I have occasionally consulted with NGF, too. I was even a small part of their survey in 2013, that showed nearly every public course in DFW that remodeled showed a positive revenue increase. Lower costs had lower increases, but higher ROI, and higher dollar renos had higher revenue increases, but lower ROI. I thought it was a pretty balanced assessment, perhaps leaning slightly to the cheerleading side.
I can tell you that if the situation arose that some free funding came about from members in Tom D's example, they would be glad to revise their numbers to support whatever debt was incurred, and why not? If they figured a course could support, say $500K in debt, but the course was getting a free $2M in member contributions, then it would support a $2.5M renovation, because there was still only $500K in debt. With a better renovation, they might even figure potential debt load higher, figuring a few more new members.
I see NGF being bashed for recommending spending too much on new courses then, and not enough now. It would seem they are over-reacting to the market perception of past excess, but maybe they are just being more careful. Even back in the day, most cities or developers would take a golf feasibility to their lenders, who ran their own studies, and invariably were more conservative on how much debt to take on. One big problem was courses were built with maybe 80% of the budget they really needed to be successful and operational. Bankers sure didn't take architecture and operations into account either.
Of course, there could be a great debate about how much architecture affects success. I agree NGF generally figures all courses tend to regress to the local mean financially. They can't control the design, they can't control the marketing, so they sort of have to. I have seen studies by others that try to "rank" the newly renovated course in the marketplace, and then forecast a revenue base higher than what has typically been achieved by others.
Also, as more courses are renovated in an area, the "newly reopened" factor tends to diminish in general, which most studies that want to be positive don't recognize.
Lastly, it may be BS to really even try to predict golf success as an independent consultant. I have never felt golf level feasibilities are as sophisticated as those for hotels or real estate, but do understand NGF and others have tried to make them more so since the course a day recommendations. It is still a tricky business, but I can only name one feasibility firm that has been sued for erroneous conclusions.
Can't recall the outcome of that, and most put all sorts of disclaimers in, sometimes longer than the report summary!