Mike Dougherty

Journal News

While anxious golfers were putting their Foot Joys up and riding out the COVID-19 pause at home, conscientious industry leaders were already bracing for the impact and re-imagining the future.

The new normal needs to be in place before a recovery gets underway.

“If you’re not planning now, you’re already behind,” said Charles Dorn, managing director of the Dorn Group in Rye, which advises numerous private clubs across the country. “I think you have to look at every single element of the business. I think you have to be prepared for anything.”

Executive orders in New Jersey and New York shuttered golf courses, but New York reversed that decision Friday, allowing private courses to open so long as there are no employees other than security on site and best practices approved by the state are strictly adhered to.

The Garden State made the first move, declaring golf non-essential on March 21. The Empire State followed suit after creating some initial confusion, finally applying the non-essential label on April 9.

A handful of municipal courses in New York continued to operate even while the rest had closed. The state confirmed Saturday municipal courses were allowed to be open.

There are 14 states that have mandated the closure of golf courses, according to the National Golf Foundation. Essential administrative, business and maintenance personal are permitted to continue their daily routines in accordance with local and CDC guidelines.

Widespread layoffs followed each closure.

The stay-at-home order in New Jersey is open-ended, but Gov. Andrew Cuomo on Friday had Empire State Development release a clarification that allowed private clubs to allow golfers back inside the gates. The next reversal came less than 24 hours later when all public courses were allowed to re-open, again without employees.

All of the courses have gone to reduced grounds crews.

“We are dealing with so many unknowns,” Metropolitan Golf Association executive director Brian Mahoney said. “There are so many positives in that we can play the game safely within CDC guidelines, but there are so many things we take for granted that have to change. I mean, the way that we need to interact with each other right now is bizarre. We all have masks on. So many things need to happen before we get past the planning and into the activation.”

Handshakes on the first tee and 18th green might never again be in style. Buffets on the patio are likely gone until this coronavirus is resolved medically.

“I don’t know about you, but I’m not going to be completely comfortable until I have a needle in my arm delivering a vaccine,” Dorn said.

Lobbying for help

In a typical season, the 240 private clubs that are part of the MGA employ more than 31,000 full-time, part-time and seasonal workers, according to a study conducted by the organization last year. The annual economic impact is estimated to be in the neighborhood of $2 billion.

There are 120 public courses in the section, as well, adding to the industry number.

A wide majority of the private clubs are 501 (c)(7) non-profits and do not qualify for any of the payroll relief provided by the CARES Act. Unless Congress acts to change the eligibility standard, the only remedies are economic disaster loans and deferred social security payments to the IRS.

“I think the reception we have gotten so far is generally positive,” said National Club Association vice president of government affairs Joe Trauger, who noted that help for private social and recreational clubs was part of the original bill. “There is some concern about the optics, but from my view we have a bunch of employees who are in danger of losing their jobs if they haven’t lost them already, so we’re fighting with everything we can to make sure they are not overlooked.”

Using small business funds to help country clubs is certain to draw a double-take from taxpayers, but that money is only used to keep employees on the job when the back-to-work order comes.

That is more of a priority in Westchester County, which is home to 41 private golf and country clubs. Bergen County in New Jersey has 11 private clubs.

“Clubs are no different than any other business,” Dorn added. “We employ a significant number of people and some will not survive without assistance. To me that seems patently unfair. Members have been extremely generous with employees, but there is no way to make them whole.”

It’s unclear whether the coronavirus shutdown will force any struggling clubs in the region to close permanently. Golf rebounded slowly when the Great Recession ended in 2009 and is an $84.1 billion industry in the U.S., according to the National Golf Foundation, which has been surveying frequent golfers on a weekly basis to judge the COVID-19 impact.

The demographic is generally secure financially. While most respondents expect to curtail spending due to the corresponding economic crisis, their outlook is not yet considered grim.

“We think predictions about mass resignations of members are overblown,” said Frank Vain, the president of McMahon Group during an NCA webinar.

An online campaign has resulted in more than 10,000 form letters being sent to members of congress seeking inclusion when the next round of aid is finalized.

“Some clubs are well capitalized and can withstand a little more,” Trauger added. “Others will be significantly impacted by a downturn. It’s too early to say how many clubs might close, but right now they are figuring out the best way to hang on and take care of their employees the best way they can.”

Experts are discouraging board members from making any hasty changes, which became a problem during the last downturn. Initiation fees were waived. Dues were reduced. Management positions were eliminated. Cost was considered before value, and it diminished the member experience.

“It’s clear from the data that the decisions that were made in boardrooms had a much more profound impact on the outcome than the actual recession,” Ray Cronin, the founder chief innovation officer of Club Benchmarking said during the NCA webinar. “I’ve been counseling clubs to get to the end of April before we start doing major surgery on anything. In any decision that is made we have to have context.”

Change is never easy

All of the regional, state and national associations have been producing a steady stream of webinars. Ideas are being debated and shared on all fronts. The primary conversation remains the safety of staff and members and customers.

Masks are not likely to come off before the courses re-open.

It's unclear whether antibody tests will be available to the masses. There could very well be a health officer standing outside a single designated entry to each course or club taking the temperature of each golfer or member.

Food service will be drastically changed. Walking is going to be encouraged and caddies are not part of the plan. Social interaction has to be closely monitored.

And is anyone going to use the pool?

"We're going to be using a dimmer, not flipping a light switch," Mahoney said of the eventual restart.

A massive effort to re-educate all involved will be following the release of new standards. If the curve begins to rise again, its possible the remainder of the 2020 season becomes a write-off.

"There are going to be a lot of members who want to walk through the kitchen to see what the conditions are," Dorn said. "We are going to be challenged. I’ve already said to my clients and everyone who'll listen, no matter what the government says, open slowly. There are just so many unknowns."

Legacy thinking has gotten private clubs into trouble before.

Vain and Cronin both implored club administrators and leadership to be innovative and use this crisis to cure some of the bad habits that have damaged the member experience and hurt the bottom line in recent years.

Of course, new ideas are often a hard sell.

"Innovation is lacking in this industry, frankly," Cronin said before sharing a line attributed to a board member from a club in the Northwest about progress at his club happening one funeral at a time. "Let's use this crisis to have a truly open-minded, open-ended discussion about innovation. Most businesses are not afraid to try something new."

mdougher@lohud.com

Twitter @lohudgolf