Chapter 8: Club Management

Magnitude
there are over 14,000 clubs in the United States
Club Employees and Members
-clubs employ 363,000 employees
-clubs payrolls equal $9 billion
-clubs serve between 1.7 and 2.1 million members
Club Outreach Program
-clubs raise and contribute $150 million in funds to charitable causes
-17,000 charitable golf events
Economic Impact of Clubs
-the total income clubs in 2013 was $20 billion
-the total economic impact for clubs in 2013 was $21 billion, including all tax revenues generated as a result of club activities
-Clubs spend $2.8 billion on goods and an additional $2.2 billion on services in their local communities
Private Club
largest segment of the “country club”
Reason for joining a country club
dining, golf, and social status
Membership
often requires a stock purchase of up to $150,000 and monthly dues of up to $1,000/month
Faculty
costs of %50 million +
Famous Clubs
-The CC of York
-Baltusrol CC
-Trump National
City Clubs
-status and affiliation are the most important reasons for membership
-dining and indoor sports emphasized
Types of City Clubs
1. Athletic
2. University
3. Dining
4. Professional
5. Social
Other Types of Clubs
1. Yacht (ex: Grosse Point Yacht Club)
2. Fraternal (ex: VFW, Masonic Lodge)
3. Military (ex: Hale Koa Hotel-Hawaii)
Equity Clubs
generally non-profit clubs, financed by the members
Corporate/Developer Clubs (Non-Equity Clubs)
owned by individuals or corporations and are run for a profit
Club Organization
1. Club Members
2. Board of Directors
3. Club Manager/General Manager
4. Golf Course supr., Golf Pro, Asst. GM, Business Mgr., Tennis Pro
5. Club Members
Equity Club Management
1. Club Board hires and supervises the GM/COO
2. the most common organizational approach is to have a strong centralized structure
3. All department heads and pros report to a single GM/COO
4. GM/COO then reports to the Board
5. Club Boards “govern” the club
6. Club Managers “manage” the club
Non-Equity Club Management
1. Owner(s), Corporate, President
2. General Manager, Member Board of Governors
3. Department Heads
Management Contracts
Clubs have the option of hiring a management company to handle the club operations
(ex: ClubCorp, Troon)
Management company resources > GM/COO’s resources
-Systems
-Training and development
-insurance, purchasing benefits
-operational efficiencies
CM Common Qualities and Abilities
1. Effectiveness in interpersonal relations
2. Dedication to the welfare of the club
3. Integrity
4. A strong sense of organization and administration ability
5. intelligence
6. professionalism
7. an ability to communicate well
8. strong leadership capabilities
9. industry experience