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Behold the golf course. Graced with rolling fairways, pristine greens, ancient oaks and other natural fanfare, it presents a striking picture.
But as beautiful as a golf course may be, its looks belie the trouble besetting the industry that created it.
According to the National Golf Foundation, the number of new courses expected to open in the United States in 2008 is the smallest in 20 years. More courses are scheduled to close this year (nearly 100) than the 80 expected to open, though the closures have fallen since almost 150 were shut down two years ago. The golf construction boom of the 1990s – when about 2,500 new courses (mostly daily fee ones) were added to the 13,000 or so already extant in the U.S. – is not only over; it’s stuck in reverse.
The problems of the broad economy are bedeviling golf course construction. The housing market’s collapse has hampered development, since a number of golf projects these days are tied into on-site housing. Getting financing to build a new course is tougher than it has been in decades. Projects that were started this year have seen the bulldozers turned off until better times appear.
Consider Rick Jacobson, a golf course architect in Libertyville, Ill. For nearly two decades, the founder of Jacobson Golf Course Design designed and renovated courses in Chicago suburbs, such as Bloomingdale and Winnetka, as well as nationally. But in the last few years, Jacobson – who has worked with Jack Nicklaus on a number of projects – has focused on a new market: China.
Last month, Jacobson agreed to design a 27-hole course in Hong Kong. It’s his third venture in China, following the 36-hole Lion’s Lake Resort course near Guangzhou and Chaozhou, an 18-hole resort course.
”In the foreseeable future we won't see growth like the 1990s in the U.S. again,” said Jacobson, who also agreed to design a course in the Italian province of Calabria this year. “Some of the projects were ill-conceived. Some courses were just a temporary fad until they could flip it to a developer."
When it comes to those sports whose purpose is to attract public participation, it’s hard to match golf for the scope and expanse of what needs to be created. Bowling? Buy a couple of acres of land and construct 10 lanes with a bar nearby. Tennis? Two hard courts take up as much space as a suburban backyard; upkeep is minimal.
But building a golf course in the United States is a process that takes years. Finding 200 acres of suitable land near a reasonable population center is just the start. Attracting money and securing permits is another time-consuming venture.
Jacobson shakes his head at some of the public hearings he’s endured in the U.S.
"One landowner said he didn't want a golf course because golfers are known to smoke cigars. He didn't want cigar smoke in his house,” Jacobson recalled. “One said with drivers, the decibel of hitting the ball exceeded the sound range allowable.”
Of course, China is no utopia. Jacobson had to redesign an entire hole in one of his ventures because it encompassed a rock land form that was significant to a village. At the same time, the market there is exploding. Hundreds of courses have been built in China in the last quarter-century with at least 20 more expected to open in the next few years.
Originally, golf exploded in the United States. In the 1880s, there were a handful of golfers in the country; by the first term of the Eisenhower Administration, the number had reached five million. Today, close to 30 million people play the game founded in Scotland.
But in 2008, golf is in decline by many measures. Rounds are down, as is the sale of equipment. On the pro tour, television ratings fell once Tiger Woods left the scene with a damaged knee after the U.S. Open at San Diego’s Torrey Pines.
Though municipal courses are taking the brunt of the downturn (except perhaps Torrey Pines, which enjoyed $8 million in renovations before the Open), private courses are not immune to the pain. Take the case of Ravisloe Country Club in Homewood, Ill. After 107 years as a well-respected course, the 6,300-yard Donald Ross original was reported to have been put up for sale this fall with a price tag of $4.95 million. It is said only a few dozen members are left.
All in all, the golf course business was once as breathtaking as the ocean holes at Pebble Beach. These days, unfortunately, it’s looking more like Rodney Dangerfield’s wardrobe in “Caddyshack.”
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{"commentId":4271868,"authorDomain":"jcn50plus"}
Just goes to show you that nothing is forever, as much as we in America would like. And a sobering reminder of what is and is not so important in life.
{"commentId":4271868,"threadId":"433594","contentId":"2170978","authorDomain":"jcn50plus"}
#1 - Wed Dec 3, 2008 10:11 AM EST{"commentId":4275298,"authorDomain":"WILDWONDERFUL"}
Sure we have to give golf a bailout.
{"commentId":4275298,"threadId":"433594","contentId":"2170978","authorDomain":"WILDWONDERFUL"}
{"commentId":4320812,"authorDomain":"golf7daysaweek"}
I played a lot when a round cost $25, but then prices doubled virtually overnight (thanks TW), couldn't even get on a golf course for less than $50 a round. Had to ask myself, what else could I use $50 for every weekend, which adds up to $2600/year! Heck, if you play 2 rounds a week, you are spending $5200/year! Suddenly golf ain't cheap. Yeah, sure, I like to play, but is it worth $2000-$5000 a year? For that kind of money I could buy a vacation, ski boat, HDTV, or quite a few other things. So I think a lot of this comes down to money. And if the golf courses can't break even on $25 rounds, maybe they need to close...
{"commentId":4320812,"threadId":"433594","contentId":"2170978","authorDomain":"golf7daysaweek"}
{"commentId":4271955,"authorDomain":"patrickbuckles"}
Where will all of the PIG Execs go for recreation after we bail their sorry butts out??!!! Please, bail out the golfing industry, as soon as possible!!!!
{"commentId":4271955,"threadId":"433594","contentId":"2170978","authorDomain":"patrickbuckles"}
- 2 votes
#2 - Wed Dec 3, 2008 10:16 AM EST{"commentId":4286697,"authorDomain":"leonardcharles"}
In most cases mr. lazy i can play 3 to 4 rounds of golf for the price of a single NFL ticket. Not have to travel to a major destination city to do it. Get more fresh air and exercise and enjoy the company of friends and family without the stress and noise of any major league sports event.
btw i am a self employed contractor in my little 2 bedroom house. Perhaps I have taken offence to your comment about "PIG Execs" personally as I had once traveled the county as an Exec.
Put a sock in it and get off your lazy and play a round of golf. It's a great game that you don't have to be good at to enjoy. And most of the guys playing a round put their pants on the same way you do.
{"commentId":4286697,"threadId":"433594","contentId":"2170978","authorDomain":"leonardcharles"}
{"commentId":4287121,"authorDomain":"patrickbuckles"}
Fact remains that golf is an 'elitist' sport, taking up far too much land, water, and other resources. Fact remains that I don't much care if you are offended by the "PIG Execs" comment. You have every right to be offended, you have no right not to be. If the shoe fits, put it on and go play some golf. If not, walk on.
CEOs are PIGs, GREEDY little PIGS!! That's what the real world sees now. Look around you, see the reality. Tough sh*t if you are "offended".
{"commentId":4287121,"threadId":"433594","contentId":"2170978","authorDomain":"patrickbuckles"}
{"commentId":4294559,"authorDomain":"leonardcharles"}
my my such misinformed anger....no point in presenting any argument I'm sure you won't settle down till you find your pacifier....or noonie...or nook..... or whatever you called it on when it was taken away.
I will retract my suggestion of your taking up the game. Cry babies and complainers always beat themselves when playing.
{"commentId":4294559,"threadId":"433594","contentId":"2170978","authorDomain":"leonardcharles"}
{"commentId":4271999,"authorDomain":"jlbarnes-us"}
I'm a landscape architect thinking of moving to West Palm Beach, fl...can anyone tell me how the downturn has affected this industry in that area... Thanks
{"commentId":4271999,"threadId":"433594","contentId":"2170978","authorDomain":"jlbarnes-us"}
- 1 vote
#3 - Wed Dec 3, 2008 10:19 AM EST{"commentId":4272170,"authorDomain":"jw449620"}
Andy,
West Palm has plenty of money. You should check the Naples area also on the West Coast.
{"commentId":4272170,"threadId":"433594","contentId":"2170978","authorDomain":"jw449620"}
{"commentId":4273763,"authorDomain":"snobro"}
The author missed an important piece of the puzzle here. The golf industry dug themselves into this hole before the economy slid. And from some of the comments many of you are missing the other piece.
A few years back golf was growing rapidly and there was room for new course development. But guess what got built. High end public courses and private residential courses. Very little was built in the municipal and public domain. The result was less courses where people new to the game could get started. The industry hurt it self with unbalanced building and planning.
Think this doesn't affect you ? Read on.
The effect of the high end courses and new private course development has been double deadly. Many private courses are struggling mainly due to their dues structure and past membership practices. Many members could now weigh the cost of a full years membership against the same number of rounds at a high quality public facility. Remember we are talking about taxable land here. Its also a business that can't just pick up and move to another state or town.
At the same time as the cost of play at the higher end public facilities rose rounds played dropped off. Players opted to either not play or moved their play to lower cost public and municipal courses. Less rounds played equals less tax dollars. That's a direct hit to the local economy. There is another benefit to having golf courses in a given area. Most courses buy partially treated waste water for irrigation. The course itself becomes a filter as the water goes back into the water table. It also saves the city money not spent of treatment and gained from the sale of the same water.
At the same time many municipalities are caught in a cross fire. In many places Golf Courses are part of the open space or parks and rec department. Often they are the only part of that department that actually produces revenue. Unfortunately most managers in these department are ill equipped to run a golf course, so the quality of play often suffers at these facilities. That too may result in less rounds played.
So who cares? You should. Next time you see a golf course you should see your local tax base. If it's public you should also see possible tourism dollars. If it's a city or county course, think about the baseball fields and soccer fields and other parks the city runs for free.
{"commentId":4273763,"threadId":"433594","contentId":"2170978","authorDomain":"snobro"}
{"commentId":4274121,"authorDomain":"brharney"}
Andy, I haven't read any bad news regarding golfing in Florida.
I hope I don't, my son works as an Accountant at Lexington CC in Ft. Myers.
Business seems good! Good luck to you!
{"commentId":4274121,"threadId":"433594","contentId":"2170978","authorDomain":"brharney"}
- 1 vote
{"commentId":4275208,"authorDomain":"sjones34668"}
As a small business owner my advice would be: Do not come to Florida.........It S U C K S here right now.
{"commentId":4275208,"threadId":"433594","contentId":"2170978","authorDomain":"sjones34668"}
{"commentId":4272014,"authorDomain":"robert-wrobel"}
Who gives a flyin' rats .....? Puleease, this is a recreational venture. Big deal, golf is on the downswing (pun intended).
{"commentId":4272014,"threadId":"433594","contentId":"2170978","authorDomain":"robert-wrobel"}
- 1 vote
#4 - Wed Dec 3, 2008 10:20 AM EST{"commentId":4272018,"authorDomain":"jwaltizermd"}
The average round of golf at a nice course will run at least 50 bucks and up to a couple hundred for premium venues. Throw in lunch and some beer, a cart and balls and you've just spent 5 hours (or more in southern CA where they allow fivesomes) and at least a hundred bucks (not counting any betting losses if you didn't play well). Most people in this economy are not going to spend the money, much less the time to hack around a little white ball. I don't even go to bars anymore. Every time I go out to a bar, the tab is at least a hundred bucks. For that money I could buy several bottles of my favorite adult beverages and drink myself silly for a couple weeks. Until the economy gets way better and we stop losing jobs, the golf industry will have to suffer along with all the other industries that depend on currently non existent discretionary income.
{"commentId":4272018,"threadId":"433594","contentId":"2170978","authorDomain":"jwaltizermd"}
- 1 vote
#5 - Wed Dec 3, 2008 10:21 AM EST{"commentId":4272028,"authorDomain":"okeeboy"}
Oh no! No more golf?
Now I'm sure the end is near!
Someone get me God on the phone...
{"commentId":4272028,"threadId":"433594","contentId":"2170978","authorDomain":"okeeboy"}
- 1 vote
#6 - Wed Dec 3, 2008 10:21 AM EST{"commentId":4275572,"authorDomain":"WILDWONDERFUL"}
Didnt God invent golf ?
{"commentId":4275572,"threadId":"433594","contentId":"2170978","authorDomain":"WILDWONDERFUL"}
{"commentId":4285106,"authorDomain":"snobro"}
If you play you know the answer is definitely NOT!
{"commentId":4285106,"threadId":"433594","contentId":"2170978","authorDomain":"snobro"}
{"commentId":4272048,"authorDomain":"possum0607"}
People are losing jobs left and right, having to get food stamps and draw unemployment. Banks are crumbling, heavy industry in this country is on it's deathbed and you are talking about how a super miniscule segment of the economy is failing. In the words of the late Queen of France Marie Antoinette(sp?) "let them eat cake".
{"commentId":4272048,"threadId":"433594","contentId":"2170978","authorDomain":"possum0607"}
- 1 vote
#7 - Wed Dec 3, 2008 10:23 AM EST{"commentId":4285112,"authorDomain":"snobro"}
And all the people employeed at the course? It's all connected isn't it.
{"commentId":4285112,"threadId":"433594","contentId":"2170978","authorDomain":"snobro"}
{"commentId":4272110,"authorDomain":"chefron73"}
Tough Sh-t. Boo hoo hoo!! Maybe you want to bail them out. Who in the H--- is going to bail me out. Get your hands out of my pockets--unless you're trying to play with my??
{"commentId":4272110,"threadId":"433594","contentId":"2170978","authorDomain":"chefron73"}
- 1 vote
#8 - Wed Dec 3, 2008 10:26 AM EST{"commentId":4272122,"authorDomain":"gremmie3"}
If golf is too expensive, give disc golf a try. With zero green fees, shorter round times, and the opportunity to go with your kids make it a great alternative for those with low cash flow. A disc is 8$ and you can check pdga.com for a nearby course.
{"commentId":4272122,"threadId":"433594","contentId":"2170978","authorDomain":"gremmie3"}
- 1 vote
#9 - Wed Dec 3, 2008 10:27 AM EST{"commentId":4272143,"authorDomain":"gdufort"}
{"commentId":4272161,"authorDomain":"gdufort"}
{"commentId":4272169,"authorDomain":"gdufort"}
{"commentId":4272192,"authorDomain":"jw449620"}
Tomorrows headline..."Recession in the tennis industry"
{"commentId":4272192,"threadId":"433594","contentId":"2170978","authorDomain":"jw449620"}
- 1 vote
#13 - Wed Dec 3, 2008 10:32 AM EST{"commentId":4272410,"authorDomain":"okeeboy"}
Ha ha!
You are soooooo right on that one!
{"commentId":4272410,"threadId":"433594","contentId":"2170978","authorDomain":"okeeboy"}
- 1 vote
{"commentId":4272260,"authorDomain":"hd65"}
Golf is a rich mans game anyway. It is not as important as keeping jobs in this country that is for sure.
{"commentId":4272260,"threadId":"433594","contentId":"2170978","authorDomain":"hd65"}
#14 - Wed Dec 3, 2008 10:36 AM EST{"commentId":4285609,"authorDomain":"z-man"}
{"commentId":4290328,"authorDomain":"hd65"}
I know all about golf courses and who they employ. You have greens keepers, tree trimmers, general grass cutters, water sprinkler repairmen, and all kinds of things. So if you want them to stay open make the rich boys pay for the upkeep. They don't pay hardly anything for those jobs anyway. And if it is a municipal course they will be moved to maintain parks. It is no big deal really. Hell Tiger Woods could employ your state with his income alone.
{"commentId":4290328,"threadId":"433594","contentId":"2170978","authorDomain":"hd65"}
{"commentId":4272274,"authorDomain":"tylergarland"}
I for one realize the sadness caused by this industries withering. One of my best friend's Dad has lost his telemarketing business which has caused him great losses being that he has twelve children. They are a wonderful family, but require a large sum of money to function. It is sad to see a fellow entrepeneur failing.
{"commentId":4272274,"threadId":"433594","contentId":"2170978","authorDomain":"tylergarland"}
#15 - Wed Dec 3, 2008 10:37 AM EST{"commentId":4272431,"authorDomain":"eddie11011"}
What is wrong is that golf has gotten too expensive. Clubs run anywhere from $400.00 on up. Then you have to buy balls, tees and a host of other equipment. TOn top of that they are charging $50.00 on up for a round of golf. I love playing the game. It is very relaxing. But why don't the money hungry people that run golf courses, lower their prices??? More people would be able to play. The private clubs should open their golf course to the public and charge reasonable rates (not $100.00 and up for a round). I have been on golf courses that charge $125.00 for a round and there would hardly be anyone on the whole course. $30 to $50 a round is reasonable.
{"commentId":4272431,"threadId":"433594","contentId":"2170978","authorDomain":"eddie11011"}
#16 - Wed Dec 3, 2008 10:48 AM EST{"commentId":4272461,"authorDomain":"gdufort"}
{"commentId":4272498,"authorDomain":"TRUSSO"}
FORE !!!!!!!!!
{"commentId":4272498,"threadId":"433594","contentId":"2170978","authorDomain":"TRUSSO"}
#18 - Wed Dec 3, 2008 10:52 AM EST{"commentId":4272617,"authorDomain":"dallensmith-31"}
No more new golf courses??!! Holy cow!! It's the end of the world as we know it!
{"commentId":4272617,"threadId":"433594","contentId":"2170978","authorDomain":"dallensmith-31"}
#19 - Wed Dec 3, 2008 11:00 AM EST{"commentId":4272631,"authorDomain":"jamesvanspach"}
No one has built a 10 lane bowling alley in 50 years, except the last president (2 lanes). As for the golf course industry, alot of rich white people aren't making as much money, as before. Get over it and welcome to the real world. Golf is an upper middle to upper class pastime. It is very expensive for equipment, clothes, green fees, and especially; membership. The only people who play, can already afford it. Boo hoo...
{"commentId":4272631,"threadId":"433594","contentId":"2170978","authorDomain":"jamesvanspach"}
#20 - Wed Dec 3, 2008 11:01 AM EST{"commentId":4272739,"authorDomain":"jw449620"}
Golf can be rather economical at public courses. And I see plenty of blacks playing as well, even in the very exclusive clubs.
{"commentId":4272739,"threadId":"433594","contentId":"2170978","authorDomain":"jw449620"}
{"commentId":4274713,"authorDomain":"ChrisMcK"}
No new 10-lane bowling alleys in the last 50 years? I can't speak for the whole nation, but in Miami, they built Don Carter's Kendall Lanes around 1976, a monster of a place (72 lanes, I think), and only recently demolished it. But its absence has been mitigated by recent construction of Lucky Strike (14 lanes), Strike Miami (34 lanes), and Splitsville (13 lanes), newer types of bowling alleys that have an updated decor and are designed to appeal to a younger crowd. Bowling is still alive and well, at least in Miami.
{"commentId":4274713,"threadId":"433594","contentId":"2170978","authorDomain":"ChrisMcK"}
{"commentId":4285650,"authorDomain":"z-man"}
{"commentId":4272748,"authorDomain":"cheftimo"}
I was going to use sarcasm and anger, tell everyone I don't give a damn about a stupid game of golf but it seems everyone beat me to it.
Perhaps now the Executives of the big corporations should think about taking up tidley winks.
{"commentId":4272748,"threadId":"433594","contentId":"2170978","authorDomain":"cheftimo"}
#21 - Wed Dec 3, 2008 11:08 AM EST{"commentId":4272786,"authorDomain":"jtruckley"}
Why don't they start playing mini golf instead? It's alot cheaper and FUN TOO!!!
{"commentId":4272786,"threadId":"433594","contentId":"2170978","authorDomain":"jtruckley"}
- 1 vote
#22 - Wed Dec 3, 2008 11:11 AM EST{"commentId":4272949,"authorDomain":"cshjr2006"}
Lower the green fees and people will still play. i won't because i think the game is retarded, a waste of prime land as well as a waste of money, but some people actually do enjoy the game (notice i did not call it a sport). take up mini-golf (as someone already suggested) or maybe lawn darts to pass your time.
{"commentId":4272949,"threadId":"433594","contentId":"2170978","authorDomain":"cshjr2006"}
#23 - Wed Dec 3, 2008 11:21 AM EST{"commentId":4273450,"authorDomain":"mikeyschultheis"}
Bail them out also! Bail everyone out!
{"commentId":4273450,"threadId":"433594","contentId":"2170978","authorDomain":"mikeyschultheis"}
#24 - Wed Dec 3, 2008 11:49 AM EST{"commentId":4273766,"authorDomain":"luckyarmpit"}
Some of you are complete imbeciles. Your making a comment about a game you know absolutely nothing about. That said, I think its fine about a "downswing" in the game. Maybe courses will drop their price and the high end equipment from Callaway, TaylorMade, Ping and Titleist will drop their high prices for clubs. And, maybe it will be easier to get a tee time on sunday mornings. Matter of simple economics, supply and demand.
{"commentId":4273766,"threadId":"433594","contentId":"2170978","authorDomain":"luckyarmpit"}
#25 - Wed Dec 3, 2008 12:06 PM EST{"commentId":4274016,"authorDomain":"camkees"}
No loss...golf has to be the most boring sport I've ever seen on TV. And people say they do it for the exercise. Right...riding a golf cart and then visiting the '19th hole' is exercise.
{"commentId":4274016,"threadId":"433594","contentId":"2170978","authorDomain":"camkees"}
#26 - Wed Dec 3, 2008 12:21 PM EST{"commentId":4274021,"authorDomain":"okeeboy"}
Just think of the hundreds that will be laid off by this. I want to see the GM's of every course in America sitting in front of Congress demanding taxpayer bailout money to save the jobs!
Yes, I"m being very sarcastic for those that need to know that.
Have a happy golfing day!
Or just go to work.
{"commentId":4274021,"threadId":"433594","contentId":"2170978","authorDomain":"okeeboy"}
#27 - Wed Dec 3, 2008 12:21 PM EST{"commentId":4274157,"authorDomain":"ChrisMcK"}
Although golf may be a non-essential pasttime, like any other sport or hobby, it employs a large number of people who will be hit hard as fewer people play golf. While more expensive than tennis or bowling, you don't need to be bankrolled to play golf. Buy a good set of used Ping's on e-Bay, regrip them yourself, buy water balls in bulk, play the municipal courses, and it is moderately affordable. Golf course construction was crazy in the 90's so its no surprise that fewer new courses are being built, and in absolute terms, the number of operating courses has declined. Reducing green and cart fees sure would help, too, and we might see an increase in the popularity of 9 hole "executive" style courses: cheaper to operate and to play on.
{"commentId":4274157,"threadId":"433594","contentId":"2170978","authorDomain":"ChrisMcK"}
#28 - Wed Dec 3, 2008 12:30 PM EST{"commentId":4274820,"authorDomain":"brian-39"}
{"commentId":4274838,"authorDomain":"brian-39"}
{"commentId":4274895,"authorDomain":"dawnbelotti"}
What are they going to do with the ones that are closing? I don't think we need anymore houses or million dollar condos in places where homes aren't selling.
{"commentId":4274895,"threadId":"433594","contentId":"2170978","authorDomain":"dawnbelotti"}
#30 - Wed Dec 3, 2008 1:11 PM EST{"canLink":false,"threadId":"433594","isPrivate":false}
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