Cece Berg
Economics
Mr. Reuter
03/19/2017
Spring Golf
As some may have noticed, snow has been blanketing the United States for awhile now. People frequently ask, “When can I get out on the course?”. But the real question is, how much does this bipolar weather impact the spring golf season cost wise?
For golf courses and their management team, their opportunity cost is unfortunate as snow disturbs courses in the first place. As it continues to snow during March, the damage repair costs increase. According to a recent article from KTVZ (Oregon), the owner of Widgi Golf Course questioned if they would even open at all because of the weather. They are usually open by now, however that isn’t the case this year. Infact, below is an image of a pie chart that shows what percentage of revenue goes towards course maintenance. 
With the less amount of days that the courses are open, less money is being made. Less money being made, the total revenue is on a fast decrease. Less income only leads to less care for the courses. That generally creates root problems, and only digs courses in a bigger financial issued hole. The loss of money due to the extended winter season is roughly $90,000 on average for one single golf course. Loses for private golf courses are not as significant because they make more in the first place and are able to maintain the course better, however, the weather still causes damages to an extent.
Due to the weather, courses are looking to open (and stay open) within the next week (late March, early April). The general rule for courses to be open is an expected high of 50 degrees (Fahrenheit) or above. Mother Nature is beginning to balance out, and the temperature is expected to increase closer to the 60s for the midwest, and hopefully 80s for the rest of the United States.
Sources say that subsidies were in fact provided to golf courses as an aid to recover financially. By providing those services, it is easier for the course to fix the damage that was caused. If golf courses weren’t provided the aid, then it could take an extra month to help getting things back on track. Though the whole loss wasn’t recovered, it still made a bigger impact than no money at all.
Though golf courses are experiencing significant losses, businesses such as snow plowing, Farm & Fleet/ Menards, and etc. are experiencing a higher demand for snow protection supplies, therefore more money is coming in for those specific companies.
It is not a loss for all, but for us golfers, it is pretty upsetting knowing that there’s a delay to getting back to playing. After all, we do bring in a good amount of $1,500,000/year for these courses. The ripple (economic) effect mainly comes from the stuff that courses sell at club houses. Clubhouses typically sell clothing, golf balls, shoes, clubs, etc., so it impacts each company that is involved. If the golf course isn’t making money, others aren’t making any more than what they already do.
Works Cited
Fried, Dani. "Snow's Impact Hits Central Oregon Golf Courses Hard." KTVZ. 16 Mar. 2017. Web. 20 Mar. 2017.
"Golf Facility Revenue and Expense Benchmarks." Golf Facility Revenue and Expense Benchmarks. Web. 20 Mar. 2017.
Griffin, Jake. "Suburban Golf Courses Losing Money." Daily Herald. 03 Mar. 2016. Web. 20 Mar. 2017.
"Weather-dependent Companies Try to Stay Busy without Snow." Fox 59. 07 Feb. 2017. Web. 20 Mar. 2017.
The weather has been affecting multiple industries such as golf courses. This doesn't just affect the courses themselves, but it could also affect events such as the U.S. Open. The quality of course could impact the amount of spectators at such events and even television ratings. This topic is very relevant in the world of sports and entertainment.
ReplyDeleteI never realized how much golf courses can be effected by the weather. After reading this I understand how much a golf course can be impacted if it doesn't open up on the days or month it usually does. I never knew that 32% of the golf courses revenue was on the maintenance of the course. Golf courses do lose a lot of customers that want to play golf due to the temperature and whether or not there is snow on the ground. I also find it interesting that one thing that not everyone can predict can have a huge negative impact towards the total revenue of golf courses. Once they start losing revenue it will start to get worse as the days go by when there is snow on the ground or cold out in the month of March.
ReplyDeletePlaying an outdoor spring sport, I know how it feels to deal with the bipolar weather. Unlike soccer, my spring sport, golfers can't go inside for alternative because that diminishes some of the purpose. These golf courses are stuck in a bad position, but that's partly why true golf lovers tend to live somewhere warm so they don't have to deal these weather issues every spring. People running a golf course probably want to have their course in a more desirable location in terms of weather so they avoid this potential financial loss.
ReplyDeleteTwo summers ago I got my first job working at a country club. The one I worked at was members only, they had their own neighborhood and everything. During the summer the work was wonderful. I was outside a lot and I got to eat for free. As the summer was coming to a close I began to think and worry about what I would do during the winter months. I talked to the owner and she said she would move me to a temporary indoor job. I was no longer worried about the state of my job however I was curious as to how a sustainable amount of income was going to be obtained by the country club. I talked to a coworker who told me that there was a system in place where the members had to spend 1000 dollars every month and if they didn’t it would be taken out of their bank account. This along with the restaurant and ballroom that could be rented out kept the country club financially stable.
ReplyDeleteThis is very relevant to all sports, because field conditions affect almost every outdoor sport. I have to imagine this would have an effect on scheduling major golfing tournaments.
ReplyDeleteThe bipolar weather that we experience around this time every year effects so many outdoor spring activities. With the sporadic freezing temperatures and melting snow, the ground seems like it's constantly mud. Especially with golf where the condition of the course is a huge factor. I wonder if in the past the conditions and the amount spent on maintaining the courses has been greater due to more and more global warming.
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