Golf as a business: that's the challenge of International Golf Corporation, company active for almost 20 years in the organization of events and which, in 2011, decided to start the first chain of golf courses in Italy. An ambitious project, which started in the midst of the economic crisis, while many clubs were (and are) struggling to close their budgets in balance. That's exactly why though a "corporate" management of clubs can be successful and a credible alternative to the typical exclusive club. The underlying philosophy is somewhat that of a department store: centralized costs, agreements with suppliers from a position of strength, offering the same product at a lower cost and a wider clientele. The harassed middle class is the point of reference for a project like this, the one that still wants to live well but no longer has the money to do so. IGC is trying, keeping the standard high.
For the moment, five realities in the centre-north are part of the "package". and the panorama could soon widen. The circles managed in an integrated way are: Villa Paradise, between Milan and Bergamo, an 18-hole plus 9 executive course which, at the end of 2012, should have 850 members (779 in 2011), 400 euro green fees (daily entrance tickets), 1,6 million of turnover; the Crema Resort Golf Club, 18 holes plus 9 executive holes, an estimated 430 members for 2012, a green fee of 300 euros, a turnover of 1,1 million euros; The Jesolo Golf Club, 18 holes, 520 members expected within the year, 460 euros in green fees, 1,350 euros in turnover; Salsomaggiore Golf & Thermae, 18 holes, 210 members expected for 2012, 90 euros in green fees, 220 euros in turnover; Rimini – Verucchio Golf Club, 18 holes, 250 members the forecast for 2012, 150 euros in green fees, 750 euros in turnover.
They are courses and clubs with different characteristics, united by growth potential, both from a tourist point of view and in terms of the number of stable members, or rather season-ticket holders, because such are the golfers who decide to join these clubs. A very different situation from the rest of the national panorama. In fact, many golf courses in Italy are owned by a real estate company belonging to the same partners who animate the sports club that manages the course. To join, the golfer must purchase a share of the property and then pay an annual membership fee. The administration is often done at home, with thousands of streams of expenditure, from the maintenance of the field to the enormous costs of the secretariat. The mechanism has been creaking for some time, because the golfer-status symbol equation no longer works and in any case not for everyone. The clubs, even noble ones, challenge each other with promotions in order to win a new follower, while the free membership (access to the courses by paying only the 75 euro subscription to the Italian golf federation and, from time to time, the green fees) has taken away potential members from greedy clubs.
IGC addresses the golfer as an athlete and offers various forms of membership, not unlike a gym. For this chain it is about managing a customer: “It's a challenge – reads the presentation brochure – to achieve levels of excellence hitherto the prerogative of a few economic classes of the highest level or even members of the nobility. Obsolete realities that are gradually disappearing. International Golf Corporatione wants outrun the competition by practicing appropriate commercial policies”.
Una VIP card, which gives access to the 5 fields, it costs 2500 euros plus VAT, a real bargain if you consider that the annual fee for a single golf course in Italy costs at least the same amount and often a thousand euros more. "For now - explains Francesca Colombo, general manager of the company - we offer this opportunity only to companies, but we are considering extending it to private individuals as well". For individual golfers, the annual subscriptions vary: 1200 euros is the offer for the neophyte, but it can also go up to 2300 euros for an ordinary member in a 27-hole course. what is Villa Paradiso. IGC generally leases the management (only in some cases has ownership shares) and makes important initial investments, both in the field and in the Club House. “We tend to make similar furnishings – continues the director – clear and comfortable. We also make sure that the structure has a center for corporate meetings”.
Entrusting a course to a management like this means giving up a large share of sovereignty, but sometimes the survival of the course itself is at stake. “It is clear that an approach like ours can initially upset the old partner – says Francesca Colombo – but if the advantages are greater than the problems, the work is appreciated”. In one year, IGC has already invested a couple of million euros in the project, but break-even is at hand in 2012, while profits are expected from 2013.
“Our secret is that we are very active on the marketing front – adds the director – and we make use of a database with 30 names of golfers, also thanks to a lively reality such as Green pass, a card that we have been offering for many years and which entitles you to discounts in various clubs and to the federal card” .
Behind this car is Charles Carozza, historic director of Garda Golf, one of the most beautiful courses and best managed clubs in Italy. He is the owner of International Golf Corporation (7 million in turnover) and realities such as the Golf Dolomiti or the Ambrosiano in Milan also gravitate in his orbit, the next possible links in this chain that seems destined to grow longer.
