Spring Golf

Cece Berg

Economics

Mr. Reuter

03/19/2017

Spring Golf

As some may have noticed, snow has been blanketing the United States for awhile now. People frequently ask, “When can I get out on the course?”.  But the real question is, how much does this bipolar weather impact the spring golf season cost wise?

For golf courses and their management team, their opportunity cost is unfortunate as snow disturbs courses in the first place. As it continues to snow during March, the damage repair costs increase.  According to a recent article from KTVZ (Oregon), the owner of Widgi Golf Course questioned if they would even open at all because of the weather. They are usually open by now, however that isn’t the case this year. Infact, below is an image of a pie chart that shows what percentage of revenue goes towards course maintenance.

With the less amount of days that the courses are open, less money is being made. Less money being made, the total revenue is on a fast decrease. Less income only leads to less care for the courses. That generally creates root problems, and only digs courses in a bigger financial issued hole. The loss of money due to the extended winter season is roughly $90,000 on average for one single golf course. Loses for private golf courses are not as significant because they make more in the first place and are able to maintain the course better, however, the weather still causes damages to an extent.  

Due to the weather, courses are looking to open (and stay open) within the next week (late March, early April). The general rule for courses to be open is an expected high of 50 degrees (Fahrenheit) or above. Mother Nature is beginning to balance out, and the temperature is expected to increase closer to the 60s for the midwest, and hopefully 80s for the rest of the United States.

Sources say that subsidies were in fact provided to golf courses as an aid to recover financially. By providing those services, it is easier for the course to fix the damage that was caused. If golf courses weren’t provided the aid, then it could take an extra month to help getting things back on track. Though the whole loss wasn’t recovered, it still made a bigger impact than no money at all.  

Though golf courses are experiencing significant losses, businesses such as snow plowing, Farm & Fleet/ Menards, and etc. are experiencing a higher demand for snow protection supplies, therefore more money is coming in for those specific companies.

It is not a loss for all, but for us golfers, it is pretty upsetting knowing that there’s a delay to getting back to playing. After all, we do bring in a good amount of $1,500,000/year for these courses. The ripple (economic) effect mainly comes from the stuff that courses sell at club houses. Clubhouses typically sell clothing, golf balls, shoes, clubs, etc., so it impacts each company that is involved. If the golf course isn’t making money, others aren’t making any more than what they already do.

Works Cited

Fried, Dani. "Snow's Impact Hits Central Oregon Golf Courses Hard." KTVZ. 16 Mar. 2017. Web. 20 Mar. 2017.

"Golf Facility Revenue and Expense Benchmarks." Golf Facility Revenue and Expense Benchmarks. Web. 20 Mar. 2017.

Griffin, Jake. "Suburban Golf Courses Losing Money." Daily Herald. 03 Mar. 2016. Web. 20 Mar. 2017.

"Weather-dependent Companies Try to Stay Busy without Snow." Fox 59. 07 Feb. 2017. Web. 20 Mar. 2017.

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