Country club memberships reflect economic downturn

During the past five years, the private golf and county club industry has struggled to make par. A byproduct of the recession, memberships are down both locally and nationally.

Christian County clubs Millwood Golf & Racquet Club and Fremont Hills Country Club have both seen memberships decline by around 100 people, according to Springfield Business Journal research, while other area clubs have seen fluctuations of dozens of members but have remained fairly steady.

Based on 2013 data from the National Golf Foundation, a report from IBISWorld, national county club revenue has increased marginally during the past five years, growing at an estimated average annual rate of 0.1 percent to $22.9 billion. The recession caused individuals to cut discretionary spending on recreational activities, including country club visits and golfing, the report said. The NGF estimates more than 40 percent of the 4,415 private country clubs nationwide lost the largest portion of their members in 2011.

“These recessionary conditions eroded revenue growth that was achieved in the years leading up to the downturn,” said Radia Amari, an industry analyst with IBISWorld, an independent publisher of U.S. industry research. “Although revenue began to pick back up in 2010, growth has mainly been in the form of recovery, making up for losses incurred during the downturn.”

Added value
Heim, Young & Associates Inc. adviser Lance O’Neill is representative of the comeback. Returning to the Ozarks after an 18-year absence, one of his first orders of business was to join Fremont Hills Country Club.

The husband and father of three girls recently built a home between the 12th and 13th holes. He said returning to the club made sense for his family and his career.

“My parents have been members for 39 years and I can recall summers at the club and the joy it brought me,” said O’Neill, who has been a member for almost a year. “The membership was an investment for my family but also for my career. As a financial adviser, the clubhouse is a good place to socialize and network.”

The O’Neill family are among a growing population of social members at the 44-year-old club situated on 80 acres between Nixa and Ozark on Highway CC. Offering full access to the clubhouse, pool, events and limited rounds of golf, Fremont Hills social memberships start at $750, 25 percent of the $2,930 full membership fee.

“Country club membership is evolving,” said Matt Morrison, Fremont Hills board president and sales manager at Nowata Printing Co. “We still have the older, more traditional members, but we have incorporated more family events to fill the need and increase our membership numbers.”

The Christian County club has 380 current members, down from 460 two years ago. Morrison said dropping initiation fees, offering $100 annual dinning only memberships and grounds improvements – including a $400,000 pool installation in 2011 and revamping four greens at $130,000 – have started to increase club memberships. Morrison noted, however, the club tends to see a high turnover rate in social or dining memberships, relying on traditional members to survive.

On the rebound
Just down U.S. Highway 65, the Millwood Golf & Racquet Club tallied 600 members in 2011, dropping off to 480 in 2013, but despite the decline, new owner Dan Schumacher said memberships are once again on the rise.

“We have seen a huge gain in numbers this winter and are up 64 memberships in the last four months,” said the Millwood general manager and CEO. “Most clubs see a decline during winter months, so I count any increase we have a as large success.”

Longtime general manager of the Evans Road club, Schumacher left in 2008 before returning last year to buy the business from founder Keith Keltner in a $5 million deal closing Nov. 1. The new owner attributes the membership spike, in part, to his return.

“I’ve worked hard to bring a lot of people back who had left,” he said. “But aside from that, Millwood is very affordable considering the amenities we offer.”

Family social memberships are $1,200 annually and golf memberships range from $1,800 to $3,300. Schumacher said the club’s recently added single golf membership for $195 a month has helped boost numbers.

“I think everyone is starting to feel relief from this recession. They are relaxing a bit and they want to do it with their friends,” he said.

Holding steady
Highland Springs Country Club remains the largest in the Springfield area with 664 current members, just above Hickory Hills Country Club’s 620 members. Down from 671 in 2011, Jessica Gilmore, Highland Springs membership director, said membership at the private club off east U.S. Highway 60 has remained steady during the recession.

“Compared to the nation, the Midwest has held its own. We have seen lots of clubs closing in other states, but not here,” she said.

However, Gilmore said the Greene County club has seen a decline in events such as weddings.

“Before the economy tanked in 2007, we had extravagant weddings, complete with ice sculptures,” she said. “Since, I have seen a noticeable decline in wedding costs. Guests serve just hors d’oeuvres, not a full dinner, and opt out of things like table linens.”

Gilmore said she expects to see membership numbers increase as families return to the club founded in 1989 by John Q. Hammons.

“We have maintained because of our reputation, but I expect to see us grow as families continue to invest their time in the club,” she said. “We are a young organization, so we haven’t had a lot of that turnaround yet. Adults who were children at the club are starting their own families now and will want to rejoin the life they loved as a child.”

Social memberships to at Highland Springs are $2,500, and golf memberships range from a $1,500 associate membership to a $20,000 full membership.

“There is no doubt everyone saw a decline,” Gilmore said. “But like the economy, we are on our way back.”