how much can you make owning a golf course

Profit to the owner should be at least 10% (really more) for about $200K. You can still run a golf course on less than $1.5M if there is no debt. That means you need 25,000 rounds at a total of $60 per player (maybe $40 greens fee, $12 Cart, and $4 each for food, merchandise and range balls.

Full Answer

How much is a golf course really worth?

Those in the industry will tell you that a golf course that was purchased for $5 million in 2006 would be worth about $2.5 million today. From 2010 to 2014, there were a lot of distressed golf course assets put on the market by lenders, financial institutions, and bankruptcy companies.

How much does it cost to run a golf course?

The cost to achieve the condition players expect — or will tolerate — ranges from about $500,000 a year for a daily-fee course to $1,000,000 a year for a private club, estimates Bob Randquist,...

Is buying a golf course profitable?

While buying a golf course is a real estate transaction, golf courses aren’t like traditional real estate. Even thinking about price per round could be wrong. A $100 tee time in the evening could be way more profitable than a $200 tee time in the middle of a time slot when a company wants to host a large and profitable corporate outing.

How much land to build a golf course?

How Much Does It Cost To Build A Golf Course?

• Mobilization. Mobilizing the team to construct the course can cost anywhere from $10,000, requiring minimal work up to $100,000 for an elite course.
• Layout and Staking. ...
• Erosion Control. ...
• Clearing and Grubbing. ...
• Topsoil Strip. ...
• Rock Blasting. ...
• Earthmoving. ...
• Topsoil Replacement. ...
• Drainage. ...
• Irrigation and Pump Station. ...

More items...

Is owning a golf course profitable?

Profitable golf courses are generally selling for six to eight times EBITDA, while courses that aren't profitable tend to sell at 0.8 to 1.4 times revenue.

How do golf businesses make money?

How To Make Money Playing Golf (Top 5 Ways)Get a Job as a Golf Pro. ... Play in Golf Tournaments. ... Place Friendly Bets with Your Friends. ... Become a Mystery Shopper. ... Get Sponsorships/Become an Influencer.

How much money does it take annually to maintain a perfect golf course?

The cost to achieve the condition players expect — or will tolerate — ranges from about $500,000 a year for a daily-fee course to $1,000,000 a year for a private club, estimates Bob Randquist, chief operating officer of the Golf Course Superintendent's Association of America.

How much land does it take to make a golf course?

“This means an 18-hole course of all short par 3s could be built on as little as 30 acres, while an intermediate length or executive course of 18 holes of par 3s and 4s would require 75-100 acres, and a full size par 72 course would need 120-200 acres.

Who makes the most money in the golf industry?

Below are the top 10.Tiger Woods: $62.2 million. Prize money: $191,000; Off-course: $62 million. ... Phil Mickelson: $46.1 million. ... Dustin Johnson: $40.8 million. ... Rory McIlroy: $32.8 million. ... Jordan Spieth: $29.6 million. ... Justin Thomas: $20.3 million. ... Bryson DeChambeau: $17.9 million. ... Xander Schauffele: $17.3 million.More items...•

Do you have to be a PGA pro to teach golf?

The answer: most likely no. While you don't technically need certification to teach golf, it is highly unlikely anyone will pay you money for your tutelage or advice without you being a registered, fully-accredited PGA professional.

Is golf still declining?

National Golf Foundation and Golf Datatech data shows a March 2020 decline of 8.5% in rounds played compared to March 2019; in April 2020, rounds played were down a staggering 42.2% compared to April 2019.

What is the profit margin on golf clubs?

After all expenses, the best golf retailers rarely profit more than 2-3% of the total cost of a club. However, as a whole, we can say that around 33.33% of the cost of a golf club is the markup from the retailer.

How many people maintain a golf course?

As a result, private facilities employ on average 10 full-time and 12 seasonal maintenance workers, while public courses have an average of six full-time and a dozen seasonal workers.

How many acres is a normal golf course?

150 acresAt the individual level, an average 18-hole golf course covers 150 acres, approximately 100 (67 percent) of which is maintained turfgrass. This area is predominantly comprised of rough (51 acres) and fairways (30 acres).

How much water do golf courses use?

90 million gallonsIn California, an average 18-hole golf course sprawls over 110 to 115 acres and conservatively uses almost 90 million gallons of water per year, enough to fill 136 Olympic-size swimming pools, said Mike Huck, a water management consultant who works with golf courses statewide.

How long does it take to build a golf course?

The actual construction time for a golf course from ground -breaking to opening can be from one to two years, depending on the weather and amount of equipment used. But today it often takes an additional one to two years to obtain all of the permits and required approvals before construction can begin.

Due to the spread of the coronavirus, is this business essential?

No. Under current guidelines across multiple states, this business is not classified as essential while emergency orders are active.For more inform...

What are the costs involved in opening a golf course?

The costs associated with opening a golf course are significant. The largest upfront expense is usually land, as courses can require 200 acres of l...

What are the ongoing expenses for a golf course?

The ongoing expenses for a golf course business largely consist of maintenance fees for the course and any buildings on the property. In 2016, the...

Who is the target market?

A golf course’s ideal customer is an affluent golfer. Such a person enjoys the sport, and they have the money necessary to go golfing regularly.

How much can you charge customers?

According to Golfweek, most privately owned golf courses charge an average of $40 per round with a cart on the weekend. Weekday prices tend to be s...

How much profit can a golf course make?

In 2015, 69 percent of golf courses broke even (24 percent) or earned a profit (45 percent). The profitability of these courses varies greatly, dep...

How can you make your business more profitable?

Golf course businesses can add additional revenue streams and increase profits by hiring golf pros who offer lessons, putting in a pro shop that se...

Is this Business Right For You?

Anyone who is well-versed in a variety of aspects of business and enjoys golfing themselves may be qualified to run a golf course. It’s important t...

What happens during a typical day at a golf course?

During the golf season, there are lots of day-to-day activities that must be done. A few include: watering and mowing fairways, roughs and greens c...

What are some skills and experiences that will help you build a successful golf course?

Business owners that build a golf course from scratch should be familiar with golf course design. Even if they hire a golf course architect to actu...

What would happen if you had honest hard working people in charge and the right golf course for the population base?

If you have honest hard working people in charge and the right golf course for the population base you could do very well and have fun doing it.

Why do golf clubs offer special packages?

Many golf clubs offer special packages for midweek, weekend, or senior golfers to boost their membership numbers. The purpose of these packages is to draw golfers to your course during slow times.

What generation is golf?

According to a 2013 National Golf Foundation Survey, the demographics of golf break down as follows: 11% of golfers are members of the Silent Generation (born before 1946), 27% of golfers are Boomers (born 1946-1964), 27% of golfers are members of Generation X (born 1965-1979), 29% of golfers are members of Generation Y (1980-1999) and 6% of golfers are members of Generation Z (born after 1999).

What did Mark Twain say about golf?

As Mark Twain said when reading his obituary, “rumors of my death have been greatly exaggerated.” So too with the death of golf. Golf is one of the few sports that people can pick up in childhood and play well past the time their bodies have failed them in the sports of their youth. I can’t tell you how many golfers with repaired rotator cuffs, replaced knees and artificial hips I play golf with.

What does it mean to look at a well-manicured golf course?

Looking at a well-manicured golf course creates a peaceful feeling until you play some challenging golf. Being an owner of a golf course can fill you with loads of pride but can lead to financial difficulties.

Why are golf courses abandoned?

Many a golf course has been abandoned during economic downturns due to the high cost of keeping it alive and prospering.

Can golf courses survive without competitive advantage?

The honest truth is that many golf courses won’t survive indefinitely without competitive advantages. A bad season can ruin your financials, and put your business at risk. Many courses are turning to golf management companies to handle their operations. Billy Casper is an example of that type of company.

How Much Land Does It Take To Build A Golf Course?

How much to build a golf course depends significantly on the cost of the land. An average 18-hole golf course requires approximately 140 and 180 acres, while a 9-hole course requires 70 and 100 acres. A 9-hole par-3 course can be built on as little as 65 acres, while an 18-hole pitch and putt require around 25 to 30 acres.

How Much Does It Cost To Build A Golf Course?

In 2001, Michigan State University found that the median cost to build a golf course was $14 million. But it varied between $7 and $25 million. It is difficult to provide an exact cost to the question, how much is it to build a golf course since there are many options and expenses.

FAQs

Owning a golf course can be quite profitable and rewarding if the construction costs can be kept low without sacrificing quality.

How many holes can a golf course be converted to?

Or a normal course could be converted into a par 3 executive course.

Why are golf courses selling based on multiples of revenue?

In the last years, many golf courses are selling based on multiples of revenue (<1) because there aren’t any profits to calculate any type of return on investment. A 10% return might seem reasonable for buying a golf course, but the reality is that the return of many of these courses at the time of sale might be -10%.

What would happen if golf courses went up for sale?

If any of these courses went up for sale, major golf management companies (Troon, Trump, ClubCorp) and investments funds would be lined up to get a piece of these very profitable enterprises. However, most golf courses that go up for sale aren’t in great locations and may not even be profitable at all.

What are some ways to make money from mineral rights?

Other income sources might include selling mineral rights, selling billboard or cell phone tower easements, or leasing the land for hunting or fishing purposes.

Do golf courses sell?

Golf course properties sell at less of a premium when fewer and fewer buyers play golf on a regular basis. Many golf courses have been shuttered with some being converted to other uses and some just being fenced off or just sitting as vacant land.

Is golf in decline?

Many Golf Courses are Struggling. The golf industry has been in decline for over 10 years (pre-Covid). The number of rounds being played is going down, the number of courses open in the U.S. has decreased, and the average age of golfers has gone up.

Do you have to sell a golf course to developers?

In some areas, you have to offer to sell it to the neighborhood association first, before you sell it to developers. Adding greenbelt, open space or a walking path for those homeowners, in place of the golf course, is one thing that can be done to help mitigate their anger.

How much did Doyle pay for the golf course?

The $3.8 million Doyle paid for the course, in Florida’s third-biggest market, is slightly more than the average purchase price ($3.1 million) for the 114 golf course sales tracked by Leisure Investment Properties Group last year. And the majority of transactions in the current environment involve first-time buyers, like Doyle.

Where did Dan Doyle Jr. play golf?

E very day for almost 20 years, Dan Doyle Jr. passed the same public golf course near Tampa, Fla., while driving his kids to school or heading to the office. The town-owned Belleview Biltmore Golf Club in Bellaire was the venue at which Doyle learned to play the game as a youngster and he’d frequently feel pangs of disappointment ...

Where is Gold Canyon Golf Resort?

The Gold Canyon Golf Resort & Spa is in the foothills of the Superstition Mountains in Arizona and features two 18-hole courses—Dinosaur Mountain and Sidewinder—that combine for 64,000 rounds-played annually. The sale includes the salon and spa, three restaurants, 97 casitas and villas, meeting and banquet rooms, and 76 acres of development land along fairways. The entire offering covers approximately 370 acres.

Is the golf course market oversupplied?

D o profitable opportunities exist? Yes , but th e reality is that the golf course market is oversupplied, the byproduct of more than 4,000 courses being built from 1986–2005. It’s why course closures have outweighed new course construction for the past decade. While some closures are attributable to mismanagement, too few golfers, or too much competition, this trend has been largely driven by residential and commercial real estate, and the demand for land.

How do private golf courses make money?

Public courses will focus mostly on selling green fees, reaching new players, and keeping existing customers coming back weekend after weekend.

What does it mean to buy a golf course?

Buying an existing golf course usually means that buildings will already be in place on the property.

How to market golf courses?

If you’ve got your finger on the pulse of your golf course, you’ll be able to make day-to-day decisions on where, when, and how you should send out marketing messages. For example, if you notice a lack of public players, you might want to offer golfers in your area a discount on their first round in exchange for their email. You can target them using their emails on platforms like Facebook Ads, which allow you to segment your advertisements based on many aspects, including interests, demographics, and likes.

What happens if you buy land for a golf course?

If the land that you acquire isn’t already a golf course, you’ll need to hire a team to design and build the course. This will cost a lot of money, but any cutting corners will lead to massive headaches. Poor architecture, insufficient irrigation, and bad agronomy systems will seriously hurt the experience that you offer your customers and can lead to higher maintenance costs and lower revenue in the long run.

Why are lessons important in golf?

Lessons are a great way to generate some extra revenue while bringing in new golfers and growing the game. The golf professionals you hire need to not only have an in-depth understanding of the sport but also have amazing teaching skills.

Why do golf courses need to be close to current golfers?

A golf course needs to be close to as many current and prospective golfers as possible so it can take its share of the largest possible market, without being in an area that is too competitive to stand a chance.

Why do you attend golf merchandise shows?

Attending merchandise shows is another great way to expand your wealth of knowledge, network with other professionals, and bring improvements to your golf course. These shows allow operators to purchase merchandise, learn about new products, and attend valuable conferences.

How much did Bergstol spend to build a golf club?

Bergstol struck a deal to take and clean the fill being dredged from New York Harbor. That took some bite out of what he said was $130 million to build a golf club on top of a former waste dump — albeit one with views of the New York skyline and strong winds to challenge golfers.

How many golf clubs does Trump own?

President Trump is one. He owns or manages 18 golf clubs in the United States and abroad, several of which have been host to major tournaments. It’s probably not surprising that clubs, which require millions of dollars a year in upkeep, are not the highest-returning investment.

How much did Prairie Club lose in 2010?

Schock said, the club lost $5 million.

How many golf courses were closed in 2016?

In 2016, the number of closings outpaced openings, with the total number of operating courses in the United States falling by 171 to 14,117, according to the National Golf Foundation. This was down 5.9 percent from a peak of nearly 16,000 courses in 2006, the culmination of a 20-year construction boom.

Where did Schock go to play golf?

In 2004, after one of the companies he had invested in went public and “gave me a big pile of money,” Mr. Schock went to Nebraska to play Sand Hills Golf Club, a well-known destination for serious golfers. Through that trip, he discovered land 70 miles away on the Snake River in Valentine, Neb., population 2,803.

Is owning a golf course a luxury?

Owning a golf course is a luxury akin, for some people, to owning a vineyard or sports team. It may also come with a warning from friends and relatives. The statistics on golf courses seem to support this pessimism.

Is buying an existing TPC course better than buying a new one?

Buying an existing course can be a better deal. Mr. Smith said he made improvements to the TPC Myrtle Beach when he bought it, even though the club was only seven years old. He wanted it to stand out in the crowded Myrtle Beach golf market, which has over 100 courses. When he sold the course to a group of Chinese investors in 2014, he said, he made a good profit, which he wouldn’t disclose.

How much does it cost to play 18 holes?

The exact cost may vary by region, but it is typical to charge customers about $5 to $7 to play 18 holes. This pricing makes your business a very competitive alternative to the increasingly pricey activities going out to movies, restaurants, etc.

How to maximize profitability of mini golf?

In order to maximize profitability, be sure to have an advertising presence in logical areas for potential customers, including schools, churches, and local entertainment centers . Try to stay open as many days as possible—major holidays often prove to be big business for mini-golf courses, as people have time off from work and school and are happy to come out and play. Finally, be sure to have a social media presence that heavily features pictures of actual customers and their testimonials, as this will establish the legitimacy of your business within the community.

What is a business structure for miniature golf?

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation. Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your miniature golf course is sued.

What is a CO for mini golf?

Miniature Golf Courses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

How to attract customers to your course?

As mentioned earlier, one of the best ways to attract and retain customers is to encourage customers to have birthday parties and other events at your course. You can also have special days and times with certain promotions (such as bringing in four friends and getting a free game, or lower prices past a certain hour) in order to encourage more customers. Finally, within your budget, try to add interactive arcade games and other experiences that customers cannot easily have at home. This is one of the reasons that things like pinball, skeeball, and unconventional games like Dance Dance Revolution retain their popularity—customers cannot replicate these experiences easily at home.

Is mini golf a business?

The exact growth potential of a mini-golf business varies by area. Nationally, businesses that focus purely on mini-golf have experienced a decline in recent years; however, businesses that have diversified their offerings by including features such as a video arcade typically do quite well, and the affordability of this as an entertainment option remains highly attractive to local residents in many cities.

Can you lease a mini golf course?

Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a mini golf course.