July 22, 2015 – – McGladrey LLP, the nation’s leading provider of assurance, tax and consulting services focused on the middle market, recently released the 2015-16 edition of Trends in Private Clubs. This is the firm’s 41st annual report on the financial and operational trends in private clubs throughout Florida, the state with the highest concentration of these clubs.
The report highlights trends uncovered through the 200+ private club clients McGladrey audited during the last fiscal year. Findings are presented from statewide and regional perspectives, and are segmented by types of clubs, as well as key comparisons from the previous year.
“Look behind the headlines of golf and instead at the volume of transactional activity to find the real story about the game,” said Philip Newman, partner and national private clubs industry leader at McGladrey. “If golf were dying as some say, private clubs wouldn’t see the flourishing operational results noted in this year’s survey. At McGladrey, we understand that the game of golf faces some demographic challenges, but clubs are working hard to position themselves for that shift, and are finding ways to ensure that the game continues to be relevant.”
“Clubs exist because a group of people came together with a mission–to socialize, golf, play tennis and enjoy certain other amenities. Clubs, do, however, seek to broaden their appeal beyond being viewed solely as a golfing or yachting experience and instead transform themselves into resort-style living models. Successful clubs are meeting the demand for reenergized club amenities, and they are continuing to reinvest in capital improvements year over year.”
Other key findings in the report include:
1. On average, clubs expended $3,300 per full member equivalent (FME) on capital projects in the last year, and 42% of clubs plan significant projects in the current year at an average amount of $6.9m.
2. 74% percent of clubs have third-party debt – up from 70% percent in the prior year – with an average debt load of $6,550 per FME.
3. Full membership dues in 2015 increased 3% from prior year levels.
4. Payroll and related expenses increased 2.5% to $8,300 per FME.
5. 54% of clubs increased food prices by 4% on average, while 41% of clubs increased beverage prices 4%.
Club managers continue to use these findings in strategic planning and benchmarking to ensure their ongoing competitiveness. Customized reports comparing clients with similar clubs are also available.
For more information and to download this year’s report, read the McGladrey Trends Report and visit the private clubs industry page of our website.
McGladrey LLP is the leading U.S. provider of assurance, tax and consulting services focused on the middle market, with more than 8,000 professionals and associates in 80 offices nationwide. McGladrey is a licensed CPA firm, and serves clients around the world through RSM International, a global network of independent accounting, tax and consulting firms. For more information join our Facebook fan page at McGladrey News, follow us on Twitter @McGladrey, and connect with us on LinkedIn, and/or on YouTube.