THE McMAHON REPORT - McMahon Group, Inc.

THE McMAHON REPORT®
108 Years of Architectural Experience
August 2014
New Orleans Country Club
Club Facility Update:
The Time Is Now to Make Improvements
by Bill McMahon, Sr., AIA, OAA & Bill McMahon, Jr.
This might well be considered a catch-up time for improving club facility conditions.
During the Great Recession and immediately afterwards, facility upgrades and even
essential repairs were put off. This was not a time to spend money as membership levels
were declining and fear factors were setting in. Now some four years later, we find a
relatively strong economy buoyed by Federal Reserve support offering the right time and
place for clubs to move forward with those long delayed projects.
IN THIS ISSUE 
Low interest rates, reasonable construction costs, growing membership numbers and more
confidence in the economy have let clubs move forward with improvements. Private clubs
usually address major capital projects in ten-year cycles. These do not include funding
depreciating assets which should be done annually and do require annual expenditures of
$500,000 up to $1,000,000. But these depreciation expenditures just maintain what we
call “facility status quo”. The ten-year challenge for clubs, however, is addressing the major
capital projects that the annual maintenance/repair dollars cannot fund. And such major
club projects are essential to any club’s financial health if it wants to:
page 1
• Attract members
• Retain members
• Maximize club usage
• Keep up with its competition
So most clubs today accept the fact that major improvement projects are essential.
However, the big challenge for clubs is determining which improvements are most
important since there are always more projects than there are dollars to pay for them.
Club Facility Update:
The Time Is Now to Make
Improvements
Excellence in Club
Management® Awards:
Now Accepting Nominations
page 4
What’s Hot │ What’s Not
page 4
Strategic Thinking Works:
Springdale Golf Club
page 5
Club Trends: Game On!
page 7
Return-on-Investment
At McMahon Group, we like to analyze club improvements by their return-oninvestment. Now for private clubs, return-on-investment is different than for for-profit
businesses. Return-on-investment in the club world is measured in several ways. Club
improvements should result in improving financial strength. First, such improvements
should grow membership numbers which, in turn, raise dues income. Remember,
additional dues and initiation fee revenues are 100% profit. Second, such facility
continued on page 3
ABOUT McMAHON GROUP
Founded in 1983, McMahon Group is a full-service,
private club consulting firm dedicated to serving clubs
in all aspects of their strategic planning, clubhouse,
golf and membership needs. Our extensive and diverse
experience includes service to country, golf, city, dining,
athletic, yacht and military clubs. To date, McMahon
Group has served over 1,700 clubs throughout the
United States, Canada, Asia, Europe and the Caribbean.
McMahon Group has planned, presented and gained
approval for over $1.7 billion in capital improvement
programs.
McMahon Group’s services include:
• Strategic Planning
• Facility Master Planning
• Clubhouse & Golf Course Improvement Programs
• Membership Strategic Surveys
• Clubhouse & Golf Course Asset Reserve Studies
• Project Management
• Quality Assurance Programs
• Membership Development Programs
• Golf Conditions Consulting
• Governance Consulting
• Assistance with Developer Club Conversions to
Member-owned Status
No other consulting firm has McMahon Group’s proven
track record and experience in solving club problems be
they strategic, membership or facility in nature.
As a service to clubs and the club management
profession, McMahon Group:
• Founded and co-sponsors the Excellence in Club
Management® Awards and Rising Star Award
• Manages Clubtopia®, the online business directory
for clubs
• Co-publishes Club Trends®, the quarterly
publication on topics facing private clubs, with the
National Club Association
Be sure to visit us online at:
• www.mcmahongroup.com
• www.clubmanageraward.com
• www.clubtopia.com
Our Mission
“To be the premier facility planning, survey and
strategic planning consulting firm for achieving private
club excellence.
“We strive to be the firm of choice for club leaders and
members in their efforts to identify and solve facility,
strategic and membership issues affecting club success.
We are dedicated to the well-being of the private club
industry and the profession of club management.”
SCAN THE CODE TO VISIT OUR WEBSITE!
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From the President
Dear Club Executive:
Recommended Summer Reading: The Newly
Revamped Golf Digest
You should read Guy Yocum’s article on the establishment and
enforcement of club rules in the July issue of Golf Digest. He really hits
the nail on the head. As we recommend in regard to both trends and
policies, your approach should be intentional, not reflexive or historic.
Is it realistic to expect compliance and enforcement of a completely cell
phone/electronic device free environment at a club in this day and age?
When a policy is so absurd it is flagrantly violated, then respect and
compliance with all rules become a challenge. Many times, the only
explanation you get for some of these irrelevant policies is the same one
exasperated parents offer to children, “Because I said so”. The club world
can and must do better than that. Quite frankly, we need to give our
members a little more credit. How many times have I heard that a denimfriendly policy will soon lead to members sitting in the dining room with
their hats on backwards? Talk about overreaction! We’ve allowed denim
at my club for a couple of years now. Not only do I see very few members
exercising that privilege, but as far as I can tell, it has never yet led to a
reversed cover at the dinner table.
While you’re paging through the latest issue of Golf Digest, note also
the tone and images that are featured throughout the magazine. It has
a hipper, more youthful vibe. This is, by the way, the first issue in a few
months to feature an actual golfer on the cover. This month’s cover boy,
Jason Dufner, was preceded first by Paulina Gretzky and then
Jimmy Fallon. It’s full of tips, some are traditional, like how to play the
game or hit a specific shot, but it also includes things like what wines
to drink, which exercises will help you play better and how to mix and
match the latest colorful, athletic looking clothing. I think they have
done a fantastic job of evolving their publication to honor its roots while
updating it to be relevant to the next generation. Many of our clubs’
leaders should take note. Your club can be traditional and contemporary
at the same time.
We are continuing to see the divide between the clubs that are investing
and adapting and those that are standing still widen to a chasm. The
great shakeout and consolidation we’ve discussed is well underway. In a
changing marketplace and competitive environment, the worst place to
be is in the middle of the road. The folks at Golf Digest have placed their
bet on proactive adaptation. How about your club?
My best regards,
Frank Vain
President
Club Facility Update (continued from page 1)
improvements should increase member usage,
especially for dining, and thus help offset other
operating costs. Dining area improvements for
clubs usually result in a 20% to 30% increase
in dining usage assuming the club has good food. So yes,
facility improvements can and do provide a good return-oninvestment. But a club has to be sure it is making improvements
where they will count. Let’s look at some improvements which
clubs make that sound good to existing, older members but
which attract few, if any, new members. In today’s country club
world, 75% of all new members join clubs at ages under 56.
So it makes logical sense that finding out what this age group
wants in a club and providing it would attract them to join.
What does this age group want? Casual dining, family facilities,
fitness, great swimming pools, some golf and year-round social/
recreation activities. What do many clubs actually do? Endless
improvements to golf courses that attract few, if any, of the under
age 56 members. In a recent survey at a California country club
that tested what were the most important reasons for joining
the Club, members joining before 2010 listed golf as most
important. Members joining 2010 and later listed golf as only
the 7th most important reason for joining. WOW!
The facts are clearly before us. The clubs which are making the
improvements are growing in size. The times are changing, and
wise clubs will make facility improvements that attract the next
generation of members. Some very progressive clubs which have
recently finished or started facility projects are:
New Orleans Country Club ($10M) – This grand old Club,
the pride of New Orleans, just completed an extensive upgrade
to its dining areas, bar, kitchen, fitness facility and party spaces.
In addition, it built new golf maintenance facilities, a children’s
spray pool, pool snack building and tennis building. But most
dynamic, is the new indoor/outdoor casual dining bistro/bar off
its landscaped gardens surrounding its signature oak tree. With
French copper roofs, hanging moss from trees and excellent
food, General Manager Bobby Crifasi, CCM, CCE, ECM
now has the happy problem of every member wanting to dine at
the Club.
“Our membership approved Phase
One of our Master Plan at a special
meeting in July. We are excited
to move ahead with this project
and we are all deeply grateful for
the outstanding guidance we’ve
received from your firm.”
-Tony D’Errico, CCM, CCE, ECM
Westwood Country Club, St. Louis, MO
Almaden Golf & Country Club in San Jose ($13.8M) –
After holding off on building a clubhouse prior to the Great
Recession, everything worked perfectly to get the clubhouse
approved with low loan and construction costs. The new
building is under construction and will be completed by
December 2015.
Westwood Country Club in St. Louis ($1.3M) – The Club is
beginning to implement its overall Facility Master Plan with the
conversion of its attractive outdoor summer dining porch into
a four-seasons, 120-seat casual dining room. The undeniable
growth in casual dining beyond just summer use has made it
essential for having good casual dining all throughout the year.
Other successful projects include:
• Country Club of Detroit ($9M) – Pool, Racquets, Fitness
& Clubhouse Improvements
• Myers Park Country Club in Charlotte ($4M) – Pool
Area & Short Game Practice Area Upgrades
• Sharon Heights Golf & Country Club in Menlo Park
($5.3M) – Pool, Fitness & Clubhouse Enhancements
A Word to the Wise on Club Facilities
The condition of club facilities says more than anything else
about the viability of a club. Rundown facilities are the best way
to run off members. Reinvest wisely in facilities so they are a
major asset for achieving your club’s success.
Almaden Golf & Country Club Conceptual Rendering of New Clubhouse
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WE ARE NOW ACCEPTING NOMINATIONS
FOR THE 2014 EXCELLENCE IN CLUB
MANAGEMENT® AWARDS!
A winner will be announced in each of the
following categories:
The James H. Brewer Award
Country/Golf Club with 600 or More Full Privilege Members
The Mead Grady Award
Country/Golf Club with Under 600 Full Privilege Members
The Mel Rex Award
City/Athletic/Specialty (Non-Golf) Club
2013 Award Winners (from left to right): Robert Williams,
Mike Stanton, Maria McGinity & Tony D’Errico
The Rising Star Award
Visit www.clubmanageraward.com for more
information on how to nominate managers.
Up & Coming Assistant Managers
NOMINATIONS ARE DUE BY NOVEMBER 7, 2014!
What's Hot What's Not
Fitness & Wellness Are HOT, Clubs Without Are NOT
We are back again playing
“What’s Hot & What’s Not”
for private clubs. We continue
to see very contrasting
conditions which very
much affect club success
in attracting usage and
members. So here goes our
observations.
If you have others, please
e-mail them to
[email protected].
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Who would have thought that with all the successes
experienced in private club health, wellness and fitness
facilities, we would still have so many good clubs without
them? Yet, this is the case. Club after club with decent
fitness facilities are now getting more year-round uses from
members for fitness than any other recreation offering. Fitness
importance to members is rated just behind dining and golf as
we now find over 50% of memberships using it. Of course this
means having a decent facility, not just one treadmill in a locker
room closet.
Clubs with fitness are saying to new and existing members,
“We are with it.” Clubs without are saying, “We live in the dark
ages.” Unbelievable successes from fitness are everywhere.
Look at Wellesley Country Club in Boston, the Minneapolis
Club, every city athletic club and progressive country clubs
like those in Kansas City. The list goes on. This is a basic club
feature country clubs should have.
Strategic Thinking Works: Springdale Golf Club
by Frank Vain
it first started in on this program, and these
efforts served it well through the depths of the
Recession.
Here are some things we can learn from Springdale’s success:
On the surface, Springdale Golf Club in Princeton, New Jersey,
is not the type of club you would expect to find thriving these
days. It is, as the name implies, a golf club, not a full-service
country club. This can be a challenging spot to be in with
the modern club marketplace. It also has a relatively small
membership in a world where scale is proving to be important.
Yet, the Immediate Past President recently wrote of the Club,
“We are very fortunate at Springdale to have implemented
many recommendations from our Strategic Plan in recent years.
Our membership is steady and we are attracting more young
members and more Social Members as well.”
Prior to 2005, Springdale was positioned as the “Best Value
Club” in greater Princeton. This reputation was not so
much intentional as it was a byproduct of low dues and fees
constraining the experience and condition of the assets. The
golf course was in average condition and the clubhouse was old
and tired. The Club launched a Strategic Improvement Plan at
that time with the goal of first improving its course and then
upgrading its clubhouse and programs. This effort unfolded
over a several year period, interestingly, prior to and through the
Great Recession.
Springdale is over 100-years-old and has strong tradition and
culture. The course was designed by William Flynn, who also
planned Shinnecock Hills, Merion and Lancaster Country Club,
so the pedigree is well established. By mid-decade, the leadership
took to heart the prediction that most clubs were going to be
under threat in the years ahead, especially the ones that were
completely golf centric. Following the effort to first improve
the course, the Club then turned to building an attractive new
clubhouse that was respectful of the Club’s golfing heritage, but
one which would also improve its ability to build sociability by
attracting members to the Club for dining and social activities.
• When confronted with a challenging marketplace, the
Club acted strategically. The leadership saw that low cost
equaled low value and they weren’t afraid to act. Members
on a nominal basis pay significantly more in dues and
fees than before, but the value equation is much higher.
Clubs must never forget they are in the luxury end of the
hospitality business.
• The leadership took bold actions to build up its younger
members by restructuring the membership plan and
fees so this category would grow and provide long-term
benefits. The club industry has gotten smaller for the most
part because it has failed to replace naturally occurring
attrition among older members with the next generation.
• There is continuity in leadership with the Club President
serving multiple year terms. This is important if a club is
going to chart a steady course to the future.
• They invested in their facilities over time, taking on the
course issues first and then the clubhouse to appropriately
reflect their priorities. They also didn’t stop when the
golf contingent had what they wanted. They pursued the
Club’s Mission, not a golfer one.
• Perhaps, most importantly, they continue, to this day, the
process of analysis and improvement, asking McMahon
Group recently, “What should we do in a world where golf
is having difficulty attracting ‘Millennials’ to the sport due
to lack of time, money or simply interest? What should
we expect over the next five years?” These are the necessary
questions club leaders are required to ask and answer on
an ongoing basis.
Creating a successful club is a process. The discontinuity in
leadership often means a club follows one path for a year or two
and then veers off into another direction. Developing a Strategic
Plan is an important function, while keeping it updated is an
essential leadership practice.
The final piece of the puzzle was the implementation of more
programs and taking steps to modernize the membership plan
including increasing the age when juniors converted to full
membership. All of these efforts combined to get the Club out
in front of the lifestyle challenges that were taking place when
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McMahon Group is Proudly Serving the Following Clubs
• EXISTING •
NEW
Century Country Club (NY) • Contra Costa Country Club (CA)
The Annenberg Retreat at Sunnylands (CA)
RETURNING
Dataw Island Club (SC) • Denver Country Club (CO)
Exmoor Country Club (IL) • Hudson National Golf Club (NY)
Interlachen Country Club (MN) • Milbrook Club (CT)
Morris County Golf Club (NJ) • Navesink Country Club (NJ)
Pinehurst Country Club (CO) • Sea Pines Country Club (SC)
Austin Country Club (TX) • Bald Head Island Club (NC)
Belle Haven Country Club (VA) • Belle Meade Country Club (TN)
Big Spring Country Club (KY) • ClubCorp (TX)
Colleton River Plantation Club (SC) • Country Club of Darien (CT)
Country Club of Fairfield (CT) • Del Paso Country Club (CA)
Detroit Golf Club (MI) • Estero Country Club (FL)
Fairbanks Ranch Country Club (CA) • Fishers Island Club (NY)
Forest Highlands Golf Club (AZ) • GCSAA (KS)
Heritage Palms Golf & Country Club (FL) • Hound Ears Club (NC)
Houston Racquet Club (TX) • Huntingdon Valley Country Club (PA)
Interlachen Country Club (FL) • Ivanhoe Club (IL)
Kelly Greens Golf & Country Club (FL)
Kiawah Island Community Association (SC) • Lake Wildwood (CA)
Lakewood Country Club (MD) • Longmeadow Country Club (MA)
Maryland Club (MD) • Meadow Brook Club (NY) • Meadow Club (CA)
Newport Harbor Yacht Club (CA) • Noroton Yacht Club (CT)
North Ranch Country Club (CA) • Richmond County Country Club (NY)
River Hills Country Club (SC) • Round Hill Club (CT)
Roxiticus Golf Club (NJ) • Royal Palm Yacht & Country Club (FL)
Royal Poinciana Golf Club (FL) • Sahalee Country Club (WA)
San Gabriel Country Club (CA) • Southern Hills Country Club (OK)
Spring Hill Golf Club (MN) • Sylvania Country Club (OH)
The Club Pelican Bay (FL) • The Country Club (OH)
The Country Club at DC Ranch (AZ) • The Country Club of Naples (FL)
The Country Club of North Carolina (NC)
The Country Club of St. Albans (MO) • The Kahkwa Club (PA)
The Kirtland Country Club (OH) • The Landings Club (GA)
The Oaks Country Club (OK) • The Plantation at Ponte Vedra Beach (FL)
The Toronto Lawn Tennis Club (ON) • Town & Country Club (CA)
Vancouver Lawn Tennis & Badminton Club (BC)
Village Club of Sands Point (NY) • Walnut Creek Country Club (MI)
Waverley Country Club (OR) • Westchester Country Club (NY)
Westwood Country Club (TX)
McMahon Group’s
First Impressions Visit & Report
The Insightful Visit by Club Specialists
The complimentary McMahon Group “First Impressions”
visit is an excellent opportunity to take advantage of
McMahon Group’s club expertise. One of our club
specialists will visit your club, learn about its issues, tour
the facilities and issue a “First Impressions” report. They
will then meet with you and your Board to explain trends,
review the club’s issues and recommend innovative
solutions. Your club’s only cost is travel expenses. Schedule
your “First Impressions” visit with Alison Duffy at
1.800.365.2498 or [email protected].
Let Us Help You & Your Board!
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Club Trends: Game On!
by Bill McMahon, Jr.
Our latest edition of Club Trends looks at the changing world
of recreational offerings at private clubs. While golf is still a
signature offering at many clubs, other recreational activities are
growing in importance for the next generation of membership.
Activities/Sports such as fitness (with studio space), paddle
tennis, pickle-ball, bocce, etc. are all growing in the club world.
In this issue, we discuss these recreational trends and cite great
case studies from Desert Mountain Club in Scottsdale, Arizona
and Multnomah Athletic Club in Portland, Oregon. Be sure to
subscribe today to start receiving Club Trends for you and your
Board.
How Do I Subscribe?
To subscribe to Club Trends,
please visit
www.mcmahongroup.com
and click on “Reports &
Trends”. You will be able
to purchase an annual
subscription or individual
Club Trends reports.
SUMMER 2014 | VOLUME 1 | ISSUE 2
NATIONAL CLUB ASSOCIATION
S T R A T E G I E S
F O R
McMAHON GROUP
S U C C E S S F U L
C L U B S
GAME ON!
Emerging Recreational Activities
We are currently working hard on our next edition due out this
fall. The next issue will focus on business and marketing practices
at private clubs.
Thanks to everyone for their support of Club Trends. If you have
any comments, questions or suggestions for future topics, please
contact us at [email protected].
UPCOMING EDUCATIONAL SESSIONS & EVENTS
Tuesday, September 23, 2014
Tuesday, October 14, 2014
Host: Canadian Society of Club Managers –
Ontario Branch
Topic: “Club Trends & Recruiting Quality Members”
Speaker: Bill McMahon, Sr., AIA, OAA
Location: Mississaugua Golf & Country Club
(Ontario)
Host: Golf Association of Philadelphia
Topic: “Club Governance from a Strategic
Perspective”
Speaker: Frank Vain
Location: Llanerch Country Club
(Havertown, Pennsylvania)
Monday, September 29, 2014
Event: St. Louis CMAA Chapter Classic Golf
Tournament
Location: Sunset Country Club
ATTENTION CMAA DIRECTORS &
EDUCATION CHAIRS!
We are busy scheduling speaking engagements
for CMAA chapters and the Canadian Society of
Club Managers. If you are interested in having
McMahon speak at your chapter or conference,
please contact Alison Duffy at
[email protected].
Host: Metropolitan Golf Association
Speaker: Bill McMahon, Sr., AIA, OAA
Location: Brae Burn Country Club
(Purchase, New York)
“I cannot thank you [Bill McMahon] enough for the wonderful and, most
importantly, extremely valuable presentation you gave at the Florida Council of
Yacht Clubs at Tarpon Springs Yacht Club. There were four Board members from
the Isles Yacht Club attending your session. In the past two days, we have already
started implementing several of the suggestions you gave during your presentation.
It was great to see you again.”
- Bob Peterson
Membership & Education Chair, Florida Council of Yacht Clubs
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Recently Approved Facility Programs
Congratulations to the following clubs
Genesee Valley Club
Rochester, NY
Walnut Creek Country Club
South Lyon, MI
$3.5M Recommended Facilities Plan
“We are delighted that 91% of our members
supported our Facility Improvement Plan. The
improvements to our casual dining and social
spaces and fitness facilities will help ensure
the Genesee Valley Club remains as relevant
moving forward as it was when founded 130
years ago. My thanks go out to the McMahon
Group for their great work in assisting the Club
with the planning and program development
process.”
- Thomas Spellman, CCM, ECM
General Manager
$4.2M Initial Improvement Plan
“This is an exciting time for our Club to
continue to grow. With the help of the
McMahon Group, our Membership successfully
approved a renovation to our clubhouse,
which will continue to secure our presence in a
growing city of South Lyon, Michigan.”
Sylvania Country Club
Sylvania, OH
$2.9M Initial Improvement Program
“I thought you might like to know that 74%
of stockholding members voted and 97% of
them approved the proposed improvements.
You and your team where a huge part of this.
Thank you!”
- Kevin Frantz
General Manager
Over $1.7 Billion Raised for Capital Programs
- Boris Gradina, CCM
General Manager