The Pellucid Perspective - February 2012 - (Page 19)

THE LAST WORD Golf ’s Clash of the Titans s those of you who have read our Harvey Silverman’s excellent story in this issue on the recent brouhaha involving the proposed alliance between the PGA of America and GolfNow to corner an even larger share of the online tee time sales market now know, there are major rumblings in golf ’s owner and operator ranks. The identities of the players make this a compelling story to follow, and it seems likely to be a pot that will simmer for quite a while, although the PGA Board of Directors’ decision last week to back away from the GolfNow alliance will keep the lid on for awhile. On one hand, we have the PGA of America, whose ranks include not only the professionals behind the golf shop counter and on the lesson tee, but many of the owners who employ those PGA pros. In this instance, the PGA was joined handin-hand with GolfNow, the tee time reseller goliath who had proposed a PGA-sponsored tee time booking engine that would not only funnel large wads of tee time sales cash to participating PGA sections, but also substantially increase GolfNow’s already industry-leading portfolio of courses using GolfNow for tee time bookings. In the opposite corner, we have the National Golf Course Owners Association, which also has PGA members in its ranks. In the past, the NGCOA and PGA have partnered in a wide range of initiatives, shared rounds and revenue data, and generally coexisted quite peacefully. On this issue, however, they find little common ground. The NGCOA has been a staunch opponent of tee time barter as a means of compensating third party tee time marketers for times booked on their systems. GolfNow, which at least theoretically accepts only bartered times as payment for their bookings, has been the most obvious target, albeit rarely mentioned by name in official NGCOA “best practices” advisories on third party tee time sales. Few issues divide golf course owners and operators more than third party tee time sales. Some are firmly against the practice, especially if it involves barter as payment, while others rely on those booking engines heavily, and feel that whatever the cost is on the back end in terms of damage to their rate integrity, the rounds generated through GolfNow and other providers are not only worth the ancillary risks, but virtually essential to their revenue stream of paying customers. Given the differing opinions on the use of third party providers, it was surprising that the PGA of America would attempt to ally itself with Golfwww.PellucidcorP.com A Now. It was even more surprising that according to comments circulating on the NGCOA’s listserv and other industry blogs, the vast majority of PGA section officials, not to mention owners and members of the rank and file, were unaware of the impending alliance until a PowerPoint summary of the deal leaked out and started making the rounds shortly before last month’s PGA Merchandise Show in Orlando. Opposition to the proposal quickly coalesced in sufficient volume to convince the PGA to “table” the proposal for further study, and subsequently to kill it entirely, pending more thought and more input from member and owner stakeholders. It is particularly puzzling that the PGA would attempt to slip such an obviously controversial business proposition past a substantial number of its members who have such strong feelings about the issue as a whole. While the leadership of the PGA and the NGCOA have enjoyed a relatively collegial partnership on most issues, this is clearly not one of them. The disconnect is even more pronounced among the individual owners, many of whom may be PGA members, but whose first loyalty is to their own bottom line. They are clearly not enamored of a plan that will certainly enrich both the PGA and its sections and GolfNow, but may put added pressure on owners to participate in a program they’re not in favor of. Many owners who have commented on listserv or other postings have made the point that their PGA professionals work for them, not the PGA of America, and that any agreement that puts money in the pockets of those pros or their PGA sections without passing through the owner’s books first is likely to result in a change of employment for the pros in question. While GolfNow, with its Comcast billions, TV connections and existing course list, brings the most to the table for the PGA (in more ways than one), GolfNow is also the lightning rod for most of the concerns that barter opponents have. When owners warn against third party tee time resellers, you can see “GolfNow” in the thought bubble above their heads even if the target of their angst is unnamed. If the PGA and GolfNow haven’t figured it out yet, golf course owners by nature are for the most part fiercely protective of their own self-interest, and while they may remain passive on many other industry initiatives and issues, you don’t tell them what to do, and you don’t mess with their money. It should be fun to watch in the com—Jim Dunlap ing months. Few issues divide golf course owners and operators more than third party tee time sales. The Pellucid PersPecTive 19 http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - February 2012

The Pellucid Perspective - February 2012
Contents
PGA/GolfNow deal torpedoed by members’, owners’ reactions
More core golfers playing less = trouble
Point-Counterpoint: Alternative Golf
January weather impact: Golf benefits from an inconvenient truth
Pro Kids Golf Academy builds on distinguished legacy
The phantom golf ball market
Tampa, FL
Forest Preserve still seeking golf course developer
Golf ’s Clash of the Titans

The Pellucid Perspective - February 2012