how to make a municipal golf course profitable

In many cases, the only way to turn a profit is for some or all of the land where the golf course is located to be re-developed into other (non-golf) uses. The number of holes could be decreased from 36 or 27, down to 18 or 9 (or zero if there is a way to completely exit). Or a normal course could be converted into a par 3 executive course.

Full Answer

Is it possible to make a profit from a golf course?

Golf has to compete with several other recreational sports or hobbies and the space required by a golf course is far greater than most other typical businesses. That’s why turning a profit from a golf course can seem like an ever-increasing challenge.

How do you raise funds for a golf course?

Many a golf course has been abandoned during economic downturns due to the high cost of keeping it alive and prospering. One of the most common ways to raise funds is by increasing the number of members. However, this is not always possible during tough times such as the Covid-19 pandemic or the 2008 economic downturn.

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.

What are the main sources of income for golf course owners?

Basically, it’s not all that different from a lot of major sporting events. Main sources of income include: * TV and media rights. One or more major networks and numerous smaller media channels pay to carry all or some of the content. The biggest within this would be the TV rights, that would be purchas... Is owning a golf course profitable?

How profitable is owning a golf course?

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 can I make my golf course more profitable?

Strategies to Boost Revenue at Your Course This SeasonSell packages.Custom memberships.A well-designed loyalty rewards program.Branded merchandise.Sponsorships.Add an eCommerce page to your website.Open up an online booking channel.Upselling and cross-selling.More items...

How much money does the average golf course make?

Golf Course Owners make between $30,000 to several hundred thousand dollars per year. However, golf course owners sometimes will lose money if the course has a bad year. Overall, the golf course industry is very volatile, and there is no guarantee that money will be made.

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.

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 acres do you need for 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.

Are municipal golf courses profitable?

The lack of profitability at some municipal golf courses isn't surprising, and it also isn't representative of the overall health of the U.S. golf industry. The reality is that an estimated 67 percent of all public-agency golf facilities make enough revenue to cover all on-site expenses.”

How many gallons of water do golf courses use?

Depending on the location of the golf course and the climate, an 18-hole course can use on average 2.08 billion gallons of water per day. Depending on the amount of water needed, a typical golf course can spend between $7,000 and $108,000 per year.

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.

Is a driving range a good investment?

How much profit can a driving range make? An indoor facility with full-service restaurant and rental space in a high-traffic urban environment can see a net profit of up to $2.9 million a year. However, if you have a low-tech field in the country, you could see an income as low as $40,000 a year.

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.

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.

Community steps up to play golf

Fast credits Ashlanders for the increase in money coming into the operation.

Donations fund pavilion, pavement

Other members of the Ashland golf community helped bring new life to the course through donations.