London Golf, by Jeffrey Reed

As Published By Business Monday, The London Free Press June 28, 2004

Frustrated over a round of golf, literary giant Mark Twain teed up the now-famous quote, "Golf is a good walk spoiled." In fact, the real green in golf is not found on fairways, but in dollar signs. It’s a global participation sport enjoyed by Tiger Woods-inspired youngsters, large baby boomer and growing senior populations, and involves scores of spinoff industries.

London holds the unofficial title, "Golf Capital of North America," thanks to its per capita participation rate and availability of courses. This summer, 90,000 adult Londoners – 60,000 men, 30,000 women – plus hundreds of junior golfers will spend more than $22 million on green fees, memberships and new clubs. They’ll spend millions more on attire and accessories available at big box stores, specialty outlets and pro shops at 112 golf courses in southwestern Ontario.

A 1991 City of London study, conducted by Canadian Golf Marketing, stated there were 81,000 golfers in London, 29,000 of whom were recreational golfers, and the balance avid golfers. That study reported, in most other municipalities, those numbers were reversed. The 1991 study indicated, more than 1,250,000 rounds of golf were played each year at London and area’s 20 courses. Today, there are 42 golf courses within a half-hour drive of city hall.

Mike Olizarevitch, long-time head professional at Fanshawe Golf Club (one of three city-operated courses), produced a report for the city in 2003 indicating, there are enough golf courses in and around London to support a population of 1,050,000 – more than three times London’s population of 336,000. The National Golf Foundation indicates, in order to sustain a viable trade, one golf course should be built for every 25,000 people.

"London is one of the wealthiest cities in Canada, and the golf participation rate is more than twice the national average," says Claudio DeMarchi of marketing firm Lakeview Productions Inc. in Nottawa, Ont. A decade ago, DeMarchi marketed the charter London Golf and Travel Expo, drawing 30 exhibitors and 3,000 attendees. This year, over 100 exhibitors, including a tourism group from Ireland, attracted 12,000 attendees.

At home, this multi-million-dollar industry is often at the mercy of Mother Nature. From 2001 to 2003, cool, wet springs and cold falls dramatically shortened the seasons and lightened the pockets of local golf courses. This year, a rainy May also lowered income at public courses relying on green fees.

Supply and demand are experiencing unprecedented levels locally, but ultimately, rain will dampen the spirits of even the most loyal of golfers. Andy Shaw, head professional at the City of London’s River Road Golf Club, says weather forecasts are mostly to blame.

"It’s the probability of precipitation," explains Shaw. "People book advance tee times around forecasts. If they see a 40 per cent chance of rain, often they won’t golf, yet a lot of times it ends up not raining." However, Shaw says, "Play is down, and it affects the attitudes of golfers. Many weekends have been washouts."

Thames Valley Golf Course, opened in 1924 as one of Eastern Canada’s first public courses, rounds out London’s trio of municipally-operated links. A model operation in the eyes of the Canadian golf community, London’s muni courses offer 81 holes of golf – plus Fanshawe’s nine-hole Parkside Nine, North America’s first golf layout accessible to the physically challenged.

Kent McVittie, London’s manager recreation services and attractions, says the city’s three golf courses bring in a net profit of more than $1 million, while requiring annual expenditures totaling $2.3 million for maintenance and labour costs. 

Golf course operations vary from club to club. Public courses depend heavily on daily green fees. Semi-private clubs, typically offering superior amenities, have public green fees but depend more on annual memberships. The coffers at private clubs are most often fueled by initiation fees and annual dues. Every course counts on a variety of spinoff functions, from charity golf tournaments to wedding banquets, as additional sources of income. 

It’s not cheap trying to keep greens and fairways looking like Augusta National during the Masters tournament. The average maintenance budget for an 18-hole golf course in Canada is $350,000.

In nearby Union, at St. Thomas Golf & Country Club, superintendent Ryan Beauchamp works with an annual budget of $600,000, much of which pays wages to 18 full- and part-time staff. Equipment isn’t cheap either: a rough mower costs $75,000, and a fairway mower $55,000, for example. In addition, the private club (est. 1899) has spent $100,000 each year during the past eight years for course improvements.

Karen Gilles, club manager at St. Thomas, says her 700 members (including 500 golfers) "demand changes. We need to keep competitive with other area courses, offer the best amenities." She says 25 per cent of her club’s members are Londoners.

Gilles has gone as far as to advertise for new members – a move seldom seen from private clubs a decade ago, yet often necessary today due to stiff competition. St. Thomas, for example, asks for an initiation fee of $6,360. "We’ll be comfortable with 540 golfers, in order to accommodate tee times," says Gilles.

No local course has undergone a metamorphosis to the same degree as Sunningdale Golf & Country Club. Founded in 1934, Sunningdale spent $12 million in recent years on a massive renovation of its 36 holes of golf, plus a new, 32,000-square-foot clubhouse officially opened in May 2003.

"Certainly we were wanting to change the position we had in the London golf market," said Sunningdale president Gordon Thompson.

Sunningdale’s 2,000 members didn’t pay a dime for the massive facelift, according to club general manager, John Adams. "It was an expense to the (Thompson family) ownership," explains Adams, who echoes Thompson’s assessment of the local golf market."This is a very competitive market. We are spoiled with good golf courses. But all courses are making improvements. You need improvements. A golf course gets tired over the years."

The private Highland Country Club, resting in the heart of London, continues to make costly improvements to its layout in order to keep up with the Joneses. Hugging a residential area with its 140 urban acres, Highland was founded at a farmhouse in 1922. In 1959, expansion saw a new clubhouse and six-sheet curling arena added, before a $750,000 renovation took place in 1985.

Boasting 600 golfing and 400 curling members, Highland almost moved to larger quarters a decade ago, but members turned down a proposal from a development group salivating over the inner-city property.

"Highland is unique to London, because of its location, and because it is active 12 months a year," says general manager Leo Larizza, who cites "a competitive market" as the reason why he has recently advertised for new members.

Former owner of La Casa restaurant in downtown London, Larizza says, "It’s the friendliness of the members and staff" who make a private golf club desirable. "The facility is important, but people make the difference."

Like Highland, The Oaks Golf & Country Club in Delaware (est. 1993) depends on "young demographics" for its private membership of 350 golfers, according to owner Walter Spivak. He built The Oaks, with his father, Nick, "because there was an under-supply of private clubs in the London area."

The Spivaks’ latest venture, FireRock Golf Club in Komoka, is slated to open in late June. Says Walter Spivak, "We have felt for some time that the London area and southwestern Ontario deserve a world-class golf experience that’s open to the public."

FireRock, designed by acclaimed golf course architect, Thomas McBroom of Toronto, is an upscale public course anticipated to rival London’s original upscale public facility, Forest City National Golf Club. Oaks members will have playing privileges at FireRock. Prime-time green fees will be offered to the public for $75. There are five- and 10-game packages at $350 and $650, and season-long tee time bookings available at $1,500 per golfer (pro-rated this season due to a late start).

Walter Spivak adds, FireRock will be "a popular destination for charity golf tournaments." Forest City National already hosts in excess of 70 such tournaments, and like FireRock, offers a private golf club experience at a public course, according to director of operations, Brian Holmes.

Forest City National has hosted high-profile events such as the 1994 and 1995 Ontario Open tournaments, and the 1998 CPGA Championship, and is the only public course in southwestern Ontario granted four and a half stars by Golf Digest. With FireRock creating a cross-town rivalry, the local golf scene has become even more competitive.

Golf great Arnold Palmer once quipped, "Golf is a game of inches. The most important are the six inches between your ears." But to the local economy, the game of golf is measured in dollars and cents.

London Golf, Part Two, by Jeffrey Reed

As Published By Business Monday, The London Free Press July 5, 2004

Professional golfers live by the motto, "Drive for show and putt for dough." On the practice range, they sometimes shout, "Dollar bills!" when hitting balls until their hands bleed. The game of golf is a lucrative business, rewarding hard work.

You don’t have to look beyond the Forest City to acknowledge the millions of dollars associated with the Canadian golf industry. Londoners will spend more than $22 million this year alone on memberships, green fees and new golf clubs, plus millions more on attire and accessories. Concurrently, the retail scene has become as competitive as a Sunday playoff at the Masters tournament – a stage which made Mike Weir a household name and a very rich man.

In London, there are eight golf specialty shops, numerous big box stores, and 42 pro shops. That’s not counting retailers in outlying areas like St. Thomas, plus powerful Internet-based shopping opportunities.

Bob Martin’s Golf and Fashions has served a loyal clientele for more than 40 years, and today draws 30,000 customers each year from across southwestern Ontario. Service with a smile remains the key to success, according to co-owner Andy Marshall.

"There are more than 30 London (golf) retailers, counting Wal-Mart and Canadian Tire. Even Loblaws is selling golf equipment," Marshall says. "You must provide customer service."

At Bob Martin’s, this includes a full repair facility, trade-ins, and most importantly a hitting room, all housed within William Street headquarters. After all, if you’re spending more for a new driver than a used car, you’ll want to test drive the product.

In March, Nevada Bob’s Golf opened an 11,000-square-foot store on Wharncliffe Road South, including an 1,800-square-foot teaching and club fitting area. Owner Neiff Houssian has brought Canadian Professional Golf Association (CPGA) professionals Garett Jenkinson and Debbie Stevens (former director of golf at Sunningdale Golf & Country Club) on board.

"A city this size needs a store this size," says Neiff, while acknowledging the highly-competitive local market.

Golf One continues a 17-year history in local sales, with a new store at Wharncliffe and Southdale roads, in addition to a Masonville area outlet. The Trevor family boasts, its two outlets make up the largest-volume golf retailer between Detroit and Toronto.

Ryan Trevor says, "Wal-Mart is the largest golf retailer in the world. SportChek has purchased (the) Tommy Armour (golf equipment company), so retailers are now buying brand names. That’s what drives sales – brand names."

Trevor believes the local and national markets will soon diminish. "London is a good market, per capita, but something’s gotta’ give. A wholesaler told me recently, 40 to 50 retailers across Canada will be out of business before year’s end."

In 1999, former nurse Grace Adams opened Golf HERS, selling clothing and accessories for women only, while at the same time, providing a network for a growing number of women golfers. Five years later, moving headquarters from Oxford Street and Wonderland Road in Herbie’s Plaza, to a larger 2,500-square-foot location on Hyde Park Road, Adams continues to attract customers from as far away as Sudbury, Ottawa and Toronto.

The hook? Says Adams: "Selection and support. Women who get into golf often feel incompetent and insecure. They need a support group. And women want to know about everything that’s available – one-stop shopping."

Eyeing expansion into other Ontario markets, Adams specializes in high-end and hard-to-find items such as shirts, shorts, hats and shoes. After all, says Adams, a woman wants to look good while doing business on the golf course.

"Golf is about building relationships," Adams explains. "It’s about public relations. Golf really is played in the six inches between your ears. How will an associate react if she hits a ball into a bunker, or shanks it? What happens on the golf course happens in life."

According to a study on participation released by the Royal Canadian Golf Association, 48 per cent of new golfers are women, most of whom are using the game as an opportunity to connect and communicate to better business relationships. Golf For Women magazine reports, 73 per cent of 1,000 career women interviewed believed that golf helped them develop relationships and network for business.

Sunningdale’s director of golf, Patty Howard, a leading London golf instructor, left behind a promising career as a touring pro to instead teach local golfers how to enjoy the game she loves. In 1990, she was named Canada’s first female head professional at a private mixed club, West Haven Golf & Country Club in northwest London.

"Regardless of gender, the most qualified person must move ahead in the business of golf," says Howard, who agrees with Adams and the RCGA findings: women are entering golf at an unprecedented rate. Howard also sees a number of families entering the game together.

However, golf remains linked to business in a big way. For example, Michael Blewett, owner of Blewett & Associates, a London-based full-service insurance broker, often entertains clients on the golf course, in order to advance relationships.

"The game is secondary," says Blewett. "It’s an opportunity to see another aspect of your client in a different setting. You engage in conversations, put them at ease. Rarely do you talk business on the course."

Ditto says John Kime, president and CEO, London Economic Development Corporation. While Kime says he doesn’t market the fact London is a golf mecca while pursuing new businesses for London, he does use golf as a business tool.

"I can’t think of a time when the LEDC didn’t build a relationship without a game or two of golf. It’s an excellent way to build relationships. But I would never use golf to close a deal," Kime explains.

Richard Sifton, vice president of housing with Sifton Properties Ltd. has taken business and golf to a new level, developing RiverBend Golf Community – London’s first gated golf community. Emulating neighbourhoods common in Florida and Arizona by twinning RiverBend Country Club with single-family detached homes and villas, Sifton has created a unique lifestyle community.

"You can park your golf cart at your home, and drive it through the community," says Sifton. "We’re trying to encourage our RiverBend clientele to be environmentally friendly."

Already many RiverBend residents are using their golf course to build business relationships, something Sifton often does himself. But he says, "You would never get down to the nitty gritty until the 19th hole." 

RiverBend will host the 7th Annual Jesse’s Journey Charity Golf Classic on September 15. Generated by the Business Club of London, this tourney has raised more than $270,000 in six years, making it one of the most successful charity golf events in London.

In fact, the business of charity golf tournaments is a spinoff industry, with approximately 300 golf-related fundraisers in London alone. Charity committees plan during the entire year for one day of golf and prizes, banquet and speeches, and of course, networking on the golf course. Often celebrities lend their names to a good cause, hoping to land corporate donations in the form of title sponsors, hole sponsorships, product giveaways and silent auction items.

Fields most often number 144 golfers who pay entry fees ranging from $100 to more than $350. Highland Country Club hosts the 18th Annual Highland Alzheimer Golf Tournament for Alzheimer Research on June 14. At $165 per person, and relying on a hard-working committee, the event raised $37,000 last year.

Wendy McNiff, special events coordinator with the Alzheimer Society of London and Middlesex, says she believes a golfer often chooses a charity tournament based on venue. "There’s a chance to play at a private club where ordinarily you might not be able play," she says.

The London Humane Society Charity Golf Classic, scheduled for July 15 at Pine Knot Golf & Country Club, charges $150 per golfer and hopes to raise $20,000, up from $16,000 in 2003. London Humane Society volunteer and event coordinator, Sandra Whitehall, says her group "gets no government funding, so this tournament is very important to annual fundraising."

Bubble About To Burst?

While London thus far appears to be immune to attrition, latest figures from the RCGA show a decline of 5.4 per cent in all golfers from 1998 to 2001. The most avid golfers – core golfers – showed a drop of 12.1 per cent. As Fanshawe Golf Club Mike Olizarevitch expressed with his golf study in 2003, there are already enough golf courses within a half-hour drive of London to support a population of more than a million people. Yet, new courses are planned and under construction in London and St. Thomas.

Despite generating millions of dollars for the local economy, golf remains a game for the ages, but it will always be an addictive – and expensive – activity.