Mike Hughes

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Mike Hughes

• CEO, National Golf Course Owners Association

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Golfs Financial Metrics
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Golfs Financial Metrics

• Prior to GOLF 20/20
• NGF
• Measured participation
• Tracked golf course development
• Measured rounds via consumer panel
• Golf DataTech
• Retail Market Share Report
• On-course off-course

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Golfs Financial Metrics

• Prior to GOLF 20/20 (contd)
• No standard industry definitions
• Interest measured only by Nielsen ratings
  tournament attendance
• Various market/feasibility studies
• Sporadic measurement of economic impact

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Golfs Financial Metrics

• Since GOLF 20/20
• Established consistent definitions
• Major Segmentation Study in 2001 has served as a
  foundation for much of our growth activity
• NGF and Golf DataTech gathered data directly from
  facilities on rounds with input from PGAand
  NGCOA
• PGA TOUR included monthly ESPN Sports Poll as a
  measurement of interest, as well as ratings and
  attendance

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Golfs Financial Metrics

• Since GOLF 20/20 (contd)
• Measured scope of industry
• 62 billion annual business
• Larger than recording motion picture industries
  combined
• Measured charitable impact
• Responsible for raising 3.2 billion per year

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Golfs Financial Metrics

• Moving Forward
• More sophisticated measurement and reporting
• Focus on trends and outside factors
• Socio-economic issues, demography, diversity,
  etc.
• More specific revenue information
• Captured at course level
• Unified effort essential
• Nothing more important!

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Golfs Financial Metrics

• Moving Forward (contd)
• PGA Performance Track
• NGCOA Financial Benchmarking

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Golfs Financial Metrics

• NGCOA Financial Benchmarking
• Simple Tracks two numbers Rounds Revenue
• Leverages largest multi-course owners/operators
• Modeled after Smith Travel Report
• Golf DataTech chosen for pilot program
• Evolved into current, full program

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Golfs Financial Metrics

• NGCOA Financial Benchmarking
• Allows courses in a Competitive Golf Marketplace
  (CGM) to compare their rounds played, available
  tee times, and golf revenue (green and cart fees)
• Individual numbers are kept completely
  confidential

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Golfs Financial Metrics

• NGCOA Financial Benchmarking (contd)
• Program produces a Revenue Per Available Tee Time
  (RevPATT) and Revenue Per Utilized Round (RevPUR)
  index for every participant
• Each can compare to the CGM average and their
  ranking within the CGM

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Golfs Financial Metrics

• NGCOA Financial Benchmarking
• Implementation, data capture and reporting is
  administered 100 on-line
• Each participant only needs to enter three
  numbers each month (rounds, revenue, tee time
  interval)
• Currently
• 26 CGMs participating
• Represents 580 courses
• 30-40 coming on-line soon

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Golfs Financial Metrics

• GOLF 20/20 Whats Next?
• Continued focus on benchmarking/ measurement at
  facility level
• Consistency and coordination among all groups
• Emphasis on industrys economic impact nationally
  and at the state level
• Rigorous measurement of specific programs and
  their effects

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Golfs Financial Metrics

• International
• Establish relationships that can provide
  information in both established and emerging
  locations
• Track facility development globally
• Catalogue governmental, environmental attitudes
  toward development
• Encourage measurement of all activities, share
  models and metric strategies