Largs Golf Club

1891- ?

Stages

1 Our Vision

2 Development-

2.1 Summary & Background

2.2 Objectives

2.3 Key Issues to be addressed

3 Actions

3.1 Development of strategy

3.2 Success Factors

3.3 Planned People Development

3.4 Relationship Management Programme

3.5 Planning adult and youth retention

3.6 Strategic Decisions

3.7 Review of Achievement v Objectives.

Appendix

1. Largs Golf Club Vision Our Vision at Largs Golf Club is to provide our members and guests (the customers) with an excellent and consistent golfing experience at an affordable cost in a pleasant and friendly environment. We accomplish this through the provision of our product :-

• A well manicured and challenging course in a picturesque setting

• Competitive pricing for our members and visitors

• An experienced PGA professional and well stocked golf shop

• An inviting 19th hole with friendly, capable Bar and Catering staff

• A robust club management structure and system 2. Development

2.1 Background and Summary

Background: Largs Golf Club is a traditional golf club drawing membership mostly from within the local catchment. The course is maintained to a very high standard by a motivated team of greens professionals. The club is not immune to the difficulties facing golf clubs in the early twenty first century and this plan is geared to setting out a strategic direction which will guide towards a sustainable longer term future. Within the period covered by this plan we wish to see a number of objective led achievements geared to ensure effective commercial running and long term viability of the club

Achievement is measurable:

a) through the concept of membership value. This encompasses elements of sport, club facilities, social interaction, cost efficiencies and “pride in membership”

b) through business expansion into the hosting of external functions to a level that justifies the presence of bar and catering facilities and satisfies longer term capital needs.

Summary In a changing marketplace the club needs to change and adapt. The traditional approach is no longer appropriate as playing customers are reachable all over the world and the tools to do so should be employed. Neither is it sustainable to divide up the budget results and charge them out to the members in a constant upward spiral. Members have choices and there is a point at which they will say “No More” This plan will seek to produce a set of results which will satisfy the bedrock membership and also enhance visitor income through a highly positive experience. For that purpose our products can be defined as a) club memberships and b) non-member income. Part of that process will be assessment and, where appropriate, adoption of best practice from successful golf clubs and leisure provision centres elsewhere. 2.2 2013-2018 Objectives

• Enhance management structure and controls at the club to a level comparable with commercial businesses of the same turnover level.

• To have the member/visitor experience clearly defined as “Our Product” with measurable means of optimisation

• Harness technology to create time and cost efficiencies and streamline member/visitor interfaces.

• To have all staff functions examined, assessed for cost/benefit and organised for optimal benefit

• To have all staff and members buy in to the “Product” concept and work together to provide maximum income and value.

• Measure member satisfaction by effective means on a regular basis

• Incorporate a Junior/Youth Development Plan to encourage graduation of more juniors to senior membership and retention thereafter.

• Reduce the average age of men and lady members by three years.

• Budget ongoing contributions to cash reserves to meet identified future capital expenditure.

• Operate a transparent system of management whereby members have access to all minutes, decisions, and club related issues.

• Involve members by forming voluntary sub groups bringing in additional skills. To the component activities of the club.

• Plan through an over-arching group, approved by the elected committee, to define and facilitate a strategy for wealth

2.3 Key Issues to be addressed 2.3.1 The Golf Course 2.3.2 The Clubhouse 2.3.3 Staff Development 2.3.4 Membership 2.3.5 Competitive Business Matters 2.3.6 Visitors- golf 2.3.7 Visitors- external functions 2.3.6 Wealth Creation 2.3.7 Budget Contingency- based on different scenarios arising from objectives 2.3.1.The Golf Course As can be witnessed by successive STRI reports, Largs Kelburn is maintained to a high standard by a motivated team led by Course Manager Iain Barr and Deputy George Morrison. Members recognise the excellence of their work and it is a priority that the course, as the prime asset of the business, remains in top order. 2.3.2 The Clubhouse A large roomy building with good views over the Clyde. As with most clubs clubhouse utilisation has dipped from peak years and a close review needs to be undertaken of activities and associated costs/income. This should be done with due regard to member amenity and not simply cost cutting. By this means and some creative thinking it should be possible to maximise income potential. If we are to continue to develop visitor income as a parallel product then clubhouse amenity will need to complement the visitor package. In general the clubhouse badly needs to be freshened up and possibly reorganised to meet objective needs

There is the opportunity to create an area aimed at the needs of junior golfers and parents in the area between the kitchen and restaurant. This will not entail significant transforming cost and should produce revenue within existing staffing budgets from the outset.

2.3.3 Staff Development Staffing is typical of a traditional golf club. Difficulty is in retaining relationships with peak requirement staff in a seasonal environment Greater co-ordination and flexibility is required Each staff function should be assessed, measured and performance parameters clearly agreed with regular performance reviews Suitable reward should be introduced for objective achievement. The Club Secretary will assume line management responsibility for the Bar and Catering Manager(s), once in place, and Office Staff. The Bar and Catering Manager(s) will in turn have management responsibility for own staff. A simplified system of appraisal/ self-appraisal will be introduced to conform to employment norms and avoid incidents of confrontation. 2.3.4. Membership

1. Young People. For various reasons there have been low numbers of active members “graduating” from junior ranks through youth membership. Typically there have been 15 juniors coming in each year age 8-10 and only 2 passing through into youth membership. The innovative move to create an extended youth age span and a progressive young adult category will itself have a positive impact and will complement the work of the Club Professional and the Junior Convenor Group in gaining, coaching and retaining junior members. (See Appendix 3.). The Club must look to improved facilities for juniors and young adults or indeed work on a more flexible usage of the main lounge area.

2. Recruitment. Largs Golf Club should not be a secret. Our marketing is substandard and needs upgrade. In 2013 the decision was taken to forego all paper based advertising and enter a trial period of social media communication.

3. Harmony. Recent general meetings have been fractious affairs and have left an overhang of discontent. The disharmony is a major obstacle to future prosperity and needs to be tackled patiently, sensitively and consistently. The views of all “sides” should be taken, examined for rigour, and compared to look for common ground. It might be an idea to look for representation from each group to form a working party whose conclusions would by prior consent be binding on the membership. The Club Governance Group is taking soundings with a view to facilitating an informal forum leading to a joint focus group with nominated representatives of all shades of opinion. The wider forum on the subject would hopefully lead to the nomination of representatives of the various shades of opinion to act within a focus group, the outcomes of which would be seen as binding on the members they represent.

2.3.5. Competitive Business Matters. Golf Clubs need to urgently shake off the notion that the sport continues to prosper and the good days are here for ever. The market UK wide follows the recent US trend and is shrinking. The only growth area- from a very low base point- is in girl numbers. (Appendix 1) Even that growth is very marginal.

To do nothing will result in a loss of members. Combating a loss of members by the imposition of increased fees is the slippery slope. Increase your fees and you lose more members. Do this for three years and suddenly the long established golf club is in crisis and emergency measures are introduced which remove investment from the whole product. There is the stipulation that the club should not make distributable profit due to conditions attached to the granting of lottery funding and VAT exemption conditions. Blind adherence to that notion will inevitable lead to slack budgeting, slack controls, an increased cost base, and, in turn, increased subscriptions and further loss of members. Profits are the essence of good business and can be made and retained in the form of reserves for future projects. There should be a balanced approach combining market advantageous subscriptions with highest possible operating effectiveness. Where is the competition? In short, who is competing for our share of leisure and social expenditure? To meet objectives we need to be aggressively competitive within our own business environment. This environment includes Other Private Golf Clubs within travelling distance (Co-operation and Competition) Driving Ranges Local Restaurants, Hotels and Pubs Other Sports Clubs and Centres Home entertainment including game stations. All of these produce varying degrees of threat to our ongoing prosperity which we need to counter and, if possible, convert to opportunity. The component elements of our business affected by competition are: Golf Playing Golf Membership Weddings, christenings, funerals, birthdays, anniversaries, graduations, local social, leisure and other activities Golf Retail Clubhouse ad hoc catering/refreshment Clubhouse organised catering and functions Golf Coaching Golf Parties Golf Holidays Ladies and Girls Sections There are frequent intervals when golf is regarded by girls as “uncool” This reputation is applied in an adolescent way by those who either have not tried the sport or have tried under the wrong guidance and have given up. For a girls section to survive and prosper needs a constant nucleus of keen young ladies who are actively supported by adult club members and parents. Ladies Section needs proactive development. Facilities are jaded and need investment within a defined priority scheme. Ladies have agreed in principle to fundraise in order to achieve early amortisation of a project to create new locker space within a custom built facility to the rear of the clubhouse. This project would be subject to grant funding, planning permission and consent of the general body of members.

Recruitment of Members What is it that Largs Golf Club has which sets it apart in a positive way from other clubs and other sport related attractions? How can these aspects be applied for maximum benefit? Members as ambassadors, effective promotional activity, definition of intrinsic membership value (our product) Are our membership options consistent with the needs of the marketplace? 2.3.6 Visitors and Visiting Parties A recent golf tourism report highlighted the importance of all guests receiving the best in customer experience. Word of mouth is the primary research tool when considering which courses to visit. 70% surveyed stated that their friends’ recommendations were either “important” or “very important” Also significant in the decision is the influence of the golf professional with 46% also placing value on the views of their home golf professional. Next in line comes social media research with 36% citing the online community as a net recommender and a positive influence. It is crucial therefore to ensure that all guests leave as ambassadors and not critics. The Governance group is pledged to travel and investigate what works where and seek to adopt best practice measures. Their first trip, to Lymm Golf Club, voted best run club in England 2011 and 2012, reinforced their views on objectives and showed that the generation of income from non-golf activity was both feasible and desirable. This can happen with no undue impingement on golfing activity. 2.3.7 Budget Contingency There is an annual exercise within the finance committee to pull together the budgetary requirement of the various arms of the business. To date this has been derived from past experience and now needs to take in the radical reforms proposed. Actions 3.1 Development of Strategy Key Questions Where do we want to be and when?

1. We want to be in a position where we can state with complete confidence that Largs Golf Club will be in business 20 years ahead by end of financial year 2014

2. We want to have identified funding for capital and maintenance projects in place by

end of financial year 2014

3. We want to have adequate facilities for ladies, juniors and greens staff in place by end of financial year 2015

4. We want to be recognised as a leading hosting option for external functions by end of financial year 2015

What is the most effective way of getting to that point?

Proactive measures to arrest decline in member numbers, Attract increased share of wallet Effective Marketing Communications Adoption of rigorous business practices throughout the organisation. Budget options reflecting adopted strategies. Review staff resource as presently seen and as required for best effect. What are the major obstacles? Other clubs are addressing the same problems Member dis-harmony Marketing costs Existing staff rights and practices How can these be overcome? A small focused business group with access to the necessary skills range can be authorised to investigate and Implement remedy. Cost stripping has been a feature and has perhaps been taken near to the point where further intervention will inhibit achievement if objectives (microeconomic situation mirroring macroeconomics UK) Members having access to key economic facts and projections, presented in a clear, compact and meaningful way. Who will be the key players? 800 members and associates What, if any, are our unique advantages? Everyone who steps off Largs Kelburn talks positively about the course, the views, the vegetation, the backdrop, and the atmosphere around the place. Golfers may be frustrated by the challenges faced on the course but would willingly come back again and again. The course is seldom closed through the combination of coastal influence and parkland. Strategy is a process which always keeps the end result in view but may be fine tuned to adapt to changing circumstances. It represents the “Big Picture” and needs to be bought into by all key players. The end result in our case is “maximum member value allied to maximum visitor attraction”

3.2 Strategic Options:

� Increase of Share of Customer Spend. By constantly reviewing our standards and

meeting expectations we shall increase member loyalty and repeat visitor business.

Product enhancement will allow premium pricing.

� New Business Acquisition By networking and promotion of our reputation through

existing members and effective media mix.

� Ongoing Product Development Innovative work that will set us apart from other clubs.

By taking our offering into the definition of product we can introduce tested methods of

optimisation and co-ordinate resources accordingly.

3.2.1 External Strategic impacting factors:

Economic We are at the extended tail of a recession the effects of which have been partly

mitigated by governmental resort to the “never-never” This means that the after effects will

be felt for years ahead in increased taxation and tight fiscal control. Less disposable income

looks certain to continue. The first casualty of that is most often leisure.

Socio Cultural Golf Club members are bonded by the sport with the majority of members

falling within the A to C2 socio-economic groupings. This offers a similarity of outlook and a

platform for shared activities within the club. In terms of age profile, members are enjoying

longer active lives and there is a shortfall of younger age incomers, often caused by cost and

time challenges.

Technological Properly harnessing available technology can provide effective means of

recording, accounting, securing, communicating, buying and paying. Initial costs of such a

system can be onerous but is normally cost effective. Early adoption is usually more

expensive and lacks the benefit of full market testing. Mid to late adoption offers more

benefits.

3.2.2 Marketing Communications How do we tell the golfing world who we are and what we’ve got? On a domestic Scottish Level we have the benefit of exposure through events which have been staged at the club. Further afield the reputation of the Ayrshire Coast includes and the course is known to many through tourism media . This can be harnessed for profit by taking the product to a wider audience The Club Website should be the main vehicle for showing off the course and facilities. Consideration should be given to a multi language section forming the main brochure. We have capabilities in most European languages within the club. Search engine references should be extended to include Troon and Turnberry. “Think Global, Act Local” is a known concept for best practice. It means our outreach should not be limited and our web content should not appear as parochial. On the other hand we stay with the practices which lead to success for the existing membership on the basis that they will appeal equally to visiting groups and individuals. Repeat magazine adverts are largely ineffective unless the content and appearance changes regularly to overcome eye familiarity. Unsolicited press comment is the most adhesive and awareness of any successes should reach as wide an audience as is possible. Social Media integration. These media will continue to grow in influence, especially in terms of our ability to communicate with a younger audience. It is important to establish setup

properly in a business context with a defined strategy and an Ayrshire based agency has been asked to assist (June 2013) 3.2.3 Success Factors Present These factors represent the inbuilt advantages which will assist in the achievement of objectives.

• Desirable course location.

• Superlative outlook from Clubhouse to attract external functions

• Highly skilled and motivated greens team- STRI Report

• Professional relates well to the members and visitors

• A heritage of developing successful amateur and professional golfers. (Club Culture and pride by association.)

• There are accessible practice facilities at (Inverclyde)

• Ayrshire coast is a popular golfing destination

• The large majority of members live within 10 miles and can therefore support a viable social programme

• Club committee is aware of pressures created by market forces and open to change

• The course is fairly flat and ideal for game development

• The course drains well is only closed in extreme weather conditions

• There is adequate competitive activity for all classes of member.

• There is progressive integration of juniors to the main lounges meaning greater family orientation

• Members have permission to bring youngsters below induction age on to the course (Sponsorship)

• enjoys the broad perception of being a “superior quality” golf course.

• The club is open to approaches for regional and national events 3.3 Planned People Development

• Development of Business Group

• Development of Staff

• Development of Sub Committees

• Development of Juniors/Young Adults

• Restoring Harmony between member categories See Appendices for Detailed Development Approach 3.4 Relationship Management Programme

Question Answer SWOT Issues Who are the customers? All members in their various

categories. All visitors and external individuals and groups seeking hosting of functions

Member diffidence

What are their problems? Household finances, time pressures, division

Relative affluence amongst golfers

Who are the influencers? Press,committee,members,visitors, vocal minorities

Consistent message

Who and where are the intermediaries?

National and Local Golf Associations, Tourist Bodies and operators, Local accommodation providers, Local and National Government, facebook and other media

Exposure via Social network

Are there any opportunities for mutually advantageous ventures?

Largs should be seen as an integrated golfing location. Routenburn, Inverclyde and Millport should be part of the package

Package opportunity

Who are the stakeholders? (The Owners)

Largs GC is a member owned private club

Self determination

Who shares the neighbourhood?

Private Dwellings, Marina, Estate and Country Centre, A78 trunk road, Local Hotel, Care Home, General Store.

Sport concentration. Accessibility from North and South

3.5 Detailed Planning for Youth/Young Adult retention Issue: Turning Senior Problem: Getting involved, feeling involved, staying involved. Because the average age profile has risen, a new senior member graduating from the junior ranks will often feel little in common with most of the members sitting in the lounge. Perhaps the next youngest will be twice her/his age Resolution: Young member initiatives are needed to stimulate the needs of that age group. A young members convenor should have a voice within the club and there should be occasional competitions within competitions for that section Issue: Higher Education-remote employment Problem: Moving away from home. This is the case with many young adults Resolution: Keep these members involved via the following resolutions- Issue: Cost Problem: Justifying a subscription for potentially very few rounds of golf a year Resolution: A class of membership which retains the link but is a win-win for both club and member. A nominal subscription plus a modified green fee per round or per month Issue: Remoteness and Contact Problem- Out of sight out of mind- without regular play and regular contact with the club and other members, golf drops down the priority chain and often leads to resignation and loss to

the game. Resolution Distance should be no barrier to contact and a regular electronic newsletter should be issued with responses encouraged. 3.6 Strategic Decision

The options detailed in 3.2 can all be harnessed using a combination of niche marketing, cost leadership and bypass strategies. a) Niche marketing highlights the fact we are a private golf club with an open door

policy

b) Cost leadership is in terms of our offer for external functions, especially weddings when we are able to undercut any hotel quote for small wedding parties

c) Bypass looks at the marketing efforts of the high profile West of Scotland golf

courses, particularly along the Ayrshire Coast. Recent feedback allows recognition of the high regard in which Largs Kelburn is held by all who visit. We can quietly build on that below the radar of competitor clubs.

3.7 Review of Achievement vs Objectives (six monthly) Objective Achievement Progress Action By 1 Management structure and

controls comparable with commercial businesses

Main Committee advised of proposal that resources of Finance and Governance Sub Committees be jointly applied to form a Business Committee. Detailed structuring and responsibilities to follow

Committee have given approval (June 2013) to take firm proposals back for approval

2 Definition of “Our Product” with measurable means of optimisation

Defined within this plan Take to an outside agency for optimisation

3 Maximise the use of technology to create time and cost efficiencies and streamline member/visitor interfaces

Website content upgraded. Hosts asked for means of search engine optimisation. Largs does not appear on first 12 Google pages unde r Ayrshire Golf- most Ayrshire clubs do

Club Systems websites do not have the inbuilt flexibility for local administrators to undertake that function. Club Systems staff do not seem to have the capability of carrying that out. Social Media integration will have the same effect once implemented.

4 To have all staff functions examined, assessed for cost/benefit and organised

Under way Objective led appraisals to be introduced May 13 System of line management formalised.

Introduction delayed while line management is clarified.

5 To have all staff buy in to the “Product” concept and work together to provide maximum value

Slow progress but underway. If there is deliberate obstruction then this will need to be tackled

Tackled once formal appraisal and review system in place

6 Measure member satisfaction by means a quarterly surveys each sampling 100

Underway with new members and visiting parties

7 Incorporate the Junior Development Plan re more juniors to senior membership

In course June 2013. Junior Captain to appoint committee to bring about some self determination and take away top-down attitudes

In place

8 Reduce the average age of men and lady members by

No progress as yet

three years.

9 Budget to boost cash reserves to meet identified future capital expenditure.

10 Operate a transparent system of management whereby members have access to all minutes, decisions, and club related issues.

Once agreement to a converged management group is in place this will be put in place

11 Involve members by forming voluntary sub groups bringing in additional skills.

Working. Increased presence required in Match and handicap and junior support

12 Mend difficult relationships between the different membership categories

Proposal will go to main committee June 2013

Forum meeting Aug 2013

. .Financial Forecasts APPENDIX SECTION Appendix 1 Golf Business News Sept 2009

Plimsoll Publishing Ltd www.plimsoll.co.uk

Appendix 2. Sunday Herald 20th July 2008

20% of Scots golf clubs 'in financial difficulty' As global economy hits rough times, courses face battle to survive By Mike J Wilson

AS GOLF'S multi-millionaires battle it out today for the £4 million-plus Open Championship prize money, Scottish golf business experts predict as many as 20% of Scotland's cash-strapped golf clubs are performing well below par, with some threatened with extinction.

Haddington Golf Club in East Lothian was recently forced into a public denial that it was about to go bankrupt, and the Glen Golf Club at North Berwick last month announced redundancies, while the proprietor of Castle Park Golf Club committed suicide last year, reportedly as a result of business and personal problems.

Meanwhile, rumours abound about the plight of several high-profile golf clubs in Ayrshire, while Loch Lomond Golf Club, home to last week's showpiece Barclays Scottish Open is, according to its latest accounts lodged at Companies House, showing a 300% increase in annual losses to £19.2m, with the shareholder's deficit reported at £70m amid reports of crisis talks with its bankers, itself the troubled HBOS.

Nick Hunter, of Niche Marketing & Training, has worked directly with many golf clubs in Scotland and says: "There is no doubt there are a lot of clubs out there having trouble on the business front."

Half the UK’s Golf Courses & Clubs are making a loss

Half the UK’s Golf Courses & Clubs are now making a loss as the downturn continues to make life difficult. But how many of these 460 loss making companies have simply had a bad year and how many are burying their head in the sand is the subject of a new study.

David Pattison, author of a new market report into company performance in the market says, “Increasingly we are seeing companies making a loss for the first time in their history and I think they can rightly claim they are victims of difficult trading conditions. A quick refocus on profitability would ensure this an isolated occurrence – ‘the year the recession forced us into loss’.”

However, market conditions are a flimsy excuse for a band of serial loss makers that are prevalent in the market.

Pattison explains, “285 companies are making a loss for the second, even third year running. These companies are either blatantly undercutting the rest of the market to enhance or maintain market share or, more likely, have delayed making the painful decision more prudent companies have made recently.

“No one wants to trim costs, lay off staff, cancel dividend payments and the like but continuing on regardless is fast becoming unviable. They can’t bury their heads in the sand any longer.”

“I congratulate the management teams that have made the often difficult and unpopular decisions. They have cut their cloth according to the market conditions and as a result are more stable for it. Those failing to do so are running out of time and cash. Without a big increase in demand they cannot support their pricing strategy for much longer. Watch out for a number of failures in the coming months among the companies we have identified”.

The new Plimsoll Industry Analysis – Golf Courses & Clubs provides an intimate assessment of 900 companies in the market. It identifies instantly which companies are pursuing a reckless strategy and who is getting it right.

Readers of Golf Business News.com are entitled to a £50 discount of this new special edition of the Plimsoll Industry Analysis – Golf Courses & Clubs. Call 01642 626400 for further details and quote reference PR/LI31.

He explains: "The Scottish golf sector falls into three categories, namely the exclusive top-end private members' clubs, which are commercial ventures with exclusive, well-off memberships and are therefore largely insulated from the effects of the credit crunch, as are the hotel-led courses such as Turnberry, Fairmont St Andrews and Skibo Castle.

"At the other end of the spectrum are a number of well-run pay-to-play facilities, which appeal to the younger, more informal type of golfer.

"Then, in the middle, is a raft of members' clubs of varying standards with an ageing membership."

Hunter, a director of Golf Tourism Scotland and a prime mover in golf's Driving Change agenda, adds: "There are a number of clubs out there in a perilous position and there will be some that go to the wall during this economic downturn, because golf revenues are all predicated upon disposable income, which is being squeezed all round at present."

But, as some clubs stare into the financial abyss, top-end development continues, as Hunter explains.

"There is the 18-hole Jack Nicklaus championship course at the Ury Estate with a hotel, shooting range, tennis courts and equestrian and fishing facilities; Blairs College, a signature championship golf course, designed by former Open champion Paul Lawrie; and, of course, the Trump International proposal at the Menie Estate. So the top of the market is buoyant."

He predicts: "At that lower end, there will inevitably be casualties."

Golf business consultant Mike Williamson, of Edinburgh-based MW Associates, agrees the sport is in trouble, but says: "Over the past 10 to 15 years there has been a 20% growth in supply, but much slower growth in participation and golf tourism, and, given the demands on people's leisure time and disposable incomes, and changing social trends, it is not difficult to pinpoint why there are problems today."

He warns: "As many as 20% of traditional mid-range members' clubs could be in financial difficulties, faced with the double whammy of rising costs and falling revenues.

"Some may have to think the unthinkable of folding, amalgamation, or at least considering sharing clubhouse, management or greenkeeping operations. Rationalisation may be unpalatable, but it may become inevitable if they are to survive."

The winning bid for the 2014 Ryder Cup was supposed to provide a panacea for growth, but Williamson is sceptical: "The 2006 Ryder Cup Ireland experience shows the commercial reality did not measure up to the hype, and there has even been a negative, the rip-off Ireland' effect, which Scotland must avoid.

"The reality is that some golf clubs may not be around when the Ryder Cup comes to Gleneagles unless they take radical action now."

But Williamson insists there is no "silver bullet", explaining: "Housing might have been an option, although some traditional clubs have turned down joint ventures with developers and the current economic downturn has put such schemes on the back burner for the moment in any case."

Hamish Grey, CEO of the Scottish Golf Union, which is largely responsible for club golf in Scotland, said: "There are pockets of difficulty such as East Lothian and Fife, brought about by growth in supply allied to static demand and current problems over people's discretionary expenditure."

However, he insisted: "It is too early to speculate on foreclosures, although golf clubs, like any business, need to find solutions to the challenges they are facing."

The picture is not much brighter on the inward tourism front. Gary Wilkinson, managing director of golf tour operator Wilkinson Golf, says: "Times are tough for everyone. If the Old Course at St Andrews, previously considered recession-proof, has vacancies, then other courses are in trouble, and many of the prestigious hotel/golf course operators are offering deals that ensure only turnover and cash flow."

Appendix 3. Youth retention- further points to consider KH

It is key to reverse the trend of rising average age while maintaining present membership numbers. http://www.youtube.com/watch?v=0yzCT1d2LDQ

On a broader spectrum the problem exists not only here (see article Appendix 2) There is a need for a rational review at SGU and Scottish Government levels if the “Jewel in the Scottish Crown” is to be preserved in its present form. The Scottish Government has committed itself to support participative sport and has assisted Scottish Golf in general and Clubgolf in particular with funding. The Clubgolf concept is admirable and does bring more youngsters into the game at an early age. It does not however answer retention and indeed may have a choking effect on the system in years to come. We need to look at what happens to youngsters when they leave the area for further education or employment. Golf slides down the priority scale and interest often lapses. What could be investigated is a points credit system for taking kids through junior membership to that age so that clubs can receive some form of recognition for taking youngsters through to “graduation” at 18. It may be that memberships can be transferred back and forward without the major burden of entry fees at a new club. At many stages those players may only want to play six or eight times a year when they are back home. A form of student/young adult country membership could permit that for a low fee- say £50 plus perhaps £10 per round depending on club and/or circumstances.

Appendix 4 Douglas Lowe

Published on 20 Jan 2010

Attitudes are reverting to homespun ideas of thrift that were prevalent four decades ago according to one of

Scotland’s leading golf club managers who warned that such notions are a recipe for disaster.

David Roy, Scottish president of the Golf Club Managers’ Association of Europe and managing secretary at Crail Golfing

Society, said his profession was the most misunderstood of the trade and there was a widespread belief that it was little more

than a sinecure.

“It might sound a bit of an exaggeration to say no club manager’s job in Scotland is safe at the moment, but I believe that’s

the case,” he said. “I worry that we are going back to the 1970s when a member such as a past captain took on the job of

honorary secretary.”

At a time of falling memberships, club balance sheets are under strain and it became apparent during a series of roadshows

run by the Scottish Golf Union and Scottish Ladies Golfing Association in November and December last year that some

clubs had the secretary/manager at the top of their hit-list.

“I would suggest that is not the way to go,” said Andy Salmon, Scottish golf’s development manager in yesterday’s

Timebomb feature. He emphasised that at a time when strong leadership is needed the club manager’s role is more important

than ever.

At the root of this fear is an ageing membership. With the average age of the Scottish club member thought to be in the mid-

to-high 50s, there are many around who remember the parsimonious 1970s and think there is no reason why we can’t go back

to that.

“I’ve heard people say: ‘We managed fine with an honorary secretary. I don’t understand why we’re employing this guy.

What does he do anyway?’” said Roy, who started out in his working life as a summer help at Taymouth Castle 30 years ago

and can put it all into historical perspective.

“In those days, generally speaking, golf courses shut in October. Waterproofs and shoes were so awful that few people

wanted to play in the winter and you could manage quite comfortably with two or three greenkeepers.

“It would have been common for a club to have an old Nissen hut, one tractor, one set of gang mowers, a couple of hand

mowers and a Flymo. That would have been all the kit they had for 100 acres of a golf course.

“It has been fascinating to watch the exponential curve of improvement. Modern machinery came over from America, then

there were hydraulically-powered fairway mowers and from there it was a small move to ride-on mowers. In a short space of

time you had half a million pounds’ worth of machinery and you needed to build a new greenkeeping facility.

“It was amazing how many clubs managed to keep up with that rate of change, and dragged along with it was the corporate

administration. As more staff were employed, annual subscriptions went up and more legislation was passed that would

affect clubs. The workload for every club increased and it was no longer suitable to have the honorary secretary.

“Now there’s health and safety, employment law, licences, fire protection and insurance, and child protection policies to look

after.”

What particularly irks Roy is the common practice of clubs employing a retired professional person like a banker or lawyer to

the job, or even appointing someone because they are impressed by a low playing handicap.

“If the professional or head greenkeeper left there is no way that the club members would be happy for a past captain or

retired accountant to take on that job. Yet the same demands are never made of club committees when the manager leaves,”

continued Roy. “There can be no doubt that the practice of employing unqualified people is harming golf.”

Roy regards himself as lucky at Crail because he is working alongside an enlightened club, but with rapid committee turnover

he is well aware how quickly things can change and has witnessed recurring themes over the years like crusades to reduce the

price of drink.

“They can spend half an hour talking about the price of beer and then agree to spend £45,000 on a mower in a heartbeat,” he

said. “You need the continuity of a full-time manager who can steer the captain and committee and keep them on the right

track.

“Some clubs – and it is a shame that they are unusual – are doing it really well. The best example I can come up with is

Bothwell Castle. When they replaced their retired manager they went to the SGU for advice and advertised accordingly. As a

result they appointed one of the few applicants with qualifications.

“They carried it on from there to make sure they were fit for the 21st century and reviewed the governance of their club to

make sure they didn’t get these rogue characters coming on to committee and driving the club into a cul-de-sac.

“Gourock is another good example – they are going down the same road. It’s just a shame there are so many bad examples.

Inertia is one thing and you could almost forgive it, but when you actively set out a strategy to say we can do it better with

amateurs then that is really going to cause trouble.”

David Roy, Scottish president of the Golf Club Managers’ Association of Europe and managing secretary at Crail Golfing

Society

Appendix 5

The latest bi-annual KPMG research for golf participation in Europe came out last week and the reading wasn’t good for UK and Ireland golf clubs. Out of 31 countries, the UK and Ireland saw the second largest decrease in registered golfers with a fall of -3.1 per cent

“Golf clubs need to proactively and effectively face up to the challenging economic climate to retain

members or attract new golfers. Based on our survey, rather than introducing youth and family

promotional programs, 30-40% of Europe’s operators and club managers actually increased prices in

2011. On the other hand, more than half of clubs have not invested in improved marketing – and

(somewhat surprisingly) many have not yet capitalized on the opportunities provided by online

marketing and social media.”

So, the picture is uncomfortably clear. Golf in the UK and Ireland cannot remain the domain of mostly

middle-aged men without severe consequences for the long-term financial viability of many golf

clubs. While London’s facilities may be somewhat protected from these trends due to high population

density and relative geographical affluence, no business can be complacent.

New programmes to target local schools and influence the curriculum should be developed to grow

junior golf. Innovative PR and marketing initiatives should be used to position golf as a viable

sporting and social activity for more women.

And following my blog last week, I will again say that all clubs should make the most of social media

channels. Having researched in detail 32 central London golf clubs, I have found that only 25 per cent

have an active Twitter account, while only 19 per cent regularly use Facebook. Moreover, those with

active accounts largely misuse these channels with poor information that is irrelevant to their

customers.

Golf clubs could share an £80 million windfall if they win a court battle with

Revenue & Customs.

The 400 membership-owned clubs would reap an average of £200,000 in

rebates going back to 1990. At issue is whether VAT should be charged on

the green fees paid by non-members, or whether they should be exempt, as

are members’ fees.

Bridport & West Dorset Golf Club has brought the case, claiming that the

Revenue was wrong to have charged VAT since 1990 on visitors’ fees.

Read more: http://www.thisismoney.co.uk/money/news/article-2207213/Golf-clubs-share-

80m-windfall-win-HMRC-court-battle.html#ixzz2OTHpTETM

Follow us: @MailOnline on Twitter | DailyMail on Facebook

BRIDPORT TAX TRIBUNAL REFERRED TO EUROPE

Bridport Tax Tribunal Referred To Europe

Judgement has been released in HMRC's appeal against the tax payer's success in the First Tier

Tribunal. The case was head in the Upper Tribunal on 9th- 11th July before Mrs Justice Proudman.

The issue in dispute is whether or not green fees charged to visitors should be treated as exempt

from VAT. HMRC argue that they should be taxable for two reasons:

1. The purpose of green fees is to generate 'additional income' and the restriction of the

exemption to membership fees is therefore required by Article 134 (b) of the VAT directive;

and

2. In the alternative, if the restriction is not required by Article 123(b) then it is permitted by

article 133(d) as a way of reducing the distortion of competition between commercial and

not-for-profit clubs.

Before the Upper Tier Tribunal, HMRC argued that the Court could only be certain of coming to the

correct answer if it sought guidance from the European Court of Justice (ECJ) on the meaning of

the phrase 'additional income' in Article 134(b) and the extent of a Member State's discretion

under Article 133(d). The Upper Tribunal concluded that despite KPMG's 'cogent and

persuasive submissions', the legal meaning of the phrase ' additional income' was so critical to the

Tribunal's decision that it required guidance from the ECJ.

The Upper Tier Tribunal has therefore decided to make a reference to the ECJ and has directed that

KPMG agree the terms of a draft reference with HMRC. The reference will deal with arguments

concerning the meaning of Article 135(b) and the scope of the Members State's discretion under

Article 133(d). It is expected the matter to be heard by the ECJ in mid-late summer 2013.

Membership Evaluation Survey

Members are asked to complete the following question by entering an “x” in one of the boxes numbered 1-7 where 1 is very negative, 2 is

negative, 3 is slightly negative, 4 is neither negative nor positive, 5 is fairly positive, 6 is positive and 7 very positive. Please mark frankly as

we need to know which, if any, factors require improvement. The questions are in Likert Scale form which means there is no particular

sequence to manipulate conclusions. You may continue any comments overleaf or below.

Question Member Comment (if any) Continue overleaf. 1 2 3 4 5 6 7

1 How do you regard the importance of visitor

income to the Club?

2 How do you rate the number and frequency of

competitions at the Club?

3 How satisfied are you with the present system of

booking times?

4 In general terms, how do you regard the attitude

of club staff towards the members?

5 How do rate the course condition when compared

to others of similar status you have played

recently?

6 Where on the 1to 7 scale do you rate clubhouse

bar prices?

7 How satisfied are you with the level of contact

coming from the Club?

8 To what extent do you regard the clubhouse

facilities as adequate?

9 Where on the scale do you rate the Club’s Social

Programme?

10 What do you think of the coaching provision?

11 How well do you think the Club treats its

Juniors?

12 To what extent do you think the annual

subscription is value for money?

13 How satisfied are you with the catering service at

the Club?

14 Compared to similar courses how do you rate the

Largs greens?

15 How satisfied are you with the Club’s practice

facilities?

16 To what extent are you satisfied with the pace of

play in club medals?

17 What impact does the frequency and size of

visiting parties have on your playing enjoyment?

18 To what extent does the Pro Shop satisfy your

normal retail needs?

19 How do you regard the Club Website in terms of

keeping you informed?

20 How willing are other members to include you in

their game if on your own?

21 To what extent do you think that staff and office

bearers are responsive to any unexpected needs?

22 How would you rate the club for “family

friendliness”?

23 What is the impact of Clubhouse serving hours

on your membership enjoyment?

24 How do you rate the general behaviour of our

Junior Members?

25 Overall, how do you rate membership at Largs ?

Thank you for taking the time to complete this survey of opinion. It will assist us greatly in defining the level of “membership Value” and

also guide us to areas which may need attention.

You can if your wish remain anonymous by leaving the section below blank and posting your response through the secretary’s office door or

you may prefer to add your name below and either attach to an email or pass to the office.

Member Name Date

Group

Development Needs Approach

Business Group Skills Present Skills Accessible Further Skills Required

Staff Flexibility Big Picture buy-in

Sub Committees Communication Consensus

Juniors/Young Adults

Facilities Encouragement Inclusion

Membership Harmony

Club mindedness Big Picture Legacy