The Pellucid Perspective - August 2014 - (Page 17)

tracking (rather than population growth, which tends to always increase, just at different rates). Since 2000, rounds demand in the market has declined ~1% annually. Combining that demand decline with the modest supply increase translates to a supply dilution level for the decade of -11% (below the national average). Putting together the 1990-2000 decade (-11%) and the 2000-2011 period decline (-11%), the average facility in Cleveland has suffered a 24% reduction (not a math error, it's in the decimal precision in the component numbers) in revenue, driven by some combination of rounds or rate decay when compared to the 1990 baseline (chosen semi-arbitrarily by Pellucid as a period of economic health for the majority of US golf facilities). The big challenge in Cleveland (similar to many other Top 25 markets due to the fact that supply growth is already about nil and their population isn't growing) will be figuring out a way to stimulate rounds demand. That said, rounds demand growth could come from either new golfers or an increase in frequency from the existing golfers (see the August issue of Outside the Ropes for an in-depth treatment of this topic and how the short-term stabilization of the industry at large and many key markets may hang on figuring this out). The average facility has throughput of roughly 25K rds/yr, slightly below the national average before factoring in climate and daylight influences. The more accurate measure is the market's healthy 50% utilization rate, which is nicely above the national average. This means that, after neutralizing the weather impact of a less-than-12 month season, the market's average golf "factory" runs at a higher throughput vs. the average US (FootGolf continues from page 8) and etiquette. Players are expected to understand and play by rules set forth by their American FootGolf League, which is part of the Federation of International FootGolf. Coming very soon is a FootGolf player rating system (read: handicaps), modeled after golf's but without some of the byzantine rules associated with it, such as peer review. A FootGolf Pro-Am tour is being organized now. Roberto cites the substantial number of ex-pro and college soccer players pining for a way to use their skills in a competitive format. FootGolf can fill that desire and the Balistrinis think a business can emerge as sponsors sign on (adidas already has), along with a possible media partner (Golf Channel? ESPN? Back 9 Network? Everyone's looking for content). Can your course accommodate a FootGolf course? Not all can. Additionally, the Balistrinis have been counseled about not following the NGF's failed "build a course a day" strategy. They hope for 500 U.S. courses planted in locations easy for players to find and frequent. Their selection and certification criteria is well thought out - they've said "no" a number of times. A fully committed buy-in by management and ownership is required. In fact, in more than one instance a new job title has been created at a FootGolf facility, "FootGolf Manager." (I was thinking "Head Toe"). Check out their beautiful new website at www.FootGolf.net. www.PellucidcorP.com course. On the revenue productivity side, the market generates roughly $0.8M per public regulation-length EHE, which is slightly below the Top 25 Markets average. After factoring that for weather influence, the market's Greens Fee Revenue per Available Round (RevpAR = Greens Fee Revenue/Available (Capacity) Rounds) registers at $15, slightly above the Top 25 Markets' average of $14. In summary, as a market Cleveland is on par or better than the majority of key benchmark values while also suffering from some of the same malaise affecting most other markets. On the positive side, they're not overbuilt on Public-Premium golf (which is good considering the predominately blue-collar population base of "working folks") and their factories are generating a reasonable amount of rounds within their weather-constrained season. On the flip side, it appears that there's a glut of courses in the Public-Value segment which is likely leading to significant discounting, and the relative lack of Public-Price golf may be a barrier to easily expanding the golfer base. The supply "overhang" from the 1990s doesn't appear to be overwhelming but, unless they figure out how to light a fire under golfers to increase their frequency, growth and/or real profit will likely be elusive. Population growth is what it is so, were I a local Cleveland golf operator, I'd be figuring out creative ways to connect with the existing population because they're not coming "ten-on-a-mule" to Lake Erie's southern shores. All in all, not a bad golf market if, like in many others, you have money, patience and basic skills and a desire to practice fundamental facility marketing. No problem. n You'll find a map and list of courses already hosting FootGolf, and a video and information about the game, and a lot more. So what's the vote, fad or phenomenon? For now it's the latter. Time will tell if it becomes the former. But I'm hanging on to the website URL I bought last year after first speaking with Roberto and Laura: FootGolfnow.com. n (Golf Publications continues from page 9) of cases, he was right at the time, or was proven correct when the accuracy of his analyses became too obvious to ignore or sweep under the rug. Again, good information, even if it's not what you were hoping to hear, enables good businesspeople to make the best of a less than ideal situation going forward. We are hoping to upgrade our online presence in the near future to better serve and inform our readership. To date, we have benefitted tremendously from the support of forward-thinking companies such as our current sponsors, Troon Golf, KemperSports, Bayer CropScience and EZLinks, all recognized industry thought leaders, as well as others along the way including Club Car, GolfSwitch, Sequoia Golf, 1-2-1 Marketing and even one of our most frequent foils, GolfNow. We are very grateful to all for helping us muddle through for our first five years, and invite others to join us for the next five. n The Pellucid PersPecTive 17 http://www.FootGolfnow.com http://www.FootGolf.net http://www.PellucidcorP.com

Table of Contents for the Digital Edition of The Pellucid Perspective - August 2014

TOC
Dick’s golf dilemma: Industry barometer or self-inflicted wound?
Where have all the handicaps gone?
FootGolf – fad or phenomenon
Five years and counting
Court supervision ordered for Spokane CC
Cincinnati muni courses win round 2 of complaint opposing tax-exempt status
July golf weather impact: Up (marginally), winning streak extends to 5
Development restraint keeps Cleveland afloat
Dick’s Sporting Goods lays off 500 PGA professional staffers
America’s laziest sport’? We beg to differ

The Pellucid Perspective - August 2014

http://www.nxtbook.com/nxtbooks/pellucid/perspective_201910
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201909
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201908
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201907
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201906
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201905
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201904
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201903
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201902
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201901
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201812
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201811
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201810
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201809
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201808
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201807
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201806
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201805
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201804
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201803
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201802
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201801
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201712
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201711
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201710
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201709
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201708
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201707
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201706
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201705
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201704
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201703
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201702
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201701
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201612
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201611
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201610
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201609
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201608
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201607
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201606
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201605
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201604
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201603
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201602
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201601
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201512
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201511
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201510
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201509
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201508
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201507
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201506
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201505
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201504
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201503
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201502
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201501
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201412
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201411
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201410
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201409
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201408
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201407
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201406
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201405
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201404
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201403
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201402
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201401
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201312
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201311
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201310
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201309
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201308
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201307
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201306
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201305
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201304
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201303
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201302
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201301
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201212
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201211
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201210
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201209
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201208
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201207
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201206
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201205
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201204
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201203
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201202
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201201
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201112
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201111
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201110
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201109
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201108
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201107
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201106
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201105
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201104
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201103
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201102
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201101
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201012
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201011
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201010
http://www.nxtbook.com/nxtbooks/pellucid/perspective_201008
http://www.nxtbookMEDIA.com