Looks like 2015 will go down as a good year for golf in Minnesota.
I received the following email in my work inbox this week, reporting that rounds of golf played in Minnesota through September is up almost 10 percent over last year. The source of the data is reputable. A few observations follow. (Photo above is from Majestic Oaks in Ham Lake, October 2015.)
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“PGA PerformanceTrak, a golf data collection and benchmarking service from The PGA of America (@pgaofamerica), reveals that golf rounds played have increased by (+9.5%) across the state of Minnesota, Year-to-date through the end of September, when compared with 2014 data.
“In addition to rounds played, other key performance indicators such as Golf Fee Revenue (+7.9%), Merchandise Revenue (+4.5%), and Food & Beverage Revenue (+8.5%), have also seen an increase throughout the state year-to-date through the end of September 2015, when compared with 2014 data. This information is based on responses from nearly 50 facilities statewide.
“The golf marketplace is trending positively nationwide in 2015, with nationwide golf rounds up (+2.0%), Golf Fee Revenue up (+1.4%), Merchandise Revenue Up (+4.4%) and Food & Beverage Revenue up (+4.6%) based on responses from approximately 2,500 facilities across the U.S.”
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Observations:
— About the source of the data: According to the PGA of America’s website, “PerformanceTrak in Cooperation with NGCOA (National Golf Course Owners Association of America) is the largest single source of rounds played data in the industry. Primary contributors of this monthly data are PGA Professionals and NGCOA member(s) along with other allied partners.”
— On its face, it’s good news for the golf industry in Minnesota. Good for golfers, too: The fact that the increase in rounds played outpaces increases in measures of revenue suggests that course owners and managers are trying to make their venues more affordable. Over and over, golfers have cited cost of play as a key factor in why they have played less golf in the past decade.
A Sept. 27 Star Tribune story went into detail about the increase-in-rounds trend, citing July numbers from PerformanceTrak. The story confirms that cost of play has decreased, reporting that “Minnesota’s median 18-hole greens fee was $26.68, below the $28.28 recorded for 2014 …”
The full Star Tribune story is here: http://strib.mn/1HMPGPD (sorry, I never can get that direct-link coding to work). It’s a good story that balances the positive numbers with the sobering reality that the golf industry remains significantly challenged. Check out the reader comments on the story, too; they are always revealing.
— As mentioned prominently in the Star Tribune story, the fact that we had a terrific run of weather — deserved compensation over a few recent hellacious weather seasons — has much to do with the rise in rounds played. Also, considering how nice October and early November have been, it’s likely that increases in year-end figures will be even greater, across the board.
— Can’t help myself here. The Star Tribune’s story is headlined “Out of the rough: Golf’s exceptional year.” Note to headline writers (and my newspaper is as guilty as any): Can we please stop with the hackneyed clichés about the golf business (“out of bounds,” “in the rough,” etc.). I’ve read far too many of them. They drive me up a wall.
— The data shouldn’t be interpreted as evidence that the business of golf is in recovery after a downward trend of more than a decade. These numbers are from one season only and don’t necessarily constitute a trend. Anecdotally, I have heard of at least a half-dozen Minnesota courses with serious financial issues, and I’m certain there are more than that. I have little doubt that there will be more attrition in the near future, more course closings on the horizon. On the other hand, I know only of one course that’s closing at the end of this season — Tartan Park in Lake Elmo — so that’s a good sign. Right?
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