ONE OF the Republic’s most exclusive golf clubs has reversed significant losses of recent years – but only after increasing members’ subscriptions by 17 per cent and putting staff on a three-day week.
In a report presented to members of Lahinch Golf Club yesterday at the club’s agm, club captain Eugene Gilligan reported “a modest surplus” of €65,280 for 2010.
This, according to Mr Gilligan, “is a significant reversal of the trend of recent years” where the Co Clare links club reported a combined operating loss for 2009 and 2008 of €1 million due to the collapse in green fee income.
The club recorded an operating loss of €476,580 in 2009 which followed an operating loss of €551,323 in 2008.
Mr Gilligan told members that the 2010 surplus “was achieved mainly through the 17 per cent increase in the annual subscription for 2010 coupled with the introduction of a three-day week for all staff from January to March and October to December”.
He said that achieving the surplus “is the result of a cost-reduction policy introduced in 2008 and continued through to this year”.
He added: “Significant cost reductions were also achieved in course materials, administration, upkeep of the club house and golf activities. Staff numbers have been reduced through a number of voluntary redundancies.”
Placing staff on short time and the voluntary redundancies reduced the club’s staff costs from €1.32 million to €1 million last year.
In response to the drop in green fees income, the club has also put on hold all major capital works, including a planned €140,000 irrigation system and refurbishment of the club house.
In a bid to boost revenues, the club admitted 56 new members last year which generated €636,785 in revenues, between entrance fees and overseas life membership.
The income from new members along with a members draw resulted in the club recording an overall surplus of €744,440 last year.
The club’s accumulated fund at the end of 2010 stood at €5.559 million. A further 5 per cent increase in members’ subscriptions for 2011, in response to the drop in green fee income, was agreed at a special meeting at the golf club last October – but only after heated debate.
The minutes of that meeting circulated for yesterday’s agm record club member Michael Roche telling that meeting there was no justification for a sub increase and that it only ignored the problems, warning that the club was budgeting to lose 200 members if the sub increase went ahead.
Member Brian McInerney also forecast a loss in members if the sub was increased. However, members agreed to the increase after a motion proposed by Mr Roche that the vote be held by secret ballot was defeated 73 to 40.
Lahinch counts Munster rugby captain and Irish international Paul O’Connell as one of its members.
