Home | Golf | Links | Contact
 

 

The Open | US Open | The Masters | US PGA |
Amateur Championship | US Amateur |
Irish Open
| Irish PGA | Irish Amateur Open | Irish Close | Irish Ladies Close |
North of Ireland
| East of Ireland | South of Ireland | West of Ireland
Curtis Cup | Walker Cup | Ryder Cup

 
Golf

Irish corporate golf still going strong
07/03/03

By Brian Keogh (in Golf Digest Ireland)

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?

Top

© Brian Keogh 2003

Back