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One. Million. Dollars.
For the first time, the average projected non-capital operating budget for golf courses across the country is more than $1 million — two commas, seven full digits, and, to be exact, $1,043,755 per 18-hole course or equivalent, according to the results of our annual State of the Industry survey. That represents a nearly 6 percent increase over projected budgets for last year, a 23 percent increase over two years ago, and a staggering 39 percent increase over five years ago.
And the number could continue to climb: In addition to general inflation, which is projected to be around 2.2. percent in 2021, an overwhelming majority of survey respondents say they expect their maintenance budget to increase (almost 62 percent) or at least hold steady (30 percent) this year.
Those numbers tie directly to a projected continued increase in rounds: 42 percent of respondents say they expect to field more rounds in 2021 than they did in 2020 — which itself featured an almost-14-percent jump over 2019 rounds — with another 43 percent saying they expect about the same number of rounds.
Lydell Mack, the superintendent at Big Canoe, a 27-hole facility in Jasper, Georgia, says inflation always plays a part in annual budget increases and that the “club has been very good about making sure our expenditures match the inflationary increase.” But net profit also plays a part, and increased rounds throughout the pandemic — Big Canoe logged more rounds with just 18 holes open than they had initially planned for with the full 27 open — and increased revenue directly translated into an increased budget for this year.
“There’s not as much fear now as there was early last year as far as what’s the market going to be, what’s the participation going to be,” Mack says. “I think club officials are just more comfortable with the situation and that we’ll be able to maintain the rounds that we plan on doing.”
Horton Smith Golf Course in Springfield, Missouri, is among the third or so of courses that anticipate a flat budget, “but our chemical and fertilizer line item should go up, just because we’re spending more to take care of the course,” says longtime superintendent Mel Waldron, CGCS. “They’ll allow us to spend a little more on those line items, and we’ll try to keep others in check to keep our bottom line about the same.
“But with the extra play, they won’t frown at us if we spend a little more there.”
More play will also likely lead to more spending on personnel. For years, Waldron worked without a designated assistant. He was able to hire one last February and, after that assistant moved over to the Public Works Department to run a tree farm, he says he will be able to fill the position pretty quickly.
“Even taking out that extra play and extra revenue, seeing what we could do condition-wise, they’ve seen that benefit,” Waldron says. “So filling that position’s not going to be a problem at all.”
Everything boils down to play, of course. Daily-fee golfers at public and municipal facilities, and members at private facilities will ultimately determine the budget by how often they tee off.
“Our core guiding principle was serving our membership,” says Ross Miller, superintendent at the Country Club of Detroit in Grosse Point Farms, Michigan. “We had a moral and service-based responsibility to our members to serve them.”
There were other clubs that shortened tee time intervals, opened up guest rounds, opened the course to fivesomes, “and just rammed guest rounds down their club’s throats,” Miller says. “Did they make their budget numbers? Yes, and then some. It was a banner year for golf.” But where other clubs capitalized on the interest, “we just looked at our budget shortfall and decided to provide that service, that sense of exclusivity.”
“We knew we were going to have about a $3 million shortfall in projected revenue, and we were OK with that. ‘This is going to happen. Do we know how long it will last? No.” Instead, the club ended the year about $1 million in the black. “It was just two different schools of thought.”
Even during a pandemic — perhaps especially during a pandemic — golf course maintenance remains a service industry. No matter your budget increase this year, just about all of the work is for the golfer.
Just remember to stop and appreciate it yourself, too.
