GolfBusiness Advisors

Summer 2017

Innovative and Successful Programming Helps Retain MembersMost clubs have learned that a calendar of fun programming is now essential to help attract and retain new members. It now takes more than a great golf course and other club facilities, but it is the on-going club experience that has become more and more important. This should be planned for both adults and children and should cover all of the sports and food and beverage. In addition to the standard Holiday type programming, a few of the “best in show” programming ideas that we have seen include:

• Beginner ladies golf instruction with champagne • “Date Night” dinners for the parents with child care • Friday night live music • Special nights of Hamburger, Pasta, Pizza, Fish and Chips, Sushi • Introduction to fitness programs • Poker night and regular bridge games

• Magicians for the kids during dinner • Family Camp out on lawn • PGA Junior League • “Dive in movies” on weekly basis in the summer months • Bocce leagues • Father-Daughter dance • Mother-Daughter Tea • Speakers series with interesting speakers • Polar Swim Club for winter months (if pool is heated) • Happy Hour at the pool • Laser tag • Trivia and Bingo nighs• Wine shop with discounted wines • Trips to ballgames, golf tournaments, concerts, historic sites, gardens etc.

What is an HOA To Do? A Follow Up to this Unusual Situation…In our 2016 Newsletter we shared this unusual situation with an HOA client…

Just when we thought that we had heard it all, we got a call from a homeowners association that represented the owners of the homes in their golf community (although the course is owned by a separate company). It seemed that the course owners were stripping the sod off of the fairways and selling the sod to a sod company as a way to make additional revenue. We are continuing to assist them in reviewing all of their documents regarding the golf course along with renovation costs and options and it may or may not become a legal issue, so we cannot share the outcome at this point…more to follow.

As a follow up, we continued to assist the HOA, including developing a Review and Assessment of the course and situation that would be used as a baseline for the HOA as it prepared for a legal battle and then the best possible result happened-–the course was sold to a new owner who has repaired that damage caused by the stripping of the sod and has made many other improvements to the golf course…a great outcome for the HOA homeowners and the area golfers.

We continue to coordinate two golf trips per year to the nation’s best resorts for the famed FOM Golf Society. There is a daily golf competition, but with formats that are not stressful....and did I mention lots of comradery, great food and a drink or two? We generally have anywhere from 16 to 24 golfers including men and women.

The 2017 FOM Fall Outing will be held at The Greenbrier (http://www.greenbrier.com/) September 24–27. Anyone is welcome to join us for the fun and just call the office and we will email you the information...I promise that you will have fun!

The FOM Golf Society Travels in Style

Rory McIlroy, Jordan Spieth, Ricky Fowler and Lydia Ko—these were the professional golfers that we included in this story in January, 2016. Today, perhaps we should include Lexi Thompson, Brooks Koepka, Aditi Ashok, Brooke Henderson and Justin Thomas…these all seem to be the international stars of the future of professional golf that the kids are looking up to--are all young, personable, clean cut, well-spoken and have amazing golf games!

My observations over the past 10+ years are that the kids today are so wrapped up in youth soccer, field hockey, lacrosse, baseball, basketball, volleyball, etc. that they are not playing the country club sports of golf and tennis like in prior years.

However, the recent introductions of the following youth golf programs are all working to get young kids interested in golf—and I can see firsthand that it is working! First Tee; PGA Junior Golf Leagues; Drive, Chip and Putt; LPGA/USGA Girls Golf; VSGA Junior Golf Circuit, Robins Junior Programs, Kandi Comer Golf Academy Programs. The kids are indeed flocking to these innovative programs that teach both golf skills

and life lessons—and all have some focus on competition which is apparently what many of the kids are really looking for. Some of these programs are also finding their way into the school systems which is where I think they can make the most difference—by introducing all kids to the great game of golf.

I just participated in a First Tee fundraiser for the local First Tee chapter (9 holes with our paying foursome paired with a First Tee kid on an Executive Course) and learned that the local chapter has grown from 33 kids participating in 2013 to over 1,000 participants in 2017—which is great!

In addition, The PGA of America’s and USGA’s initiatives of Get Golf Ready, Play Golf America, Tee It Forward and Play 9 are also introducing adults to golf and making it more fun for those that are playing.

The introduction of Top Golf facilities at over 30 locations in 14 states (with 12 new ones under construction are also invigorating and putting a new spin on the game. These facilities are a combination of a driving range and entertainment offering instant feedback on shots to target greens and bar/grille in a festive environment. And with Callaway Golf as a key investor in Top Golf, their growth should continue.

To the golf industry, we commend you on the Growth of the Game initiatives—well played and keep it going!

Tim Pemberton is serving as the GBA intern this summer as he prepares to attend the MBA Program at the Mason School of Business at The College of William and Mary. He and his wife, Abbey, along with their twin daughters, Merritt & Libby, (who will be turning

one on July 5th) recently moved to town from Raleigh, NC, where Tim had worked for the General Assembly and in Real Estate Development. Tim grew up in Charlottesville, Virginia and is a graduate of William & Mary and was captain of the golf team. Tim played in two US Amateurs (Oakmont & Winged Foot), won the Kenridge Invitational at Farmington Country Club and played professionally for two years.

New GBA Intern—Tim Pemberton

Commonwealth Golf Asset ManagementGolf Business Advisors has a long time friend now sharing office space. Mike Bennett recently formed Common-wealth Golf Asset Management, a full-service golf management company (www.cgamgroup.com).

Commonwealth Golf Management is off to a quick start and now manages six courses—all of which are located in North Carolina: Belmont Lake Golf Club, Rocky Mount; The Heritage Golf Club, Wake Forest: The Preserve at Jordan Lake, Pittsboro; Chapel Ridge Golf Club; Falls Village, Durham and Carolina National, Bolivia

Mike has been a member of the PGA of America since 1994 and in 2011 achieved Master Professional Status in Ownership and Leasing. Mike has been the President of the National Golf Course Owner’s Association Middle Atlantic Chapter since 2008. Prior to forming Commonwealth Golf Asset Management, Mike served as the Vice President of Operations for Traditional Golf Management managing 21 courses. Before joining Traditional Golf Management, Mike was the Managing Member of Westham Golf Partners, LLC which developed and operated Magnolia Green in Richmond, Virginia; was the General Manager of Williamsburg National Golf Club and the PGA Golf Professional at Keswick.

Golf Business Advisors has a clear mission: To assist our clients with determining and meeting their objectives in the golf industry

Jeff Fleishman golfadvise@widomaker.com • Beverly Van Straten gba@widomaker.com • (757) 229-0845 • www.golfbusinessadvisors.com

The Growth of the Game Initiatives–Key Ingredient in Golf’s Future Success

Golden Horseshoe Golf ClubWilliamsburg, VA

4808 Courthouse Street, Suite 201 • Williamsburg, Virginia 23188 • (757) 229-0845 • www.golfbusinessadvisors.com

Golf Business Advisors 2017 and Beyond

Jeff Fleishman, President

Golf Business Advisors is celebrating 25 years in business in 2017 and it is still a rewarding challenge to assist our clients in meeting their objectives in the golf industry.

With 17 years of sports management and marketing experience at Kingsmill Resort and a yearning for entrepreneurship, I opened the doors of Golf Business Advisors in late 1992. Over the past 25 years, we have assisted over 300 clients and helped them achieve success in the golf industry. Beverly Van Straten joined GBA in 1998 following 14 years in the resort and private club arena.

Enjoy this Newsletter which highlights some of our client work and our website www.golfbusinessadvisors.com has additional information including some interesting case studies. This is a people business and the vast majority of our new clients come from referrals from past clients and golf industry friends. If we can assist you or if you have a referral to pass along, please give me a call to discuss.

Our recent clients include the following:

Golden Horseshoe Golf Club – Williamsburg, VA James River Country Club – Newport News, VA The Otesagas Resort – Cooperstown, NY Nemacolin Resort – Farmington, PA Camden Country Club – Camden, SC The Club at Ironwood – Staunton, VA Crescent Homeowners Association – Salisbury, NC FOM Golf Society – Bethesda, MD

Thank you and best wishes for continued success in 2017!

Jeff Fleishman

The Golf Industry…Still in Recovery ModeThe golf industry has been slow to recover from the economic recession that began in the mid 2000s and many courses continue to close each year while only a few new ones get built. Course renovations (like the Golden Horseshoe which is highlighted in this Newsletter) are increasing as many older courses are focused on improvements to attract and retain customers.

Here are some interesting statistics on golf in the United States from the National Golf Foundation 2016 Golf Participation Report:

2015 2016Total golf facilities 15,204 15,01418 hole equivalent courses 14,288 14,117Total golf participation 24.1 million 23.8 millionCommitted golfers 19.5 million 20.1 millionBeginning golfers 2.15 million 2.5 millionMillennials 9 million* 9.3 million*

*Both green grass golf courses and Top Golf type facility golfers

The good news for the golf industry is that the supply and demand of courses is getting closer to equalizing and the golf participation numbers are improving over recent years.

The Golden Horseshoe Gold Course Renovation—a Spectacular Success!In early 2015 we were retained by Colonial Williamsburg to begin the analysis and planning of a possible renovation of the famed Golden Horseshoe Gold Course. One of the greatest golf course layouts in America, the Gold course was designed by Robert Trent Jones Sr. and opened in 1963 and included the par three 16th hole—which was indeed the first island green in America (pictured at the top of the Newsletter). A partial renovation was done in 1998 by Rees Jones (the son of Robert Trent Jones Sr.), but the course conditions deteriorated over time with the original common bermuda grass fairways and outdated bent grass on the greens, a few greens that had too much slope and outdated bunkers.

After more than a year of analysis and planning working with Glen Byrnes, the Golden Horseshoe Director of Golf and with others from the Colonial Williamsburg staff, Rees Jones and Greg Muirhead (golf course architects) and Landscapes Unlimited (the successful bidder on the renovation project), the renovation finally started in May, 2016. My role during the renovation included:

• Represent the owner (Colonial Williamsburg) to review the construction progress on almost a daily basis • Coordinate with Colonial Williamsburg staff, course architects, contractors, golf maintenance staff and other consultants on work status • Coordinate actual expenses of the project to the budget and help determine change order priorities • Document the progress with photographs and write monthly Newsletters to the Golden Horseshoe Members • Develop “punch list” of items not completed and follow progress through completion • Planning for Clubhouse renovation including assisting in selection of Design Firm • Completed research and developed concept plan for the Golf Museum

The existing grass was exterminated and the new fairways, tees and roughs began getting sprigged with Northbridge bermuda in mid July while the greens were being cored out (six were completely renovated and the others just removed 4 inches with a renovation from that point). The bermuda sprigging continued into mid September along with lots of new sod throughout the Fall. New forward tees were created on ten holes and all of the par threes had new “drop areas” created. The greens were seeded with 007 bentgrass beginning in late September and the bunkers were completely renovated using the Better Billy Bunker program throughout the Fall. A new “short game area” was constructed and the driving range was renovated with new and improved artificial mats. This Winter and Spring were used for additional sodding, cart path repairs, course clean up and the “grow in” by the golf maintenance staff.

While all of this golf course activity was going on, the Clubhouse was also renovated with repairs to the exterior, new flooring, new ceilings, wall covering, furniture, lighting, completely renovated locker rooms with new wooden lockers, a new bar—and much more. In addition, a Golf Museum showcasing the history of Golf at the Golden Horseshoe and more has been added in the lobby area.

I will say that the final result is simply spectacular, the course has enjoyed a highly acclaimed “soft opening” and will open for regular play by resort guests, Members and the public on July 1. Colonial Williamsburg can be very proud of this project and it should be a huge benefit for their Members and resort guests for many years to come as well as provide for an outstanding financial return. And did I mention that this project came in on budget! It is a project that I will long remember and proud to have been an integral part of—plus, I will also look forward to enjoying the course.

Executive Search—Hiring The Right People Makes All the DifferenceWe have been busy conducting a number of Executive Searches for clubs. A few years ago, we were retained by James River Country Club, an exclusive private club in Newport News, Virginia, to conduct a search for a Director of Golf that would help

take the club to the “next level”. After GBA completed a comprehensive search, orchestrated 35 candidates and all of the calls, emails and Committee meetings, we helped the Club’s Selection Committee select Jeremy Franks as their new PGA Director of Golf. It has been over five years since Jeremy joined the James River staff and he has been a perfect fit and is indeed guiding their golf program to the “next level”.

We were contacted by James River Country Club again this Spring and have just completed assisting them in the successful search for a new General Manager to

lead the management team for the future. Conrad Lickel is the new James River Country Club General Manager and everyone hopes that his hiring will be as successful for James River as Jeremy Franks has been.

We have also completed successful Executive Searches for the following clients over the past few years:

Nemacolin Resort in Farmington, Pennsylvania – Director of Golf Nemacolin Resort in Farmington, Pennsylvania – Senior Golf Course Superintendent ValleyCrest Golf in Calabasas, California – Golf Course Superintendent Old Trail Golf Club in Crozet, Virginia – PGA General Manager Farmington Country Club in Charlottesville, Virginia – Membership Director Indian Creek Yacht and CC in Irvington, Virginia – General Manager Dogwood Trace in Petersburg, Virginia – Director of Golf The Country Club of Virginia in Richmond, Virginia – Golf Course Superintendent

Successful Membership Sales and Marketing is a Key to Financial Success We have continued to share our knowledge and experience of Membership Sales and Marketing with many clients, as adding new Members is a key objective for financial success for most clubs.

We work to better understand the needs of both Club members and potential Club members, plus help Club’s understand their current demographics and their competition. Then by developing and implementing comprehensive Membership Sales and Marketing Plans that include an array of strategies focused on key target markets, over the past few years we have helped our clients add

over 1,100 Members valued at over $6 million dollars in first year Initiation Fees and Dues. The best news of all for these Clubs is that new Members will remain at the Club an average of seven years—thus every new Member is worth a great deal financially to the Club.

This is a complex process and one that an inexperienced Membership Director and/or a volunteer Membership Committee struggles with. It is our opinion that Clubs must get qualified prospects through their doors to see the facilities, learn about the programs and also meet some of the Members and staff.

If you would like to add new Members at your Club, call us today and we would be pleased to discuss how we can assist you in making those new Members a reality.

Beverly Van Straten, Vice President