Before anyone gets upset, THIS IS NOT A DOOM & GLOOM POST. That said, as golf has thrived in the post COVID era, it’s no secret that the cost of playing has risen dramatically. Certainly, some of that is due to inflation, but much is due to the combination of increased demand, fewer courses and the widely held belief that golf is a status symbol (in the US). While I’ve often thought in recent years as golf has grown where the next generation of golfers will come from, this commentary was motivated, at least in part by a fellow senior golfer (who belongs to multiple clubs) who shares my concern about developing new golfers given escalating green fees, club membership entrance fees & dues and equipment costs.
To put in perspective, I went back through some data from clubs we’ve analyzed (private and public access) in the past year and to assess generally how much the cost of playing golf has increased during the period 2021-2025. Considering peak green fees at daily fee course and annual family golf dues at private clubs the cost of playing golf has increased more than 30% over that 5 year period, an average of approximately 6% per year. Conversely, the US inflation rate during the same period ranged from 2.4% to 8% annually, resulting in a cumulative price increase of approx. 20%. Of the individual courses surveyed, the rate of price growth ranged from 1.6% to nearly 16% and total growth ranged from 8% to nearly 80%.
Club entrance fees have experienced even more rapid growth, often at exponential rates.
While all this is great for the golf industry, at least for now, as we golfers age, play less frequently and stop playing, the younger generation, especially with more mainstream economic pressures like food, shelter, education, etc., may decide that not only does golf take a lot of time but also that the cost of entry is too great, especially if they don’t become avid golfers. How can this be resolved? Below are some of my thoughts.
In the private club market segment, what I call the “space race” has seen many clubs invest significant sums into their facilities, often incurring considerable debt in order to keep up with the competition. In come cases, this debt has required more members, resulting in crowded facilities and higher costs for debt service. Often the result is unhappy members, even with excellent facilities – that become inaccessible. Furthermore, younger potential members become priced out and either seek less costly alternatives, refrain from joining a club or simply don’t play or take up golf. As evidenced by some of the calls I’ve received of late, this is more of a challenge than many want to discuss and stresses club finances and club cultures significantly. No matter how affluent a membership may be, if affordability isn’t a problem, value in membership most certainly can be.
On the daily-fee side, where affordability is often a primary concern, the future prospects for growth are even less certain than at private clubs. Not only are costs of operation increasing, but competition still exists in some markets and the public golfer is more sensitive to economic pressures. Daily-fee courses are more sensitive to both climate concerns and the need for a profit, which many member-owned clubs don’t have. If weekend weather looks bad, the private club still collects dues while the daily-fee course gets tee time cancellations.
With the cost of golf course maintenance increasing rapidly (as I write this, Diesel fuel is $6+ per gallon just up the street) one would think that all courses will at least be considering how they can maintain desirable course conditions more cost effectively. Certainly, we all want good playing conditions, but is there overkill at some point? I’ve played quite a few courses (including private clubs) of late with maintenance budgets less than $1.5 million that were in more than acceptable condition. Do we really need to be spending $2.5m+? Is it an agronomic question or a competitive question?
Does everyone need to spend upwards of $3,000 on a set of golf clubs. A friend of mine went to a national club fitting house and walked out spending $6,000. Some people spend $600 for a new driver almost every year seeking an extra 10-20 yards. Conversely, about 3 years ago, my wife, a very casual and occasional golfer bought an “economy” driver designed for infrequent golfers for less than $200 and thinks the club is magic.
Some have said that golf should be “aspirational”. I disagree. The more players we attract into the game, the better. It’s always been fascinating to me how many of my fellow private club members travel to Scotland or Ireland on golf trips and rave about the culture (an everyman’s game) and conditions (not always plush and green) and yet seek to terminate the superintendent if they observe less than perfect conditions at their club. Just yesterday, I read about a new, upscale club with plans to be more inclusive and welcoming, like clubs in the UK. Is this the future for some clubs in the US?
In order to continue growing, golf’s culture needs to broaden. Like I say in the title of my book, “Isn’t it just a game?” Golf is a business too, but every successful business has an eye to the future.
