The Pellucid Perspective - December 2010 - (Page 11)

FUNDRAISING Raffles a risky gamble W e recently received two e-mails from golf courses in different states that were promoting raffles to win prizes. Being the holiday season, we first thought the raffles were being held to raise funds for a charity or cause. On closer inspection, however, it appears the only causes that will benefit from the raffle proceeds are the courses themselves (and a person who might win a Ping Driver or an HD TV). That immediately got us thinking, “Isn’t that gambling?” Now, we’re not here to offer a legal opinion. But having worked on plenty of charity events, we have some basic understanding of the do’s and don’ts of charity fundraising. This, combined with some journalistic curiosity, led us to a very informative website, www.rafflefaq.com. Among other pertinent pieces of information, this site provides links to each state’s laws regarding raffles. A cursory review of the laws of the two states where the courses are located, Arizona and Texas, confirmed our first thoughts – that for-profit businesses cannot run raffles designed “for profit.” Such events are considered gambling and subject to misdemeanor prosecution. Even charities and registered non-profit organizations (as opposed to a golf course that may be “non-profit” but is not registered as such) must apply with their state attorney general for a permit to run a raffle. Oh, and run an unlawful raffle and sell a ticket to a minor? Keep your attorneys on speed dial. You’ll need their help. n P E L LU C I D I S M Supply dilution – This concept was borne of the “build a course a day” era which assumed that increasing supply would drive participation and demand. Supply expansion is beneficial to the industry and operators only to the extent that rounds demand expands commensurately. Without an increase in demand, supply expansion simply takes the same number of rounds and “dilutes” them across a greater number of courses. Hence, a 10% increase in supply accompanied by a 5% increase in demand creates supply dilution of -5%. What this translates to in rational markets is that every existing operator receives a 5% “haircut” in revenue as a result either from a loss of rounds or a drop in rate (or some combination of the two) until demand expansion catches up. “GolfNow gives me 20-30 more rounds a day because I work the system myself.” Matt Callahan General Manager, Callahan Golf Links Waleska, GA Don’t take our word. Take his. Go to golfchannelsolutions.com www.PellucidcorP.com The Pellucid PersPecTive 11 http://www.rafflefaq.com http://www.rafflefaq.com http://www.golfchannelsolutions.com http://www.golfchannelsolutions.com http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - December 2010

The Pellucid Perspective - December 2010
Contents
3rd Party Tee Time Marketers: According to Some, “missed It by That Much”
Course Sales Pace Showing Signs of Increasing
Nov YtD Weather Impact Oct YtD Utilization
The Lonely Golfer Phenomenon
A Formula That Fits
Meadowbrook Golf on the Way Back?
Raffles a Risky Gamble
Denver, CO DMA
Dear Golf Industry Santa

The Pellucid Perspective - December 2010

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