Woods is worth $15 billion to golf -- almost 22 percent of the $68.8 billion that our industry is currently said to be worth. Without Woods, Sens believes, golf would suffer declines across the board -- in television ratings, tee times, golf-related travel, and sales of tickets, equipment, and merchandise. It may be true that golf is capable of getting along fine without Woods, but there’s no reason to wish for his departure anytime soon.
Friday, May 2, 2014
The Pipeline, may 2, 2014
Eagle Assets Management has inked Arnold Palmer to design the golf course for its forthcoming community on the East End of Grand Cayman Island. EAM expects the King to deliver “one of the Caribbean’s top-rated courses,” one capable of hosting professional tournaments. In comments published by the Cayman Compass, the King suggested that his 18-hole track would be “one of the great golf courses of all time” and boasted that the prospect of building it “has got my excitement up more than anything other than my wife in many years.” The course will be the centerpiece of Ironwood, a 430-acre spread that will consist of at least 170 single-family houses and multifamily units, a resort-style hotel, a town center, a sports village, and various other entertainment venues.
Some information in the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
Coore & Crenshaw has reportedly had “discussions” about designing a tournament-worthy golf course in Austin, Texas. Joe Ogilvie, a local professional golfer who’s said to be “arguably the smartest player on the tour” and a possible successor to Tim Finchem, told the Austin American-Statesman that he’s had “casual talks” with the city about reviving a decades-old plan to build one or two golf courses in Walter E. Long Metropolitan Park. “My goal is to build a public golf course that Austin’s citizens can be proud of and that is considered a valuable asset to the city, as well as a world-class place to play golf,” he said. Unfortunately, Ogilvie gives his proposal only “a 10 to 15 percent chance of happening.” Coore & Crenshaw is engaged in a similar project in Dallas, with a course that’s expected to become the home of the Byron Nelson Championship.
If you think that the Naples, Florida area couldn’t possibly accommodate another golf community, you haven’t been reading Lennar’s market studies. The big national home builder has unveiled Bonita National Golf & Country Club, which will take shape on 500 acres in Bonita Springs. The community will feature a variety of mid-priced housing types, an activity center, a pool, and an 18-hole, Gordon Lewis-designed golf course. “We’re confident that we’ll deliver a product everyone’s pleased with,” a Lennar official told the Naples Daily News. To ensure that Bonita National’s golf course remains financially viable, Lennar has made membership mandatory for home buyers.
Jack Nicklaus’ design firm has reportedly been commissioned to produce the golf course for a resort community on Cebu Island in the Philippines. The 18-hole, executive-length track will be the centerpiece of Duros Mountain Resort, which will take shape on 325 acres in Liloan, outside Cebu City. Duros Land Development, Inc., the community’s developer, believes the resort will serve as “a source of pride” for the residents of Cebu City and become one of their favorite vacation spots. Nicklaus’s firm hasn’t yet acknowledged the assignment, but Duros Land hasn’t been shy about discussing it with Filipino newspapers. The company hopes to open the track’s first nine holes in 2016, the second nine in 2018.
The original version of the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
With the Great Recession rapidly becoming a fading memory, all-but-forgotten golf ventures are finding new life. A case in point: Glacier Club, outside Durango, Colorado, plans to break ground next month on the second nine of its Glacier course. The course’s existing nine, a track co-designed by Hale Irwin and Todd Schoeder, opened in 2004. “This completes the original golf vision for our members -- to have a world-class venue that includes an opportunity for a members-only course and a semiprivate course within a resort setting,” the club’s general manager said in a press statement published by the Durango Herald. Glacier Club expects to debut its new nine by the spring of 2017. Its original course, an 18-hole track designed by Arthur Hills, opened in 1975.
Now that the initial phase of its resort in Sri Lanka has opened, Dutch Bay Resorts is preparing to move forward with the rest of the property’s master plan. Last year, Dutch Bay opened 16 chalets at its 184-acre “hideaway retreat” near Kalpitiya, on the island nation’s western coast. The beachfront chalets, which overlook a marine sanctuary, have been built to what the company calls “five-star boutique standards” in an effort to attract wealthy travelers from India, the Middle East, Pakistan, and China who are looking to vacation in a secluded tropical setting. Phase two of Dutch Bay will consist of 80 to 100 villas, a town center, and a nine-hole, “international-standard” golf course. And in phase three, a company principal told the Daily FT that a marina and a yacht club will emerge “to attract all the wealthy Arabs and the Europeans who park their yachts in very busy places such as Monaco and Nice.” Years ago, Dutch Bay said that its golf course would be designed by a top professional golfer, but his identity still hasn’t been revealed.
The original version of the preceding post first appeared in the January 2014 issue of the World Edition of the Golf Course Report.
A “golf nut” in Melrose, Oregon has proposed an alternative use for some property no longer necessary to his family’s sand-and-gravel mining company: He thinks it’s an ideal spot for an 18-hole golf course and an RV park. Brant Guido came up with the idea, thinking that his family might capitalize on local wine tourism, and his father, Kelly, the owner of Umpqua Sand & Gravel, has endorsed it. Douglas County planners are expected to recommend a rezoning of Umpqua’s property, according to the Roseburg News-Review, but the family hasn’t announced when construction might begin.
One of England’s “royal” golf properties has reached an agreement to move into new digs. Royal Norwich Golf Club, which was established in 1893, plans to leave its home in suburban Norwich and take over Weston Park Golf Club in nearby Lenwade. After a multimillion-dollar investment, the new Royal Norwich Golf Club will feature an upgraded, destination-worthy 18-hole golf course, a new nine-hole track, and a completely overhauled clubhouse. “This is a fantastic, one-off opportunity for our members to develop a club fit for the 21st century,” Royal Norwich’s captain told the Eastern Daily Press. “We intend to produce a club and course of which the members will be justly proud.” The bill for Royal Norwich’s relocation will be footed by Persimmon Homes, which has agreed to buy both Royal Norwich and Weston Park. Persimmon believes that Royal Norwich’s 120 acres can accommodate as many as 1,000 houses.
The original version of the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
A Los Angeles-area anesthesiologist wants to turn a 750-acre parcel outside Oak Grove, in San Diego County, into a tourist hot spot that includes a golf course and one of Southern California’s largest wineries. Roa Anne, who grew up on a farm in India, also plans to build a 250-room hotel and a restaurant. “I want to go back to my roots,” he told the San Diego Union-Tribune. The resort doesn’t appear to have an official name, but Anne and his nearly two dozen partners are operating at Hills Springs Farms LLC.
Some information in the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
Coore & Crenshaw has reportedly had “discussions” about designing a tournament-worthy golf course in Austin, Texas. Joe Ogilvie, a local professional golfer who’s said to be “arguably the smartest player on the tour” and a possible successor to Tim Finchem, told the Austin American-Statesman that he’s had “casual talks” with the city about reviving a decades-old plan to build one or two golf courses in Walter E. Long Metropolitan Park. “My goal is to build a public golf course that Austin’s citizens can be proud of and that is considered a valuable asset to the city, as well as a world-class place to play golf,” he said. Unfortunately, Ogilvie gives his proposal only “a 10 to 15 percent chance of happening.” Coore & Crenshaw is engaged in a similar project in Dallas, with a course that’s expected to become the home of the Byron Nelson Championship.
If you think that the Naples, Florida area couldn’t possibly accommodate another golf community, you haven’t been reading Lennar’s market studies. The big national home builder has unveiled Bonita National Golf & Country Club, which will take shape on 500 acres in Bonita Springs. The community will feature a variety of mid-priced housing types, an activity center, a pool, and an 18-hole, Gordon Lewis-designed golf course. “We’re confident that we’ll deliver a product everyone’s pleased with,” a Lennar official told the Naples Daily News. To ensure that Bonita National’s golf course remains financially viable, Lennar has made membership mandatory for home buyers.
Jack Nicklaus’ design firm has reportedly been commissioned to produce the golf course for a resort community on Cebu Island in the Philippines. The 18-hole, executive-length track will be the centerpiece of Duros Mountain Resort, which will take shape on 325 acres in Liloan, outside Cebu City. Duros Land Development, Inc., the community’s developer, believes the resort will serve as “a source of pride” for the residents of Cebu City and become one of their favorite vacation spots. Nicklaus’s firm hasn’t yet acknowledged the assignment, but Duros Land hasn’t been shy about discussing it with Filipino newspapers. The company hopes to open the track’s first nine holes in 2016, the second nine in 2018.
The original version of the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
With the Great Recession rapidly becoming a fading memory, all-but-forgotten golf ventures are finding new life. A case in point: Glacier Club, outside Durango, Colorado, plans to break ground next month on the second nine of its Glacier course. The course’s existing nine, a track co-designed by Hale Irwin and Todd Schoeder, opened in 2004. “This completes the original golf vision for our members -- to have a world-class venue that includes an opportunity for a members-only course and a semiprivate course within a resort setting,” the club’s general manager said in a press statement published by the Durango Herald. Glacier Club expects to debut its new nine by the spring of 2017. Its original course, an 18-hole track designed by Arthur Hills, opened in 1975.
Now that the initial phase of its resort in Sri Lanka has opened, Dutch Bay Resorts is preparing to move forward with the rest of the property’s master plan. Last year, Dutch Bay opened 16 chalets at its 184-acre “hideaway retreat” near Kalpitiya, on the island nation’s western coast. The beachfront chalets, which overlook a marine sanctuary, have been built to what the company calls “five-star boutique standards” in an effort to attract wealthy travelers from India, the Middle East, Pakistan, and China who are looking to vacation in a secluded tropical setting. Phase two of Dutch Bay will consist of 80 to 100 villas, a town center, and a nine-hole, “international-standard” golf course. And in phase three, a company principal told the Daily FT that a marina and a yacht club will emerge “to attract all the wealthy Arabs and the Europeans who park their yachts in very busy places such as Monaco and Nice.” Years ago, Dutch Bay said that its golf course would be designed by a top professional golfer, but his identity still hasn’t been revealed.
The original version of the preceding post first appeared in the January 2014 issue of the World Edition of the Golf Course Report.
A “golf nut” in Melrose, Oregon has proposed an alternative use for some property no longer necessary to his family’s sand-and-gravel mining company: He thinks it’s an ideal spot for an 18-hole golf course and an RV park. Brant Guido came up with the idea, thinking that his family might capitalize on local wine tourism, and his father, Kelly, the owner of Umpqua Sand & Gravel, has endorsed it. Douglas County planners are expected to recommend a rezoning of Umpqua’s property, according to the Roseburg News-Review, but the family hasn’t announced when construction might begin.
One of England’s “royal” golf properties has reached an agreement to move into new digs. Royal Norwich Golf Club, which was established in 1893, plans to leave its home in suburban Norwich and take over Weston Park Golf Club in nearby Lenwade. After a multimillion-dollar investment, the new Royal Norwich Golf Club will feature an upgraded, destination-worthy 18-hole golf course, a new nine-hole track, and a completely overhauled clubhouse. “This is a fantastic, one-off opportunity for our members to develop a club fit for the 21st century,” Royal Norwich’s captain told the Eastern Daily Press. “We intend to produce a club and course of which the members will be justly proud.” The bill for Royal Norwich’s relocation will be footed by Persimmon Homes, which has agreed to buy both Royal Norwich and Weston Park. Persimmon believes that Royal Norwich’s 120 acres can accommodate as many as 1,000 houses.
The original version of the preceding post first appeared in the February 2014 issue of the World Edition of the Golf Course Report.
A Los Angeles-area anesthesiologist wants to turn a 750-acre parcel outside Oak Grove, in San Diego County, into a tourist hot spot that includes a golf course and one of Southern California’s largest wineries. Roa Anne, who grew up on a farm in India, also plans to build a 250-room hotel and a restaurant. “I want to go back to my roots,” he told the San Diego Union-Tribune. The resort doesn’t appear to have an official name, but Anne and his nearly two dozen partners are operating at Hills Springs Farms LLC.
Sunday, April 27, 2014
The Week That Was, april 27, 2014
After 16 years as the secretary of the Royal & Ancient Golf Club of St Andrews and the chief executive of its commercial arm, the R&A, Peter Dawson has decided to call it a day. He’ll officially step down in September 2015. During his time in office, Dawson
skillfully managed the business side of international golf. He helped to open new markets for the game, attracted deep-pocketed corporate sponsors, enhanced the status (and boosted the profits) of the Open Championship, and helped to identify new sources of revenue for the sport of golf. And just weeks ago, in what may turn out to be his last major initiative, he set the stage for a long-overdue vote that will likely admit women to the Royal & Ancient. Unfortunately, all too often he served as a defender of the status quo, and he presided over an unprecedented decline in golf’s popularity among amateur golfers. Dawson’s retirement may be an opportunity for golf to chart a fresh new course, but history suggests that we’re in for more of the same.
In lieu of assessing themselves for millions of dollars’ worth of capital improvements, the 600 members of a golf club in Cary, North Carolina have chosen to sell their 200-acre property to Concert Golf Partners. Peter Nanula’s Newport Beach, California-based investment group has agreed to buy MacGregor Downs Country Club, reportedly for $3.4 million. The 47-year-old venue features an 18-hole, Willard Byrd-designed golf course, a clubhouse, and the usual recreational amenities, all of which need to be modernized. Nonetheless, the club’s members reportedly weighed offers from at least three other suitors. With MacGregor Downs in the fold, Nanula’s group has acquired seven golf properties over the past three years. It has four facilities in Florida and others in Oklahoma and suburban Washington, DC.
China’s golf markets may be growing rapidly, but a new analysis indicates that they aren’t as large as some people believe. In 2012, according to Research & Markets, China had 386,000 “core” golfers, an increase of 7.8 percent over the number it had in 2011. Based on the belief that “core” golfers account for between 35 to 42 percent of a nation’s total golf population, R&M estimates that the total number of golfers in China is somewhere between 920,000 and 1.1 million. Thanks to rising incomes and improved standards of living, R&M concludes, the number will grow by about 12 percent annually over “the next several years.”
A new survey suggests that British golf properties would generate more play if they were friendlier to their customers, offered affordably priced lessons, and were more welcoming to women and beginners. “Growing Golf in the U.K.,” a study commissioned by Syngenta, took the pulse of 1,477 golfers and 2,145 non-golfers. In a summary of the results, Golf Club Management said that a large number of respondents specifically desire “relaxed, family-friendly facilities,” flexible membership options, informal dress codes, and “the freedom to do things such as use a smartphone in the clubhouse.” The survey also highlights the role a thriving junior program can have on a facility’s bottom line and notes that as many as 8.5 million people in the U.K. might be inclined to give golf a try.
Romspen Investment Corporation, the new owner of four former Carolina Trail golf courses, might be advised to stick to a business it knows better than golf operations. The Canadian financier has alienated some of the trail’s long-time customers by refusing to honor memberships sold by former owner Jeff Silverstein -- thousands of dollars worth of memberships, in some cases. “They are throwing away the guys that are there day in and day out,” a former member complained to the Charlotte Observer. The response, from a Romspen vice president: “I don’t think they should be upset with us. We weren’t party to the deal that they made.” In other words, since Romspen isn’t legally bound to recognize Silverstein’s contracts, all bets are off. Clearly, Romspen doesn’t view itself as the trail’s long-term owner/operator. It may be adept at lending and investing, but customer relations doesn’t appear to be its strong suit.
Without Tiger Woods to attract casual viewers, this year’s Masters recorded its worst ratings in a decade. The final round of the 78th edition of the sport’s premier invitational was viewed in 7.8 percent of U.S. homes, the lowest number since 2004 (7.3 percent) and down by 2.4 percent from 2013. The ratings weren’t helped when Phil Mickelson failed to make the cut, or by the lack of drama on the back nine. Not that Bubba Watson minds.
Is it possible that a failing golf venue in Colorado or Washington -- or even a successful one, for that matter -- might follow the money and become a combination golf/marijuana club?
Billy Casper Golf has assumed control of the golf operations at Seven Oaks Golf Course, an 18-hole layout located on the campus of Colgate University in Hamilton, New York. Golfweek currently ranks Seven Oaks at #22 on its list of the nation’s best campus courses. The parkland-style track, designed by Robert Trent Jones in the mid 1930s, opened in two phases, in 1956 and 1965. BCG, which markets itself as “the largest domestic owner-operator of golf courses, country clubs, and resorts,” has three other golf properties in New York: Pine Ridge Golf Club in Coram, Beekman Golf Course in Hopewell Junction, and Hudson Hills Golf Course in Ossining. It appears that the university will continue to maintain the grounds at Seven Oaks.
The you-know-what has hit the fan in Escondido, California. In a dirty trick worthy of the Christie State House and the Nixon White House, the owner of Escondido Country Club spread chicken manure on abandoned fairways located nearest to the houses that line the defunct golf course. The homeowners, who’ve blocked Stuck in the Rough LLC’s plans to develop the golf-course property, raised a stink about the stench, and air-quality officials in San Diego County are investigating. Michael Schlesinger, the LLC’s CEO, insists that he’s employing an “industry-standard landscaping program,” but he’ll have to pay fines if he’s deemed to be a deliberate public nuisance. As lawyers so often tell us, payback can be a bitch.
skillfully managed the business side of international golf. He helped to open new markets for the game, attracted deep-pocketed corporate sponsors, enhanced the status (and boosted the profits) of the Open Championship, and helped to identify new sources of revenue for the sport of golf. And just weeks ago, in what may turn out to be his last major initiative, he set the stage for a long-overdue vote that will likely admit women to the Royal & Ancient. Unfortunately, all too often he served as a defender of the status quo, and he presided over an unprecedented decline in golf’s popularity among amateur golfers. Dawson’s retirement may be an opportunity for golf to chart a fresh new course, but history suggests that we’re in for more of the same.
In lieu of assessing themselves for millions of dollars’ worth of capital improvements, the 600 members of a golf club in Cary, North Carolina have chosen to sell their 200-acre property to Concert Golf Partners. Peter Nanula’s Newport Beach, California-based investment group has agreed to buy MacGregor Downs Country Club, reportedly for $3.4 million. The 47-year-old venue features an 18-hole, Willard Byrd-designed golf course, a clubhouse, and the usual recreational amenities, all of which need to be modernized. Nonetheless, the club’s members reportedly weighed offers from at least three other suitors. With MacGregor Downs in the fold, Nanula’s group has acquired seven golf properties over the past three years. It has four facilities in Florida and others in Oklahoma and suburban Washington, DC.
China’s golf markets may be growing rapidly, but a new analysis indicates that they aren’t as large as some people believe. In 2012, according to Research & Markets, China had 386,000 “core” golfers, an increase of 7.8 percent over the number it had in 2011. Based on the belief that “core” golfers account for between 35 to 42 percent of a nation’s total golf population, R&M estimates that the total number of golfers in China is somewhere between 920,000 and 1.1 million. Thanks to rising incomes and improved standards of living, R&M concludes, the number will grow by about 12 percent annually over “the next several years.”
A new survey suggests that British golf properties would generate more play if they were friendlier to their customers, offered affordably priced lessons, and were more welcoming to women and beginners. “Growing Golf in the U.K.,” a study commissioned by Syngenta, took the pulse of 1,477 golfers and 2,145 non-golfers. In a summary of the results, Golf Club Management said that a large number of respondents specifically desire “relaxed, family-friendly facilities,” flexible membership options, informal dress codes, and “the freedom to do things such as use a smartphone in the clubhouse.” The survey also highlights the role a thriving junior program can have on a facility’s bottom line and notes that as many as 8.5 million people in the U.K. might be inclined to give golf a try.
Romspen Investment Corporation, the new owner of four former Carolina Trail golf courses, might be advised to stick to a business it knows better than golf operations. The Canadian financier has alienated some of the trail’s long-time customers by refusing to honor memberships sold by former owner Jeff Silverstein -- thousands of dollars worth of memberships, in some cases. “They are throwing away the guys that are there day in and day out,” a former member complained to the Charlotte Observer. The response, from a Romspen vice president: “I don’t think they should be upset with us. We weren’t party to the deal that they made.” In other words, since Romspen isn’t legally bound to recognize Silverstein’s contracts, all bets are off. Clearly, Romspen doesn’t view itself as the trail’s long-term owner/operator. It may be adept at lending and investing, but customer relations doesn’t appear to be its strong suit.
Without Tiger Woods to attract casual viewers, this year’s Masters recorded its worst ratings in a decade. The final round of the 78th edition of the sport’s premier invitational was viewed in 7.8 percent of U.S. homes, the lowest number since 2004 (7.3 percent) and down by 2.4 percent from 2013. The ratings weren’t helped when Phil Mickelson failed to make the cut, or by the lack of drama on the back nine. Not that Bubba Watson minds.
Is it possible that a failing golf venue in Colorado or Washington -- or even a successful one, for that matter -- might follow the money and become a combination golf/marijuana club?
Billy Casper Golf has assumed control of the golf operations at Seven Oaks Golf Course, an 18-hole layout located on the campus of Colgate University in Hamilton, New York. Golfweek currently ranks Seven Oaks at #22 on its list of the nation’s best campus courses. The parkland-style track, designed by Robert Trent Jones in the mid 1930s, opened in two phases, in 1956 and 1965. BCG, which markets itself as “the largest domestic owner-operator of golf courses, country clubs, and resorts,” has three other golf properties in New York: Pine Ridge Golf Club in Coram, Beekman Golf Course in Hopewell Junction, and Hudson Hills Golf Course in Ossining. It appears that the university will continue to maintain the grounds at Seven Oaks.
The you-know-what has hit the fan in Escondido, California. In a dirty trick worthy of the Christie State House and the Nixon White House, the owner of Escondido Country Club spread chicken manure on abandoned fairways located nearest to the houses that line the defunct golf course. The homeowners, who’ve blocked Stuck in the Rough LLC’s plans to develop the golf-course property, raised a stink about the stench, and air-quality officials in San Diego County are investigating. Michael Schlesinger, the LLC’s CEO, insists that he’s employing an “industry-standard landscaping program,” but he’ll have to pay fines if he’s deemed to be a deliberate public nuisance. As lawyers so often tell us, payback can be a bitch.
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