Club Golf 2020 and Beyond

NJSGA Golf Summit

April 3, 2019

U.S. Golf Participation (Golfers in Millions)

19

.7 21 2

2.7 23

.92

4.2

24

.52

4.5

24

.22

4.1

24

.72

4.4 26

.22

6.1

26

.1 28

.82

9.8

29

.93

0.5

29

.83

02

9.8

29

.52

8.6

27

.12

6.1

25

.72

5.3

24 23

.4

0

5

10

15

20

25

30

35

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

15

20

18

GO

LFER

S (M

)

Source: National Golf Foundation

2018 NGF Golf Participation Report

0

5

10

15

20

25

30

35

Golf Play 2018

Overall On_Course Off-Course Committed Off-Course2

Macro Environment

• Golf participation and frequency of play has declined nationally, especially among under 50 age group, the primary source of future members• Oversupply of golf courses and clubs• Significant decline in demand for golf memberships

• Clubs increasingly judged on Perceived Value• Attained by providing the experiences that people want

• Generational shift occurring• Millennial opportunity and challenge

• Clubs that continually evolve and enhance their offerings will have a competitive advantage• Creating community by serving active family lifestyles

Key Take-Aways

• Player profile and habits are changing

• Its all about the Member Experience

• Investing in the Clubhouse and Other Recreation leads to more golf members

Phased Improvements (2013 – 2016)

Phase I

Ladies Locker Room

$1m

Grille Room (Casual Dining)$300k

Health & Fitness Center

Results: Gross Revenue +20%

Results: F&B Close to Break Even

Sales Increase from $2.2m to $3.9m

Results: LDP* 595 -715 (local dues payers)

Average Age Decreased from 66 to 58*

Results: Attrition Decreased

Results: Bank and Members Happy

Debt paid by $100 per month capital fee and operational profit. CCD also transferring $100k annually to fund depreciation.

MY Generation

• Demographics are powerful forces

• Baby Boomers held sway, but age and SALT reforms are pushing them to FL and other places

• MY Ratio – Middle-aged to Young ratio entering sweet spot• Millennials entering prime joining years• Largest population segment

• Massive generational wave could be great for clubs, IF they respond• Family• Casual• Fitness and wellness• Scalable membership and financial strategies

BoomersMillennials

Gen XFounders (Gen Z)

Changing Demographics

MILLENNIALS

Diverse Digital Age Participate in Multiple Activities

Views on Golf| | |

Golf Play Among Young

0

5

10

15

20

25

30

35

40

30 to 40 41 to 49 50 to 59 60 to 69

Age GroupSource: National Golf Foundation

1985

2015

Down 40%

Down +10%

Drive Participation

• Chain of Success:• Utilization + Satisfaction = Retention

• Time Shifting:• Evening schedules for 9 and 19-holers• Weeknight golf leagues• Friday evening Junior Golf• Shorter tournament

• Get multiple family members involved in golf program.

• Create introductory programs for women• Female spouse involvement quadruples retention factor.

• Junior programs are a great short and long term industry benefit.

Youth Focused Professionals

• Support golfers at all skill levels

• Ability to focus youth

2015 US Kids Golf “Top 50 Teacher”, Rob Sedorcek

St. Albans Country ClubSt. Albans, Missouri

C&RB March 2015

Youth Focused Professionals

• PGA Junior League Golf• Third successful season this

summer. Carmel had 4 teams including an all girls team. A great way to introduce competition in a fun and non-intimidating format.

• SNAG Golf• Program for our peewee golfers (4-6

years old) has grown tremendously. Typically one class each Monday , but had 12 on a waitlist this spring and added an additional class. 22 little ones each Monday! The SNAG system is so crucial in getting these kids to love the game because they see success so much easier than using real clubs.

iGrowGolf, Maggie Simons

Carmel Country ClubCharlotte, North Carolina

Youth Focused Professionals

• iGrow 36 Junior Development Program.

• First licensed club to use this curriculum.

• A motivating experience that advances juniors towards shooting par or better.

• Six Levels to the program – each containing 12 badges that must be passed before progressing to the next level.

• Two 12-week semesters.

• Combined instruction, practice, and playing opportunities.

• Optional Supervised Practice on Saturdays.

• Teaching the juniors HOW to practice.

• Operation 36 matches – shooting 36 from different distances

• www.igrowgolf.com

iGrowGolf (continued)Carmel Country ClubCharlotte, North Carolina

http://www.igrowgolf.com/

Your Club Community

REASON CLUBS EXIST

IS TO BRING MEMBERS TOGETHER

Summing Up

Summing Up

• U.S. entering period of dramatic demographic change

• Golf is a great game based on timeless values

• Time compression impacts participation

• People have age-old desire to associate

• Offer multiples ways to connect through the game…• With other members

• Among and between genders

• As a family

• For children

Thank You for ListeningYour Questions are Welcomed