Although 2008 has shown some gains in different regions, the market as a whole is still recovering from previous and current slowdowns. The recent negative economy is having “mixed results” as those in good financial position will survive, but many will not. Recent NGF data is contradictory, on one hand, rounds played were slightly down (only 1.3%). On the other hand, core golfers are feeling the economic strain and are reining in their spending. In 2009, we are going to see unprecedented events and results. Although many investors are not investing and bank are not lending, help is still available. Our firm is still in position to assist with successful efforts to provide funding.
The competitive landscape has driven operators to create or enhance customer relations programs and retain golf business professionals to improve financial positions. The long-term stability of many golf courses will be highly dependent on continuing to drive revenues rather than implement non-strategic cost reductions. Many existing properties in a variety of urban and rural markets are losing the competitive battle as ow
ners lack the resources and banks are not lending. Therefore, alternative uses are being considered. The few golf projects that are in planning stages continue to include a residential real estate component. We will see more remodeling and renovations in the coming year, as more owners realize they cannot continue to realize negative cash flows. We project golf business in 2009 will be difficult, as there will be more course closures, turnarounds and debt restructuring. Spear Consultants is positioned as an established and trusted advisor to owners seeking guidance on buying/selling, marketing and financing golf properties.
Project evaluations (Feasibility Studies) by Spear Consultants have continued to be in high demand as more owners, developers and project leaders continue to apply a “public funding” approach for acquisition of existing courses as well as new course construction. This approach has been most successful for public-access properties in rural areas. A government guaranteed loan program provides the opportunity to finance golf courses with long-term amortization at a lower rate. This program was started in 2003 and its future is uncertain as a new President comes into office with changes in mind. Through 2008 Spear Consultants has assisted many public funding requests, of which 20% are new projects and 80% are turnaround opportunities.
The competitive landscape has driven operators to create or enhance customer relations programs and retain golf business professionals to improve financial positions. The long-term stability of many golf courses will be highly dependent on continuing to drive revenues rather than implement non-strategic cost reductions. Many existing properties in a variety of urban and rural markets are losing the competitive battle as ow
ners lack the resources and banks are not lending. Therefore, alternative uses are being considered. The few golf projects that are in planning stages continue to include a residential real estate component. We will see more remodeling and renovations in the coming year, as more owners realize they cannot continue to realize negative cash flows. We project golf business in 2009 will be difficult, as there will be more course closures, turnarounds and debt restructuring. Spear Consultants is positioned as an established and trusted advisor to owners seeking guidance on buying/selling, marketing and financing golf properties.Project evaluations (Feasibility Studies) by Spear Consultants have continued to be in high demand as more owners, developers and project leaders continue to apply a “public funding” approach for acquisition of existing courses as well as new course construction. This approach has been most successful for public-access properties in rural areas. A government guaranteed loan program provides the opportunity to finance golf courses with long-term amortization at a lower rate. This program was started in 2003 and its future is uncertain as a new President comes into office with changes in mind. Through 2008 Spear Consultants has assisted many public funding requests, of which 20% are new projects and 80% are turnaround opportunities.