Private Golf Memberships

Demand for Private Golf and Real Estate Remains at All-Time Highs

“Golf, even at its peak levels of popularity, still comes with challenges.”

– Joe Steranka, former CEO of the PGA of America

Joe’s words likely echo many current boardroom discussions across the country as clubs enter into an era that might not have been foreseen a few years back – Waitlists.

What do waitlist prospects expect? How much would they be willing to invest into an initiation to hold their position? Can we get waitlist members on the golf course with a tee sheet that is already stressed?

Over the past several months, we have been approached by industry colleagues in search of “a bit of clarity” on what waitlist members would deem acceptable. Below, you will find data and insight on that very topic – the first of its kind within the private club space.

A survey was sent to prospective private club members who are searching for a private club and golf home. The objective was to gain their thoughts on waitlists and their overall expectations of an ideal waitlist scenario.

After completion of the study, Golf Life Navigators’ position is that clubs with a waitlist should be cautious with their assumptions about their waitlist numbers. On average, 70 percent of prospects (across all initiation ranges) do not in tend to join a club that has a 12-month or longer waitlist.

In addition, an average of 50 percent of prospects said they would change directions completely and look at alternative clubs to avoid a waitlist. In short, closing the gates completely on new member applications could lead to a costly mistake as we predict waitlist dilution.

For those clubs who are not yet in a waitlist era, we implore you to broadcast the fact that you have member ship availability and an open tee sheet. Issues of capacity at clubs during season months are a hot topic, not just from your members but prospects as well.

Golf Life Navigators’ partner real estate agents say their active golf clients are pivoting from an intended club to alternative clubs that have membership availabil. ity and tee time availability. Even if that means buying into another market across the state.

Here are a few more highlights from the survey, which had 550 respondents spanning five tiers of initiation ranges based on their budget for a full golf membership:

If there was a non-refundable down payment required to join a waitlist, to what percent of the initiation fee would you be comfortable committing?

• $0-$10,000 initiation budget
  • $0, I would not put money down to join a waitlist – 52 percent
  • I would be willing to put down 5-10 percent of initiation – 28 percent
• $10,000-$25,000 initiation budget
  • $0, I would not put money down to join a waitlist – 40 percent
  • I would be willing to put down 5-10 percent of initiation – 25 percent
• $25,000-$50,000 initiation budget
  • $0, I would not put money down to join a waitlist – 22 percent
  • I would be willing to put down 5-10 percent of initiation – 38 percent
• $50,000-$75,000 initiation budget
  • $0, I would not put money down to join a waitlist – 34 percent
  • I would be willing to put down 5-10 percent of initiation – 31 percent
• $75,000-plus initiation budget
  • $0, I would not put money down to join a waitlist – 26 percent
  • I would be willing to put down 5-10 percent of initiation – 22 percent
  • I would be willing to put down 10-20 percent of initiation – 22 percent

How likely are you to purchase a home that has a full golf membership attached – or a transferable membership from the seller – to avoid a waitlist?

• $0-$10,000 initiation budget
  • 62 percent say “somewhat likely to “very likely
• $10,000-$25,000 initiation budget
  • 74 percent say somewhat likely to “very likely
• $25,000-$50,000 initiation budget
  • 60 percent say somewhat likely to “very likely
• $50,000-$75,000 initiation budget
  • 82 percent say somewhat likely to “very likely
• $75,000-plus initiation budget
  • 88 percent say somewhat likely to “very likely

The biggest takeaway from this report is that we have good problems on our hands. The demand for private golf and real estate remains at all-time highs, with no signs of slowing down. The goal for management is to think through the solutions and lead their members in the right direction with data, best practices and good ole’ gut feeling.