The business of golf – “The Death of a Golf Course”

By Alan Prescott
January 22, 2021

” . . . running a facility like yours is a team effort. As costs of operation increase so should the fund allocation increase. And, when you hear my next article, you will begin to understand the planning and skill-sharing that must be in place this year.”

The example that is discussed below is a true story that I lived through and was personally involved with this past year (2020). Just as I always protect my sources as well as my respondents to questions and requests for information, I have changed both the names of the people involved in my discussion as well as the name of the golf course facility of which I am speaking.

Ken was a golf professional from the same PGA Section where I served my PGA apprenticeship. We became known to each other during the 1960’s. Years passed and our careers in golf traveled different paths, though similar in certain aspects. Unfortunately, on May 25, 2018, Ken passed away from a heart condition, leaving his golf courses to his 2 children, a boy and a girl.

Where I entered the picture was over 20 years ago when I promised Ken that I would always watch over his son, who was partially disabled due to an auto accident at age 19. He is just shy of 50 now and has been in a wheelchair ever since the accident. Ken’s daughter lives in Florida and has done well for herself in life as well as in marriage. Ken’s estate has made them 50/50 partners and owners of more than one golf course.

When I finally heard that Ken had passed, it was already the first week in June of 2020. I called Lisa, Ken’s daughter and then got in touch with Don, Ken’s son. I informed Don, who I knew from a year or two after his accident, that I had promised his father that I would always watch out for him while I was alive. Thus, I volunteered my services, advice, and guidance immediately.

One of the golf courses is called Castle Country Club (name changed for privacy). Castle Country Club is a 36-hole facility. It has a public 18-hole course that is 6010 yards in length (a regulation 18-hole golf course measures at least 6000 yards in length). The second 18-hole course is a championship course that measures 7248 yards in length. Ken purchased this facility in 1989 for about 3.5 million dollars. At that time, there were 400 members of the championship course as well as a healthy greens fees play on the shorter, public course. The revenue mixture as far as greens fees was 80 % on the short course to 20% on the championship course (the “private course”).

It is no secret that integrity is an integral part of any business. At the time of the takeover/purchase of this facility, the golf course was in pristine condition. There was also a pool, a clubhouse with full banquet facilities, two locker rooms, a grill, a well-stocked pro shop, practice range, and a maintenance facility with more than adequate golf course machinery in superior condition. During the next few years, the golf courses began their decline.

First, the owner let public course players play the private course for a (higher) greens fee without paying for an annual fee of any amount, thus angering the annual private course members. Second, the owner reused leftover beer from kegs used in earlier outings. Then, the owner loaded up the private course with outings, thereby making it for the members to make a tee time during premium hours. Fourth, when the members criticized the private course’s condition, the owner became argumentative and, upon further conversation, the owner threw out the complaining players as well as the golf leagues that complained.

To make matters worse, when I was in town on the weekends, I volunteered to cut the pins for nothing, he often said that I should make the pin locations as difficult as I could on the private course. The pin locations should be setup 1/3 easy, 1/3 average, and 1/3 somewhat challenging. It was all about the owner and how much money that he could remove from a golfer’s wallet.

By the time that the mid-1990’s came around, the membership had declined from 400 to about 100. Anyone with a $20 bill could choose which course that they wanted to play, regardless of whether or not they were a member of the private course. And, the single membership fee rose to $2500.00. Then, the owner purchased at least one illegal and banned chemical that was more deadly than DDT, which had been banned from use on the golf course because of f its toxicity. I IMMEDIATELY walked off of the golf course property when I discovered this illegal activity!!

Let’s talk about the taxes. The owner absolutely hated to pay his fair share of taxes, especially sales taxes. His tax collection against him went to the State Supreme Court, and, when karma caught up with him, he was facing jail time and losing his PGA card. The owner’s response was to take his checkbook from his pocket and write a check or $140,000.00 to pay his tax liability in full. But, the other tax liabilities remain unpaid to this day.

When I met with his son to help out this past year, I found the public course with 3-foot high grass and weeds and the private course in unbelievable disrepair. There were 2 country boys working 40-plus hours per week off the books who had been allowed to collect unemployment due to Covid-19 benefits in addition to their off-the-books wages. I told the owner’s son that they would have to be paid on the books or I was out of there. He changed their method of payment immediately and reduced their hours to between 25 to 30 hours per week at minimum wage.

I found about $500,000.00 of used golf course machinery and used golf carts in various stages of disrepair in the various barns. The clubhouse was condemned 7 years ago with very significant mold and no running water. I inspected the private golf course and literally cut the huge weed infestation on multiple greens with a pocket knife and a bucket while working on my knees. The son was given only $50.00 startup money to open the golf course this year by his sister, who just wants to unload the 4 golf courses that they jointly own (50/50).

The son and I have spent at least 500 hours touring the golf course and I have consulted with over 500 nightly phone calls and inquiry calls during all hours of the day, not to mention the consulting that I have done on the 4th course, which is another abused course that is barely operational and barely profitable. The private course at the 36-hole facility never opened in 2020, even though I changed the holes when I was inspecting the greens in an effort to open the course, the opening of which was delayed at least 4 months due to the pandemic. And, the two children, Don and Lisa continued bickering at least daily. Lisa never came north to New York to help Don operate the golf course.

My point in all of this is to say that running a facility like yours is a team effort. As costs of operation increase so should the fund allocation increase. And, when you hear my next article, you will begin to understand the planning and skill-sharing that must be in place this year.

Next, Part 3: Running a golf course is not just a turnkey operation with a bunch of gimmicks.   It is everyone’s responsibility for everybody’s benefit.

As usual, I am, for your benefit, Alan Prescott. I can be reached by email at [email protected]

Editor’s Note: Alan Prescott reached out to us after reading a recent article on the Fernandina Beach Golf Course. His next article is:  “Running a golf course is not just a turnkey operation with a bunch of gimmicks. ” We thank Alan for his contribution to the Fernandina Observer.