Captain Dan Rooney of Grand Haven Golf ClubPatriot Golf Day isOpportunity to Say Thanks

Water Legislation Passes

The Art of Discounting

14th Annual Golf OutingRegistration Forms Inside

MTESP Gets Facelift

Player Development LeadershipApply for $1,500 Grant

TOT_JulAug08_Cover.indd 1 7/11/08 1:08:16 PM

MICHIGAN GOLF BUSINESSA N N U A L C O N F E R E N C E & V E N D O R F A I R

Dec. 2-4, 2008 - Somerset Inn, Troy

08 Covers.indd 4 7/10/08 7:55:08 AM

3July/August 2008

PRESIDENT

Bill Fountain

Majestic at Lake Walden

VICE PRESIDENT

Bob Koutnik

Fox Run Country Club

TREASURER

Jim Scott

Gull Lake View

Kathy Aznavorian

Fox Hills Golf & Banquet Center

Larry Bowden

The Natural

Ed Clark

Sandy Ridge Golf Course

Jim Dewling

Total Golf Inc.

Frank Guastella

Franklin Golf

Jeff Hoag

Scott Lake Country Club

Jim Jeltema

Clearbrook Golf Club

Toni Joers

Concord Hills

Lynn Miller

Indian Lake Hills

Larry Moore

U.S. Golf Cars

Carolyn Olson

Elmbrook Golf Course

Steve Ramey

Chisholm Hills

Dave Richards

Resort & Golf Marketing Services

Dan Rooney

Grand Haven Golf Club

Tom Schwark

Sycamore Hills

Donna Wright

Copper Hills Golf Course

News From The President

MGCOABoard of Directors

MGCOA President Bill Fountain sporting his “Folds of Honor” golf shirt for the outing at Grand Haven.

Most of our large golf outings are charity based organizations. The outing can be part of large groups like the United Way or American Cancer Society to the local high school basketball team. In any case, these groups of individuals are extremely important to the bottom line of our business.

Several charities have two or three main fundraisers a year, and golf has been part of the mindset of organizers. Like many facets of our economy, these charity organizations are being hit by declining numbers and business sponsorships. One way for their events to be profitable is to offer unique packages for the fundraiser to consider.

Last year we started to promote the 9-hole charity fundraiser. The concerns we had heard from organizers is that the golf day was too long for many of their clients, and other family or business commitments trumped a day at the golf course. Our idea was to offer a 9-hole shotgun start for their group. Many of the money generating concepts would be the same for a 9 hole vs. 18-hole event. Hole sponsorships, silent auctions, 50/50 events, long-drive and closest to the pin events would continue. However, we offered some of the benefits of having a nine-hole event.

For the charity, 9-hole events would take less time, reduce the need for some food needs and take some pressure off from trying to obtain a full 144 person field along with a smaller entry fee. For the course, the advantages are to fill a portion of your tee sheet. These are unique times where daylight restrictions would never be able to be completed but still obtaining 72 people eating, having beverages and visiting your facility. For example, 4pm on a Saturday afternoon is an ideal time to fill for 9-hole event.

As our lifestyles and economy change, we as golf course operators need to offer unique opportunities for groups to use and maximize our facilities. Let your imagination lead your facility to financial success.

Speaking of “Great Fundraisers,” don’t forget to be part of this year’s MGCOA Annual Golf Outing at Gull Lake on August 14th. This event offers many ways to network with other owners and vendors to uncover other ways to reach your financial goals.

Have a great day.

Charities and Fundraisers on your Golf Course

Join Us For the 15th AnnualMGCOA Golf Outing!Thursday, August 14

Gull Lake View East in AugustaTurn to page 13 to register -

and fax your registration in today!

4 Tee-Off Times

To: MGCOA Members

From: Mike Last President and Founder LastMinuteGolfer.com Cell: (770) 815-2222

Subject: Request for Further Consideration

MGCOA Members,

I started our marketing company in 1998 with a clipboard and a fax machine and have worked very hard over the last 10 years to enhance and continue to provide the best service possible for our (now close to 600) participating golf courses.

Thanks to Kate for giving me the opportunity to provide (for what it’s worth) my brief insights into the current state of the golf industry and the role that marketing partners can play in helping you sell tee times and promote your golf courses. I know that there are some misconceptions out there, and I hope I can clear them up and that we can speak in person very soon at an upcoming event.

We have a very simple principle that all of our 19 local market managers (including Shawn Lally representing us in Michigan) are guided by. Simply put, our goal is to reward golfers for spending more at our courses instead of simply making it easier for them to spend less. As I’ve traveled the country, I’ve observed countless “easy” discounts that are frankly terrible for local golf markets, and we’re doing our best to fight discount “pollution” within all of our local markets. There is no overnight fix, but I believe that many of our programs have things going in the right direction.

Given the state of the economy; I feel that now more than ever, it’s important to keep golfers thinking about golf and to work with local partners to add value to each round. It’s equally important to provide golf course owners with a model to reward golfers for each dollar they spend playing golf. We’ve done all of that. In fact, in addition to our own frequent golfer program, we’re now teamed with NorthWest Airlines and six others to give our members three miles for every dollar they spend booking golf at participating LMG courses. We’ve invested considerably in this program. We also run roughly 350 radio spots per day now and many of them are targeted in the Michigan area, promoting golf and promoting our member courses.

Our company is a marketing company first, but the US Patent Office gave us a patent for our unique tee time display technology. We remain laser focused on local marketing and local promotions and community involvement. Shawn supports hundreds of Michigan charity events with tens of thousands of dollars in LMG prizes. If you haven’t already, I’d ask that you let Shawn further explain all of the ways that LastMinuteGolfer sets ourselves apart from the competition. I believe you’ll quickly discover that we are far more “course friendly”. Thanks and I would welcome the opportunity to speak to your organization any time.

The 2008 season brings exciting new features and opportunities for golf leagues electing to participate in the MGCOA Golf League Championship. Listed below are just some of the highlights that the GLC will bring to league golfers in 2008:

New Features:• An option now exists where teams can

play against the field every period rather than against only one other team.

• Administrators can give other golfers in the league administrator authority. This will more easily allow multiple people to manage a league or will make it easier if the main administrator takes leave for a period of time.

• Results displays have been enhanced for readability.

• Reports and Statistics have been enhanced.

• New programming (Ajax) has been implemented throughout the program to make it faster and easier to use.

Still Time For Leagues

Giveaways• More giveaways are on the horizon. This

year $1,000 in Best Buy gift cards will be given away in random drawings to league players and league administrators who participate in leagues that are active on the websites. Additional giveaways will be promoted as they become available.

Golf League Network:• The biggest new deliverable of the 2008

release comes in the form of the Golf League Network, which is a service developed to serve all golf leagues of all types and can be found at www.GolfLeagueNetwork.com. The GLC serves only 2-person team leagues, but the Golf League Network has the following additional features:

• Supports 1-8 person team leagues• Supports any handicap type

Note: Leagues who use the GLN are not eligible for the Golf League Championship Tournament

Leagues Are Growing and So Is the GLC

5July/August 2008

My recent travels have taken me through Michigan, Ohio, Indiana and Illinois and there is one thing that you can not escape from when driving through these states…billboards advertising “Your trip Begins at Michigan.org”. In fact, many of the courses I’ve met with in other states have mentioned the aggressive advertising campaign that the State of Michigan has launched, including the recent television spots during the U.S. Open.

I mention this because the MGCOA has partnered with the Michigan P.G.A., the Michigan Hospitality and Tourism Association and the State of Michigan to provide visitors to the Michigan.org website the convenience of booking tee times at Michigan golf courses. This will soon evolve into MI Golf Community a one stop shop for tee times and golf packages at courses and resorts throughout Michigan.

Boost Your Business With Help From www.michigan.org

Getting your course “online” with Michigan.org is easy…we interface with 95% of the electronic tee sheets, or if you are on pencil and paper you can easily post tee times to the system as well. There is no enrollment or monthly fee; you just need to provide a 15% net rate on tee times sold through this channel. Please be aware that the revenue from the site is earmarked to be invested back into promoting Michigan Golf.

With the fast approaching PGA Championship being hosted at Oakland Hills, now is the time to align your course with the most visited State travel site…Michigan.org. For more information or to enroll your facility please contact the MGCOA office or you may contact me directly at 248.790.2802 or pdamer@golfswitch.com.

By Pat Damer, GolfSwitch

Golf Courses Give Back

On June 12 the MGCOA staff and board of directors met at Grand Haven Golf Club on the west side of the state for our summer meeting and to welcome new board member Dan Rooney. On this day Grand Haven was host to the “Folds of Honor” Golf Outing. This was the third year for the event, the catalyst for Patriot Golf Day, founded by Rooney. What started as a small-time golf tournament near the shores of Lake Michigan has turned into a nation-wide grassroots program that could raise upwards of $20 million this year, thanks to the efforts of Dan Rooney and friends.

Rooney, a captain in the Air National Guard and co-owner of Grand Haven Golf Club, started The Folds of Honor Foundation (formerly Fallen Heroes) as a program to help support families of soldiers injured or killed in Iraq or Afghanistan.

During our meeting Rooney introduced us to Major Edward Pulido. Ed Pulido is currently the Sr. Vice President of the Folds of Honor Foundation. He has attained the Rank of Major in his 18- year military career and on May 16, 2005, he was medically retired from the United States Army. On the 17th of August, 2004, Major Pulido hit an improvised explosive device (IED) or road side bomb while serving a combat tour in Iraq. He was training the new Iraqi Army. Due to the extensive

By Kate Moore, Executive Director, MGCOA

injuries to his left knee, doctors had to amputate his left leg on October 1, 2004. For his heroism and valor on that August day, the President o f t h e U n i t e d Sta tes awarded him the Bronze Star Medal, Purple Heart, Meritorious Service Medal , Joint Service Commendation Medal, and Joint Service Achievement Medal. Major Pulido’s story of courage has been featured in Time Magazine, Fox News, CNN and more.

To say that we were moved and awestricken by this amazing individual would never capture for you the emotion in the room that day. To say that any golf course owner who heard Major Pulido speak would participate in Patroit Golf Day, would be a given.

Major Edward Pulido, U.S Army, (Ret.). spent 19 years of his life serving the greatest nation in the world

MGCOA members of the board and staff at lunch before the golf outing

Major Pulido addresses the group before the afternoon

shotgun

6 Tee-Off Times

More Than One Million Dollars Raised Giving Back To Those Who Have Given Everything

Michigan’s golf industry makes significant contributions to a variety of charities. If you GOOGLE “Michigan charity golf outings 2008” you get an amazing 123,000 hits.

Overall, it is estimated that the amount of charitable giving attributed to the game of golf in Michigan is $118.1 million.

One man taking a lead in the commitment to charitable giving is Grand Haven Golf Club owner Dan Rooney. Sparked by the vision and dedication of this PGA Professional and MGCOA Board Director Rooney, the inaugural Patriot Golf Day raised more than $1.1 million in under two months last year. Patriot Golf Day 2008 is scheduled for Aug. 29-Sept. 1, 2008.

During Patriot Golf Day, golfers nationwide will be asked to donate a minimum of $1 to the Folds of Honor Foundation to support families of those who have become disabled or lost their lives in the line of duty.

Rooney, National Program Leader for Patriot Golf Day, an F-16 fighter pilot in the Oklahoma Air National Guard, call sign Noonan, has served two tours in Iraq, and will be returning for another tour this summer. “We have lost more than 4,000 soldiers. They have given the ultimate sacrifice. America can come together in the spirit of golf and have a dramatic impact. We have an opportunity to make a difference for the families who have made the ultimate sacrifice.” Rooney, 35, a resident of Broken Arrow, Okla., is a 1995 graduate of the University of Kansas, where he earned a master’s degree in performance psychology in 1996. He turned professional that year and competed until 1998 as a tour professional. Rooney also is a golf course owner, residential developer, and as well as an F-16 pilot in the Oklahoma Air National Guard. He is a Captain in the U.S. Air Force and a decorated military aviator, who will be making a third tour of Iraq later this year.

In 2007, Rooney founded Patriot Golf Day, a nationwide fundraiser jointly supported by The PGA of America, United States Golf Association (USGA), the National Golf Course Owners Association (NGCOA) and the Golf Course Superintendents Association of America (GCSAA), which produced more than $1.1 million in donations nationwide. This year, all proceeds will benefit Rooney’s Folds of Honor Foundation.

The Folds of Honor Foundation’s mission is to provide scholarships to the spouses and children of troops injured or perished in conflict.

To become an official Patriot Golf Day Host Facility, visit www.mgcoa.org and click on the Patriot Golf Day logo!

Following the event, facilities will send one (1) check directly to:

Folds of Honor Foundation 7030 S. Yale Ave., Ste. 600Tulsa, OK 74136

Checks must be payable to: Folds of Honor Foundation

BECOME AN OFFICIAL PATRIOT GOLF DAY HOST FACILITY!

“I contended all along that there are patriots lying latent all over the country,” said Rooney. “We gave golfers something that fit into their schedule. I enjoyed the quote t hat appeared in GOLF Magazine, ‘Honey, I can’t mow the lawn today, my country needs me.’

“This is my core; I have a direction and a purpose in life. There is no doubt every decision I’ve made has brought me to this point for this cause. It is amazing what has transpired in a short time and how there is a vision and a passion by so many to support this.”

Rooney said that the initial Patriot Golf Day scholarships to children of veterans will be awarded in the spring of 2008 to a id s t ude n t s b eg i n n i ng i n t he f a l l s e me s t e r. Participating facilities for Patriot Golf Day are listed on www.PlayGolfAmerica.com.

Rooney believes that he is a man with two missions — building Patriot Golf Day and supporting the ground forces in Iraq. He and his wife, Jacqy, are the parents of 3 daughters.

Captain Rooney this June at the Folds of Honor Golf Outing in Grand Haven with his daughters during the invocation.

7July/August 2008

Every day we as consumers are making decisions that impact the environment we care most about: that 10 or 15 mile radius that delineates most of our daily living. Each time you spend a dollar, that represents a decision made about the future direction of your community.

One important factor is where you make your purchases-from a local establishment or a Big Box retail chain. www.AndersonvilleStudy.com is the home of a remarkable study that confirms a long-held suspicion: Big Box operations aren’t good for the economic well? being of local communities.

Andersonville, a long-established neighborhood in northern Chicago, with a commercial district known for its quaint facades and greenery, its current diversity, and, for now at least, a notable absence of Big Box outlets.

The pattern is typical throughout America. The big guys move in with a barrage of advertising and promotion that drowns out their local, small business competition. The locals, battered by the onslaught and the accompanying increase in commercial rental rates, either move on or close down entirely.

An economic analysis and strategic planning consulting firm study aimed at determining Big Box impact on the local economy, compared to homegrown companies had these eye-opening results:

Community Binders: Shop MichiganBy Mike Brandel, Sales Manager for Michigan owned DBI, Inc.

• For every $100 in consumer spending with a local firm, $68 remains in the local economy.

• For every $100 in consumer spending with a chain firm, only $43 remains in the local economy.

• For every square foot occupied by a local firm, the local economic impact is $179.

• For every square foot occupied by a chain firm, the local economic impact is only $105.

The bottom line: locally owned businesses generate a substantial local premium to the overall economic health of their communities-58% more in raw dollar value and a whopping 70% more in space occupied.

Folks are beginning to realize their spur-of-the-moment purchasing decisions have long?term implications on their communities. Big box chains operate very efficient retail machines. But they also operate equally efficient export businesses, rapidly moving local dollars out of local communities and into the coffers of corporate giants literally thousands of miles away.

DBI, Inc. is a Michigan-owned MGCOA Corporate Member and a provider of single-source solutions that support your workplace and enhance your business.

Golf courses throughout Michigan will now be able to enjoy the ideas, techniques and advice contained in the Michigan Turfgrass Environmental Stewardship Program (MTESP) modules with no risk and no expense. Leadership from the MTF, Michigan Department of Agriculture and MSU Turfteam have come together to develop and endorse a new model for environmental stewardship and program delivery.

Over the next three months, the modules will be placed on thumb drives (courtesy of the MSU Turfteam) and mailed to all golf courses in Michigan free of charge. Superintendents will be able to pick and choose which modules they wish to implement; all at a pace which best fits the golf course’s timetable. Should a superintendent need assistance with a particular module or issue, the MTESP will offer a roster of 3-10 field consultants with which the superintendent may directly contract to visit the course and consult with the superintendent about that specific issue. When and if a golf course determines it is ready to test to become certified, that process can also be directly accomplished through one of the trained

MTESP Gets FaceliftBy Donn Eurich, Executive Director, MTESP

field consultants. Should the golf course decide that certification is out of reach or simply not a priority; the golf course’s environmental stewardship will still be improved through the voluntary compliance and implementation of some of the steps contained in the modules.

Assisting with the distribution of these thumb-drive modules will be the MGCOA, GAM, MiGCSA, MDA, DEQ and the MSU Turfteam. The current program will be temporarily shut down until October to permit new promotional materials to be developed, the thumb drives to be produced and the recruitment and training of additional field consultants to occur.

The process of examining, diagnosing and ultimately reshaping the MTESP has been an arduous task which has required the time and talents of many individuals. We look forward to assisting you and your golf course to promote these stewardship principles and processes when the new program is re-introduced this October. Please feel welcome to contact me at the MTF office if you have questions.

8 Tee-Off Times

Legislative Bulletin

Efforts to fix a problem with the recently-enacted MBT took another step last week, as SB 1038 passed both a House committee, and the full House prior to recessing for most of the summer.

SB 1038 would correct the definition of gross receipts so that sales tax and other fees levied by a business to be remitted to the state, is not included in the definition. Recently Treasury interpreted the MBT language to include sales tax and other similar levies in this definition. This in essence meant that there was a tax on a tax!

SB 1038 did not escape completely intact however. Because of the large price tag to the budget associated with passage, the Democrats in the House tie-barred the bill to several

other issues of major importance to them and opposed by the GOP. This ensures that the Senate will non-concur with the House-passed version and the bill will probably head to a conference committee.

It appears that the issue is caught up in the political maneuverings in Lansing leading up to the fall elections. What issues can be traded to ensure the clean passage of SB 1038 remain to be seen but will hopefully not include issues that cause us to take one step forward and two steps back.

More Work on the MBT

On June 18th the Michigan Legislature passed the much awaited Great Lakes Compact. One week later the Pennsylvania Legislature also passed the Compact. Now, all 8 states and 2 Canadian provinces that border the Great Lakes have ratified the compact. The Compact heads for Washington for Legislative approval and signature of the President. Please contact your U.S Representative and our 2 Senators urging them to pass the compact. See the article titled “Water Legislation Passes the Legislature” for more details.

Great Lakes Compact Goes To Washington

Many Michigan food establishments must employ at least one certified food manager by June 30, 2009. Local health inspected establishments that must have a certified manager include all food service establishments (i.e. restaurants, bars, schools and hospitals) except mobile food establishments, special transitory food units, vending machine locations and temporary food service establishments.

Becoming Certified or RecertifiedTo be certified you must pass an ANSI/CFP nationally accredited exam once every 5 years. To prepare for the exam, most individuals take a class (in person or on-line) or self-study. Exams are proctored and must be taken either at an approved testing site or are given at the end of a course by an approved instructor.

Finding a course, trainer, textbook or examBy phone, contact your local health department (the MGCOA can provide you with the phone number). On-line you can visit the Michigan Restaurant Association at www.michiganrestaurant.org (serv-safe courses, exam, texts), www.serv-safe.com, for specific courses, texts, online training, exams or NSF HealthGuard Certified Professional Food Manager at http://nsf.org/cphe/course_offerings/index.asp for specific courses, on-line training, and trainers.

Contact the MGCOA at 800-860-8575 for more information or assistance.

Food Manager Certification

Everything toOutsource theManagement of• your human resources• employee benefits• payroll• payroll tax compliance• unemployment claims• workers’ compensation

and more.

9July/August 2008

Water Legislation PassesMany people in the State of Michigan continue to take for granted our seemingly endless supply of fresh water. Taking this resource for granted is a huge mistake. Take the front page headline from the NGCOA’s June issue of Golf Business for instance. “Water Wars-With Government agencies limiting access and drought crippling many regions of the country, the fight or water promises to be a colossal battle for years to come.” If you don’t believe this is serious here are some more examples. First, New Mexico Governor Bill Richards mentioned tapping the great lakes during is primary run for the presidency. Also, go on line and read the cover story for June 23, 2008 Business Week. The cover has a picture of T.Boone Pickens, a former Corporate Raider. The title of the article: “There will be water, why T.Boone Pickens thinks it’s the NEW OIL.” T.Boone has been purchasing hundreds of thousands of acres of Texas panhandle land. Billions of gallons of water lay underneath that land. His goal! Run a pipe line to Dallas and sell them the water. Your MGCOA president Bill Fountain has mentioned water as the new oil on several occasions over the last few years.

Understanding the immense pressure that would be put on fresh water a group of 8 states and 2 Canadian provinces bordering the great lakes was formed. This group spent a good portion of the last 10 years working toward an agreement to limit Great Lakes diversions. The MGCOA testified on several times during this process. This legislation now goes to Washington for approval. Many folks such as our own Senator Patricia Birkholz, chair of the Senate Resources & Environmental Affairs committee feel this legislation MUST PASS before the 2010 census. Due to population shifts the states bordering the great lakes will loose congressional seats and the water starved south and south west will pick up seats. This could be very bad news for Great Lakes states.

In order to pass the compact Michigan had to put its own house in order. For over 5 years the legislature has been working on a comprehensive package of bills dealing with permits and diversion. The MGCOA and Lobbyist Eric Rule have been involved in every phase of the process to monitor legislation that would affect our golf courses.

Initially legislation would require permitting of all water withdrawal sources for everyone with a CAPACITY potential of 2,000,000 gallons a day. Without getting complicated here are the results as we see them. Governor Granholm signed this package into law on July 9th.

*The legislation specifically SB5069 discusses permitting for any new or largely increased withdrawals for any water resource. Current users would continue to report usage as we have been since 1996 but permits will not be required. This saves golf courses thousands of dollars in permit fees.

*If you are going to increase your usage for build another course for example you will need a permit. Seasonal withdrawals of not more than 1,000,000 gallons per day average in any 90 day-period would not need a permit.

The MGCOA considers this legislation victory for golf course owners and a win/win/win for everyone in Michigan. However, remember there is always tomorrow. This issue is here to stay and we as golf course owners need to utilize best management practices and water usage diligence to the utmost.

If you have any questions regarding Senate bills 858,859,860 or House bills, 4343.5065,5066.5067,5073 contact John Dodge at the office.

SAVE THE DATE!2009 MGCOA Legislative Day

is Wednesday, March 4th

Mark your calendar now to attend!

10 Tee-Off Times

Summer is peak season for one of the nation’s deadliest weather phenomena lightning. The average lightning strike is six miles long, reaches 50,000 degrees Fahrenheit, and contains 100 million or more electrical volts. In the United States, an average of 62 people are killed each year by lightning, and it is estimated that somewhere between 5 and 10 percent of those deaths have occurred on golf courses. It is also estimated that lightning accounts for more than $4-$5 billion in damages annually in the U.S.

Where lightning hazard is concerned, the priority for course owners is undeniably the safety of patrons, crew and staff. The open space of a golf course, with scattered trees and often limited places to seek effective shelter, makes it a particularly dangerous place when lightning strikes. The focus here, however, is on the potential damage to expensive irrigation systems. Irrigation systems are particularly susceptible because they have large amounts of wire buried in the ground that can attract lightning. While you cannot protect against a direct lightning strike, you can protect against its indirect electrical energy with surge protection, proper grounding and other measures.

There are many options available when it comes to lightning protection - from simply remembering to electronically disconnect sensitive equipment to elaborate devices and irrigation protection systems. Budget, location, experience and personal preference are all factors that play a role in decisions concerning which lightning countermeasures are best for your course. A lot of valuable information can be found by doing some research online. Two good places to start are the National Lightning Safety Institute: www.lightningsafety.com and the Lightning Protection Institute:

Minimize Your Susceptibility to Lightning Hazardswww.lightning.org. (the latter offers a listing of qualified contractors). Articles on irrigation system protection can also be found on the Grounds Maintenance website: www.grounds-mag.com (search the keyword “lightning”).

Other Lightning and Power Outage Problems to Consider

In addition to repairs to the irrigation system, surge damage and power outages of any cause affects turf quality by interrupting finely tuned watering schedules. Lack of water can put your golf course out of business!

• Contact your local well repair contractor to be sure you are on the top of their list. Have them inspect and discuss the potential storm repair process. Are parts available? How long for delivery? Call the supplier to confirm.

• Do you have the ability to water your key areas without the irrigation system in operation? What if you are without power for several days? Develop an alternate watering plan for your greens and tees. Water tank? Trash pump?

Insurance can replace and repair storm damage to your greens equipment, but it will not protect your grass from lack of water. Having an alternate watering plan is the key. Please contact us with your alternate plans and in our next article we will share your ideas and experience with other members of the MGCOA. Contact John Seiser at john.seiser@kapnick.com or 888.263.4656 x1300.

With the economic challenges here in Michigan, golf courses are expected to further discount their tee time inventory in order to attract more customers. Discount Golf in Michigan is a 20 million dollar a year business, so why not go after a piece.

The problem is that many golf course operators are not educated in marketing and consumer buyer behavior. If a golf course decides to dabble in the discount golf game, they better know what they are doing. If the golf course does not have a sound plan, they can cause a ripple effect, which could definitely damage their business and likely to trade quality dollars for less.

I was at a golf course the other day and they were promoting a special that included 4 rounds for $99. The idea was good, but the Pro advertised the special in the golf shop. You already have a captive audience and he did not put any restrictions on the promotion. What happened? Foursomes would come in who would have paid rack rate ($39), noticed the sign and ended up buying the $99 special. This promotion should have been mailed out to a certain database of golfers who live in a different area. This happens every day at golf courses throughout the United States.

The Art of Discounting….

I just want to make everyone aware that poor decisions made by a few operators, can cause the downfall of their course and have a ripple effect throughout Michigan. Identify your weak spots on the tee sheet and target specific promos to develop additional revenue. Do not however take away from the areas that have players, especially when those players are “paying” an acceptable price for that specific tee time. Gone are the days of “one size fits all”. Today savvy operator is likely to offer a variety of products based on supply and demand. Blanket treating is likely to take away from the good you have already established. Know your peaks and valley and design programs to help in the valleys. You might be able to increase prices if a consistent peak is noted. Fully utilization of the tee sheet requires one to analyze the business. Having an email program to improve weak spots on your tee sheet is essential……not to mention it rewards customer loyalty.

There is a way to capitalize on discounted golf, but you have to know how. If you are interested in learning more, please call us at 800-599-6310. Effective solutions are cheaper than you think.

By Bay Paul, Golf Course Marketing Specialist, Course Logix, Member MGCOA

11July/August 2008

NGF Perspectives on Municipal GolfBy Tom Schwark, Past President, MGCOA and owner of Sycamore Hills Golf Course, Mt. Clemens, Chair of

Government Affairs Committee

In the June 14, 2008 issue of Golfweek magazine, several articles were written about municipal golf courses. That was the week the U. S. Open was played at Torrey Pines Golf Course which is a municipal course in San Diego. The National Golf Foundation, NGF, has worked with hundreds of municipal golf

courses over the years helping them to streamline their operations or conducting economic and feasibility studies to build new courses. This experience with municipal golf courses has given the NGF a unique perspective on their operations throughout the United States. These are some of their views.

The dramatic increase in the number of daily fee golf courses over the past 20 years has put pressure on municipal golf courses to turn a profit. This has been especially true the last five years as more golf courses turn to discounting green fees in an attempt to get more golfers. At the same time, municipal golf operations have experienced rapidly increasing costs, and they are hampered by a cumbersome bureaucracy in terms of hiring, firing, procurement, pricing, etc.

The cost of producing a round of golf at a municipal golf course is often higher than a round at a comparable, or even superior, daily fee facility, because of the relatively high cost of public labor which is generally unionized with generous benefits.

Municipal golf courses have to deal with the entitlement culture which is prevalent at many courses. That is, deep discounting of

At the Michigan Golf Business 2007 Annual Conference and Vendor Fair, Ashleigh Kosin was handed a check for $1,500 for Gull Lake View’s junior golf program. What are you doing to develop new golfers or sustain play at your golf course? League development? Juniors? Women? Seniors? The trustees of the MGCOA Educational Support Foundation want to make a check out to you. The Dul Family Player Development Leadership Award includes a grant component for the winner. Understanding that new and sustaining player development programs at all types of golf facilities takes time and money, the trustees reward this effort with a grant of $1,500 to the winner.

The Dul Family Player Development Leadership Award recognizes MGCOA’s members’ initiative in player development and retention. We want to reward the best on-going programs that overcome the perceived barriers to playing golf such as time, cost and intimidation. This recognition will be presented to any MGCOA member, whether a 9 hole operation or more that has demonstrated creativity and success in growing the game.

So, start putting your notes together, taking pictures and gathering testimonials from your success stories. Next month you will receive the outline of criteria for applying for the Dul Family Player Development Leadership Award. And remember, every golf course that offers a player development program, is a winner!

$1,500.00 to the 2008 Winner of theDul Family Player Development Leadership Award

green fees for residents and seniors. This makes it difficult for them to maximize revenues. (It is also part of the reason many daily fee golf courses have discounted their green fees as mentioned above.)

Due to these and many other factors, municipal golf courses have gone from contributing to the general fund to a position of requiring taxpayer support to meet operational and capitol/debt service requirements. This has caused municipal golf courses to run leaner which typically results in deferred maintenance and capitol improvements. This results in a deteriorating product and declining revenues.

As a result of all of the above, NGF expects many municipalities to turn to privatizing some or all of their golf operations to reverse their failing municipal golf courses.

This is good information to be aware of. We have seen few, if any, new municipal golf courses open the last few years. I don’t expect to see any new municipal golf courses open in Michigan in the next few years. How could any municipality consider building a new golf course after a report like this? If any municipal golf courses in Michigan decide to privatize all or part of their operations, it would be a good opportunity for a sharp golf course operator. However, the downside is dealing with the government bureaucracy. All golf course operators are going through tough economic times. We all have to live with the situation we are in, and it is difficult for everyone. I like to think that these tough times makes us more efficient operators, and when the economy improves in 2010 (hopefully), we will all see a nice increase in profits.

Dul Family Player DevelopmentLeadership Award

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12 Tee-Off Times

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In my last article I predicted that the budget wouldn't get done until the last hour or later, and that thebudget gap would be closed 50-60% with spending cuts and 40-50% with tax increases. I was right aboutthe last hour deal, but I was way wrong when spending cuts only closed 25% of the budget gap.

Actually, I'm not as much disappointed with the size of the spending cuts, as I am the makeup of the taxincreases. I would have preferred the entire $1.4 billion tax increase to be done entirely through a stateincome tax increase. Instead of generating $700 million by increasing the state income tax from 3.9% to4.35%, just increase the state income tax to 4.7-4.8% and generate the entire $1.4 billion needed. Forgetabout the tax on services. Of course, I was delighted when I heard green fees were exempt from the servicetax. Great job, John Dodge and Eric Rule. However, the service tax is causing a tremendous amount ofconfusion and it is suppose to take effect on December 1 this year. I'm afraid it may cause some businessesto reduce or eliminate their presence in Michigan. I have heard of a consulting firm that has offices in

Southfield, Chicago, and Dallas. They're planning on shifting more of their business to the Chicago and Dallas offices. I also thinkit will shift more of the economy underground. Palm readers, fortunetellers, massage therapists, landscapers, and others will domore cash business and report only a small portion of their income. For those reasons, the tax on services may not generate therevenue anticipated. On the other hand, when you start factoring in the business-to-business taxes generated, some economicforecasters are predicting it will bring in more revenues than predicted. Either way, in the end Michigan residents will be payingthe increased taxes one way or another.

There are other reasons why I don't like to see a tax on services. Once it becomes implemented and accepted, it becomes easy inthe future to add new services to the list. Next time we face another budget deficit, hopefully not next year, how easy will it be to

Reflecting on Michigan's New BudgetBy Tom Schwark, Past President, MGCOA and owner of Sycamore Hills Golf Course, Mt. Clemens

Continued on page 12

Foursome Place me with a

RegistRation

name _____________________________________

golf Course or Company ____________________

___________________________________________

Phone _____________________________________

email _____________________________________entry fee: $80 per golfer or $320 per complete foursome (non-members $100 per golfer). Fee includes 18 holes of golf with cart, two drink tickets, lunch and dinner.

Only $80 per golfer!Same price for the 9th year in a row!

Check enclosed

Charge to my cerdit card:

Visa

Mastercard

american express

Discover

Card # ________________________________________

expiration Date _________________________________

signature ______________________________________

Return to:Michigan Golf Course Owners Association603 S. Washington Ste 303Lansing, MI 48933or FAX to (517) 267-8984

Deadline for registration is August 8thNo refunds after August 12th

Questions? Call 800-860-8575

Join Us For the 15th AnnualMGCOA Golf Outing!

You’re invited to our 15th annual MgCoa golf outing to be held on thursday, august 14th, at gull Lake View east in augusta. this is one of our most popular events all year. not only is it a chance for you to network with other golf course owners, but it’s an opportunity to reward yourself and your staff for a great season!

name _____________________________________

golf Course or Company ____________________

___________________________________________

Phone _____________________________________

email _____________________________________

name _____________________________________

golf Course or Company ____________________

___________________________________________

Phone _____________________________________

email _____________________________________

name _____________________________________

golf Course or Company ____________________

___________________________________________

Phone _____________________________________

email _____________________________________

PLACEGull Lake View East, Augusta

DATEThursday, August 14

TIME11:00 a.m. Registration & Lunch

12:30 p.m. Shotgun Start

5:30 p.m. Cocktails & Dinner

14 Tee-Off Times

What greater honor than to be selected by your peers in the golf industry as the recipient of the Matthews Lifetime Achievement Award or the Lyle Leeke Distinguished Serve Award. Each year since 1996 the honorees have been selected from nominations from the golf community at large, specifically the members of the Michigan Golf Course Owners Association.

Please take a few minutes and reflect on those individuals you have come in contact with over the years. We are currently accepting nominations for these awards. Please call Kate Moore (800-860-8575) if you know someone who should be considered. You can also email your candidate to kmoore@mgcoa.org.

The Matthews Lifetime Achievement Award is presented to an individual or individuals whom over the span of a lifetime (or career in the golf industry) has provided steadfast leadership, outstanding service, and continued commitment to the Michigan golf industry. The award was named for W. Bruce Matthews, a golf course owner and architect, who spread his expertise throughout the fairways of Michigan. Past winners of the prestigious award include W. Bruce Matthews (1996), Everett Kircher, Boyne USA (1997), Bill Howard, Saskatoon Golf Course, Alto (1998), Daryl and Letha Scott, Gull Lake View Golf Course, Augusta (1999), the Kapnick Insurance Company, Adrian (2000), Terry Moore, Grand Rapids (2001), Art McCafferty, Ann Arbor (2002), Estelle Dul, Fox Hills Golf

MGCOA 2008 Awards of Honor and Recognition

A tradition of excellence, dependability and service to the golf turf managers of Michigan since 1947.

487 W. Division St.Sparta, MI 49345

1050 Opdyke Rd.Auburn Hills, MI 48326

800-822-2216FAX:800-232-6288

turf@spartandist.com

and Banquet Center, Plymouth (2003), Michigan Turfgrass Foundation, East Lansing (2004), Jerry Matthews, East Lansing (2005), Rolla Frisinger, Game of Your Life Foundation, Coldwater (2006) and Ron Otto, Garland Resort (2007).

The Lyle Leeke Distinguished Service Award is named after one of the founders of the Michigan Golf Course Owners Association. Leeke helped create a voice for golf course owners everywhere. The recipient is an individual who has displayed distinguished service to the Association and the golf industry. Past recipients are Lyle Leeke, Old Channel Trail Golf Course, Montague (1996), Cecil McKay, McKay Golf Properties, Lansing (1997), John Dodge, ROI Golf Management, Lansing (1998), Marcia Johnson, Cheshire Hills Golf Course, Allegan (1999), Jeff Hoag, Scott Lake Country Club, Comstock Park (2000), Jim Scott, Gull Lake View Golf Course, Augusta (2001), Kathy Aznavorian, Fox Hills Golf and Banquet Center, Plymouth (2002), Meriam Leeke, Old Channel Trail Golf Course, Montague (2003), Lynn Miller, Indian Lake Hills Golf Course, Eau Claire (2004), Tom Schwark, Sycamore Hills Golf Course, Mt. Clemens (2005), Larry Moore, U.S. Golf Cars, Caledonia (2006) and Dave Richards, Resort and Golf Marketing (2007)

Thank you for your input.

Presort StandardU.S. Postage

PAIDLansing, MIPermit #1096

Tee-Off Times is published by the Michigan Golf Course Owners Association. Editor - Kate Moore. MGCOA offices are located at 603 S. Washington, Suite 303, Lansing, MI 48933. ph (517) 482-4312, fax (517) 267-8984. Articles written by outside authors do not necessarily reflect the view or position of the MGCOA. MGCOA’s position on key issues will be clearly stated. Manuscripts are accepted at the approval of the editor, who reserves the right to reject or edit. Appearance in the Tee-Off Times does not constitute endorsement of the advertiser, its products or services, nor does Tee-Off Times make any claims or guarantees as to the accuracy or validity of the advertiser’s offer and reserves the right to reject any advertising deemed unsuitable. Advertising rates and other information available upon request.

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