how much does a golf course make a year

Full Answer

What is the average salary of a golfer?

It accounts for $55.6 billion in annual wages, from highly-compensated executives to minimum-wage greenskeepers. Golf Digest studied U.S. golf careers to see how various salaries ranked in the industry. PGA pay ranked the highest, with a huge number of other golf careers earning a wide range of salaries.

How much does it cost to run a professional golf course?

Alas, this isn’t a column about fantasy but about money and golf. 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 do golf clubs make money?

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. The most common income streams are green fees, membership fees, pro shop sales, and food and beverage sales.

How much does a golf course starter make?

How much does a golf course starter make? Not a lot - between $23k and $38k a year typically in most places. But you don’t usually take that job for the money, you take it for the free golf and access to all things at that course. Why is so much business done on the golf course?

How much revenue does an average golf course make?

According to the National Golf Foundation's 2010 Operating & Financial Performance Profiles of 18-hole golf facilities in the U.S., private 18-hole golf clubs had average total revenue of $3,277,000 in 2009, but with total expenses of $3,204,500.

Do golf courses actually make money?

The most common income streams are green fees, membership fees, pro shop sales, and food and beverage sales. While increasing membership fees or green fees might seem like a good way to increase revenue, it might put off more golfers than the additional income earned.

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.

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 does golf generate money?

Golfers get paid so much because of sponsorships and tournament funds that are allocated to the tournament purse. Because of the attention to professional golf and the participation of brands and fans, there is quite a bit of money to give to the top players.

Why are golf courses so expensive?

Why is golf so expensive? Golf is costly due to the high cost of quality golf clubs, accessories, course fees, memberships, and the amount of golf that is played. Golf clubs are made from quality materials meant to last a lifetime, and courses often require membership, the cost of which reflects the club's exclusivity.

How many acres is an average 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?

In 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.

How much does it cost to open a golf store?

What Does a Golf ETC Franchise Cost? To buy a franchise with Golf ETC, you'll need to have at least $50,000 in liquid capital. Franchisees can expect to make a total investment of $324,500 - $470,500.

What does it cost to make a golf ball?

It costs around 90 cents to make the average golf ball. The materials used in the ball and whether or not this is a small or large company will impact the overall pricing of the golf ball. Large manufacturers can sometimes keep costs down because of the volume that they are producing and selling.

What does it take 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, chief operating officer of the Golf Course Superintendent's Association of America.

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 conversion uses?

While some type of housing or residential use is the most obvious, other conversion uses include one or more of: industrial, office, farm land, timber land, concert venues, driving range, charter schools, parks or conservation easements (donated to lower tax basis), or just letting the land sitting fallow for land banking purposes.

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 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.

Can you buy a golf course and make it profitable?

Buying an unprofitable or barely profitable golf course and making a profit requires some major changes. There are some things management can do to make a golf course more profitable.

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.

Why does the USGA slow down the greens?

Lest this seem pedestrian, Moeller says that even the USGA slows its roll at championship venues. “Because of pace-of-play issues we have at our championships, we’ll sometimes slow the greens down,” he says. “We have so many golfers to get through, and we want to use challenging hole locations.”

What do golfers complain about?

As golfers, we complain about the course. Miss a putt and we instinctively touch the green, tamping down a raised ball mark that only our eye can see. Hit it wide off the fairway and we’re likely to comment on the consistency of the rough. Patchy. Burned out. Trampled down. Even if we get to play a U.S. Open–level course like Winged Foot, where the rough is thick and pristine, we’re likely to complain that it’s too thick! And then there are bunkers, where golfers are apt to note that the sand is different from hole to hole. Send it flying over the green? Not a bad swing — no sand in the bunker!

How long does it take for a stimpmeter to slow down a golf game?

Every foot of green speed on a stimpmeter slows play by seven minutes per group .

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What is the best way to keep greens from burning out?

Firm and fast is the golf standard for greens. That’s achieved by mowing, rolling and hand-watering the greens to prevent them from burning out. It’s time-consuming and pricey.

How do private clubs, which carry a bigger tab, spend their money differently?

How do private clubs, which carry a bigger tab, spend their money differently? More people and equipment. They might, for example, hire a horticulturist to handle the landscaping or a fleet of grounds-crew workers whose lone job is to fill fairway divots. Grooming the course of your dreams? That’s a dream-team scenario.

What is the most important thing in a golf course?

The greens. They are the most essential element of any course, but because of labor and equipment they are also the most expensive things to maintain — even if some of our demands are a costly waste. Firm and fast is the golf standard for greens.

What is hospitality tent?

Hospitality tents. The grounds at Golf Majors are usually covered with hospitality tents paid for by major corporate sponsors who entertain their clients with special seating, viewership, and other amenities. These sponsors pay the host club for the space used for their tents, and they pay for catering services which may be offered by the host club.

How much money can a golf club make from a major?

Finally, I can tell you that it’s not unusual for a club to make a profit of $5–10 million from a Golf Major. This obviously can go a long way in offsetting member assessments, and in funding improvements to the course and the club facilities.

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 are foursomes so popular?

Because they are a business. There are a number of reasons why the foursome is the best for the golf course. In no particular order: 1. Pace of play. Foursomes are the most common and most efficient way of getting the most people through the golf course when demand is high.

What does a host club charge for?

The host club sells tickets to spectators for attending the events, they charge for parking, and of course they charge for food and beverages including alcohol during the events.

What do sponsors do without tents?

Other sponsor placements. Even without tents, companies may sponsor cups, napkins, signage, and other things with their names and logos on them. Or they may put a car on a par 3 hole that goes to anyone shooting a hole-in-one. All of these pay the club for these opportunities.

How much does a mid tier course cost?

For a mid-tier course, it’s tough to go below $750k annually. Most often, if you plan on offering higher quality and good service, you might be looking at $1.5 Million annually.

How much did golf generate in 2011?

According to research group SRI International, the “golf economy” in the U.S. generated $68.8 billion of goods and services in 2011. Back in pre-Recession 2001, that number was $75.9 billion. Still, SRI estimated that golf generated a total economic impact of $176.8 billion in 2011.

Why are golf courses losing money?

One reason for this may have to do with the expense of running golf facilities. According to information company Sageworks, golf courses and country clubs are losing money. This may have to do with high membership and admission prices, as well as an over-supply of courses. But it also reflects the fact that running a golf course is expensive. According to the National Golf Foundation’s 2010 Operating & Financial Performance Profiles of 18-hole golf facilities in the U.S., private 18-hole golf clubs had average total revenue of $3,277,000 in 2009, but with total expenses of $3,204,500.

How many new golf homes were built in 2011?

This has a measurable impact on the housing market in the U.S. SRI estimates that 19,152 new golf community homes were constructed in 2011, with total golf residential construction spending of $3.1 billion.

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).

How much did Tiger Woods make in 2014?

Despite scandal and injury, Tiger Woods is still at the top. On-course, he made “just” $610,775 in 2014, but off-course he netted $54,500,000, for a total of $55,110,775. Golf legend Arnold Palmer made the #4 spot on the Golf Digestlist.

How much money did the PGA Championship purses make in 2014?

Because the PGA Championship and Players Championship both bumped their purses up to $10 million in 2014 and awarded the championship winner $1.8 million. So, in 2015, the Masters, the U.S. Open and the British Open all increased to $10 million purses. Golf Revenue.

How much money did the British Open purse increase in 2015?

In 2015, the British Open purse increased from $9.19 million the year before to to $10 million.

How long do managers stay in the job?

Not surprisingly, job turnover is high, with general managers lasting an average of two-and-half years. Sibbald claims the managers he has placed nationwide stay longer -- an average of 7.5 years. He also said the St. Louis club world is an exception. There is little turnover in managers here, several outstanding women in the pipeline at second-level positions, and a "very healthy club population."

What is the challenge of recruiting managers for country clubs?

The challenge in recruiting managers for these homes away from home is finding the right "cultural fit." Unlike at most hotels, where managers usually operate in the background, club managers are expected to both oversee and be seen. Manner and demeanor are all-important.

When did Sibbald start recruiting?

In the mid-1980s, Sibbald's firm began recruiting managers for private clubs and resorts. The specialty now accounts for 60 percent of the firm's business and has made Sibbald an expert in the exclusive (and it seems idiosyncratic) world of clubs.

Who is John Sibbald?

Sibbald is president of John Sibbald Associates Inc., a well-known executive search firm founded 22 years ago in Chicago and now headquartered in St. Louis in offices at the Pierre Laclede building in Clayton. He is the author of The Career Makers, a listing of the top corporate recruiters in the country. Now in its third edition (as The New Career Makers), the book brought Sibbald considerable notoriety when it was first published in 1990, not so much for the headhunters it listed as for the honchos it left out.

Who does the head golf pro report to?

Today, as private clubs have become more business-conscious, the head golf pro typically reports to the general manager and a portion of the income from golf is for the club's benefit.

Can artillery be ineffectual?

Even this kind of artillery, however, can prove ineffectual against the "rules" that govern some clubs, Sibbald said. He cited a search he did for a private club in Pittsburgh.