Golf is a thriving industry in the United States. There are more than 15,000 courses sprawled across the country. That means you’re more likely to stumble upon a golf course than a McDonald’s.
Owning a golf course can seem like a dream come true for many people. You own a ton of land, you get to play golf whenever you want, and you get to share the glorious game with whoever wants to come to your course and play. And you get paid for it!
But running and operating a golf course may be a bit more complicated than it seems. If you’ve ever thought about owning your own golf course or are just curious about the optics, you may have wondered, how much do golf courses really make?
In this article, we’ll break it down for you, going over exactly how much golf courses are making and the factors that dictate their success.
How Much Do Golf Courses Make Per Year?
The truth is, golf courses are probably making less than you think. Many golf courses merely break even, while others will make a few hundred thousand dollars in a year. Still, others are grossing five million or more in any given year.
Much of the profits of a golf course will depend on the type of golf course and what its aims are.
Factors That Affect Golf Course Profits
Here are some of the main factors that affect the profits of a golf course.
Type of Golf Course
When you’re figuring out how much a golf course makes, the first thing you’ll want to do is look at the type of course they’re running. You can usually split this course into one of three categories: public, semi-private and private:
- Public: Anyone can play a public course. This includes the whole spectrum of golfers — from your friend who’s never picked up a club to Tiger Woods. This allows for a larger pool of customers and may attract more amateurs new to the game.
- Semi-Private: These types of courses will typically operate similarly to that of a public course, allowing any golfers who want to play. However, regular golfers can purchase memberships that give them benefits such as reduced green fees and priority tee times.
- Private: Pay to play. In order to golf on these courses, you’ll need to pay a membership fee.
Some golf courses operate as nonprofits, which means their goal isn’t to make money at all. They simply reinvest all of their profits into operational costs of the golf course such as maintenance and utilities.
The unique type of golf course will have a large impact on the profits they produce.
Loans and Leases
While some golf course managers may own their land outright, others may be tied up in loans or leases that they have to continue paying for years down the line. If it’s a relatively big loan, this can start to eat away at the course’s profits.
Maintenance
When you watch The Masters on TV, you’re witnessing one of the most finely-handled golf courses in all of golf. The fairways are flawless. The greens are manicured. Every bush and tree is trimmed to perfection and even the rough is cut with unbelievable precision. Every detail is taken care of with exquisite perfection. And how is this done?
Because millions of dollars are poured into finding the very best maintenance crew to take care of the work. This investment includes other maintenance factors such as aeration, water features, bunkers and the other array of tools and consulting that’s needed to keep a course in great shape.
It takes a massive amount of resources to keep a golf course looking great throughout the course of a season, let alone keep it to the perfect standards of Augusta.
Staff
You also have to remember the staff — these are people like caddies, superintendents, clubhouse workers, chefs, waiters, lawn crews, cart girls and anyone else who might be on the payroll.
Clubhouse Utilities
Depending on the size of the course clubhouse, you may also need to pay a hefty check to keep the lights on and the water running. Many golf courses have large dining rooms or event rooms where birthdays, weddings or baby showers can take place. This all needs to be factored into a golf course’s bottom line.
Location
Golf courses sitting on the coast overlooking a beautiful ocean will often be able to raise their green fees because of such a scenic experience. Others that are tucked into the mainland within a flat plain might not get the same luxury.
History
“A tradition unlike any other,” echoes the sentiment of great history, impeccable golf and, let’s face it, millions of dollars in revenue every year. The history of your golf course can dictate how much profit you make. The Old Course at St Andrews, for example, is one of the most revered courses in all of golf. It’s stood for centuries and is often touted as the birthplace of golf.
While you might not have the clout of St Andrews, you may still have a unique story to your golf course that may attract visitors from around the country.
Reputation
When I was in high school, my friends and I would play golf a certain local course once in a while. It was in terrible condition — even after a hard drain, the fairways and greens were dried up to brown. The tee boxes were a mess. And yet, we played there — mostly because it was cheap and we were just there to have fun. It didn’t have a good reputation — not by a long shot.
Other local courses had great reputations. Spotless fairways, beautiful greens. And guess what? Those courses cost a heck of a lot more to play, and there were often tee times going off every fifteen minutes. Our desert of course barely had anyone playing on it, ever.
If you’re able to conjure up a great reputation for your golf course, you’re more likely to attract players and also up the price to play.
Ways Golf Courses Make Money
A benefit of owning a golf course is that you can make money in a variety of ways. The more creative you are, the more you’ll be able to find funnels for money to roll into your business.
Green Fees
The typical way golf courses make money is through green fees. This is the money you pay to play a golf course. A greens fee can range from twenty dollars to hundreds of dollars. This is usually where the bulk of a golf course’s revenue comes from.
Tournaments and Outings
Some courses also hold tournaments or outings at their course. This doesn’t have to be a PGA Major, of course — it could be something as simple as a local business outing. Outings and tournaments can be huge sources of revenue for golf courses, but it also takes a significant amount of time to prepare the course and ensure it’s in great condition.
Weddings
Likewise, weddings can be another huge boost for a golf course. Many courses have picturesque views, open spaces and large banquet halls, which make them perfect places for a wedding venue.
Memberships
Semi-private and private courses offer memberships to play the course. This usually means you can play a bulk fee to play discounted golf and receive priority tee times. In the case of private courses, a membership will just allow you to play the course. Memberships are great for golf courses because they offer a source of revenue up front.
Merchandise
Golf courses may also sell merchandise in the clubhouse. Selling shirts, shoes and golf pants are all common. You may see other big-ticket items like golf bags and clubs as well.
Food and Drinks
An 18-hole golf round can take hours. Golfers are likely going to need some nourishment, which creates a perfect opportunity for the course to sell some food and beverages during the round. Enter the cart girl, who usually drives around offering beverages to golfers. Some courses may also offer food in the clubhouse.
Club Fittings
Another great way to make some extra money off a golf course is to offer club fittings. A lot of people want to get a fitting at a place they’re comfortable and trust. Club fittings at a local course is a perfect opportunity to draw more people in, help them get fitted and bring in extra revenue.
Golf Lessons
There will often be former professionals working at golf courses, many of whom may offer golf lessons. Lessons can be held in a group setting on certain days throughout the week.
Online Products
And don’t forget about the digital golf world, which is becoming more important every year. Golf courses could create digital products like ebooks that they can sell online. Courses are also beginning to invest in TouTube videos and content, which, if monetized correctly, can bring in a significant source of revenue.
Links Business: The Bottom Line
Running a golf course can be tough work. If you have a good strategy in place, it can work as a dream job and a steady source of income that will continue to pay dividends far into the future.