The funny thing is the same people that advocate for reducing maint. costs seldom share that for outlook with the Clubhouse and staff. At higher end clubs the maint. budget can be 1/7 of the total budget.
Ben your numbers are way off, no club spend 6 x their maintenance budget on other items. My estimate would be 3x is about the highest I know off and outside events drive it up to that level. $1.2 million on the course (typical for a higher end club with 18 holes) and $7.2 million on everything else is one heck of a budget; $8.4mm budget.
Mike,
My numbers are not way off but rather on the money, feel free to look at the tax returns of the top private clubs. $1-1.2 million for maint. is about right. I'm not arguing for it, it just is a reality in the states.
I have looked at plenty of 990s and it is rare to find a club with 18 holes and more than 6.5 million in revenue, let alone the 8.4 million figure your algebra derives. And these clubs all have pools and tennis and lots of outside parties and tons of non-golf members.
Mike,
I used 1 million maint budget yielding $7 million. You need to look harder. Are you inferring that I'm lying?
No not saying you are lying just misinformed. I would say green budget is 1/3 to 1/4 of revenue at most high end clubs not 1/8th as your initial post stated.
First off I said 1/7th, so u continue to miss state and put words in my initial post. I never indicated in opening post 1.2 million, u did. I have looked at the returns, my father is a CPA and I tend to get his 2nd opinion. Misinformed is PC for saying I'm lying or exaggerating. I prefer budgets under $3 million