David Shepherd explains why golf clubs should adopt a long-term outlook when it comes to financial planning.
Long-term planning is vital to the stability and financial sustainability of any golf club. While some may feel that producing a solid budget for the year ahead is enough, a far longer lens is required if facilities are to maintain infrastructure, replace ageing assets and avoid storing up expensive problems for the future.
That is the view of David Shepherd, an experienced golf club CEO who believes a detailed long term multi-year capital plan should sit at the heart of every well-run club. In his experience, too many venues still default to short-term thinking, particularly when trading conditions are strong and there is no immediate sense of crisis.
He argues that without a clear understanding of what a club will need to spend over the next decade or more, subscription levels and capital approvals are little more than educated guesswork.
"The only way that you can inform your board how much money they need to spend each year is by understanding yourself how much money will need to be spent on your property over the next 15 years or more," he said.
Coming to that understanding begins with identifying every asset across the property – irrigation systems, drainage schemes, greenkeeping machinery fleets, clubhouse infrastructure, maintenance facilities – assigning realistic lifespans and calculating likely replacement costs. Build those figures into a rolling 10- to 20-year plan and review it regularly.
"That number divided by the number of years, that is the amount of money that you need to put back into your club each year just to stay where you are and often when directors understand this, luxury or vanity projects are reconsidered."
Without consistent reinvestment, standards inevitably slip. Machinery is kept beyond its optimal life cycle. Infrastructure patches replace proper upgrades. Projects are delayed because they feel discretionary rather than essential.
"Without investing in your club, or without putting enough money back into your club for capital investment, it's basically like having a luxury car and not servicing it and expecting it to run like new after five years."
He believes the post-Covid boom has created a false sense of security. Strong demand, full tee sheets and healthy waiting lists can lull boards into thinking the hard work is done. In reality, this is precisely when clubs should be making the difficult calls.
"Post-Covid golf is in a really good place, but it would be really easy to just go back to making quite short term decisions in golf clubs – not charging members what they need to pay and not making the right decisions for the long term, basically to protect the short term.
"But when is the best time to make a difficult decision? When things are good. If we wait until things are bad, those tough decisions get even harder."
Governance structures can exacerbate the problem. Many directors or committee members serve for limited terms and naturally focus on what happens during their tenure. Without clear data and long-term projections in front of them, it becomes easy to prioritise short-term stability over future-proofing.
Shepherd insists it is the responsibility of the club’s executive to reframe that mindset and demonstrate the long-term impact of deferring projects and expenditure.
"It is our job to show the directors what the impact of a short-term decision looks like, and to do that you need to provide them with the data."
For Shepherd, the principle is straightforward. A multi-year plan provides clarity, evidence and confidence. It informs subscription strategy, strengthens board discussions and protects standards for future members. Ultimately, it shifts leadership thinking from maintenance to stewardship.
"Our job at our clubs is not just to keep the lights on – it's to ensure they are stronger when we leave."
