You will find not fewer than 200 million search results when you try to learn about golf course management and golf course financing. Why? People are heavily interested to know some more about these subjects.
So, in today’s article, we will show you the definition of each of them and the difference between golf course management and financing.
What is Golf Course Management?
Golf course management involves making smart decisions around the golf course to help manage and prevent serious situations, and risks.
Golf course management can also mean identifying the right club perfect for individual shots.
Comparing two golfers with the same physical skills, the one with superior golf management skills prevails.
But for this article, we are speaking more to the management of the course itself.
What is Golf Course Financing?
Golf course financing involves lending money to the owners for all aspects concerning the course — for example, land, construction, facility acquisition, refinancing and expansion.
But like you already know, golf course and finances are two different things. The following are their differences.
Golf Course Management vs. Financing
Golf course management involves the overall management of the course and the hiring of the staff.
The management looks for solutions in case of problems and tries to make the golf course better. For example, consulting experts and the experienced in golf course management. Golf course financing helps in solving the course’s financial problems like debts and raising capital.
Golf course management creates relationships with other professional managers that deal with golf courses and hire them for their services or seek their professional advice at a fee.
Golf financing involves the offering of financial services and guidance by licensed lenders. For example, on issues related to the club’s membership and renovation.
The management seeks the golf course financiers to help with their money issues through:
- Asking for a Loan
The management of a golf course take loan to add on to an existing bank loan. They offer a promissory note to the members in exchange for funds.
- Dividing the capital projects by the number of the club’s current equity members.
Though mostly it gets done as a one-time assessment, it gets spread as smaller clubhouse or capital dues over 2-3 years.
- Establishing an operation pay by the club owner instead of the members pay.
As an example, Hampton.golf – A Golf Course Management Company pays for such improvements, relieving of the golf course’s debt as the member dues stay the same.
Golf course management can be an outside partner who operates the golf course on behalf of its members. But they do not handle the funding.
Internal course management handles both the administration and financing and mostly lack the funds needed to pay off the debts and develop the club. But golf course financing like from banks get secured through an assessment that has to be made to ensure that the loan will get cleared.
Unsecured funding increases the course’s dues. But if a club is owned by the members, they get to pay for all the capital improvements made.
Top-notch golf courses do not worry about financing as they contain a waiting list of members who help in clearing such debts.
They also balk at higher assessments and dues. However, the problem is with the general golf courses because their members resist higher dues or assessments. Such golf courses make it work through bank assessments and loans as their financial issues aren’t related to those of their management. They need to fund their capital projects to be able to survive and compete.