One way to judge the general state of the golf industry is to attend the various national shows and meetings that take place in mid-winter. Joe Steranka, CEO of the PGA of America, recently took golf’s temperature that way, and while it’s clear the game is still running a fever, he thinks there’s reason to be cautiously optimistic if the proper recovery plan is followed.
After acknowledging in no uncertain terms that “these are tough times,” Steranka said there are glimmers of hope.
“The mood was good and attendance was up at the PGA (Merchandise) Show, the mood was good at the USGA (annual) meeting, and I flew in last night from the Golf Industry Show, and the mood was good there as well,” Steranka said Saturday during his keynote speech at the CGA Season Tee-Off Lunchon, part of the Denver Golf Expo. “Again the term “˜cautious optimism’ came out about the industry.”
That certainly doesn’t mean it’s clear sailing ahead for the golf business. Even in Colorado, the economy and other factors have caused some courses to suspend operations and others to go through foreclosures. Financing dollars are very difficult to come by. And even those facilities that are getting by are usually doing so with significantly less revenue.
But Steranka pointed out that it’s more important now than ever to make the golf customer happy. After all, there are big numbers involved. In Colorado alone, Steranka said 20,000 people are employed in the golf industry, with annual wages of $300 million, and 600,000 people play golf — a total of 6 million rounds per year.
“That’s 6 million chances to keep people smiling about this great sport,” he said. “”¦ We went to our annual meeting saying it’s time for PGA members to hit the reset button in serving people who employ PGA professionals and you as people who enjoy the sport. Not only do we have to work harder with less financial resources, we have to do it with a smile on our face, because when we come out to play golf, we’re not interested in somebody else’s problems. We’re trying to escape some of the real-life challenges. That takes a special breed of person” to effectively work in the industry.
Steranka said that in a recent presentation he and a PGA of America cohort made to the USGA executive committee, they noted what a pivotal time it is for the golf business.
“We’re very fortunate,” Steranka said. “We’re an industry that relies on your discretionary time and money. People don’t have to play golf for food. It’s not a must-do. Times being what they are, we have to compete and make sure we’re delivering value in every round of golf played in this country.”
As Steranka noted, the PGA of America certainly isn’t immune to the tough economic times. He pointed out that the organization’s operating expenses are $6 million less now than they were four years ago.
“You have to do it; you have to hit the reset button,” he said. “You have to figure out how you’re going to operate at a lower cost of doing business.”
But with belt-tightening and keeping the proper attitude, Steranka is convinced that the golf industry can be very resilient. With initiatives such as “We Are Golf” (see http://www.colo.golf/iframegjxl.php?URL=cgj/10lead0211.html) and “Get Golf Ready,” he believes the game can meets its challenges. And even as things stand now, Steranka said the survival rate of golf courses is over 99 percent, which can’t be said for many other small business.
“That speaks to the values of the sport, the people who care about it and the focus on maintaining not just short-term results but the long-term value of the sport,” Steranka said. “We’re a not-for-profit, so we must have the long-term view and not look at it as a short-term fix.”
Many different representatives of Colorado golf — pros and amateurs; superintendents, managers and owners; men’s and women’s oriented groups; and even those who are simply altruistic volunteers — were in attendance at Saturday’s Tee-Off Luncheon. And all parties emphasized the value of coordinating efforts for the good of the game, rather than letting turf wars hinder the common good.
“There’s never been a more important time for those of us in golf to work together,” said CGA president Jim Magette.
Added Steranka: “We’re at a time in the golf industry where we don’t have the luxury — or the time and money — for redundant efforts. I’m on a crusade that we discuss what the opportunities and challenges are, and how we overcome them together. Who takes the lead is irrelevant as long as we get the job done.”
