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Welcome to The Turf Zone podcast. This episode features the article “Creative Membership Models for Private Clubs” written by Larry Hirsh for golfprop.com and read from Virginia Turfgrass Journal.

Among the intriguing elements of the private club world are the various membership models that exist. Of course, there are equity, where the members own the club and non-equity, where an investor owns the club; but within each category there are numerous variations. Clubs exhibit a wide variety of operating models, typically designed to suit their market, economics and their club culture.

Of late, a lot of the “news” in the private club world has come from the newly developed, uber upscale clubs often with entrance fees well into six figures, or even seven. Some have a partial refundability element, and as one might expect are very exclusive. However, of those I’ve encountered of late, I’d like to focus on a few I find intriguing as ways to help grow the game, encourage club membership and broaden golf’s appeal. Most contradict the concept of exclusivity that many clubs seek, but such exclusivity isn’t always for the best, either economically or socially.

Of interest in resort and vacation areas is the model I’ve encountered whereby placing your vacation home in the rental pool entitles the owner to a substantial discount on dues and guests and extended family members discounts on golf and other fees. Obviously, this creates financial incentive for property owners to participate by reducing club dues but of course exposes the property owner to (usually short term) tenants and the risks inherent in same. With resort guests/renters also having access to club facilities, exclusivity is limited, however clubs with a variant of this model typically establish privileges, preferences, access or activities exclusive to members to establish and cultivate a culture of membership.

Among the more unique membership models I’ve (recently) heard about is one residential golf community club where resident members join the club but pay their initiation fee upon the sale of their home.

Another model which I’ve always found of interest is that often found in Scotland and other areas of the United Kingdom and Europe where even top clubs are much more inclusive than many in the US and rely on visitor fees for much of their revenue. The benefits of this model are that membership dues are maintained at more nominal levels, and the culture of the club is quite different than many elite clubs in the US. As Royal Dornoch General Manager Neil Hampton wrote in the club’s recent newsletter, “What I have always enjoyed about Royal Dornoch is that it is an inclusive club. There are so many different facets to the club, yet everyone comes together as one and has fun with each other. We have visitors playing seven days a week and invite them to share our courses and clubhouse just as we do. I think it is wonderful and epitomizes the Highland way, that we do not have separate areas for members or visitors and everyone mixes together, sharing their experiences.” Privileged to be a member at Royal Dornoch, I agree with his comments.

I’m sure there are many more I’m not yet familiar with.

One thing I’ve always maintained is that every club needs to know what it wants to be. To some, golf (especially club membership) is a status symbol, to others it’s an “everyman’s” game. At some clubs, one’s net worth is estimated halfway down the first fairway. Each club establishes, develops and maintains its own culture and that is often dictated by the extent of the club rule book which in turn can often determine the membership models for the club. At some clubs the financial commitment alone excludes many. At others it’s social status or heritage. At more inclusive clubs the membership is typically much more diverse.

One of the most creative membership models more prominent in past years was the refundable deposit where the member was entitled to the return of his entrance fee after a specified period of time or upon resignation based on certain conditions. While still available at some clubs, this option is quite sensitive (for the club) to economic fluctuations and fell out of favor in the pre-COVID period from 2000–2020 when the golf/club industry was experiencing challenging times. Whether this experiences a resurgence will be interesting to see.

I’ve always fallen back on the definition of “club”. Webster’s dictionary most relevant and simple definition of a club is: to unite or combine for a common cause. At the clubs we’re talking about, that basically means social and athletic activities. Sometimes it’s much more complex than that.

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