GCCMA February March 2009 Chapter Communicator

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O M M U N I C A T O R February/March 2009

Cross Country Skiing at Old School Forest Preserve

2009 GCCMA Entertainment Chairman Morris McCann, CCM and his committee are planning many new and different social events for our membership, their family and friends! See page 9 for information on the next

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2008 Excellence in Club Management Award McMahon Group, Inc., the St. Louisbased consulting firm, and Club and Resort Business have announced the 2008 recipients of the Excellence in Club Management Awards program, established in 1997.

What’s Inside

Pg. 1 Cover Picture from Cross Country Event at Old School Forest Preserve Pg. 2 Table of Contents Excellence in Club Management Membership Report Managers on the Move Welcome New Members CCM & 30 Year CMAA Memberships Pg. 3 President’s Report 2009 Officers and Directors Pg. 4 How Will Clubs Survive the Next Two Years?

Pg. 5 Expo 2009 Chapter Communicator Sponsor Pg. 6-7 Holiday Party Photo Album Pg. 8 Legislative & Regulatory Report Community Involvement Chapter Communicator Sponsor Pg. 9 Entertainment Committee Report Midwest Regional Education Forum

The annual awards are selected through nominations Charles Scupham, CCM s u bm i tt e d on General Manager behalf of qualified Skokie Country Club candidates by other parties.

Award recipients are selected solely on the basis of their achievements at the club they currently manage; lifetime achievements are not considered.

A Selection Committee comprised of a peer group of club managers conducts the judging.

In his five years as General Manager at Skokie Country Club, reports the club’s President, John Phillips, Charles (Chuck) Scupham has become known for two aspects of leadership.

Pg. 11 Country Clubs Fight an Exodus

“Second, Chuck has been outstanding in balancing his role as a steward of Skokie’s traditions on one hand, and his willingness and desire to innovate on the other,” Phillips adds.

Innovations implemented under Scupham’s direction include “Camp Skokie,” a family cookout/campout that drew 175 campers last year; an outdoor dining program that split two large terraces with elevated views of the golf course into upper (full-menu) and lower (casual bar menu) options; and a “Bistro 500” casual, kid-friendly format in the clubhouse’s downstairs dining space on Friday and Saturday nights.

Overall, Skokie Country Club’s dining program has seen a 20% increase in a la carte meals since 2004 and now averages 24,000 member dinners per year. Perhaps most impressively, the gains to date have been made without the benefit of a main kitchen renovation, which has set to commence in January and be completed in May 2010. A main dining room renovation is also planned as a future phase.

Welcome New & Transferring Members to the GCCMA Marcus D. Bright General Manager Pottawattomie Country Club

CCM Designations Awarded Brian Wallace, CCM Colin O’Hanlon, CCM

Pg. 10 Education Update

“First, Chuck answers virtually every member’s question with one word: ‘Yes,’” Phillip says. “whether it be a novel idea for a party, a special dining request, or practically anything else, Chuck believes - and has imbued his management team and entire staff with the same attitude - that there is always a way to fulfill a member’s need.

CMAA Membership Awards William Kerber - 30 Years of CMAA Membership Donald Wegrzyn - 30 Years of CMAA Membership

Thomas Birmingham General Manager Flossmoor Country Club

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2008 GCCMA President’s Report Dear Chapter Members: It is an honor to serve as your new Chapter president.

My first President’s letter is intended to be a recap of my remarks from the Annual Meeting.

I would be remiss in not thanking David Gould, CCM, immediate Past President, for making this transition seamless and for his contributions to the Chapter.

His contributions include his service on the Tournament Committee, Student Development Committee, Newsletter Committee, Expo/Advertising Committee, SLRP Committee, and Education Committee - - many of which he either Chaired or Co-chaired. David always thought out of the box in the best interests of our Chapter and is credited with escalating the role of our Managing Director’s position, held by Kinda Schinto, assisted in the launch of the National Student Education Conference, and sparked the idea (still being explored) of a Corporate Partner Program.

In addition, I thank Past President Jim Petersen, who chaired last year’s Nominating Committee and blessed me with a tremendous Board of Directors. Your Directors are an awesome team of dedicated club professionals, full of energetic ideas and passion.

This year, you may expect your Board to focus on some of the following issues, in addition to the normal, on-going activities and initiatives of the Chapter.

Corporate Partner Program (CPP) – a Board appointed Ad Hoc Committee will be reviewing the feasibility of establishing a different form of relationship with our vendors relative to their support of our Chapter. The potential of a CPP, already in place in many other Chapters, could assist in further promoting the Chapter to our vendors while demonstrating that the Chapter is sensitive to vendor’s budgets during the challenging times.

Dues and Education – the Education Committee, along with the Strategic Long Range Planning Committee, will be studying the feasibility of packaging education within Chapter dues, in order to create more value and further education attendance.

After concluding our most recent fiscal year behind budget and facing a difficult 2009 with the current economy, your Board is committed to being fiscally prudent a n d o pera te withi n th e bu dge t pre sen te d at the Annua l M eet ing .

The Board is committed to continue the growth and support of our Managing Director’s position (Kinda Schinto). We believe that the Managing Director position should mirror that of a Club Manager’s position relative to the working relationship between a manager and a club’s Board of directors.

All of us serving on your Chapter Board have varying backgrounds, experiences, strengths and weaknesses. I can tell you that my experience with our board is inclusive, supportive and warm - perhaps because we all work in our great industry of hospitality. We are all at different stages in our careers, within our clubs, as well as our family and personal lives. Thus, some can give back to the Chapter more than others. However, I encourage you to give back in smaller ways by serving on a committee, hosting an event, sharing of ideas and contacts that can help the Chapter, attend some education sessions or recruit a new member - - and at the right time, think about serving on the Board. I promise you that you will gain more than you will give.

Best regards, John Guy

GCCMA 2009 Board of Directors Officers John Guy President Joseph Travaglio, CCM V.P./Secretary Jim Cardamone, CCM Treasurer

Directors Hal Axelrod, CCM Thomas Barbrow Thomas Bartek, CCM Millie Cadd John Hallberg Judy Higgins, CCM Dwight Jenson, CCM Janice M. Lorman Morris McCann, CCM Tom McHugh, CCM Robert Sergent, CCM, CCE

Ex Officio David Gould, CCM

Managing Director Caption describing picture or graphic.

Kinda Schinto

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How Will Clubs Survive the Next Two Years? - Jim Riscigno If you are my age or older you have seen numerous economic cycles including depression, recession, hyper inflation, stagflation, along with prolonged periods of prosperity. This too will change! Actually it may get worse before it gets better, but it will change. Nothing stays the same and if you can step back, take a deep breath and not panic you can actually benefit from any of these cycles or at least survive.

Our Current Situation: We are all painfully aware of what has been creating those restless nights and difficult Board and staff meetings over the past couple of years. Market fluctuations that are difficult to comprehend. Unprecedented government involvement with our banking and financial systems. Decline of our political system using negative partisan politics to divide our country and keep us from focusing on the real issues. Inflation is increasing with food & beverage and other product and material costs increasing at a rate that is difficult to adjust to.

Unemployment rates are growing and impacting our members. The uncertainty of the cost and availability of oil and other energy sources is on everyone’s agenda. The reality of increasing taxes and decreasing tax breaks is on the horizon and who knows what the impact of those “political” strategies will bring.

Our sector of the hospitality industry is experiencing difficult times, especially if you are involved with a development country club that is still trying to build its membership. Membership enrollments have dramatically declined and the ability to collect high Initiation Fees and Deposits is a thing of the past. Many clubs are scrambling to adjust and are offering “special” membership programs, discounts, financing programs and more. Usage is declining and golf rounds are struggling in most markets.

If you are competing in the “semi private/ public” sector, you are probably discounting your greens fees to keep attracting golfers to your club/course. Members are experiencing financial hardships at a greater rate than we are used to and as a result we continue to try and minimize our member attrition rates.

Members on the sell/resign list are growing and that is creating disgruntled members that need to have some relief from club dues and assessment charges.

So what should we expect to see over the next two years?

The current situation will continue (at best) for the next two years. There are no short

term solutions to most of the issues that are causing problems for management and club members. Oil supply will not increase and oil usage will continue to grow here while China and India will continue to increase their oil usage geometrically as they bring their economies into the 21st century. The residential real estate markets may start to slow their decline in sales and prices, but no one is predicting a turnaround in this sector over the next 12-24 months. The next area to see softening will be the commercial real estate markets and this will not be good news. Employment trends are not encouraging and the retail sales are soft.

The stock market has experienced some of the most dramatic ups and downs since the great depression. We can’t predict the actual outcome of changes in our tax policy over the next couple of years. Political instability will continue as our President and Congress try to bring about an end to our current instability.

keep talent, standard, traditions, and communications at the appropriate level.

Don’t panic you are not alone and there are strategies you and your board can use that will help to position your club for the eventual turnaround.

*”Stay focused on your “Club’s Vision”

The first advice is to stay informed of what is happening in the local, regional, national and international markets. Research and study the past down cycles; if you are not a student of history you are doomed to repeat it.

Make certain you are not cutting muscle as you look to cut the fat from your operations.

Let’s define muscle as your most talented and valuable staff, the standards that your members expect, the member activities that are club traditions, member and staff communications, and keeping the integrity of your Membership offering positioned to benefit not just the club, but also existing members. The mistakes I see all too often are short sighted business decisions by managers, owners, and/or boards with no view of the consequences these decisions may have in the long term. Once you cross certain lines you will put yourself and the club in a downward spiral (possibly “death spiral”). It will be very difficult to recover from bad short-term decisions when times are better. You must “bite the bullet” and

How do you accomplish this? *Member focus groups and surveys to stay in touch with Member situations, expectations and level of satisfaction *Strategic plans that are current and being followed *”Sharpen your Saw” - Stay current with the industry through continuing education programs - Stay current by reading industry and other related publications *Making sure your club governance documents and systems are updated and current *Benchmarking successful clubs and other hospitality related operations

*Use your resources including staff/ employees, board members, developer & owner’s resources, and other club managers that are beating the odds. *Seek outside help from industry associations, industry experts, consultants and management companies **If you are not willing or able to follow these approaches keep your resume updated!

You have many options available to you, but the one option you can’t afford is doing nothing and hoping this will all go away.

Leadership strength or weaknesses show clearly during difficult times. Most developers/owners and boards are looking to their general managers to provide leadership and options to solve these problems while weathering the storm in a dignified way with integrity to the “Club’s Vision”.

Jim Riscigno is a longtime Member of CMAA and FLCMAA. Jim has spent the past 35 years in the Private Club Industry. Jim is President of ASE Consulting and can be reached at 850-3228822 or Jim@ASEfirst.com.

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Expo 2009 - Kyra Poulos The Greater Chicago Club Managers Association is proud to present the annual GCCMA Expo on Monday, March 9 at the Drury Lane Exposition Center in Oak Brook. Over 125 vendors will be featured at this year’s event.

Vendors this year will encompass all facets of club management, including food and beverage, entertainment, grounds, design, technology, event rentals and clubhouse maintenance. New vendors to this year’s Expo include Direct Fitness Solutions, Broadpeak/Adaptive Planning, Tek Direct, Inc., On Occasion Catering, Z Baking and Cassidy Proline just to name a few!

Walk through the Expo where you can experience a plethora of all things ‘club.’ Enjoy delicate pastries, touch luxurious linens, and feast on endless rows of food products.

Many familiar faces will also be returning to this year’s Expo. “I love to see everyone that I’ve known for over fifteen years in this industry. It’s a great opportunity to reconnect with everyone,” says Brooke Marino from BBJ Linen. “I look forward to it more than any other show throughout the year.”

For the past two years, the Expo has been held at the Renaissance Hotel and Conference Center in Schaumburg. With today’s economy constraining the number of vendors fiscally able to attend the show, the decision was made by this year’s Expo Committee to move the Expo back to Drury Lane, where it was last held in 2006.

“The decision to move back to Drury Lane was made by taking into consideration both the needs of the GCCMA as well as the feedback from our vendors. We wanted to return to a more intimate atmosphere that was fiscally responsible for all parties as well as have access to all the accommodating staff at Drury Lane and the MSC Tradeshow. They make it so easy to put on this show” says 2009 Expo Chairman Tom Bartek, CCM.

CMAA’s Link Up and Learn Webinars offered by CMAA are a fantastic way to take advantage of great education from the comfort of your home or office and better yet they are free and worth 1 CMI credit!

Did you miss one of the webinars from CMAA’s new Link Up and Learn series? CMAA is please to announce that all of the sessions have been archived here and are available for download.

Available Files: Why Do I Want to Remain a 501-c-7?

Economic Trends/Forecasting and 27 Ways to Increase Your Revenues Bullet Proofing F&B: What’s the Difference Between a Brinks Truck and a Sysco Truck?

Strategic Guidance for Board Re-Education Market Positioning for Success: Recruitment and Retention Jump Start Your Strategic Leadership Initiatives: Ideas for Clubs Around the Country Financial Trends for clubs

Also due to budgeting decisions, many area club managers have indicated their inability to attend this year’s Conference in New Orleans. This also means missing the always-popular trade show at Conference, where many find new vendors, build old relationships and discover new needs for their facilities.

The GCCMA Expo is a great way to fulfill that void. Registering today, and taking the time to visit the vendor booths at the Expo will create a stronger relationship with our vendors as we all forge through these difficult times.

While many clubhouses are in need of complete teardowns and extensive renovation, many do not have the funds to tackle these overhauls full on at this time. Minor renovations and renewals are a perfect alternative to full remodels. Vendors such as Midwest Signature Building Supply are not to be missed, as they provide wood, stone and metal refinishing for smaller construction projects.

These changes can brighten and renew a clubhouse, paying off well in the long-term, as new members see a fresh, new look and join as a result of the positive upkeep of your facility.

New vendors are registering every day to join us at this year’s Expo. If you have a vendor in mind who we may invite to participate, please contact Kinda Schinto at 815-675-9844 with their contact information and an invitation will be extended to them. Cost of participation is a steal at $750.00 per booth which includes a business card sized ad in our roster book as well as two tickets to the reception.

To reserve your spot at this year’s Expo, please fax in the Member registration form which was mailed out recently to 815-675-9844.

Remember the Expo and Education are complementary to all GCCMA Members and their staff.

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A Crystal Blue Holiday Dinner Dance

Thank you to Tom Bartek, CCM and General Manager of Bryn Mawr Country Club and his staff for an absolutely beautiful evening.

Thank you also to our outgoing Entertainment Chairman John Hallberg of Michigan Shores Club and to incoming Entertainment Chairman Morris McCann, CCM of Knollwood Club.

Well done!

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A Crystal Blue Holiday Dinner Dance

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Legislative and Regulatory Update The EFCA is an act to amend the National Labor Relations Act to establish an efficient system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes.

The most significant changes under the EFCA are that:

“One who asks a question is a fool for five minutes; one who does not ask a question remains a food forever.”

- Chinese proverb

Union representation will no longer be decided by government supervised secret ballot elections.

Instead, the NLRB will “certify” the union as the employees’ bargaining representative WITHOUT ANY ELECTION IF A MAJORITY OF THE EMPLOYEES SIMPLY SIGN UNION CARDS The determinative card signing can take place WITHOUT THE EMPLOYEES EVER LEARNING ABOUT THE DISADVANTAGES OF UNION REPRESENTATION. In fact, the union can collect cards from a majority of the employees BEFORE THE EMPLOYER IS EVEN AWARE OF THE CARD SIGNING CAMPAIGN. Typically, card signing activity is done in such a way that employees are only exposed to one side - the union side - of the story.

EFCA contains no provision for the right of employees to change their minds, rescind or revoke their card, or in any other way exercise their right to a fully informed choice.

Once the union collects enough cards and gets certified by the NLRB, the employer will have 10 days from the union’s request to bargain to begin contract negotiations.

Community Involvement The Greater Chicago Club Managers Association in alliance with Reading is Fundamental (RIF) organization is collecting books for Chicago’s neediest.

We are asking Club Managers to please support this worthwhile endeavor by donating new books at EVERY GCCMA event. Help us reach our goal of 1,000 books!

If after 90 days no agreement has been reached, the parties are subject to mediation. If mediation doesn’t produce a contract, the outstanding issues are subject to BINDING ARBITRATION, meaning that an arbitration board will issue a decision RESULTING IN A BINDING UNION CONTRACT WHICH REMAINS IN EFFECT FOR TWO YEARS. The employer loses its right, which exists under current law, to reject any proposal it feels will not be in the best interest of the business, its customers or its employees.

In addition, under EFCA, employers risk TRIPLE BACK PAY for certain unlawful discharges (which will certainly encourage the filing of even frivolous charges) AND CIVIL PENALTIES of up to $20,000 for each unfair labor practice found to be willful or repeated.

On March 1, 2007, the House of Representatives passed the act by a vote of 241 to 185. The Senate on June 26, 2007 voted 51 to 48 on a motion to invoke cloture on the motion to proceed to consider the bill. The bill failed to pass during the 110th United States Congress because of the 60 votes required to enforce cloture, which may be possible to obtain in the 111th United States Congress. Which is currently in session.

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Entertainment Committee - Morris McCann, CCM Skating at Millennium Park’s McCormick Tribune Ice Rink Sunday, February 22, 2009 Bring yourself, your spouse, your friends, your kids, your neighbor’s kids. . . Join us for a day of skating & FUN Chicago style! Followed by great food and libations at The Gage. Don’t want to skate? Just come to the après skate at The Gage after 5:00 PM.

Neil Smith, CCM, Jeff Belting, CCM and Joyce Halama, CCM

a la Carte - A menu term signifying that each item is priced separately.

Sociable - Friendly, liking the company of other people.

New for 2009! A la Carte - Socials. I know that all of your are sociable. We just need to get together more often and that is the Entertainment Committee’s goal for this year. We hope you find our ideas inviting, new and fun for you and your family to enjoy. Please watch for notices of up coming scheduled activities, some may be sent at the last minute as things are planned around our busy schedules. But as we have all experienced, sometimes, the last minute ideas turn out to be the most memorable ones!

Time: 3:00 PM - 5:00 PM Skating : Free!

Skate Rental: $10.00 Come early as lines can be long.

Parking on Own: University Club’s Valet - 76 East Monroe or Grant Park North Underground Garage The Gage Restaurant: 24 South Michigan Avenue Dinner on own.

Hoping to see you soon!

RSVP: Please RSVP with an estimated number of attendees so the restaurant can prepare for us. We would like to know who the main contact is for your group so we can be on the look out for you!

Morris McCann, CCM

kindaschinto@msn.com Kinda’s cell: 815-675-9844

2009 Entertainment Committee Chair and the extremely entertaining Entertainment Committee Members!

Midwest Regional Education Forum - April 19 - 21, 2009 Presented by: The Chicago Club Managers Foundation The Greater Chicago Chapter Illini Chapter Wisconsin Tall Corn Chapter Wisconsin Badger Chapter Host Clubs: Evanston Golf Club, Skokie Green Acres Country Club, Northbrook Indian Hill Club, Winnetka Michigan Shores Club, Wlmette Registration form will be mailed shortly!

The CMAA Midwest Regional Forum is April 19 22, 2009. The Forum will feature expert presentations from national recognized speakers and will be beneficial to General Managers, Club Managers, Department Managers and staff alike. Registration begins Sunday at 1:00 PM. Education begins Sunday at 2:00 PM and runs through Tuesday at 1:00 PM concluding with a luncheon.

16 Education Credits will be awarded $200 per person if from Sponsoring Chapters $250 per person from Non-sponsoring Chapters

Speakers: David Houle - External & Governmental Influences Brian Blasko - Management Anthony Martorano - Accounting & Financial Management Dick Kopplin - Human & Professional Resources Jim Singerling, CCM, CEC - CEO, CMAA Steve Tyink - Marketing Rick Galbreath - Human & Professional Resources

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Education Update - Judy Higgins, CCM How to Manage in an Obama Administration

5 Keys to Email Marketing

Presented by Robert M. Klein

Monday, March 9, 2009

Tuesday, February 24, 2009

Drury Lane Exposition Center

Union League Club of Chicago

Complementary Event!

Please invite your key staff to attend this pertinent and timely education session.

Robert M. Klein will be speaking on one of his most popular topics: How to Manage in an Obama Administration.

Topics covered will include: 1. Obama’s Proposed Employment Laws A. Unionization B. Comparable Worth C. Discrimination Law D. Equal Pay Act E. Lilly Ledbetter Act

Presented by Steve Robinson

Are you interested in learning how email marketing can help your club business grow? If so, join us for this informative presentation to learn how you can create and deliver highly branded, professional looking emails designed to wow your members and prospects.

Email marketing is an effective, affordable and simple approach to enhance your organization or business image and build relationships that lead to profit, revenue and increased participation.

Topics covered during this overview of email marketing include: 

What is permission-based email marketing

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List building

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Tips on getting your emails opened

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Best practices in email marketing

A. The Importance of Gathering Info

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Tracking results and what to do with this information

B. Develop Meaningful Employee Communications

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And much, much more!

C. Documentation

Seminar: 1:00 PM - 2:00 PM

D. Wages and Benefits

1 Credits

E. Employees as Customers

Complementary for all Members and staff!

F. Training Front-Line Supervisors

RSVP to kindaschinto@msn.com or on the website at www.greaterchicagocmaa.org

2. What to Do A. Nothing B. Respond When There is a Problem C. Implement a Prevention Program 3. Effective Management Techniques

Registration and Lunch: 11:00 AM Seminar: 12:00 Noon - 3:00 PM 3 Credits $30.00 for members $35.00 for nonmembers RSVP to kindaschinto@msn.com or on the website at www.greaterchicagocmaa.org

SAVE THE DATES! Thursday, April 16, 2009 Open Board Meeting Northmoor Country Club Monday, May 18, 2009 NRA Reception & Intern Orientation Mid America Club

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Country Clubs Fight an Exodus - John Paul Newport Economic woes are straining private clubs as members flee; what they’re doing to stay afloat.

More people are lining up to get out of private clubs these days than are lining up to get in, or so it seems. Many of the 4,400 private golf and country clubs in the U.S. are doing just fine, but one can sure get the impression that the situation is universally dire from listening to club managers and golf-industry consultants discuss the state of the clubs in today’s economy.

For instance, you hear a lot of talk about the “walkway” risk. This is a calculation of the leverage that clubs have or don’t have over members to keep them from leaving. At most clubs at least one newcomer has to join before a current member can cash in his bond, deposit or other type of equity stake and quit. If the annual dues are $7,500 and the equity stake is $20,000, most members will be inclined to stay put until a new member signs up. But if annual dues are high - - say, $12,000 or $15,000 - - and the projected clearing time on the resignation list is four years (not uncommon in this economy), some financially strapped members will choose to bail immediately.

Clubs don’t like that because dues and the additional spending of an active member are more important than $20,000 in the bank.

That is particularly true for the many clubs these days that are servicing big debt loads piled up in better times for multimilliondollar course renovations or clubhouse expansions, and for new clubs, some in stalled real estate developments, that haven’t yet reached their full quota of members.

Every case is different and complicated. But the very fact that so many clubs and their beleaguered boards and owners are having such discussions - - walkaway risk, indeed! - - is a sign of how much the fundamentals of private golf clubs and country clubs have changed. It used to be that belonging to a private club was the pinnacle of achievement. If you made partner or were promoted to vice president, joining “the club” was a perk. In small or medium-size cities, club dining was often the best in town, the spa was the only one around and there were no premium daily-fee golf options. My late father-in-law, a doctor in Ohio, played golf every Thursday afternoon and hung out at his club big parts of Saturday and Sunday.

That model still holds for particular clubs in particular places for particular people, like well-off retirees. But for the younger generation of club members, things are different. Neither spouse in a two-income family with children has the time or inclination to while away weekends at the club. When I asked Doug Steffen, the Director of Golf at Baltusrol in Springfield, IL, to describe the biggest change in club life during his 13-year tenure there, he said, “That’s easy to answer. The club used to be the focal point of social life for our members, but now it’s just one among many other activities they are involved with.”

Well-run clubs with the proper mix of programs for their community are still solid. Baltusrol, for example, is close to wealthy neighborhoods, enjoys high prestige, (it’s A.W. Tillinghastdesigned courses have hosted seven U.S. Opens) and its Board of Governors has kept up with the times. Instead of wringing its hands about younger members who want to spend more time with their kids, the club has found ways to become more central to family life. The golf program has grown from about 30 members five years ago to more than 200 today. Partly as a result, the average age of Baltusrol members has fallen significantly in that period.

Reprinted in full from the Wall Street Journal

But a study of private clubs by the National Golf Foundation, released last spring, determined that 10% to 15% of clubs are in financial distress. At these clubs, memberships are down 29% from their peaks (whenever that was for each club), rounds are down 22%, and 57% are operating at a loss. “When guys from the industry sit around talking, the word is that something like 20% of private clubs won’t be here in five years,” said Dana Garmany, the chairman and chief executive of Troon Golf, the country’s largest manager of golf courses, many of them private.

No one type of club or situation - - old or new, member-owned or for-profit, stand-alone or real-estate-based - - dominates the distressed category, but all are being hurt by the same two bigpicture trends: changing demographics and the economy. “For prospective members under age 45, the cachet of belonging to a club doesn’t mean much. For them the deal has to make sense financially and fit into their lifestyle,” Mr. Garmany said. In many cases, what clubs offer doesn’t.

Some at-risk clubs invite consultants or management groups to make presentations but then decline to follow up on recommendations, such as building a fitness facility, expanding the number of corporate outings and outside social functions, or creating new membership categories such as for weekday-only play. At clubs whose governance is dominated by members in their 60s and 70s, complacency may be at fault. They like things the way they are, and perhaps calculate that in five years or so, they won’t have as much need for a golf club anyway. Sometimes clubs - - even prestigious ones - - compromise by allowing new members to pay their initiation fees over time, or to pay only dues for one year and then come up with their initiations. But this often leads to de facto hierarchies of membership, and dissension in the ranks.

Cutting budgets by 20% to 30% is sometimes necessary and possible, but can also be disruptive. “It’s a whole new world for these clubs,” said Bob Mulcahy, the CEO of AMF Golf Management, a New Jersey firm that advises clubs and club pros on best practices.

For clubs unable to adapt in their current form, the next step is often allowing paid play by outsiders at off-hours - - that is, becoming semipublic - - and after that full conversion to a public facility. At that point clubs often look for ways to sell off the property to housing developers or for other uses, giving equity members a windfall, but zoning laws make this impossible in all but about one in ten cases, according to the National Golf Foundation study. Each conversion of a private club to a daily-fee course, usually a high-end one, gives would-be club members in that area one fewer reason to make the expensive, long-term commitment to join a club, and the cycle propagates itself.

The appeal of private clubs remains strong. The ability to play golf whenever you want, usually at a much quicker pace than on public tracks, and the ready camaraderie of the locker room would be at the top of my list (should the coming economic stimulus package include grants for golf journalists to join private clubs in the New York City area). For buyers, this could be a good time to find bargains, but it’s never been more important to look at a club’s balance sheet and consider its staying power.

“For current members who want to protect their investment, I would advise getting involved on the club’s boards or committees,” said Jim Koppenhaver, the founder of Pellucid, a course consulting business. “At the end of the day, it’s just math, and there’s no way around the cash flow and reserves needed to maintain the club to the standards members are accustomed to.”

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Congratulations!

GCCMA Mission Statement The Greater Chicago Club Managers Association *Advances professional and social relationships *Creates success through education

Vision Statement By 2010, GCCMA will be the premier chapter in CMAA by: Welcome to the world Max! Congratulations to Michele Dubuc, CCM and her husband Mark Wrzeszcz on the arrival of little Max. Madeline (3 1/2) is so excited to be a big sister!

applying best business and organizational practices, embracing diversity and sharing resources, facilitating participation and offering cutting edge professional development programs.

Clarity Success Coaching through CMAA Kevin MacDonald founded Clarity Success Coaching in 2000. Kevin believes that knowing who you are is critical to your success. His focus is to inspire his clients and help them learn the skills that they can use to change their lives.

They can then begin to see the results they are wanting in life.

“Take the attitude of a student, never be too big to ask questions, never know too much to learn something new.”

- Og Mandino

Over the past three years a ppr ox im at ely 100 CM AA members have taken advantage of the opportunity to use the Executive Coaching Services that we have offered during the Annual Conferences. The positive response that we have received from those who have experienced Coaching has supported our “belief that Coaching is a process that can help not only Managers who are in between positions, but in fact any Manager who has a desire to raise the bar.

CMAA has arranged that Kevin will begin to give the association more clarity about what Coaching is through articles, an optional monthly newsletter and a Coach’s

Corner section on the CMAA website.

You will be able to have the experience of working with a coach by setting up a telephone coaching section directly with Kevin’s company. There will be two types of opportunities to begin with.

By e-mailing Kevin personally at kmacdonald@dccnet.com or calling 1-604-507-1288 you can set up a 45 minute coaching session. This service is free to you. Your only cost would be the long distance telephone charge.

When you make contact with Clarity you will be able to set up a s peci fic ti me for your appointment.

What is Coaching?

Coaching is a process that is designed to support and enhance the best efforts of the person that uses it. Coaches are being used by top performers in business throughout the world. Coaching is not a process that is designed to

fix someone who is broken. Those who aspire to be the best in any field of endeavor realize that they are often too close to see from the inside what someone else can see from the outside. Men and women who strive for continuous improvement use Coaches to: *Set better goals *Reach their goals faster *Make significant changes *Become more financially successful *Design and live the life they want to lead *Get ahead professionally *Make better decisions *Have someone to collaborate with *Improve their relationships and family *Make a bigger impact *Simplify their life *Strengthen their personal foundation *Reduce stress and tolerations *Increase income or revenue *Be a better leader http://www.cmaa.org/ecs/clubcareers/ kevinMacDonaldBio.asp