This past week, Golf Canada completed their annual meeting and celebrated a surplus of $99,384.00 compared to a deficit of $915,495 last year and the first surplus since 2013. Congratulations. Roland Deveau, President of Golf Canada said “2016 was a year in which we made great strides in improving the longterm health of the Association and we look forward to continuing those efforts in the future as we recognize the importance of Golf Canada’s role as a leader in the industry”.
Some of the highlights from 2016 included:
- An increase in total revenue by $1,789,785
- Core professional championships recognized a surplus
- RBC extended their sponsorship of the RBC Canadian Open for another six years
- Funding was committed from Own the Podium for the first time
- The World Junior Girls Championship has grown its legacy fund
- The revised membership model achieved close to 1% increase in total Golf Canada and Provincial Golf Association member golfers to 306,650.
- The investment portfolio balance has grown to $23, 946,416 ensuring that our Financial Mandate is intact as of October 31, 2106.
As we start our analysis of the current annual report and review past years, we have made some observations and would like to ask Golf Canada for an explanation. Perhaps we don’t have all the information so it will be beneficial to receive an explanation.
Observations and 7 Questions for Golf Canada
The following list of questions has been sent to Golf Canada and hopefully they can explain some sections and provide additional insight into some of the number numbers stated in their Annual Report. Upon receipt of their answers, we will publish their comments in Pro Shop Magazine, golfindustrynetwork.ca and The Press Room.
- In the 2016 report you state that your membership has increased to 306,650 members. Is this number rounded-off, an approximation or is this the actual number of members?
- In the past few annual reports you state in each that you have approximately 1,400 member clubs. Is this number real or an approximation as it seems odd the same number of member clubs is stated each year? If the number is an approximation why can’t you state the exact number of member clubs?
- When you launched the new membership program there were three levels: Bronze, Silver and Gold. Now you have two: Bronze and Gold. When was this change made and why?
- During the Annual meeting, Golf Canada President Roger Deveau said he was pleased with the new membership program and the approximate 1% growth. From a business perspective are you actually pleased with an approximate 1% growth rate? How many new clubs did you actually sign up and how many new members?
- With a 1% growth rate and increase in members one would assume your membership revenue would also increase. However, reviewing your “Membership Program Revenues and Expense” section in the financial statement, your revenue for 2016 was $3,627,762 and in 2015 the membership revenue was $3,659,911. A drop of $31,855.00. How can membership increase and revenue fall?
Note: In 2013 Golf Canada membership revenue was stated at $3,750,962. This means in three years membership revenue has decreased by $123,200.
- For membership expenses; 2016 expenses are stated at $1,437,964. An increase of $156,203 from 2015 expenses stated at $1,281,761.
Can you please explain why Golf Canada is happy with a 1% membership increase when revenue declines and expenses increase by approximately 12%?
- In the 2016 Annual Report Golf Canada states they have 306,650 members and membership revenue at $3,627,762. Membership dues as are $49.95. In checking with some provincial associations they say approximately $20.00 from this membership fee goes back to Golf Canada.
With some simple math, 306,650 members should generate $6,133,000 in revenue. Or with membership revenue of $3,627,762 and receiving approximately $20.00 per member, your total membership should be approximately 181,388.
We are sure there must be more to these numbers and assume there are special membership deals with clubs like Clublink etc. Possibly the $20.00 received is not all attributed to membership revenue and maybe less money is received for juniors?
How many adult members and junior members do you have recorded?
Finally, can you please explain why it appears your membership revenue is low and your total number of members high?
As we continue to examine the financial report, additional questions may be asked next week.
