‘Significant change’ needed to ensure golf club survival

Members of a top golf club hit by a cash-flow crisis have been told “very deep and significant change” is needed to ensure its survival.

Killarney Golf and Fishing Club, which has hosted the Irish Open Championship four times, is faced with spiralling debts and a serious income drop due to the recession.

Consultants Deloitte have been engaged by Killarney Golf Club Ltd — in which Fáilte Ireland is a 75% shareholder — to carry out a review of its operations.

Significantly, members are to take over the running of the club from Killarney Golf Club Ltd, as soon as it is restructured and profitable again.

Member directors on the company board outlined the situation to a meeting of members on Thursday night. They also said they wanted to put an end to “damaging rumours” about the club, which employs 40 people.

The club is losing around €250,000 annually, with members’ subscriptions and green fees falling by €400,000 and €340,000 respectively since 2008.

Deloitte is conducting a full review of costs, including wages, staff numbers and conditions of employment. Income sources, such as green fees, membership subscriptions and retail operations are also being scrutinised.

In a radical restructuring of the club, which has a €3m turnover, Deloitte is working closely with the company and engaging with the banks and Revenue Commissioners.

The directors said: “Very deep and significant change will be required if we are to continue playing golf here. The current situation, where we are spending more than we are taking in, cannot be allowed to continue.”

Killarney’s international reputation for golf, as well as the club’s outstanding facilities, were highlighted as foundations on which to build for the future.

Earlier this year, the club agreed to sell its third course, Lackabane, to the neighbouring Liebherr crane manufacturing multinational for €6m, to help clear debts.

Directors described the protracted sale process as “frustratingly slow” but expect contracts to be signed within six weeks.

They also warned the club was running out of assets to sell.

A key condition of Government approval of the sale of Lackabane is that Killarney Golf Club Ltd will no longer be directly involved in running the club, which will revert to the members.

The members will form a new structure, or board, to run the facility.