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Golf News & Opinion
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Commentary - Golf's Ups & Downs
information on the health of the game, but always with the memory of how a couple of decades ago
the organization foresaw a phenomenal surge in participation. They cited an immediate need for
construction of one new course per DAY to provide places to play for the millions of new golfers.
We all know hoards of people didn’t all of a sudden take up golf but the NGF prediction did contribute
to the rationalization for construction of a huge number of courses, many residential real estate
centered, and as the ‘industry authority’, the NGF forecast was used as justification for the borrowing
of a lot of money. In any event I take what the organization publishes with a grain of salt but a couple
of recent items are worth passing on.
Item One – Closures Outpace Openings in 2007
NGF reports 121.5 courses (i.e., 18 hole equivalents) closed versus 113 openings for a net loss of
8.5 courses compared to a loss of 26.5 in 2006. This doesn’t mean times are getting better just the
land golf courses occupy is more valuable as a housing development or shopping center.
Item Two – Rounds Played Down
According to data compiled by the NGF and regional golf associations the number of rounds played
in 2007 was lower than 2006 by 0.5%. The NGF doesn’t report the sampling error but from being
around golf course operations most of my life I suspect the 0.5% is well within that number, whatever
it is. I interpret these results that as for the past several years the number of rounds like the number
of golfers is essentially flat. An interesting bit of data though, the number of rounds played at private
clubs fell 1.6% while public course rounds only were down 0.3%...you can attach your own analysis.
Item Three – Management Companies
Roughly 10% of all courses in the U.S. are run by management companies such as American Golf
Corp. which is the biggest with a roster of 159 facilities. Being profit orientated these companies are
usually customer service orientated and often take a different view than individual owners or club
members. There is no doubt golf management companies have been and will continue to be the
leading force in club operations and player relations.
Item Four – Chains Dominate Off-course Retail
In addition to every golf course having a golf shop…the so-called ‘green grass’ shops, there are
about 1,700 off-course retailers ranging from single stores to national chains such as Golf Galaxy,
Edwin Watts and Golfsmith. These big guys dominate off-course sales with floor space averaging
almost 5,000 square feet but with only one-third of the total locations. Golf equipment sold by off-
course retailers of course hurts your local green grass PGA professional owned shop making it
harder for him or her to make a living.
My conclusion of all this data is not much has changed. Golf is trending to lower participation despite
the mighty efforts of the PGA of America, the USGA and other organizations with programs like the
First Tee and Play Golf America. The millions of dollars spent have at best only stemmed the decline
which given all the factors against golf (time, expense, difficulty, etc.) is a major accomplishment.
information on the health of the game, but always with the memory of how a couple of decades ago
the organization foresaw a phenomenal surge in participation. They cited an immediate need for
construction of one new course per DAY to provide places to play for the millions of new golfers.
We all know hoards of people didn’t all of a sudden take up golf but the NGF prediction did contribute
to the rationalization for construction of a huge number of courses, many residential real estate
centered, and as the ‘industry authority’, the NGF forecast was used as justification for the borrowing
of a lot of money. In any event I take what the organization publishes with a grain of salt but a couple
of recent items are worth passing on.
Item One – Closures Outpace Openings in 2007
NGF reports 121.5 courses (i.e., 18 hole equivalents) closed versus 113 openings for a net loss of
8.5 courses compared to a loss of 26.5 in 2006. This doesn’t mean times are getting better just the
land golf courses occupy is more valuable as a housing development or shopping center.
Item Two – Rounds Played Down
According to data compiled by the NGF and regional golf associations the number of rounds played
in 2007 was lower than 2006 by 0.5%. The NGF doesn’t report the sampling error but from being
around golf course operations most of my life I suspect the 0.5% is well within that number, whatever
it is. I interpret these results that as for the past several years the number of rounds like the number
of golfers is essentially flat. An interesting bit of data though, the number of rounds played at private
clubs fell 1.6% while public course rounds only were down 0.3%...you can attach your own analysis.
Item Three – Management Companies
Roughly 10% of all courses in the U.S. are run by management companies such as American Golf
Corp. which is the biggest with a roster of 159 facilities. Being profit orientated these companies are
usually customer service orientated and often take a different view than individual owners or club
members. There is no doubt golf management companies have been and will continue to be the
leading force in club operations and player relations.
Item Four – Chains Dominate Off-course Retail
In addition to every golf course having a golf shop…the so-called ‘green grass’ shops, there are
about 1,700 off-course retailers ranging from single stores to national chains such as Golf Galaxy,
Edwin Watts and Golfsmith. These big guys dominate off-course sales with floor space averaging
almost 5,000 square feet but with only one-third of the total locations. Golf equipment sold by off-
course retailers of course hurts your local green grass PGA professional owned shop making it
harder for him or her to make a living.
My conclusion of all this data is not much has changed. Golf is trending to lower participation despite
the mighty efforts of the PGA of America, the USGA and other organizations with programs like the
First Tee and Play Golf America. The millions of dollars spent have at best only stemmed the decline
which given all the factors against golf (time, expense, difficulty, etc.) is a major accomplishment.