Private clubs generate $24 billion in economic activity

CMAA study found clubs made more than $3.2 billion in capital investments in 2018 and planned to invest another $3 billion in 2019.
  • CMAA Economic Impact

A recently completed economic study found that Club Management Association of America member-managed clubs in the United States have a total direct economic impact estimated at $24 billion.

The 2019 Economic Impact Report conducted by CMAA and Industry Insights Inc. research firm details the effect the more than 2,500 clubs managed by the almost 6,800 members of the CMAA have on the economies in their communities.

“Based on the data provided in this report, it is clear that CMAA clubs are strong and stable pillars of the communities in which they reside,” the study concluded.

The study prepared from the responses of 636 clubs calculates direct economic impacts and does not account for the “ripple effect” of spending in the community by club employees and suppliers or by local governments using tax dollars paid by the clubs. It is based on 2018 fiscal year figures.

Among the key findings of the report

-Clubs made more than $3.2 billion in capital investments in 2018 and planned to invest another $3 billion in 2019.

-Food, beverage and social events are a core revenue source for most clubs, accounting for 29% of gross revenue on average.

-More than 75% of the nearly $13 billion of goods and services purchased by clubs in 2018 remains within the state (and 47% within the local community) in which the club operates. 

-Clubs are involved in their communities: 78% support local charities; 27% offer internships; and 23% have scholarship programs. More than $24 million in scholarship funding was distributed in 2018 from CMAA clubs.

-Payroll taxes accounted for 45% of the $2 billion in taxes paid by clubs. Sales taxes were 29% and real estate or property taxes totaled 23% of that amount.

-Clubs employed 350,000 year-round and seasonal employees in 2018 and provided more than $9 billion in salaries, wages and benefits to those employees. 

-Staffing levels have remained the same for 73% of clubs, with another 21% expanding staff and just 5% reducing the number of employees.

- Club charity foundations distributed $46 million in charitable donations in 2018 for purposes ranging from support of a local charity to preservation of an historic course or clubhouse or a scholarship program. 

The full report is available here.

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