In an era of steadily rising costs for golf course maintenance and renovation, the best way to control expenses and get value for your money is to make sure you are investing, not just spending.
Private clubs, in particular, can be notoriously indulgent when it comes to spending money. There are plenty of examples of maintenance budgets topping $2 million for 18 holes, $15 million course renovations, and clubhouse renovations that run well into the tens of millions. Whether those outlays make sense or approach delusions of grandeur depends upon many factors – including the regional golf market, a course’s infrastructure needs, the expertise of the staff, the financial health of the facility and the ability of the leadership to chart a viable future.
Everything is site specific, which is why it can be so problematic when courses try to emulate other facilities. What could be a wise investment in one situation might well be characterized as delusional thinking in another. No matter what the circumstances are, every course should think critically about how they spend money today and how they plan to spend it in the future. The golf business is booming right now – whether this is the “new normal” or a high before the fall, every course should take steps now to be better positioned for what might come. The following are some good, and not-so-good, ways to invest for an uncertain future.