Today's article compares Oro Valley's financial golf strategy to USGA recommendations.
In an effort to offset the decrease in Municipal Golf participation throughout the country, the United States Golf Association (USGA) has determined two major causes for this decline and they are promoting solutions to save this sport.
(1) Time Constraints
The major factor is simply TIME. With today's busy family dynamics, young children have many sports to chose from, families have multiple daily activities, working hours have increased, single parenting creates transportation issues, and seniors must balance cost and energy against available time. A four or five hour activity becomes extremely difficult for almost every age group.
USGA Solution: Encourage 9-hole golf
As such, the USGA began a nationwide promotion of PLAY NINE. In addition to national advertising, local and state chapters are asking all Municipal Courses to encourage their golfers to play only nine holes. This, along with encouraging "Play Forward,” has increased the number of rounds played significantly in the past few years. In addition, 9-hole golf creates more rounds played with an increase in revenue and opens the potential golfer base significantly.
(2) Local Government is inept at managing golf
The second factor is that Municipal Golf, (when local government owns the golf course property), involves local government being involved with management. Since many such bodies do not have the skills nor staff to operate a golf business, they often hire specialized golf management companies to actively run the business. (In the case of Oro Valley, Troon was hired to manage golf.) Where this concept falls apart, is when the Town Staff or Town Council continues to dictate policies to satisfy special interest groups, certain voting blocs, or campaign contributors, rather than allowing the management company to use their resources and talents to meet the needs of the local golfers and the financial goals of the Town.
USGA Solution: Performance-based Compensation
According to golf course data studies, municipal golf courses have now reached a low of some 1350 locations within the United States, (Arizona now has less than 25). The USGA recommends that management company compensation be based on performance, not on fixed fees which eliminate the incentive to balance revenue with expenses.
How does Oro Valley Municipal Golf relate to USGA recommendations?
The Town is not encouraging 9-hole golf. Both of the two existing 18-hole courses are based on an obsolete and inefficient design whereby a golfer must play the entire 18-hole course before returning to the clubhouse. This eliminates any 9-hole play, eliminates that additional revenue, and closes the door to the USGA Nine Hole promotions.
The Oro Valley Town Council continues to pour money into these antiquated courses, instead of modifying the course to satisfy the needs of the golfing community. As an aside, at a time when the Council will do anything to promote more (and smaller) housing units to increase the sales tax base, they turn their backs on the 9-hole golfers, some of whom will move into those homes. Is this good management?
The Town is not employing Performance-Based Compensation. We are all aware that the Town Council employs Troon to manage the golf and food service business and that Troon is a nationally recognized golf course authority. The Town Council pays Troon $12,000 per month, regardless of whether they create a profit or lose millions, as is the history.
What Would Troon Do?
Regarding outside management, considering the Troon reputation, experience and staff, does anyone doubt their ability to operate a golf course to at least break even financially?
• Would Troon maintain 45 holes of golf knowing that the past usage barely supports only an 18-hole course?
• Would Troon allow a monthly fee that provides unlimited golf that isn’t covering their costs?
• Would Troon not immediately modify the course design to double the potential golfing base and use the efficiency of a 9-hole course to increase revenue?
• Would Troon continue to provide a free driving range, knowing that this is the single most profitable revenue course in a municipal golf facility?
Is there any doubt that Troon could resolve these financial issues within a matter of months, if they were given the charter to make the changes necessary to make El Conquistador Golf a true Municipal Golf Course?
The problem lies with the current mayor and council
It should be apparent to all taxpayers that the mismanagement of Oro Valley Golf lies with the Town Council and the Town Staff, not Troon. For some unknown reason, our Council and Staff can not understand the concept of municipal golf. Nor do they consider who actually pays the price for their errors including single parents trying to make ends meet and seniors living on fixed incomes. Most of these people will never even see the golf course, let alone play golf.
The practice of using money forcibly taken from the public is unforgivable. Not one penny of our sales tax should ever be used to hide the losses of the golf courses, just to protect the lifestyle of those who can well-afford the cost.
How do we stop this madness?
The solution is obvious and that is to vote for people who will represent the needs of the entire community, not just the chosen few. Let us all keep this in mind when selecting a new mayor and council in August.
