Golf Course Bankrupt? Blame Tiger Woods

In this recent recession, some big investment banks were rescued from a mess that company spokespeople claimed they didn't need to be rescued from. Nevertheless, they were labeled as "too big to fail" and were pulled to safety on the public's dime.

Meanwhile, golf courses have been buckling under current economic conditions those aforementioned banks had a hand in creating. The last five years have not been kind to courses in the United States. But recent data from the National Golf Foundation (NGF) suggests golf facilities in general are holding their ground fairly well.

A preview of The NGF's Golf Facilities in the U.S. report, 2011 edition (which will be released in February) reveals course closures from 2006-2010 represent just 1.5 percent of courses overall. In 2010, the figure was less than half of one percent. These statistics prompted the NGF to state the following: "Considering the severity of the recession, one could argue that golf has held its ground reasonably well."

However, despite NGF's positive spin, the raw numbers still reveal a glaring issue: Every year since 2006, more golf courses have closed in the U.S. than have opened. For example, last year saw 107 18-hole courses bite the dust, while only 46 were born. But does the recession deserve all the blame?

Remember the days (late 1990's and early 2000's) when new courses were sprouting up like daisies? And these weren't shabby municipal tracks either - many were high-end daily fee courses that featured sharp grooming and sweet facilities. I remember one such place in my area - Pistol Creek Golf Club. It was a great course (see photo at top) with a good layout, awesome grooming and a dandy club house. It opened in 2001 and closed in 2005. Why?

If you're observant, you'll note that the year it closed (2005) is well before the current recession even started. Even 2006, which is when course closures began outpacing course openings in the U.S., was a full year before the effects of the subprime market started taking hold. So it's obvious golf courses have been suffering for a while - certainly longer than the current recession.

The NGF gives a clue as to why in the headline of their press release: "NGF 2010 Openings/Closures Summary - Market Correction of Supply/Demand Imbalance Continue." Simply put, they built too many damn courses for the number of golfers out there! So the next appropriate question would be; why?

I'm going to go out on a limb here and say it has something to do with Tiger Woods. Now I don't have any data to back this up, but imagine it's 1999 and you want to build a golf course. I'd give good odds that Tiger would be mentioned somewhere in your business plan or your pitch to the city council: "It's this Tiger Woods, man! He's changing the game!"

But did the golf industry over-estimate the impact of the Tiger phenomenon? Sure, he was good for the game, but perhaps his presence caused too many investors, architects and designers to jump on the bandwagon and simply overdo-it. Of course, this is all just speculation, but it seems entirely plausible.

So if the juggernaut that Tiger Woods once was compelled shiny new golf courses to be stacked upon the proverbial camel's back, then the recession was only the proverbial straw. Golf, after all, is a luxury. And luxurious things are usually the first to go when money gets tight. Still, losing only 1.5 percent of courses over the past 5 years isn't terrible. But it sends a clear message: "Market Correction of Supply/Demand Imbalance" is just a nice way of saying the golf industry is shrinking, not growing.

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The Golf Channel's Newest Offering is Really Nothing New

It can be argued in many different ways, but the simple fact is, golf is NOT a growing sport. The statistics show it. Even though there are currently about 450 more courses in the U.S. than existed in the year 2000, over the past several years, more courses have closed than opened. What's more alarming is, despite these additional 450 courses, fewer rounds are being played every year.

According to reports from the National Golf Foundation, 2009 marked the fourth consecutive year in which total rounds of golf decreased from the previous year. As a matter of fact, it was the eighth year out of the past nine in which a decrease was shown. In 2000, roughly 518.4 million rounds of golf were played in the U.S. But by 2009, that number had dropped to 481.5. That's almost 37 million fewer rounds (a little over 7%) per year. So where is this growth?

Yeah, you can blame some of it on the economy. But that's really only that past two years. What about the seven years previous? That is another topic which can be debated. But I have my opinions - several of them (greens fees continuing to rise, cost of equipment, etc...). But right at the top of the list is simply the old golf stereotype - it's a rich man's game. For too many golfers in the new generation, as well as your average weekend hack, this decreases their overall interest. They see the game as too expensive and too serious. What they don't see, and are sometimes never introduced to, is simply the fun of the game. But what is the golf industry in general doing to fix this? Apparently, nothing.

Example, The Golf Channel's latest offering - Donald Trump's Fabulous World of Golf. In a time where interest in the sport continues to decrease, the belief in the stereotype continues to rise, the biggest star in the game has lost some of his shine, golf courses are closing and people aren't playing because they can't afford to play...The Golf Channel gives us...Donald Trump.

As if we haven't seen enough already, this show gives us more celebrities, more excess and more outrageously priced and/or private courses. Yeah, just what the sport needs right now. Fuel the stereotype why don't ya? Do the good people at The Golf Channel think this is helping? Are they in the dark and don't understand this is not what the sport needs? Maybe they don't care and they're just hoping for ratings.

Speaking of ratings, one of the funniest things I had seen and heard was on a promo video on the show's website. If you can find it, there was a clip of The Donald sarcastically stating this show was going to raise The Golf Channel's ratings. Isn't that great? Even The Donald knows this channel needs help!

See, we've said it before, and we'll continue to say it. This sport needs a shot in the arm. It needs a change. It needs to make itself relate to the average guy and girl who play the sport for no reason other than the fun of the game. It does NOT need more celebrities. It does NOT need to promote more private courses. It does NOT need to promote more rich guys playing the game in a place 99.9% of us (if not more) will never see.

As entertaining as I occasionally find him to be....the sport does NOT need Donald Trump right now.

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