The age of the Management Company?

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Our Summer issue will include a feature on the recent growth of management companies, and how the current economy has fueled that growth.

But the growth is not sudden. Companies like Troon and Billy Casper Golf Management have been steadily growing over the past ten years. To be sure, growth was not as rapid as this magazine predicted in 2000. But it has still been constant, and appears to continue at a good pace.

Many of the courses being added today were underperforming – both private clubs and resorts.

So the question remains, is this good for the industry?

It appears that the answer is ‘yes’. It is always better to have a well-run course than to have poorly managed facilities. And there really is little fear that golf will turn into the hotel industry – with a few dominant chains. Golfers still choose a course based on the unique attributes of the facility, and not based on who manages it.


There have always been, and will be, three key factors to he economic success of any golf course: location (20%), product (20%) and management (60%). In many cases of financial problems, and after having been taken over by new management, the same old golf course (product) in the same old location has reached its financial turnaround. So, management is the prime issue. Otherwise these management companies would not have succeeded.

For Profit (private) golf is the worst thing that has ever happened to our industry. The opposite is true with daily fee golf - it has made it better. Management companies are prospering because the PGA of America lacks with their business eduaction...

I would disagree with J.Paul's statement of that the PGA of America lacks with their business education. The PGA of America provides many opportunities for PGA Professional to learn and educate themselves in the managing of facilities, and it is up to those individuals to take advantage of those opportunities in order to better market themselves and become a key component in sucessfully managing facilities. Management companies do, at times, have greater overall resources in buying advantages, overall marketing opportunities and other key areas that can be an advantage. The downside is that their management fee's at times are not completely economically justified, as there are other options, and they frequently drive down compensation at the facility for employees. Otherwise Management Companies have a viable place in the golf industry and do provide some benefits.

Depends on which management company? Smaller companies operate to a more realistic standard. Several of the Larger companies have taken an aloof position of power in the industry. These companies appear to be self serving with little contribution back to the need for grass roots growth of the game.

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