The Barefoot quartet are all $150 in spring.

Bulle Rock has a new ownership group and they are trying out different promotions in order to keep their established greens fee of $145.  

I believe it's been reported in the Baltimore Sun that Manekin has an agreement in place to develop 1500 homes on Bulle Rock property.

The issue for many golf facilities is that too many of them actually believe they are the "best" and therefore they truly believe they are "entitled" to charge top dollar. New Jersey is the 8th most expensive place to play golf in the USA (NGF statistics) and a number of these facilities here in the Garden State need to stop smelling glue and get a bit more realistic with their pricing options -- even with a state that has the first or second highest per capita income.

There are simply too many courses that have come on board that need to work in concert with other facilities and have multi-tier price points. They also need to charge nine-hole rates during off peak times and fully encourage juniors to play which very few do -- contrary to all the talk that the market is important.

I read a comment by SI's Alan Shipnuck which he posted in a book of his (The Battle for Augusta National) and he said it succintly & correctly --

"But as a recreational sport, golf is slowly dying. Participation numbers have flat-lined, despite the population growth and the popularity of Woods; numerous courses are in financial distress. If golf is to thrive in this country, it will have to be because of women; presently, they make up only 22 percent of the nation's golfers, and thus as a group they offer the greatest potential for growth."

It's time for golf course groups to literally wake up and smell the coffee -- the industry has simply been making it by depending almost exclusively upon the well-heeled deep-pocket males and that small group will not sustain the vast amount of courses and high price points that are out there.

Too many course groups are in sheer denial and they simply think the pox will only affect the course down the street. That's truly the ostrich approach IMHO.

turn the land over to housing and pocket the quick $$ that comes from such a situation....comments from those in other sections of the USA and how they view this topic.

brother Matt

i do NOT believe its geography as much as economics

the financial circumstances of a golf course are summed up best by george carlin - the biggest waste of land besides cemetaries - i am reminded of this by my group every time i suggest we purchase a golf course - fortunately the others in the group (commercial land developers) are more focused than i am in this matter as an investment made regarding emotions is usually the wrong thing to do

on one project my compromise was dividing up a mixed use 220 +/- acres featuring twelve holes of golf - six holes a side -with the remaining land developed with a 115 room hotel / health spa and restaurant - it never got off the ground because the demographics of a nearby property comming online included a Hard Rock Hotel and Seminole Casino - the property had more upside potential, taking no additional risk,  by leaving the property undeveloped and selling it as is - than by taking a risk in the construction and operations of hotel / health spa / restaurant operations adjacent to an oddity of a twelve hole course

daily fees will become obsolete - leaving municipals and private clubs - the math simply doesn't work - and believe me i've looked at almost every way possible - it's like being an unsubsidized farmer - one slow season because of weather - something out of one's control - and you will never catch up if your not a municipal (budgeted / governmental) or private club (membership fees / special assessment)

geographically in florida for example - speak to Chester Stokes in St Augustine in the matter of "The Ponce", Wayne Huiezenga in Ft Lauderdale regarding "Grande Oaks" f/k/a "Rolling Hills" and "The Golf Club of Plantation" or Johnny LaPonzina at "Pembroke Pines" for example - all would probably tell you daily fee is a loosing proposition

forget the NGF. PGA, USGA "growth" statistics and numbers - survival and profitablity are economically more important barometers of fiscal health because without them growth is irrelevant - remember the dot.com bubble? that's all you heard was a firms "growth" potential however the fundamentals are survival and profitability - remember Arthur Andersen? they were growing at twenty percent a year for the seven years prior to their demise

therefore my calculations also indicate that a golf course, unless your supporting a hotel / resort / etc or using it as a "loss leader" in a residential real estate development or "holding" property pending future development - is potentially the investment with all risk and no reward

Matt
If "unique design" can differentiate a daily fee/resort from the competition, then let's see what happens when Black Mesa builds the second course. Will it become a golfer's pilgrimage place a la Bandon, Monterey Penisula, Pinehurst, World Woods or Scottsdale? Time will tell.

Steve

Tom
My guess is that prime season at BM is mid-to- late May to October;however,some locals told me that they can golf there virtually year round as the course was only closed about 10 times because of snow. My group made the mistake of going there in late April.We were early. The course was not in good shape and the weather was problematic. I guess BM is as difficult to get to as Bandon. It's a 2 hour drive from the Albuquerque airport.
Steve

Tom Doak,
I'm not so sure it's the length of the season that is necessary for success as much as the timing of the seasons. An area like the Oregon coast is perfect. A 12-month season with the busy season during the longest daylight of the year, with little to no days lost to weather,  and an off season that doesn't break the bank from a maintenance stand point. Compare that to courses in the sunbelt who have their busy season during the shortest days of the year, while dealing with winter weather, and their most expensive maintenance period during their lowest cash flow months, the summer.

I'd like my chances owning a course in the North that has it's busy period when it's daylight until 10pm and closes in the winter. I've experienced a course in the desert that has to maintain good conditions 12 months a year while giving away golf in the summer during the longest days of the year.  IMHO, the golf business is all about cash flow and a lot of courses in the south become money pits after one bad winter.

BTW, any upcoming projects in the Northwest?

Somewhat related to this topic is an item from the Sunday Philadelphia Inquirer.  Inniscrone is being taken from Private to "Semi-Private" as it was purchased recently.  They plan on charging $65 per round, according to the newspaper article, then will take the course private again in a few years.  Changes are also planned to several holes.  Annecodotal evidence suggests that new courses in the Philadelphia area have stopped being built as Joe Logan no longer writes about new courses every week, but instead has an "odds and ends" column.

Closer to the South Jersey Shore, the conventional wisdom is the Atlantic City area is overbuilt and some places may close.  The fly in the soup, so to speak, is the new municipal course McCullough's Irish Links, so named for the life-time mayor of Egg Harbor Twp, Sonny McCullough.   McCullough's had an operating loss of $17K last year but get this -- paid no debt service because of the way the debt payments are structured.    Starting this year, debt payments of $750K will have to be made -- taxpayers are bracing   But the shore area was saturated with golf to begin with, and didn't need a low-end course built, with apparently 2-3 more on the way.

I am surprised by all these prices being quoted.  I wonder if there arent better deals to be had in MB regardless of the time of year if you are playing on one of the many golf packages.

I play a couple times per year down there with large groups, and while it is more during the off season I guess, the base package prices for lower end courses is ridiculously cheap for the room, breakfast, and golf.  Now that is based on lower end courses, but we often upgrade and pay some kind of surcharge, but it is nothing exhorbitant.

When you call and ask for their rate they give you the "rack" rate.  Anyone who has stayed in many hotels knows you never pay the "rack" rate if you are smart.  Sometimes I have found in MB that you need to ask if they are running any kinds of specials.  I have been surprised to find how early "twilight" rates can start if they think you are actually shopping around the price.

SS1
If Joe Logan is not permitted to review private courses, then why did he publish a review of Manufacturers last year or the year before? He did write about the public Riverwinds after it opened.
In any event, "going private" is a trend,no doubt, to raise money and buy down debt. You forgot to mention Hartfeld. I just played Pine Hill and they seem to be off to a decent start. It may take them 3 more years to sell out IMO. I can't see Twisted Dune going private unless a new clubhouse is built.
Yes, the big name public course at the shore is for sale or at least the developable parcels in and around the course are.
How are things at Hidden Creek?
Steve

Steve S said:

"Matt, If  "unique design" can differentiate a daily fee/resort from the competition, then let's see what happens when Black Mesa builds the second course. Will it become a golfer's pilgrimage place a la Bandon, Monterey Penisula, Pinehurst, World Woods or Scottsdale? Time will tell."

Steve:

The answer to your question is a simple one -- Black Mesa will thrive for one key reason -- the promiximity to Santa Fe -- a world class destination that has brought people to that area of the country LONG before golf was ever an item of discussion.

The key thing to also realize is that Santa Fe ALREADY has a solid supply of people who are well traveled and extremely knowledgable about entertainment options whether it be in the arts or literature.

Adding Black Mesa to the quality mix already there only adds to the cultural diversification that clearly exists now.

Provided the second course is equal or greater than that of the first I would think the opportunity for success is certainly possible especially when you compare the collective offerings of Santa Fe to other areas of the country where golf IS the priority and the cultural underpinnings rests with how big the local Taco Bell and K-Mart are.

frank d:

You underestimate the demographic and geographic evidence I presented. There are pockets where daily fees can thrive provided they are marketed correctly, have a product people want and brand their facilities with an eye for growth.

Eric Bergstol's Empire Golf in the greater NY metro area understands that principle and is filling in a key gap for those who are tired of the hob-knob BS that often comes with a new membership at a private club in the area.

The same thing is happening with other companies like RDC -- located in Jersey -- which is doing a comparable situation with facilities like Forsgate and Bergen Hills, to name just two.

The issue brother Frank is that too many people believed "another" upscale daily fee in areas already congested and COMPLETELY dependent upon outside golf traffic visiting them would be OK from a business perspective. That has not been the case -- particularly when all you get with the golf side is another plain vanilla and chocolate design that varies little, if at all, from the bulk of the fast-food junk that preceded it.

Quality design that is unique and above and beyond what came before it can surivive and even thrive. The die-hard golf crowd will travel to places of uniqueness (e.g. Bandon and Pacific Dunea) but if you think giving them a massage and a bigger lunch bag with goodies is all it takes then they will be in for a rude awakening given the travels I have made in the USA these past number of years.

SS1:

The problem with Atlantic City is that the model for visitors is still related to day trippers and the like. It is not Las Vegas whereby people will spend a week or more at the location and be prepared to play a wide swath of different courses.

I also have an issue with the branding of courses there in which all of them had this glue-sniffing misconception that they could charge $100 or more no matter the quality of design. There might be 2-3 courses available to the public that can charge those types of fees but the bulk of them are simply in la-la land with their overall thinking and positioning.

The reason people don't like McCullough's is that the private daily fee owners don't want to see taxpayer courses undermine their own position. They are interested in their botton line -- well, guess what -- so are consumers. They don't simply want to play another version of the boring one-dimensional South Jersey course carved from pinelands with an obligatory water hazard thrown in here and there and then pay a huge tariff for such a ho-hum layout.

There is quality design in South Jersey but it's extremely limited and more towards the private side than the public.

I'll be most interested to see how Pete Dye fares with his new effort in Ocean County which I believe will be open to the public. Ditto with Renault Winery when it comes on line.

If AC wants to thrive as a golf destination it needs to give some sort of meaningful value to its consumers. The "me-tooism" that has developed over the last few years in which courses that come on line think they can easily charge top dollar for mundane layouts is over IMHO.

Quality design that is unique and above and beyond what came before it can surivive and even thrive.

brother Matt

i was of the same opinion for the longest time as well but i now question this logic myself

like food at a restaurant quality is expensive which to me equates to private + upscale + limited

additionally unique and above and beyond means to me artistic + subjective + accepted timely + ellusive

this was the basis for my idea of a twelve hole course (two sixes a side) primarily for the attention grabbing value of it AND a time saving element (the guaranteed maximum THREE hour round) - [most golfer quit playing because of the time it takes to play (NGF)]

the bottom line however was potentially more effected by factors like the weather than any other single item - i could more reliable control quality, unique, above and beyond - but i cannot control weather and this doesn't even touch on other alternative uses for a 220 +/- acres property

so survive yeah i guess - but to thrive well i only see a "lucky" few that will be the exception - however OVER TIME even these will succumb to market forces

Unlevel playing fields, are IMHO, a big issue. Muni's that can waste more money, than an entrepenauer can generate, makes survival, for the risk taker, challengeing.
Why doesn't the ASGCA, GCSAA, PGA of America, the PGA Tour and all the other periphrial industries do whatever is needed to put GOLF in a special category? Similar to the tax free lifestyle of the poor and religious, golf NEEDS protection. Joe Peschi put it best when he said he couldn't write-off his membership but every nut-case actor who sees a shrink 3 times a week is deductable. His golf relieves the need for therapy and I even heard there are some people who treat golf as their religion. So why not have "special" status.

Hell, you could legislate standardized maintenace and make everybody happy.