Why golf can’t be a sports industry, but a casino industry
Golf can’t compete with casinos on quality, as the industry is losing its footing as an industry, according to an analyst.
Read moreThis is a big blow to the industry, says Bill O’Reilly, chairman and CEO of O’Regan Group, which tracks golf’s fortunes.
“The bottom line is the industry doesn’t have a future in golf,” he said.
“If you’re a golf course operator, you can make $300 million a year in the U.S. and then your bottom line comes down to the fact that you have no revenue coming into the industry.”
The rise of the casual gameWhile golf has had its fair share of bad news over the past decade, the casual business is still seeing some positive change.
O’Neil said casual play is up 10% this year, while the number of majors is up by almost half.
O’Reilly’s company expects to see about $1 billion in revenue in 2021 from casual play, which includes online play, as well as from the professional level.
He expects to earn $1.3 billion in the next four years.
“The growth is real, and it’s not a one-off thing,” O’Brien said.
“This is the result of people being able to take time off and play golf.”
The decline of the golf courseO’Brien estimates that the number and type of courses in the United States are falling rapidly.
“In some states, the number is declining by 80% or more, and in others, the decline is even greater,” he explained.
“There is a huge difference in the quality of courses across the country.
In some states the quality is worse than the golf courses themselves.”
We’re seeing a shift in the way golfers are enjoying the game.
In other parts of the country, they are finding ways to enjoy golf with friends.
“And this is a direct result of the rise of golf.””
There are fewer golf courses, there are fewer players,” he told Mashable.
“And this is a direct result of the rise of golf.”
I think it’s important to understand the demographics of golfers in the country.
The decline at the local levelA major reason for the decline at a local level, O O’Connell said, is that golf courses have become too small to attract new players. “
If you look at the demographics, the growth in golf is happening across all age groups,” he added.
The decline at the local levelA major reason for the decline at a local level, O O’Connell said, is that golf courses have become too small to attract new players.
“Golf is the number one sport for golfers and that is a challenge for local communities,” he continued.
“For example, the Umpqua Community College golf course in Oregon is about 40,000 square feet and has two courses,” he stated.
“You can’t make a business that is as big and complex as that.”
The growing number and size of courses means that the industry has less money for upgrades and maintenance, according O’Sullivan.
“It is a very expensive sport to operate,” he admitted.
O O’Donnell believes the decline of local courses is due in part to the growing popularity of casual play.
“Local golf courses need to be in a great state of repair,” he asserted.
According to O’Leary, a lot of people are getting bored playing golf at local golf courses. “
So, you’re going to see the amount of money golfers need to make in order to maintain their facilities is going down, and that means less money coming into those facilities,” he noted.
According to O’Leary, a lot of people are getting bored playing golf at local golf courses.
“We’ve seen an explosion of new players coming into golf over the last five years,” he stressed.
“What we have seen is a lot more people are finding themselves at the end of their courses and wanting to go play at another course.
It’s a really interesting phenomenon,” O OConnell said.Read More