Tensions surface between GM and Killarney Golf Club management

Simmering tensions between the management council of Killarney Golf Club and its general manager (GM) are exposed in an internal document arising from a Deloitte consultants’ report into management issues at the club.

The seven-person management council has issued to members its action plan in response to the 33-page report, part of which highlights a lack of communication between the council and the club’s general manager Cormac Flannery.

The council report says that they are addressing such concerns “but ongoing issues and difficulties remain.

“This (communications with the general manager) issue has not been resolved. If the council ask the GM to engage on a certain course of action with which he disagrees, he refuses to carry out the instructions of the management council either by stalling on same or refusing to carry out the recommendation.”

On the Deloitte report concerns on the matter, the management council, chaired by former club captain Mike Daly, says: “Management Council are doing all in their power to address the concerns of the GM who is the most senior executive engaged by [Killarney Golf and Fishing Club] and whose role and responsibilities are specified in the Constitution.”

The report to members also notes there is now “legal correspondence initiated by the GM which is ongoing”.

The Deloitte report also addresses the issue of delayed payment from members of annual subscriptions, which can drift into March on any given year. The management council action plan says it is “exceedingly conscious of the financial position of the club”.

“Green fees are down substantially. The members’ subscriptions figure is now above the revenues being generated by green fees. It is not the role of the management council to bring in green fee sales. This is one of the main functions of the GM and decrease in green fee sales is an area of particular concern to the management council.”

Though Killarney Golf Club has enjoyed relatively successful end-of-year returns since 2013, the action plan document also highlights what is regarded as breaches of a Labour Court agreement on pay and bonuses, noting “the re-introduction of over-time/double-time, Christmas bonuses and bonuses generally.

“The management council were extremely concerned at this revelation, due to the significant work and expense that went into the older Deloitte report which was, essentially, ignored. This means that over-time and bonuses were reintroduced and the Labour Court agreement, it seems, voided.”

The report adds: “Christmas bonuses were paid to staff in 2016 and 2017. They were not paid in 2018 as the Council would not approve same. Historically, a Remuneration Committee approved such bonuses and not all members of council had been aware that these bonuses were being paid.”

On overtime payments, it claims they were re-introduced in 2015, with the Management Council “at a loss as why same was re-introduced and cannot ascertain who re-introduced this.

“The percentage of wages over turnover rose to circa 56% during the current year. The average rate in the golf industry is circa 45%. This is a matter of grave concern for the management council and has been expressed at every council meeting.”

Popular club golf professional Dave Keating left the club on Monday, admitting he was “devastated” to be doing so, while declining to be drawn on the reasons for his decision.

On his departure, the management council has told members: “A new contract was offered to Dave Keating on commercially viable terms for the club. All efforts were made to reach agreement that was acceptable to both Dave Keating and the club. However, agreement was not reached and unfortunately the contract offered was declined. This will be going out to tender shortly.”

In a separate note to members, Mr Daly explains: “The club’s financial viability and stability were among the key concerns requiring the engagement of Deloitte and it is equally important to note that some considerable work and steps still need to be taken to secure the club’s future.”

He said that due to the contractual position with Deloitte, it was not possible to accede to the request from 50 club members to have a special general meeting on the report, but he pledged there would be a “full discussion” on the subject at the AGM on November 5.