Does your club run at a profit?

[Val]

Just had our pre AGM notes after my first year at a new club, interesting to note that it has run at a loss last year and year prior (all be it take out depreciation and it's profitable but depreciation has to be taken into account).

Do any of you check your clubs balance sheet nd if so does it make you want to attend functions to fund the club etc?

Our club is in healthy footing dont get me wrong but i was very surprised to see a loss on the balance sheet.

 

[HomerJSimpson]

Haven't seen the balance sheet since the AGM in November but we were keeping the heads above water. Lots of investment and work planned for the course so it's going to be tight next year I think

 

[muttleee]

When I was a member, it was at a pay and play where the 'club' was the body of people who had annual membership of the course but didn't own the place. I would have had a look over the figures to see where we were spending our money etc but I must admit it didn't make me want to attend more functions if the balance sheet was looking a bit shaky.

 

[jpenno]

Who owns the club and how is it run?

How was the depreciation calculated and is this on the land, buildings, plant or a combination of all of these?

There could be many reasons for the depreciation figures, mainly to avoid tax liabilities

 

[USER1999]

My club is a members club. It is non profit making, to an extent. It doesn't make a loss though.

 

[DCB]

If the Budget for a given year is realistically set, then there should be a reasonable chance of a Club returning the forecast figure. Trouble arises when there are unforseen items that crop up during the year and these items eat into your budget and cause a shortfall on the forecast for the year.

A good, well prepared budget should be attainable for a well run club.

 

[Val]

Ours is a member club with average budget profit low double figures ie under £50. Our hardest thing to budget is fuel costs, last winter our cost on fuel for heating escalated due to how cold it got.

 

[Hobbit]

As has been previously stated, making a profit can have tax implications. Something that isn't often quoted is the De Minimis rule whereby a non-profit making club can have partial VAT exemption on things that would usually mean full VAT for other organisations.

'We' have had a great year and, because of a business arrangement with a local business, accrued approx £180k in revenue over and above our normal operating surplus. In so doing we're liable for Corporation Tax if we don't spend it on the course/clubhouse. Happy Days!!

 

[pmbuzz]

Just had our AGM, apparently we are £80k in debt !!!

 

[Whee]

Our club is supposedly 'not about profit' - yet the way the membership costs have been hiked up, it is only possible to believe otherwise.

It is owned by one of the Royals, who has stated the club "doesn't need the cash" which is fine, it just grates a little bit when that is knowledge the members have, yet we are given another rise in fees.

I don't believe the balance sheet has been made available to the membership, but i'd expect nothing less.

In two years, our yearly costs have gone from £1,000 (acceptable) to £2,000 - which matches most of the desert courses in Dubai etc. Unfortunately, the product being offered here, doesn't compare with the desert golf on offer in other Arab states.

 

[chris661]

Our place made a bit of a "profit" but realistically any extra money jus goes back into the development of the place as a members club. As for the social side of things it is pretty non existent though and can't see it changing.

 

[thecraw]

Our place made a profit as well but it has been put into the clubs reserves as the lounge is getting a makeover and the ladies are getting a new locker room.

We seem to be quite well managed and I have faith in the board to continue running the club well in the future, unlike my old club.

 

[StrangelyBrown]

Last year we made a loss but I'm sure that things have now been rearranged sufficiently so that this wont happen again.

 

[moogie]

Last year my club made a loss, the balance sheet for april 2011-end march 2012 is due out soon, and AGM wont be far away, but already recieved my FEES invoice -- 7 weeks before its due, and fees have gone up from £540-570 , but my sons fees ( 12 yr old ) remain the Same at only £50 for year

My previous club has been making a LOSS the last 4 years, and things have been tough, hope it picks up for them though

 

[SocketRocket]

Just had our pre AGM notes after my first year at a new club, interesting to note that it has run at a loss last year and year prior (all be it take out depreciation and it's profitable but depreciation has to be taken into account).

Do any of you check your clubs balance sheet nd if so does it make you want to attend functions to fund the club etc?

Our club is in healthy footing dont get me wrong but i was very surprised to see a loss on the balance sheet.

Depreciation is fair enough as it is only spreading capital expenditure over a term rather than a single year. It's not always as bad as it seems though, buildings are depreciated over a fairly long period on the balance sheet but can tend to increase in value. The most important factor is cash, as long as the club generates enough cash to pay its running costs then it is in good shape, it's when it has to borrow to pay the bills that things get grim.

 

[Fader]

Have only been playing golf since this time last year and a member of my club as of July. We had our AGM last night and I did have a look at what was forecast and what the actual numbers came in at.

Was actually quite impressed considering they had the course effectively closed for near on a month at the start of last year due to the snow and the effect it left on certain areas of the course. This all meant they lost quite a bit of revenue in green fees and cancelled functions due to members not attending them because of the snow. Factor in the amount spent on fuel bills and getting the course back into good condition they still managed to break even (£115 profit).

The forecast for this term is far better thanks to a relatively mild winter and the fact its the clubs 40th anniversary meaning more competitions to celebrate this fact, so happy to say it's nice knowing as a result no increase in fee's but more on offer.

As long as clubs forecast properly and stick to the monthly outgoings then even a complete curveball shouldn't have a huge impact on the financial situation, that said it is the members that will keep the place in profit and turning over so that they are not hit in the long run.

 

[Mungoscorner]

My club seems to be doing fairly well given the present economic climate.It is operating within budget and membership numbers are increasing.
There are several members clubs local to me who have been very selective when accepting new members in the past,and most had large waiting lists.More recently these clubs have been actively seeking new members by advertising in local papers,offering pay and play memberships,and even waiving quite substantial joining fee's.

 

[Val]

Depreciation is fair enough as it is only spreading capital expenditure over a term rather than a single year. It's not always as bad as it seems though, buildings are depreciated over a fairly long period on the balance sheet but can tend to increase in value. The most important factor is cash, as long as the club generates enough cash to pay its running costs then it is in good shape, it's when it has to borrow to pay the bills that things get grim.

Agree fully, I've no issues with how our club is run, we are cash rich. Just curious to how others fair.

 

[thecoltproject]

We made a small profit. However, 2007-2010 we made losses. Any profit goes straight to the repayment of debt or is invested in the course.

 

[brendy]

Our club states that it is not for profit so any excess funds at the end of the year are ploughed into schemes and projects for the club to improve facilities/course. Drainage is the biggy, it is permanently ongoing.