Operating and financial trends in private clubs in Florida

The 2012 Florida Trends in Private Clubs marks the 38th year of production for this annual report highlighting operating and financial trends of more than 200 clubs throughout Florida—the state with the highest concentration of private clubs.

Florida Trends in Private Clubs is a non-solicited statistical review comprised of data compiled from the latest annual reports of private clubs and associations audited by McGladrey LLP. This methodology speaks to the integrity of the data and reliability of our findings.

This year’s report reflects an overarching trend in the industry—the idea of operating a private club like a commercial enterprise. Throughout the last couple of years, the phrase “running like a business” became increasingly common. With it came preconceptions and misgivings, as well as more attention to procedures and increased efficiencies. Leaders in the industry have been quick to take note that businesses do more than cut expenses. Additionally, clubs are not driven by goals around profit and are distinct in many ways.

These and other related topics are illustrated around this year’s financial metrics.

Highlights from this year's report include:

• Fifty-nine percent of clubs reported positive working capital. While this is an incremental increase over the 57 percent last year, the attention paid to greater fiscal prudence is clear when viewed over the last five years—beginning with only 47 percent of clubs in the positive.
• Clubs around the state continue to seek to enhance the membership experience through capital improvements, evidenced by the 77 percent of the population having annual capital assessments. In fact, 38 percent plan to implement a significant capital improvement project in the year to come.
• Last year, observations were made that third-party debt is not held in such a negative light at clubs. This continues to hold true, with a nearly stable 66 percent of clubs throughout the state holding third-party debt. The average statewide debt per member totals $6,010.
• Payroll remains the largest component of club operating expenses, accounting for nearly 52 percent of total operating expenses (i.e., no change over last year).
• In food and beverage operations, nearly 35 percent of clubs raised their menu prices. This increase from only 20 percent in the year before can be attributed to heightening pressures from higher food costs. Nonetheless, the eight percent increase in cost of food continues to explain increasing subsidies from dues in this area of operations.
• Golf course maintenance costs per hole increased slightly, from around $76,000 to $77,700 and $78,600 for 18-hole and multiple course clubs, respectively.

2012 Florida Trends in Private Clubs Executive Summary
Download the executive summary for more details.

The complete report is available for $199.99. Contact us to request your copy today.