Lahinch Golf Club losses top €1m over two years

ONE of the country’s top rated golf clubs has generated operating losses of more than €1 million over the past two years due to a collapse in green fee income paid by golfers visiting the world-famous links golf courses.

In a report presented to members of Lahinch Golf Club yesterday at the club’s AGM, the club reported an operating loss of €476,580 for 2009, that followed an operating loss of €551,323 in 2008.

The loss follows green fee income almost halving over two years from €1.87m in 2007 to €944,522 last year due mainly to the drop in US golf visitors.

However, the losses at the club last year were not as bad as initially feared as the club had budgeted for a €710,382 loss in 2009.

The anticipated operating loss was reduced following cutbacks totalling some €505,428 last year.

In his report to members yesterday, club captain Austin Slattery stated the club “took specific and decisive action to reduce costs where possible”.

Also, the operating losses were stemmed last year following the club opening up its coveted membership to 27 members, generating €294,150 in entrance fees.

This reduced the club’s losses to €152,430. The loss reduced the club’s accumulated fund to €4.8m at the end of the year.

The club counts British and Irish Lions and Munster captain Paul O’Connell as one of its members and last November, the club held an extraordinary general meeting in a bid to grapple with the club’s deteriorating finances, resulting in a hike in members’ annual subscriptions of up to €200.

Mr Slattery stated: “We are currently operating in a world of total financial uncertainty and none of us know when this uncertainty will end.”

However, the club is anticipating it will record a surplus of €30,350 in 2010, providing green fee income stabilises and shows a slight increase of €5,478 along with the measures implemented including the increase in subscriptions and staff reductions.

The decision to open up its membership last year followed complaints at last year’s AGM that the club had turned down 41 applications, foregoing €725,000 in November 2008.

Figures in the report show green fee visitor numbers have dropped by 32% from 24,794 in 2002 to 16,679 last year.

In his report, Mr Slattery stated: “All of the predictions that 2009 was going to be a difficult year for Lahinch Golf Club have come true.”

He said the club “has acted decisively to cope with the ever changing circumstances in which we found ourselves”.

The numbers of full-time staff at the golf club were reduced last year from 34 to 28.

The club course costs last year reduced from €1.8m to €1.4m.

However, Mr Slattery stated: “Expenditure on the links was reduced without compromising the quality of our courses.”

The club is projecting expenditure will be cut by a further €375,539 this year, resulting in a saving of expenditure of €880,967 over the past two years.