Millions of
euro are spent on corporate golf in Ireland every year, but the
goose that once laid the golden egg has become something of a
protected species for business-hungry golf courses
Imagine being invited to play
one of the best golf courses in the world free of charge.
Imagine a day when you get
the chance to play a hole or two in the hallowed presence of
a Ryder Cup player or one of the living legends of the sport.
If you've done this and then
been wined and dined to ridiculous excess, you're probably no
stranger to the delights of the corporate golf day - the golfing
equivalent of dying and going to heaven.
It doesn't get any better than
this. You arrive at the course in good time, drop off your clubs
and check-in at reception. Feeling like the lord of the manor
you make a mental note of your tee-time, seek out your playing
partners and take a peek at the 'goodie bag' your host as supplied
as you make your way to the grill for a spot of breakfast.
A keen host will ply his guests
with a sleeve of golf balls, some tees, a pitch mark repair tool,
a course guide, a mineral or a bar of chocolate to ensure against
physical collapse before you reach the ninth green barbeque.
Let's face it. As a means of
saying 'thanks you for your custom, don't forget me', the corporate
golf day is an essential public relations tool these days and
a vital cog in the Irish golf machine.
Ireland is a golfer's island
and approaching 400 courses and a golfing population estimated
at around half a million from the fanatical to the casual society
player, the sport has become a social common denominator.
We love our golf and as the American satirist PJ O'Rourke suggested
on a visit here some years ago, British troops on duty north
of the border would be better disguised if they swapped their
rifles and camouflage jackets for a seven-iron and a pair of
lurid check pants.
He wasn't far wrong and when
you consider the millions of euro that have been invested in
golf course development over the past 15 years, choice is not
a problem for those who want to reward their loyal customers.
Or perhaps it is. With world-class
venues such as The K Club, Mount Juliet or Druids Glen to choose
from, deciding on the best venue to suit your budget can become
something of a headache.
The fact is that many of the
bigger name courses could not survive without the cash flowing
in from corporate golf days. For some of the lesser lights, the
money the flows in from corporate and society golf is absolutely
essential.
The global economic downturn
and the fact that we are not as cash-rich as we once were, has
forced a lot of belt tightening over the past two years.
According sources in the industry,
outings tend to me smaller and less lavish these days as business
people try to stretch their euro as far as possible.
While the guest is blissfully
unaware of the work that goes into planning a successful corporate
day, the professionals have had to become more and more inventive
at attracting new business.
Despite all that, thousands
of businessman from overseas are being flown in every day of
the week for corporate golf trips that range from a couple of
Wall Street traders celebrating a big sale to highly prized trips
for the top 40 clients of the world's largest commercial banks,
complete with helicopters and five star service.
Golf and business seem made
for one another.
Not only that, research shows
that American companies run by executives with the best golf
games have outperformed the overall stock market.
Cynical employees might suggest
that things work better when the boss is out of the office most
of the time but whatever the truth of the matter, golf is a regarded
as a great ice-breaker and can even help you learn about what
really makes a person tick.
Mark McCormack, the International
Management Group (IMG) chief who has built a mighty empire on
the strength of the of-course activities of Arnold Palmer, Jack
Nicklaus and Tiger Woods, said he never did a deal with a prospective
client without playing 18 holes with him.
McCormack's golf credo tells
him that a player who still goes ahead and holes a putt he's
already generously conceded is the type of person who'll never
fully appreciate it when you're doing him a favour.
Watch how he treats his caddie.
Does he cheat? Will he miss a putt one-handed and then give it
to himself anyway? Golf language will tell you more than body
language ever will.
Most corporate golf clients
aren't quite as scientific but highly successful business people
such as JP McManus, Dr Michael Smurfit or Dermot Desmond have
long realised the attractions and benefits - of the business
of golf.
The sports exclusive locations,
beautiful clubhouses and the lavish entertainment available at
our best venues go hand in glove with the image that Irish and
International companies are trying to put across to their favourite
clients.
Ireland is now vying with Scotland
as the number one golf destination for the American corporate
golfer.
For the average company, a
one off golf day at a modest course is more than enough to meet
their needs but for the bigger fish, corporate membership is
a must-have accessory.
"People are not just looking
for the golf course only, it's the facilities as well,"
explains The K Club's Paul Crowe.
"They want nice locker
rooms and good places to eat and drink. People have to be taken
care of from the moment they arrive so that if you have a corporate
day here we literally take over for you and all they have to
do is write a note to your guests and ask them to come.
"I think people have come
to expect these standards and the clubs that don't offer these
facilities are the ones that are going to lose out."
The K Club is currently building
a second clubhouse at its new South course with a function room
capable of catering for 500 golfers.
But such luxury comes at a
price and corporate memberships make for up a large proportion
of the income of many of the higher end clubs such as Mount Juliet
in Kilkenny and Wicklow's Druids Glen.
The exclusive Thomastown estate
doesn't impose an entrance fee but offers corporate membership
that starts at ¤4,750 (euro) for the first nominee up
to ¤25,600 for a group of 10 executives from a particular
company.
There are bonuses, of course,
and each corporate member at Mount Juliet receives ten complimentary
green fee vouchers for guests while each corporation is entitled
to a corporate day for up to 50 guests at special rate per guest.
A sister course to Cork's Fota
Island, both of which as owned by Dr Tim Mahony's Killeen Investments
Group, Mount Juliet is essentially a corporate golf Mecca.
"In terms of membership,
most of the members of Mount Juliet would also be members of
other courses," explains director of marketing Kate McCann.
"Corporate golf certainly
makes up a great portion of our business and many members would
use Mount Juliet for entertaining clients.
"Yes, they are looking
for an overall experience in terms of comfort and service, but
the bottom line is that they are looking to get business out
of their clients. They want their clients to have a phenomenal
day so that they might say to themselves, 'I'll stay with this
guy and I might get invited again.' That's it in a nutshell."
Both of courses have hosted
the Murphy's Irish Open, while last September's staging of the
WGC American Express Championship at the Kilkenny venue has been
worth every penny in terms of marketing the club as an exclusive
venue.
"There is no point in
our blowing our own trumpet," McCann confesses. "But
if you get a Tiger Woods or a Phil Mickelson saying nice things
about your course then people will want to play it. Interest
in playing Mount Juliet and Fota Island was huge after the American
Express World Golf Championship and the Murphy's Irish Open -
the proof of the pudding is in the eating, I suppose."
But competition for business
is also huge with Druids Glen, The K Club and Portmarnock Links
offering similar products on Mount Juliet's doorstep
It will be even tougher now
that the Mallaghan family have developed Carton House in Co Kildare
with two courses and a 140-room hotel, while Druids Glen has
spent over ¤60 million on building a new five star hotel
and another 18-hole course that will open in the autumn.
The Smurfit-owned K Club is
set to open its new South course later this year while a second
golf course is currently under construction at the Slazenger
family's Powerscourt estate in Wicklow.
The other giant on the golfing horizon, Kiawah Development Partners'
Doonbeg in Clare has already attracted over 220 members, the
majority of them from abroad.
But take up of corporate membership
has been slow with a refundable entrance fee of $27,500 (US dollars)
for the first member and rates of $22,500 (US dollars) for each
additional corporate member.
Many of the American members
are CEOs who prefer to take out private membership for themselves
and pay an additional annual subscription of $750 (US dollars).
But while many corporate memberships
are refundable or can be sold back to the club at cost price,
new Dublin club The South County has taken a different tack.
Situated just outside Brittas
on the Blessington Road, the current joining fee is ¤25,000
but unlike proprietary clubs, members of The South County will
be free to sell their membership in the future at market value.
Carton House is currently setting
up a share structure whereby businesses can buy membership in
the company name and then nominate the playing members on a yearly
basis.
The corporate membership structure
at Carton is still being set up but life membership of both the
Colin Montgomerie and Mark O'Meara courses will cost you ¤37,500
with an additional annual subscription of ¤1,400.
It's huge business and competition
for business in every sector of the corporate market is hotting
up with the likes of Slieve Russell, Faithlegg House Hotel, Glen
of the Downs and Dundrum House just some of the bigger player.
As one golf course manager
told me: "The days when money was no object are long gone.
People are far more demanding and we have to stay competitive
and be imaginative with our corporate packages or we lose out."
From the customer's point of
view, choice abounds in the middle of the market. Higher up,
margins are slim but the customer is still king in the golf hierarchy.
Corporate
golf's professionals
Whether you are a small Irish
company or an American multi-national behemoth, there is someone
out there with the expertise to plan and organise your corporate
golf experience.
A whole industry has grown
up around the phenomena with dozens of event management and corporate
travel companies dedicated to taking care of every detail - from
putting your company logo on a golf ball to organising a four-day
trip for a group of Fortune 500 executives.
Search the internet for "Corporate
golf Ireland" and you will be given around 100,000 possible
avenues of investigation at home and abroad.
It's a vast area and the Irish
government calculates that visitors to this country spend over
¤144 million a year on golf related activities alone every
year.
Add in the domestic market
and the casual corporate fourball and the real figure becomes
something astronomical.
For an additional fee, golf courses that are geared towards accepting
groups of corporate golfers are willing to take the worry and
hassle of running the event out of your hands.
How many guests will you invite?
What kind of meal would you like to offer them in the evening?
What prizes should you offer? Who will look after the scorecards?
How will they get to and from the course?
"Golf is one of the top
three means if not the number one means - of mingling socially
with clients and Ireland has become one of the top destinations
for it," says Marty Carr, managing director of Carr Golf
and Corporate Travel.
"Growth is softening but
there has been a huge amount of development at the top end of
the market with Mount Juliet, Druids Glen and The K Club.
"The growth at the five-star
end of the market has been unprecedented. Supply is meeting or
exceeding demand and we are going to see a slow down in development
but the standard of the product has improve dramatically and
courses here are probably better than in any other country in
Europe."
Expectations are also rising
at the upper end of the market but for those who come to Ireland
to relax and have fun, there are plenty of companies that specialise
in arranging an afternoon's golf for their clients.
Some will include the latest
in golf aids in the first tee pack including an ingenuous
device known as The Golf Instructor (www.thegolfistructor.ie).
Slightly larger than your Visa
card, this series of 16 laminated cards gives the flummoxed golfer
show you how to escape from side hill lies or out of bunkers
without embarrassment.
Cork-based Frontline Ireland
specialise in planning stag and hen nights for overseas visitors
as well as corporate tourism.
"Not everyone is looking
for a top of the range course or wants to pay a green fee of
over ¤100 (euro)," says Frontline's Dave Busteed.
"When you go to a place you don't know who haven't a clue
what to do or if you do, you don't know where to go. If a group
of visitors want to play golf in Cork we can look after them."
Ulster based Posnett Golf,
run by former Shandon Park professional Phil Posnett, is typical
of the companies that specialise in the company golf day.
From first tee packs, to dressing
the course with tee boards with the company logo or pin flags
"leaving your customers and Clients in no doubt as to who
is giving them this great day out."
How to
get a pro
Touring professionals earn
handsome fees at corporate golf days and pro-ams. Many have become
adept at boosting their earnings when their tournament schedule
permits.
Former Ryder Cup player and
Order of Merit winner Ronan Rafferty is a major exponent of the
art through his website www.raffertygolf.com and Ireland's big
three of Padraig Harrington, Paul McGinley and Darren Clarke
are also cashing in on their success.
As The K Club's touring professional,
McGinley is contracted to being the centrepiece of at least corporate
days a year for the 2006 Ryder Cup venue.
He might give a clinic, play
a hole or two with each group or pass on a tip or two to the
amateurs before staying on for the post-golf dinner.
But McGinley also has his own
clientele and when he's not on tour he regularly brings them
to the K Club or to courses near his home in Sunningdale.
"Paul is a really good
business man in his own right," said an industry insider.
"He makes very good money outside the tournament scene and
he's extremely friendly and very, very professional."
Padraig Harrington provided
three corporate days a year when he was attached to Mount Juliet
before his agreement with the Thomastown club ended at the end
of last year.
Since his win over Tiger Woods,
Harrington has moved on to bigger things and with huge pressure
on his time, his managers at IMG can command a king's ransom
for his services although no figures were forthcoming when we
enquired.
With the vast majority of the
world's top players on their books including world number
one Tiger Woods - IMG's Golf Division are the industry pace-setters
when it comes to organising and managing global corporate golf
events.
But there are other big players
out there, including the Professional Golfers' Association (PGA),
which has expanded its corporate events division to cope with
the increased demand for the services of PGA professionals.
The Irish Region of the PGA
runs almost 50 pro-am events a year and provides tournament administration,
PGA qualified tournament directors as well as access to top quality
venues.
Does anyone still need an excuse
to organise their own golf day?
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© Brian Keogh 2003
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