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Kooringal Fee Proposal


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#1 Hawkers2015

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Posted 22 January 2019 - 09:34 PM

Just got an email about this from the club.

 

Board has called an EGM to propose a schedule of fees for 19/20 and next 3 years, averages out at a mere 16.6% increase per year over 4 years.  I can and will pay up, but its a bit of a shock all the same.

 

I am guessing that things aren't going well over at Mt Derrimut.  They ran an offer in December to try and get members to pay up for 19/20 over 3 months before their 18/19 FY ends.  I also understand that the Mt Derrimut pro was one of the unsuccessful applicants for the salaried gig at Kooringal.

 

Probably getting overdue for some industry consolidation on this side of town.


Edited by Hawkers2015, 22 January 2019 - 09:46 PM.


#2 FrontBunker

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Posted 23 January 2019 - 02:05 PM

A few musings from the uninitiated (that’s me).

 

Is there any indication what the ~17% lift in fees is intended to fund? As an occasional guest (but never a member), I’ve always found the course at KGC to be a little bit too same-same across the 18 holes. It’s always in tip top condition, but nothing outstanding in the design that makes me want to rush back. If I was a member I think I’d be happy to pay a higher sub to further improve the design of KGC, above and beyond what Pacific Golf did a few years back.

 

Also on KGC, I always thought (perhaps a touch naively) that it was well funded because of the pokes and TAB facilities. Is there a change to this arrangement that is driving revenue down? Are they actually separate businesses?

 

I understand KGC has never had a problem attracting members, is this perhaps a drive to just smooth the numbers a bit and aim for a slightly more exclusive approach?

 

Or is it simply that running costs are just going up and up and they need more cash to maintain the course to its high standard whilst keeping the business viable?

 

On the Mt Derrimut subject- It’s an interesting situation- on the surface it should be packed. It’s a decent (maybe even better than average) 18 hole layout that is only ~10ish km’s from the city. There isn’t really a public 18 hole course within koo wee of it so it doesn’t feel like it SHOULD be a matter of oversupply. Leaves me to think Mt D is suffering from the sins, or perceived sins, of recent years.

 

Its clear they’re investing a lot of time in reinventing Mt D and have even gone down the road of “celebrity” endorsements. I’ll be keen to see where they ultimately land as a business.

Does Mt D ultimately strive to become a really good public course that has limited space for member comps but otherwise relies heavily on high volumes of green fee players to keep the cash rolling in? Or does it bank on growing a large membership base and offering something like a semi-private experience to those members, inviting limited green fee players.

 

My fear is it will land somewhere in the middle of true public and semi-private and make a real hash of it- not appealing to green fee players who like flexibility and not meeting the expectations of members. I don’t think Mt D will get another look at this, and if they get it wrong it could be curtains for a course that should form an important part of life for golfers in the West.

 

 


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#3 Hawkers2015

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Posted 23 January 2019 - 03:49 PM

Its a combination of a few things - mostly an increase in costs and some decline in gaming revenue.  They are expecting to have a smallish loss this year after quite a few years of decent profits.  Past year profits have largely been invested/spent on course and clubhouse improvements.  Poker machines probably subsidise 7 day membership to the tune of $700 odd per annum.  Added to that is the general negative outlook for gaming business so the board would like to break or at least diminish the dependence on it.

 

I suspect that MD were seriously low on cash, hence their early renew offer.  If we ever have another seriously wet winter away they could be out of business in no time flat.



#4 Snappy McSnapperton

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Posted 23 January 2019 - 04:34 PM

KGC's subs are significantly lower than like-for-like in the area due to the gaming subsidization.  Seems like a good move to make as they will still be well cheaper than any competitors.  Perhaps with the new clubhouse completed the board thinks there will be minimal member drop off. 


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#5 Can Break 80

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Posted 23 January 2019 - 09:33 PM

Just got an email about this from the club.

 

Board has called an EGM to propose a schedule of fees for 19/20 and next 3 years, averages out at a mere 16.6% increase per year over 4 years.  I can and will pay up, but its a bit of a shock all the same.

 

I am guessing that things aren't going well over at Mt Derrimut.  They ran an offer in December to try and get members to pay up for 19/20 over 3 months before their 18/19 FY ends.  I also understand that the Mt Derrimut pro was one of the unsuccessful applicants for the salaried gig at Kooringal.

 

Probably getting overdue for some industry consolidation on this side of town.

 

They could always consider a marriage proposal to Rossdale GC .


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#6 Hawkers2015

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Posted 24 January 2019 - 06:41 AM

They could always consider a marriage proposal to Rossdale GC .

 

 

Sure I think we could manage to take their handful of members plus proceeds from flogging their site off.



#7 oldmannoodles

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Posted 24 January 2019 - 11:34 AM

Is there anyone in the know who could shed some light on a whisper I heard about a push from some Kooringal members to sell off their land and merge with Sanctuary Lakes? Proceeds would then go into building a better clubhouse and facilities at SL and, more importantly, spending more on the SL course which, with a full team of ground staff, could easily be ranked in the country's top 50 courses.

 

The obvious problem then becomes getting a tee time on weekends. A third of Kooringal members may not go across but you'd think most would. A slight increase in subs (justified by the better course and facilities) may shed a few current SL members. Even so, access to the course would still be  troublesome, at least initially.

 

Kinda makes sense to me - a club with money and an average course merges with a club with no money and a good course.

 

This hypothetical is based on a couple of significant assumptions. Firstly, that the Kooringal land can be rezoned and sold to a developer for residential purposes, and secondly, that the merge would be voted up by Kooringal and SL members.


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#8 Fill the Dill

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Posted 24 January 2019 - 11:45 AM

I’m sure, Spud can help.

#9 iRON MiCK

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Posted 24 January 2019 - 12:35 PM

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#10 Snappy McSnapperton

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Posted 24 January 2019 - 01:20 PM

some interesting info in the attached.  Attached File  KGC Member Information Pack.pdf   1.29MB   38 downloads


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#11 iRON MiCK

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Posted 24 January 2019 - 02:18 PM

Seems like a reasonable request. I expect most clubs that rely on Gaming Machines to subsidize the operating costs (maintaining the course) for their club will being doing likewise in 2019.

I know that GR have advised members that the Golf Club is not self funded through Member Fees and the shortfall is covered from revenue generated at the Chirnside Park Country Club.

I don't mind playing Kooringal as a guest and would shell out an extra $10 per round to play there, although I don't think that is going to raise the desired $1.1M a year they need.


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#12 Hawkers2015

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Posted 24 January 2019 - 02:45 PM

Is there anyone in the know who could shed some light on a whisper I heard about a push from some Kooringal members to sell off their land and merge with Sanctuary Lakes? Proceeds would then go into building a better clubhouse and facilities at SL and, more importantly, spending more on the SL course which, with a full team of ground staff, could easily be ranked in the country's top 50 courses.

 

The obvious problem then becomes getting a tee time on weekends. A third of Kooringal members may not go across but you'd think most would. A slight increase in subs (justified by the better course and facilities) may shed a few current SL members. Even so, access to the course would still be  troublesome, at least initially.

 

Kinda makes sense to me - a club with money and an average course merges with a club with no money and a good course.

 

This hypothetical is based on a couple of significant assumptions. Firstly, that the Kooringal land can be rezoned and sold to a developer for residential purposes, and secondly, that the merge would be voted up by Kooringal and SL members.

 

 

I doubt its got legs, I am sure there is a group of members that like the idea, I think getting the numbers up in votes and gaining the planning approvals for both rezoning the current site and relocating the electronic gaming machines to the SL site could all be a bit challenging. 



#13 Hawkers2015

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Posted 24 January 2019 - 02:48 PM

Seems like a reasonable request. I expect most clubs that rely on Gaming Machines to subsidize the operating costs (maintaining the course) for their club will being doing likewise in 2019.

I know that GR have advised members that the Golf Club is not self funded through Member Fees and the shortfall is covered from revenue generated at the Chirnside Park Country Club.

I don't mind playing Kooringal as a guest and would shell out an extra $10 per round to play there, although I don't think that is going to raise the desired $1.1M a year they need.

 

I think it will be a challenge, I doubt that golf will become profitable in its on right to totally break the dependence on revenue from machines. 

 

In particular, its hard to see membership numbers holding up under the weight of the fee increase unless something happens to contract supply of golf facilities, like other facilities going out of business. 


Edited by Hawkers2015, 24 January 2019 - 02:49 PM.


#14 Goldy

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Posted 24 January 2019 - 03:30 PM

Seems like a reasonable request. I expect most clubs that rely on Gaming Machines to subsidize the operating costs (maintaining the course) for their club will being doing likewise in 2019.

I know that GR have advised members that the Golf Club is not self funded through Member Fees and the shortfall is covered from revenue generated at the Chirnside Park Country Club.

I don't mind playing Kooringal as a guest and would shell out an extra $10 per round to play there, although I don't think that is going to raise the desired $1.1M a year they need.

 

It would if you played there 110,000 times.


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#15 Ink🐾

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Posted 24 January 2019 - 04:03 PM

It would if you played there 110,000 times.

A dollar for every waggle.
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