Members pitch in to get Killarney back on course to success

ONE of the country’s premier golf clubs, which has been through several difficult years and has suffered a marked decline in business, expects to be operating profitably again from 2014.

The running of the Killarney Golf and Fishing Club complex, in which Fáilte Ireland is a 74% shareholder, has been handed over to the members who are now tenants on the lakeside property.

A 15-year, low-rent lease, subject to review, has been signed and elections to a new members’ council, which will have full responsibility for all the club’s affairs, will soon take place.

Images of the spectacularly located club are used to promote Ireland as an international golfing destination and it is seen as an important tourism facility.

Club officers are confident about the future, but there are concerns among some long-standing senior members about the speed with which Fáilte Ireland handed over responsibility.

Fáilte Ireland insisted in having the agreement sealed by Aug 1 and told the club’s negotiators that if the club did not go along with the option, other interests might take over the facility.

Club vice-captain Mike Daly, a former director, said the preferred option would have been a handover on Jan 1, 2014.

‘’A new start at the start of a new year when there would be cashflow from member subscriptions would have been the ideal option, but we were left with no choice,’’ he said.

‘’If we missed the opportunity and Fáilte Ireland looked at other possibilities, the members and the tourism industry locally would never have forgiven us.’’

However, some longstanding members have voiced concerns at the manner and timing of the handover.

One influential businessman reportedly spoke out strongly at a meeting, saying he could not vote for the deal.

The tourist board (then Bord Fáilte) obtained its majority shareholding after purchasing land from the old Kenmare Estate, in 1969, and also funded the construction of the flagship Killeen course at the time.

The late Beatrice Grosvenor, heir to the estate, was adamant that the land should be used for amenity purposes for the benefit of local people and tourism. Her uncle, Lord Castlerosse, built the original course at Mahony’s Point in the late 1930s.

The club — four times host of the Irish Open Championship as well as numerous other high-profile events — has been severely hit by the recession and the downturn in golf business generally, with huge reductions in turnover.

Mr Daly pointed out, for example, that green fee income plummeted from €1.8m, in 2008, to a projected €1m this year.

Also, about 250 of the 1,800 members have dropped out, in recent years, resulting in an annual loss of €280,000 to the club. However, following the sale of its third course, Lackabane, to the neighbouring Liebherr crane manufacturer for €6m, the club stated last June it was debt-free. In addition, 21 of the 40 staff have been made redundant, slashing the wage bill from €1.8m to around €800,000.

Some critics claim the members are not yet ready to assume full responsibility for everything. They point out, for instance, the members’ council has not yet been elected, a new constitution is not in place and a new general manager of the club has not been appointed. Also, could rent be raised excessively in the years ahead? A draft constitution is due to be posted on the club’s website, on Sept 6, and will be considered at an extraordinary general meeting, on Sept 17, followed by elections to the council.

More than 40 candidates applied for the key general manager’s post, reduced to a shortlist of four, according to Mr Daly, and an appointment is due shortly.

Seven people will sit on the members’ council — five will be elected, with the men’s captain and lady captain automatic members. Mr Daly said it is a model that works well in other clubs.

So far, however, not many people have shown an interest, with only seven likely contenders at a recent meeting, including the club’s president, businessman Sean Coyne, and Patrick O’Donoghue, managing director of the Gleneagle Hotel group.

Elections have been deferred with a view to stirring more interest among other members to put their names forward.

Mr Daly said they were looking for candidates with “serious business backgrounds and proven track records’’ to steer the club successfully into the future — people expert in areas such as finance, marketing and human resources.

“The club has to be run as a business. The only difference here to a normal business is that all profits will be ploughed into capital expenditure projects to continue improving our facilities,’’ he said.

“We’re taking over the business as a going concern with creditors and debtors that come with a normal business. We’re quite satisfied we can meet all our commitments in that regard.’’ He said they hoped to start repaying members’ loans totalling €600,000 from 2015 onwards.

A three-year plan is being put in place, with marketing a vital component to boost green fee earnings.

“We’ve a top-class product in an unrivalled setting. We also plan to do a lot of planting on the courses to fulfil Lord Castlerosse’s aims of making Killarney the Augusta of Europe and the best lakeside course in the world,’’ Mr Daly stated.

“Some of our longstanding members have never seen the courses in better condition and our plan is to get back into the four and five-star golf market.’’