Greetings Golfers,

This blog was supposed to be about the new USGA Rules of Golf. But, I got side-tracked.

We just arrived in Beaufort, SC. Of course, I couldn’t wait to hit some golf balls – not even through unpacking. So, I went to a local golf course that I’ve played for many years. However, the sign on the door announced that it’s closed. I mean closed. It’s not a huge shock … but the owner is a heir of famous nut company. We’ve talked many times about running a golf course (don’t blame me!). His idea of management is cutting expenses – to the bone and even the bone.

Here’s the scenario: It’s in the middle of a beautiful neighborhood with upscale homes, and some holes are even on the water. The layout is as good as the property – designed by a famous golf architect. It has a big charming clubhouse with a full-blown restaurant and chef. Has a nice driving range, cart barn, and even a workout facility.

Sounds pretty good? It is.

What happened? Well, I’ve seen multiple owners over the years. When it went up for sale about 10 years ago, it sold for a shockingly cheap price. So, a financial guy from Boston bought it … he thinks all good deals are in the buy. But, he doesn’t understand the golf course business. A few years ago, a local (MN) real estate developer wanted me to buy a local course (MN) that he thought was way under-valued. I told him that he wouldn’t want it if it were free. He didn’t understand. I told him that it needed about $5M just to be brought up to a C golf course … and even then it probably couldn’t cash-flow. That blew his mind.

Well, the genius from Boston pulled me over in the parking lot one day after his first year of ownership. I asked him how was his first year … he told me that he’d lost a million dollars … I told him to sell it before he lost another million.

This blog has even changed from my intention. I meant to write about how much I love to play golf. Though closed, I played the first hole and hit a bunch of chip shots. I couldn’t believe how happy I was … how much I enjoyed being outside on a golf course with a few clubs and balls.

And then, I couldn’t believe how sad I was walking back up the first fairway thinking that this place might be finished for ever. I can’t stand-it when golf courses fail.

Next week I’ll dive into the new Rules of Golf. Thank God there are still enough golf courses surviving so that we can worry about the new rules instead of worrying about where to play.

Cheers,

Tom Abts
GM/Head PGA Professional
tabts@deerrungolf.com

Deer Run Golf Club
8661 Deer Run Drive
Victoria, MN 55386
(952) 443-2351
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