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Sunday, January 29, 2017

The Week That Was, january 29, 2017

     Has a truce been declared in China’s so-called war on golf? Last week, after a five-year purge, the nation submitted its updated count of golf fatalities: 111, or roughly one of every six that had been in operation. In addition, 18 courses have reportedly been ordered to return some land that they’ve been using for golf purposes – let’s call them the walking wounded – and a few have closed “voluntarily.” In addition, it appears that construction has been halted on as many as 47 courses. Citing a figure from the National Development and Reform Commission, the Telegraph reports that the People’s Republic now has 507 courses, all of which will eventually need to be certified as legal. If there’s a silver lining in this dark cloud, it’s that government officials have given no indication that any further closings are on the immediate horizon. It’s entirely possible that China has finally laid a foundation for a regulated golf industry.

     Financially speaking, last year’s Open Championship was a disappointment. The event, at Royal Troon in Scotland, had an estimated economic impact of £110 million – £64 million in direct benefits and £46 million in harder-to-measure “marketing” benefits. The R&A and other stakeholders had expected the total to exceed £150 million. By contrast, the 2015 Open Championship, played at St. Andrews, generated £88 million in direct economic benefits and £52 million in marketing benefits, for a total of £140 million.

     The direct economic impacts of golf championships are, of course, closely related to attendance, and recent attendance at the Open Championship ought to concern the R&A. Last year’s event, at Royal Troon, reportedly attracted 173,134 spectators, down by more than 3,000 from the 176,410 who attended the previous time Royal Troon hosted the event, in 2004. In 2014, the Open at Royal Liverpool attracted 202,917 spectators, down by more than 26,000 from the 228,976 who attended the previous time Royal Liverpool hosted, in 2006. And in 2013, the event at Muirfield attracted 142,036 spectators, down by more than 18,500 from the 160,595 who bought tickets at Muirfield in 2002. In this context, the rainy 2015 Open Championship was an outlier. St. Andrews lured 237,024 spectators, but a direct comparison of attendance can’t be made because it took five days to name a champion. Despite the weather, the £140 million economic impact the Open delivered that year was, according to the R&A, “the largest amount ever achieved by a golf event in the United Kingdom or Ireland.” Let’s not jump to conclusions just yet, but St. Andrews may very well be the only sure thing in the Open’s rotation.

     Would you trust a movie review written by someone who's never seen Citizen Kane, Casablanca, The Seven Samurai, or The Third Man? Would you buy a painting recommended by a person who doesn't have a thorough knowledge of art history? Do you think a $100 bottle of wine is almost certainly overpriced? If you answered "yes" to any of these questions, you'll love the new U.S. course rankings from Golf Advisor.

Friday, January 27, 2017

Vital Signs, january 27, 2017

     Golf participation continues to decrease “at an alarming rate,” says the Pellucid Perspective, but operators of U.S. golf properties are staying afloat because older golfers are playing more often. “In a nutshell,” the publication writes in its January issue, “older, high-frequency golfers are each covering about two of the low-frequency, younger golfers that are not being attracted to the sport.” Here’s some data to bolster the argument: Between 2005 and 2015, the number of U.S. golfers aged 65 to 74 nearly doubled (it now exceeds 3 million), and they play, on average, 33.6 rounds a year. By contrast, every age group among golfers who are 45 and under showed a decline, with the average number of rounds being played in those groups ranging from 12.9 to 17.9. Based on its research and the shrewd use of a calculator, Pellucid predicts that the number of rounds played on U.S. golf courses will remain “relatively stable” over the next decade. After that, presumably, all bets are off. The decrease in participation among the under-45s doesn’t bode well for the future.

     When it comes to golf participation, money really talks. According to Private Club Marketing, the participation rate among people who earn $150,000 or more is “about double” the rate for people who earn between $50,000 and $75,000 and “about five times greater” than the rate for those who earn $30,000 or less. Pause to digest. Now chew on this: Among golfers, the median annual household income is about $96,000. For the average American, it’s about $52,000.

     It’s slightly off-topic, but the temptation is too much to resist: The richest people on the planet – the top One Percent – control half of the world’s wealth, according to Private Club Marketing, while the top 10 percent control 88 percent. If you’re wondering, both groups have significantly improved their fortunes since 2009. Again, pause to digest.

     Myanmar, one of the world’s most persistent human-rights violators, hopes to claim a share of the golf-tourism money that’s flowing into Southeast Asia. The idea is still mostly a pipe dream – to attract golf travelers in significant numbers, Myanmar needs higher-quality golf courses, better roads and infrastructure, classier hotels, and, most importantly, an improved public image – but other nations in the region have proved that such obstacles can be overcome. “I think it’s just a matter of time,” one of the nation’s golf evangelists told Channel News Asia. “We’re seeing it happen in Indonesia and Vietnam and Cambodia, Sri Lanka, even Bangladesh.” When it comes to golf, these days Myanmar has just one true “international-standard” golf course, the Gary Player-designed layout at Pun Hlaing Golf Club in Yangon. But other noteworthy tracks are in the pipeline. Within the next few weeks, a Phil Ryan-redesigned course is scheduled to open at Dagon Golf Club in Yangon, and a Lee Schmidt-designed course is expected to open at Mandalay Myotha Golf Club, in metropolitan Mandalay, this fall. Even as a group, these tracks aren’t likely to lure very many vacationing golfers. On the bright side, however, they might make some of Myanmar’s golf-wary developers more courageous.

     In Japan, optimism about golf’s future is waning. The Economist reports that more than 120 of Japan’s golf courses have closed since 2010, and, citing a comment from a member of a golf-related association, it thinks that 500 others could bite the dust within a decade. The magazine blames these losses on a variety of factors, among them an “aging population,” “disinterest from the next generation,” the sport’s “stuffy image,” “declining demand from companies,” and “steep green fees.” Japan still has more than 2,300 courses, but a chart that accompanies the magazine’s story indicates that the nation has fewer than 8 million golfers today, down from roughly 13 million in 2000. If my calculator is working properly, that’s a decline of 38 percent.

     Those new, bucket-list golf courses on King Island, in Tasmania, have attracted so many traveling golfers that local hotels are having a hard time keeping up with demand. Late last year, the island’s mayor told the Examiner that the existing supply of overnight accommodations is “fully booked for weekends into the foreseeable future.” Needless to say, this is one of those proverbial nice problems to have. To remedy the situation, the local hotel business is in the midst of what’s been described as “a development boom.”

     Speaking of supply and demand, Mars needs women and Cabot Links needs caddies. The neo-classic (or minimalist) mecca in Nova Scotia, now boasting two of Canada’s top-rated golf courses, is looking to hire 100 caddies for the upcoming season. “We were short all [last] summer,” a member of the crew told the Halifax Chronicle-Herald. “Especially in the fall, when students went back to school, there was a bit of a void.” The upshot: The elites of the golf demographic want a 100 percent authentic golf experience, and they’re willing to pay extra for it. One other tidbit about Cabot’s economics: On several days last summer, the resort claims, it turned away 55 to 60 potential players. So it’s fair to ask: How long before Cabot green-lights its third golf course?

Sunday, January 22, 2017

The Week That Was, january 22, 2017

     We’re only three weeks into 2017, and the International Golf Federation is already embroiled in what may be remembered as the blunder of the year. In what amounts to a gross failure of due diligence, the venue chosen by the IGF to host the golf competition in the 2020 Olympics, Kasumigaseki Country Club in suburban Tokyo, doesn’t admit women as full members. The club accepts women, but they receive a second-class membership. This is another black eye for golf, and right now members of the IGF and the International Olympic Committee are on their hands and knees, begging Kasumigaseki’s leadership to begin giving their female members the same privileges that the men get. “The restrictions on women at Kasumigaseki are certainly a problem,” an official of the Japan Golf Council told the Guardian. “It runs contrary to what the IOC stands for in spirit.” Ty Votaw of the IGF has acknowledged that his group was “not aware” of Kasumigaseki’s discriminatory membership policies, but he didn’t say why such an important issue was overlooked. Here’s the bottom line: This problem will soon be resolved, either by a change in Kasumigaseki’s membership policies or a change in venue. But when it comes to golf’s public image, the damage has been done. The IGF’s mistake sends an appalling message about our industry’s sensitivity to women’s issues.

     Congratulations to the First Tee of Greater Wilmington, North Carolina, which has become the primary beneficiary of charitable donations generated by the 2017 Wells Fargo Championship. “We are proud to continue our support for The First Tee,” a spokesperson for Wells Fargo said in a press release. “They are making a real difference in our local communities, and their work connects directly with Wells Fargo’s vision and values.” Those are kind words, but does the First Tee really wish to be associated with Wells Fargo’s vision and values? Wells Fargo is, after all, the bank that defrauded so many of its customers by creating accounts that they didn’t ask for and then kept news of a federal investigation into the matter a secret from its shareholders. Where do such activities, as well as others initiated by Wells Fargo, fit on the list of the First Tee’s nine Core Values? Wells Fargo may be cynical enough to repair its shattered public image by exploiting the innocence of kids, as it does in its television commercials, but is golf so financially stressed that it has to serve as an accomplice? If our industry’s leaders really believed that the First Tee’s “inherently positive values” are so intimately “connected with the game of golf,” they’d cut ties with Wells Fargo and other shady financial institutions.

     If a published report is accurate, London + Regional didn’t go very far to find the architect for its golf course in Varadero, Cuba. Skift says that the 18-hole track at Carbonera will be designed by International Design Group, a British firm that was originally linked to the venture in 2008, when it operated as PGA Design Consulting, Ltd. Bob Hunt, IDG’s principal, was seemingly replaced in 2011, when Carbonera’s previous developers began working with Tony Jacklin, but now he’s apparently back in the picture. A spokesperson for L+R told the online news source that his company intended to break ground on Carbonera by the end of last year, with its first phase – 200 houses and a 150-room hotel – to open by 2020. As far as construction on the golf course goes, your guess is as good as mine.

     The original version of the preceding post first appeared in the October 2016 issue of the World Edition of the Golf Course Report.

     Without explaining why or offering any “alternative facts,” last week Trump International Golf Links Ireland canceled a long-planned “massive party” that was supposed to celebrate the inauguration of the 45th U.S. president. Instead, while gala inaugural balls were taking place in Washington, DC, TIGL Ireland chose to continue with what it called “business as usual.” It was a surprising about-face, seeing as how the event had reportedly been in the works since November, when the head of the resort’s ownership group won the presidential election. For context, however, let’s note that relations between Donald Trump and his property in Doonbeg have been strained of late. Last year, in the wake of what he described as an “unpleasant experience” with Irish planning authorities, Trump called his resort “small potatoes” and claimed that he “couldn’t care less” about it anymore. It’s no stretch to think that such dismissive comments might have killed the party mood.

Friday, January 20, 2017

The Pipeline, january 20, 2017

     Inverness, Scotland. Fingers crossed, but Arnold Palmer’s golf course at Castle Stuart could be just weeks away from its groundbreaking. The “signature” layout, appropriately to be called the Tribute, will be Palmer’s first in the birthplace of golf. If construction begins in April, as expected, it’ll open in 2019. “If everything goes according to plan,” Castle Stuart’s general manager told the Aberdeen Press & Journal, “the new course will provide a fitting tribute in Scotland to the great man and his momentous career.” Before he died, Palmer promised to deliver what he’s described as “an iconic golf course” at Castle Stuart. The 18-hole track will complement the property’s existing layout, a co-design by Mark Parsinen and Gil Hanse, that’s been hailed as “a golfing masterpiece.” Parsinen, the managing partner of the entity that owns Castle Stuart, will co-design the new course with Palmer’s associates, Thad Layton and Brandon Johnson, who are getting a golden opportunity to establish their architectural bona fides. Palmer’s firm has reportedly been involved in more than 300 golf ventures on five continents, but only one – Tralee Golf Course in County Kerry, Ireland – has a place on Golf Digest’s top 100 outside the United States, at #82. If their course lands on the list, Layton and Johnson will have a valuable marketing chip to play when they set out to secure future commissions.

     Borough of Bolton, England. One of Great Britain’s best-known investment groups wants to build a golf venue capable of hosting a Ryder Cup competition. Peel Group has submitted plans for a to-be-named community that’s to take shape on the 1,000-acre Hulton Park Estate in suburban Manchester. The community will include high-end houses, a hotel with a conference center, a spa, a golf academy, and a golf course that will be, in the words of a company spokesperson, “one of the most exciting in the country.” The course will be designed by Berkshire-based European Golf Design, a firm that’s co-owned by the European Tour and whose portfolio includes courses that have hosted the Ryder Cup and other events on par with it. An unnamed source told the Bolton News that Peel is “very serious,” and the newspaper suggests that it hopes to stage the Ryder Cup, one of the world’s elite golf events, at Hulton Park in 2026.

     The original version of the preceding post first appeared in the October 2016 issue of the World Edition of the Golf Course Report.

     Baja California Sur, Mexico. Mexico’s biggest and best-known golf developer has set out to create what it says will be “the most spectacular resort in Los Cabos.” Grupo Vidanta’s resort, Vidanta East Cape, will take shape on 3,000 acres a few miles north of San José del Cabo, the more traditional of the two major cities in Los Cabos. The master plan for the property includes several mountaintop hotels, an 18-hole, Greg Norman-designed golf course (his second for Grupo Vidanta), and what’s being billed as “the largest pool on the planet.” Grupo Vidanta, which believes its mission is “to deliver the essence of happiness,” owns and operates resort-style hotels, several of them with golf courses, in Nuevo Vallarta, Puerto Vallarta, Acapulco, Mazatlán, and other popular Mexican vacation spots. What’s more, the company knows how to fill its hotels. It built an international airport near its resort in Puerto Peñasco and a Cirque du Soleil Theater at its resort on the Riviera Maya, and it wrote a check to help persuade Eon Productions to film parts of Spectre, the James Bond movie, in Mexico.

     The original version of the preceding post first appeared in the July 2016 issue of the World Edition of the Golf Course Report.

     Vĩnh Phúc Province, Vietnam. As many as four golf courses could be part of a long-delayed horse-racing complex outside Vietnam’s capital city. G. O. Max I&D, a South Korean company, hopes to build the to-be-named facility on 1,875 acres roughly 35 miles northwest of Hà Nội. If it can secure construction permits, the company will build a race track with seats for more than 15,000 spectators, an undisclosed number of villas and other housing types, a sports and entertainment venue, an equestrian center, a polo club, and a 72-hole golf complex. G. O. Max originally submitted a proposal for the facility to Vĩnh Phúc Province’s people’s committee in 2005, but it’s made no progress due to prohibitions on gambling in Vietnam. If the restrictions are ever lifted – and government officials have reportedly written draft legislation – the company intends to stage races three times a week and open at least 70 betting parlors around the nation.

     The original version of the preceding post first appeared in the October 2016 issue of the World Edition of the Golf Course Report.

     New South Wales, Australia. Shortland Waters Golf Club, in suburban Newcastle, is about to undergo a transformation that will make it, in the words of a letter written to its members, “so different and so much improved on what it is today.” The club, which has operated in its current location since 1935, will make property available to a developer that plans to build 300 villas for retirees and an assisted-living center. With the money it receives, Shortland Waters will build six new holes and make other improvements to its 18-hole golf course. “We couldn’t have survived without the money this will bring,” the club’s treasurer told the Newcastle Herald. “We were in dire straits.” The upgrades to the golf course will be overseen by Richard Chamberlain, who’s had a hand in creating at least a half-dozen courses, among them three in New South Wales: Bonnie Doon Golf Club in Pagewood, Kooindah Waters Golf Course in Wyong, and Royal Sydney Golf Club in suburban Sydney. At Shortland Waters, Chamberlain expects to deliver a course that will reportedly be “a lot more challenging” than the one the members currently play. The track is scheduled to debut in early 2018.

     Chon Buri Province, Thailand. A U.S. firm is responsible for an international-standard golf course that’s under construction in one of Southeast Asia’s favorite golf destinations. Santa Rosa, California-based Golfplan-Dale & Ramsey Golf Course Architecture has designed an 18-hole track for Master Golf Resort, which is taking shape on a 250-acre site roughly 20 miles south of Pattaya, an area that vies with Phuket as Thailand’s most popular vacation spot. The course, which is scheduled to open in late 2017, will be operated by IMG Golf. Pattaya has at least 30 golf properties, the best known of which is probably Siam Country Club, which has a 63-hole complex. The area’s collection also features some notable tracks by “signature” architects, among them Jack Nicklaus (Laem Chabang International Country Club), Pete Dye (Khao Kheow Country Club), Gary Player (Sriracha Golf Club), and Peter Thomson (Greenwood Golf Resort). Master is the first golf venture for Chartered Square Holding Company, Ltd., a Bangkok-based real-estate investment and management firm. Chartered Square expects Master to become “one of Thailand’s premier golf clubs.”

Sunday, January 15, 2017

The Week That Was, january 15, 2017

     It appears that ClubCorp’s top executives and board members have been listening to the shareholder complaints that were made public last year.
     The Dallas, Texas-based course owner and operator, the self-described “World Leader in Private Clubs,” has taken steps that could eventually lead to a sale. It’s “in the early stages of an auction process that has attracted the interest of potential buyers,” and it’s organized a committee that will study options that might “further enhance shareholder value.”
     Last April, Kerrisdale Capital Management drew attention to ClubCorp’s “billion-dollar debt burden,” its annual losses, the lack of membership growth at its “same-store” properties, and its weak profit margins, and the Street recommended that investors sell their shares in the company. A few months later, a disgruntled minority shareholder, FrontFour Capital Group LLC, demanded that ClubCorp maximize its value by selling all or at least some of its golf properties and to pursue “any and all strategic alternatives, including an outright sale of the company.”
     ClubCorp has come a long way since Bob Dedman ran it however he pleased. As a public company, it’s obligated to respond to pressures brought by shareholders whose only concern is maximizing the return on their investments. It may appear that Eric Affeldt and his closest associates are still making golf-related decisions, but in fact they’re now in the business of delivering value to investors. If they fail, they’ll be replaced.
     KSL Capital, a private equity firm, acquired ClubCorp for in 2006, reportedly for $1.8 billion, and took the company public in 2013. The company will probably be sold to another private-equity firm, but don’t overlook the possibility of an overseas group buying it. ClubCorp would be a very attractive target to a Chinese conglomerate looking to carve out a place in the U.S. golf market.

     A Japanese billionaire is intrigued by the possibilities for golf development in the Philippines.
     Late last year, Kazuo Okada, the chairman of Tokyo-based Universal Entertainment Corporation, opened the largest casino in the Philippines, the Okada Manila. Okada has made a fortune by manufacturing and selling slot and pachinko machines, arcade games, and video games – he has a net worth of $2.3 billion, according to Forbes – and he views the Okada Manila, which features a nearly 1,000-room hotel and a man-made beach, as the base of Philippine operations that will eventually include resorts with golf courses.
     Okada is planning to develop his future properties with Antonio “Tonyboy” Cojuangco, a partner in Okada Manila and a cousin of Benigno Aquino, Jr., the Philippines’ president.
     “Mr. Okada wants [a] total entertainment package for the whole family,” Cojuangco told the Manila Standard. “So, aside from [the] hotel and its features, he is also going to be developing resorts in islands, golf courses in the country.”
     Okada, who once held a major stake in Steve Wynn’s casino company, reportedly has a particular interest in two locations: Palawan, an island province, and Davao, in the southeastern part of Mindanao Island. Palawan may hold special appeal for him, for it’s said to be “every beach lover’s dream destination,” and last year Travel + Leisure named it “the best island in the world.”

     The original version of the preceding post first appeared in the August 2016 issue of the World Edition of the Golf Course Report.

     A former military-owned golf course in a nation known for human-rights abuses is being transformed into an international-standard layout that its new owners believe is “destined to become the ‘must-play’ course in Myanmar.”
     Dagon Golf Club, in Yangon, Myanmar, expects to complete its makeover this spring, and the people involved in giving it a fresh face have boldly raised expectations. Phil Ryan of Pacific Coast Design, the course’s architect, says the 18-hole track will “surely rank as one of the region’s best golf courses,” and Justin Strachan of Absolute Golf Services, the course’s operator, thinks it’ll “set new standards for golf” in a nation that’s become “the perfect location for a top-level course.”
     Jewellery Luck Group of Companies has set out to make Dagon the centerpiece of Dagon Golf City, a community that will feature villas, apartments, a hotel, and a retail/commercial area. The golf city is an example of the kind of growth Yangon has seen since nations around the world began lifting economic sanctions that were imposed to protest Myanmar’s corrupt and repressive military rule. Myanmar now has a fast-growing economy and a growing taste for Western luxuries, but it remains a violent nation with persistent ethnic unrest that doesn’t figure to end anytime soon.
     If Dagon lives up to its billing, it’ll vie for prominence with Yangon’s Pun Hlaing Golf Club, a venue with a tournament-worthy, Gary Player-designed course that Golf Digest currently ranks as Myanmar’s best.

Sunday, January 8, 2017

The Week That Was, january 8, 2017

     By now, you’ve probably heard that Jack Nicklaus has designed a golf course in Turkmenistan, a nation that most people couldn’t find on a map if their lives depended on it. (Hint: It’s a former Soviet satellite.) Needless to say, Turkmenistan has virtually no home-grown golfers. But money talks, and the world’s best-known “signature” architect has reportedly made five visits, with more to come.
     No surprise here, but the course, at Ashgabat Golf Club, will be the nation’s first. It’s scheduled to open this summer.
     Nicklaus was selected by Gurbanguly “Spellcheck” Berdymukhamedov, Turkmenistan’s president for life. Berdimuhamedov rules an energy-rich, increasingly wealthy nation, and he’s eager to capitalize on his nation’s tourism potential. In fact, the course at Ashgabat was no one-shot deal. Nicklaus has agreed to design at least one more course in Turkmenistan, at an emerging resort along the Caspian Sea.
     Make no mistake, though: Nicklaus is cashing checks from a tyrant. Berdimuhamedov’s corrupt regime has drawn comparisons to those in North Korea, Myanmar, Sudan, Syria, and other unsavory nations. Turkmenistan offers no freedom of religion, no freedom of the press, and really, no freedom of anything. The BBC calls it “one of the most repressive states in the world,” with a human rights record that’s “one of the worst of the worst.”
     Berdimuhamedov knows that he can’t make Turkmenistan a vacation destination until he polishes its public image, and that’s where Nicklaus, with his spotless reputation, comes in. Golf’s most effective spokesman is now Berdimuhamedov’s best-known publicist, not to mention a trigger for economic development. Ashgabat Golf Club will spark more growth in the capital city, and the course on the Caspian Sea will help to create what Turkmenistan’s tourism officials hope will be “the Costa Del Sol of Central Asia.”
     Golf-course architects occasionally work in some dreadful places and for reprehensible people, but jeez, working for Berdimuhamedov is like working for Darth Vader. He’s one of the worst people in the entire universe. And Nicklaus’ commitment to his golf ambitions is tacitly an endorsement of policies contrary to fundamental American values.
     Nicklaus is not naïve about politics or business, and he most certainly appreciates the value of his name. He has no need to go over to the Dark Side. He’s wealthy beyond belief, and he’s designed so many golf courses in so many countries that he doesn’t need a few in a remote dictatorship to cement his legacy. Why he’s chosen to associate with a despot is a mystery.
     When Jennifer Lopez entertained at one of Berdimuhamedov’s birthday parties, she got lots of criticism. The heat should be on Nicklaus as well.

     Some information in the preceding post originally appeared in the January 2015 and May 2013 issues of the World Edition of the Golf Course Report.
 

Friday, January 6, 2017

Desolation Row, january 6, 2017

     Scottsdale, Arizona. The resort made famous by Charlie Keating wants to lop nine holes off its 27-hole golf complex. Keating, who played a major role in bringing down the U.S. savings & loan industry in the 1980s, opened the Phoenician in 1988, a year before he was indicted, hoping the 315-acre spread would be “the eighth wonder of the world.” (After the federal government seized the property, it was nicknamed “Club Fed.”) The Phoenician has passed through many hands in the years since, and while its current owners may believe that their golf complex, co-designed by Ted Robinson and Homer Flint, “inspires your spirit of adventure,” they also believe it’s “the perfect time to come in and build additional [housing] units.” They’ve petitioned for a rezoning that will enable them to do so. No matter things turn out, the Phoenician will forever live in infamy.

     White Sands Missile Range, New Mexico. The only 11-hole golf course in the U.S. Army’s portfolio has bitten the dust. The course, designed by military personnel, opened in 1962. “It was good while it lasted,” the track’s manager told the Alamogordo Daily News. The course’s claim to fame: Rich Beem learned to play golf there.

     Petaluma, California. Citing the “declining popularity” of golf, along with the cost of labor and other expenses, Richard Coombs has drawn the curtains on Adobe Creek Golf Club. The 100-acre course, said to be “a favorite of Northern California golfers for the past 25 years,” had been designed by Robert Trent Jones, Jr., with assistance from Kyle Phillips. Coombs, a developer, purchased it in 2011, after it had been placed in bankruptcy protection. He appears to be intent on developing the property, although the home owners in the accompanying community believe the course is supposed to remain in place until 2039. Coombs is a member of investment groups that own two other golf properties in Sonoma County, Rooster Run Golf Club and Windsor Golf Club.

     Sharpes, Florida. A big home builder has laid a claim on Sam’s Executive Golf Course, outside Orlando, and it’s secured the zoning change that will lead to an eventual purchase. D. R. Horton plans to build 224 single-family houses on the 56-acre property, a golf course since 1966. A local elected official called the forthcoming conversion “kind of a win-win,” noting that “everybody seems to embrace” the idea. There’s a little bit of unknown history here, though, because the 18-hole layout once operated as Sam Snead Executive Golf Course.

     Kent, Ohio. Kent State University has pulled the plug on its 18-hole golf course, a track that was said to offer “some of the most affordable golf in northeast Ohio.” In a press release, the university confessed that it “could not reverse a five-year trend of declining revenues and mounting operating losses.” The course, described as “a traditional Scottish-links design that is bisected by a railroad track,” had operated since the late 1920s. The university has owned it since 1996.

     Grand Forks, North Dakota. After making what appears to be a half-hearted attempt to find a private-sector operator, the University of North Dakota has turned out the lights at Ray Richards Golf Course. The school claims that the decision hinged on a philosophical issue. “We’ve wondered, we’ve questioned over the past few years,” a spokesperson said to the Grand Forks Herald, “should we be in the golf course business?” Now we know the answer to that question. It’s possible that other factors were also involved, however, because the university also believes that the 68-acre track is “a prime piece of property that has value.” The nine-hole course, designed by Robert Bruce Harris, had operated since the late 1960s. It was named after the landowner who donated the property.

     Liberty, Missouri. At the end of last year, William Jewell College closed the golf course it acquired in the early 1990s. In a press release, it said the decision to close Cardinal Hill Golf Course had been “anticipated for some time” because “operating our golf course has not been a profitable endeavor.” The 18-hole, Chet Mendenhall-designed layout made its debut in the late 1960s. Funny thing, though: The course’s private-sector manager reportedly declined to comment on the college’s decision.

     Waterloo, South Carolina. Don Salyers has closed Rolling S Golf Club and hopes to find a buyer. “Our business dropped off,” his wife told the Greenwood Index-Journal. “People are watching their money, I would say.” Rolling S, a 160-acre property, opened in 1969. According to the club’s website, Salyers has owned it since 2000.

     Poughkeepsie, New York. Time has run out on Dutchess Golf Club, one of the nation’s oldest golf properties. (The club hadn’t posted a tweet since early 2014, a sure sign of trouble.) Dutchess had operated for 120 years and once proudly counted Franklin Delano Roosevelt among its members, but Anthony Bacchi stuck a fork in it just before Christmas. He hasn’t said why, but the cynic in me thinks it’s because he didn’t want to foot the bill for a New Year’s Eve party. A more convincing explanation comes from the Poughkeepsie Journal, which talked with a member and subsequently blamed the club’s demise on “decreasing membership and increasing prices.” Bacchi bought Dutchess from a local bank in late 2015. He hasn’t completely abandoned the golf business, as he still owns Lazy Swan Golf & Country Club in Saugerties, New York.

Sunday, January 1, 2017

The Year That Was, january 1, 2017

     The top stories of 2016, in no particular order

     Months before he became the President Elect, Donald Trump received a vote of no confidence from the R&A. It came in February, when, in what amounted to an act of self-protection, the golf industry’s most self-righteous institutional power passed on an opportunity to award the Open Championship to Trump Turnberry. The decision was a slap in the face for Trump, who’d acquired the historic Scottish resort in part because it’s long held a spot in the Open rotation and figured to help him realize his paramount golf dream, which is to host a major championship at one of his golf properties. Of course, decisions can be reversed, and Trump Turnberry will likely get back into the rotation in 2022.

     An affiliate of HNA Group, one of the high flyers in China’s golf business, purchased a high-profile golf portfolio in greater Seattle, Washington. In October, the company reportedly paid $137.5 million for eight properties assembled by Oki Golf, a collection that includes Golf Club at Hawks Prairie in Lacey, Golf Club at Newcastle in Newcastle, Indian Summer Golf & Country Club in Olympia, and Washington National Golf Club in Auburn. HNA Group is primarily an aviation company, but it owns seven golf properties on Hainan Island and at least four others elsewhere in the People’s Republic. And though it reportedly views Seattle as “a gateway into the North American golf market,” it’s already established a presence in U.S. golf operations. In recent years it’s acquired Nicklaus Club Monterey (formerly Pasadera Country Club) in Monterey, California and Somers Pointe Golf Club in Somers, New York. It wouldn’t be a surprise if the company eventually found other buying opportunities on our shores.

     Gil Hanse’s golf course in Rio de Janeiro may be a critical success, but it isn’t doing much to grow the game in Brazil. In fact, a few weeks ago Agence France Presse suggested that the track has such serious money troubles that it may soon go out of business. The gory details: The course, which hosted the golf competition for the 2016 Olympics, attracts only 40 customers on an average day, and its operators, who aren’t getting paid, are “set to pull out.” This news should come as no surprise, seeing as how Rio, a city of 6 million, has, according to Golf magazine, just 1,500 golfers.

     Phil Mickelson, a golf superstar and a frequent gambler, had a couple of uncomfortable brushes with the law. In May, the Securities & Exchange Commission determined that he’d been “unjustly enriched,” with nearly $1 million in “ill-gotten gains,” in connection with a stock-trading scheme. As the story goes, some time ago Mickelson became indebted to an acquaintance, Billy Walters, an inveterate gambler and a longtime target of SEC investigators. Walters, acting on a tip from an insider, reportedly encouraged Mickelson to buy some stock in a company called Dean Foods, and the “investment” paid off in spades. Mickelson was, according to the SEC, able to “pay off his debts with the proceeds of the trade.” Then, just weeks after he’d agreed to pay the fines related to the case, Mickelson was linked to a money-laundering scheme that had been designed to conceal what court documents describe as “losing wagers.” The scheme involved a Mickelson associate who’d pleaded guilty to transferring $2.75 million between bank accounts “virtually as a personal favor to an individual who did not wish his wagering activity to become public.” Mickelson wasn’t mentioned by name, but Bloomberg reported that he was the individual whose identity was being protected. Thanks to loopholes in securities laws, however, neither of these incidents led to a criminal charge.

     Arnold Palmer, who disdained crowns but was nonetheless known as the King, died in September. It’s impossible to over-estimate the impact he had on sports in general and golf in particular. He was a ferocious competitor, a coveted corporate spokesman, a founder of “signature” golf, the face of his sport for more than a half-century, and, above all, the most approachable superstar who ever lived. Many golfers become famous. Palmer became beloved, in large part because he always remained true to his roots. Unlike so many others, he managed to harness the power of fame without being consumed by it. Three other course architects died in 2016 – Christy O’Connor, Bob Cupp, and Gene Hamm – all of them members of the generation of designers who defined high-quality golf architecture in the late 20th and early 21st centuries. Finally, in November, another golf-industry legend passed: Peggy Kirk Bell, an accomplished golfer, a renowned golf instructor, a pioneer for women’s golf, a tireless ambassador for the sport, and the owner of two popular, well-regarded golf properties in the Pinehurst area, Pine Needles Lodge & Golf Club and Mid Pines Inn & Golf Club. No wonder a commentator once called her “the female Arnold Palmer.”

     In golf’s battle of the sexes, another domino fell in July, when the members of Royal Troon, a historic enclave in South Ayrshire, Scotland, voted to allow women into their club. The decision came after two other venues in the rotation for the Open Championship – the Royal & Ancient Golf Club of St. Andrews in 2014 and Royal St. George’s Golf Club in 2015 – similarly chose to end their discriminatory membership policies. “I think this means that Royal Troon Golf Club is reflecting the society in which we exist in the 21st century,” the club’s captain told the New York Times. More importantly, the vote meant that Royal Troon wouldn’t suffer the fate of Muirfield, which was stripped of its cherished spot in the rotation when its members voted to remain true to their exclusionary principles. It’s worth noting that Muirfield’s members have come to regret their decision and plan to hold another vote on their woman problem later this month. The outcome will likely be different.

     Last summer Peter Thomson, one of Australia’s most prolific “signature” architects, retired from the design business. He cited his age – he turned 87 last year – and “declining health” as the reasons for his retirement. Thomson may not be very well-known in the United States, but he’s one of the greatest golfers of all time. He reportedly had 89 victories as a professional, and beginning in 1954 he won the Open Championship three consecutive times, a nearly impossible feat, and then he won it again in 1958 and in 1965. Thompson began to design golf courses in the early 1960s, and over the years he and various associates designed, redesigned, or renovated more than 200 courses, most of them in Australia, Asia, and Southeast Asia. The firm’s work isn’t universally admired, but it’s had a hand in producing at least 10 courses that Golf Digest ranks among its top 100 in Australia. Thomson’s retirement ought to remind us that other aging “signature” architects – Jack Nicklaus, Pete Dye, Gary Player, Rees Jones, and Robert Trent Jones, Jr. notable among them – will also be leaving the business before long. All of them thrived during a remarkable era when golf development, propelled in large part by a parade of former professional stars, spread across the planet. Collectively, they had a tremendous influence on public perceptions of golf. Each in his own way is an industry titan.

     For the first time, a golf course in Africa won a seal of approval from the British PGA, as the group identified Vipingo Ridge, the centerpiece of a 2,500-acre community in suburban Mombasa, Kenya, as a worthy destination for its members. Such recognition may not mean much to us in the United States, but it’s a significant milestone in Africa. With the PGA’s branding, Vipingo Ridge’s owners will be able to attract more golf travelers, host high-prestige tournaments, charge more for their real estate, and perhaps even break ground on their long-overdue second course. A golf commentator wondered whether the award might spark “a new phase in Kenya’s golfing scene.” The rest of us are wondering how much golf development it sparks in other African nations.

     All the ducks aren’t yet lined up in their respective rows, but it appears that Chicago on the cusp of becoming a bona-fide destination for elite professional tournaments. Mark Rolfing, a commentator for the Golf Channel, is twisting arms in an attempt to create a 27-hole golf complex – a world-class 18-hole course and an easy-to-play nine-hole layout – along the Windy City’s lakefront, on property currently occupied by a pair of struggling municipal tracks. Some heavy hitters are involved, as Mike Keiser is among the fundraisers for the complex, which will be designed by Tiger Woods and take shape just a chip shot from the site of Barack Obama’s forthcoming presidential library. If Rolfing and his partners can secure financing and negotiate their way through the city’s political bureaucracy – issues where a locally beloved president and one of the world’s most famous golfers would certainly be helpful – their golf course could open in 2021, the same year that the library is scheduled to open.

     The planet’s hottest golf market, the Socialist Republic of Vietnam, set an official target for golf construction: 96 courses by 2020. Seeing as how the nation currently has something like 40 or 45 courses, the math says that about 50 courses might open in Vietnam over the next four years. Such a pace of construction begs two obvious questions. First, Can Vietnam’s resident golfers (all 10,000 of them) and vacationing golfers from other nations (7,000 annually these days) sustain nearly 100 golf courses? And second, What happens when Vietnam reaches its goal?