RSM US LLP – the nation’s leading provider of audit, tax, and consulting services focused on the middle market – recently released its 2019-20 edition of Trends in Private Clubs. This is the firm’s 45th annual report on the financial and operational trends in private clubs throughout Florida, the state with the highest concentration of clubs.
Unlike surveys, this annual report highlights trends uncovered through 200+ private club clients RSM audited in Florida during the last fiscal year (for year-ends through December 31, 2018). Findings are presented from statewide and regional perspectives, and are segmented by types of clubs, as well as key comparisons from the previous year.
“There are three spheres of influence on club life: governance, amenities and people (GAP),” notes Philip Newman, partner and national industry leader for private clubs with RSM US LLP. “Clubs that struggle often have discord in one or all of these areas. Similarly, improvements and focus in one or all three can catapult clubs forward rapidly toward increased sustainability and, ultimately, membership satisfaction. This year’s report offers key data and statistics to help clubs determine how to close their individual GAP challenges.”
“The data continues to reinforce that people investment is a major differentiator for clubs” said Tammy Tassitano, partner and national director of club services with RSM US LLP. “A club’s brand is its staff and its staff is the club’s brand. To that end, it’s no surprise that payroll-related costs per full member equivalent once again increased by more than 3% to $9,600 in 2018.”
While clubs have evolved sporting and leisure offerings far beyond golf, the cost of golf course maintenance remains the largest single part of most clubs’ annual operating budgets. Cost per hole for 18-hole facilities topped out at $95,800 while the comparable number for multiple course clubs was $89,200.
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 the 2019-20 edition of Trends in Private Clubs, visit the private clubs industry page of the RSM website.
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