Membership Sports and Recreation Clubs

SIC 7997

Industry report:

This industry classification covers sports and recreation clubs that are restricted to use by members and their guests. Country, golf, tennis, yacht, and amateur sports and recreation clubs are included in this industry. Health clubs and other fitness facilities are classified in SIC 7991: Physical Fitness Facilities.

The largest categories within this industry were recreation and sports clubs, country clubs, and golf clubs, with country clubs and golf clubs producing the highest revenues. There were over 16,000 golf courses in the United States in the late 2000s; about half were country clubs and membership-based golf clubs, and the other half were public courses. According to IBISWorld, in 2008, country clubs and golf clubs produced revenues of over $23 billion and employed 340,000.

American country clubs were born in the late 1880s--a creation of the wealthy upper class as an exclusive social setting in which to enjoy various athletic and recreational endeavors. The clubs flourished until the late 1920s, when the Depression forced many of them to close. A renaissance took place in the late 1940s and 1950s, spawned by post-war affluence and the increased interest in golf (a sport that has enjoyed a tremendous amount of growth across the nation for the past several decades). As a direct result of this heightened popularity, many country clubs were built during this period. The trend of the mid-1990s continued into the late 2000s, as private country clubs have become a major pastime for many Americans.

Golf Clubs.
Many private golf courses offered a variety of different memberships, with the most sought-after and expensive membership being a full-equity membership, in which members have full use of the golf course and share of stock in the club. Other, more restricted memberships included dining room privileges only, while some full memberships gave members use of all facilities except the golf course.

ClubCorp International, headquartered in Dallas, Texas, is the world's largest private club and resort operator. During the mid-2000s, ClubCorp owned or managed 170 clubs, resorts, public fee golf courses, sports clubs, and resorts worldwide. In 2009, the company maintained assets of $2 billion and employed 16,000. Another major player in the industry is the privately held American Golf Corp., one of the world's largest golf management companies. American Golf, based in Santa Monica, California, operated 110 public and private golf courses and resorts.

According to the National Golf Foundation, there are about 28 million golfers ages 18 and above in the United States. The rate of golfers has remained steady or declined slightly since 2000. However, the number of "core" golfers (those who golf at least eight times a year) declined by nearly 18 percent between 2000 and 2007, according to a study conducted by the National Golf Foundation. During 2008 and 2009, some country clubs and private golf courses struggled as the country was in a deep recession, and consumers cut back on discretionary spending. At the same time, they faced rising fuel and fertilizer costs. Resort-based courses were hit the hardest as consumers cut back on vacation plans.

Other Membership Sports and Recreation Clubs.
Americans support a wide array of athletic and recreational clubs offering a variety of sports and recreational activities as varied as bowling leagues, hockey clubs, yachting, swimming, archery, and tennis. Many of these establishments are independent clubs with no other affiliations, and are privately owned by the club membership. Others operate as subsidiaries of larger corporations.

© COPYRIGHT 2012 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Membership Sports and Recreation Clubs

Assess New Branch Development Rates for Membership Sports and Recreation Clubs in the US.
M2 Presswire; June 21, 2007; 663 words
...Assess New Branch Development Rates for Membership Sports and Recreation Clubs in the US.(C)1994-2007 M2 COMMUNICATIONS...c60386) has announced the addition of Membership Sports and ...
Fitness & sports clubs
Rough Notes; September 1, 1998; 680 words
...each segment showing real average growth. Membership sports and recreation clubs represent the largest subgroup in this...Southeast region. The loss ratio is 55.7%. Membership sports and ...
Fitness and sports clubs offer nearly $800 million in premium, but require careful selection
Rough Notes; May 1, 1996; 647 words
...provide $166.1 million in premium in the Rough Notes Southeast region. The loss ratio is 63.1%. Membership sports and recreation clubs represent the largest subgroup, accounting for $79.1 million in premium in this region. The loss...
Economic activity.
Economic Trends; July 1, 2003; 700+ words
...0 Travel agency services 3.5 16.8 21.0 Amusement and recreation services 17.4 86.8 20.0 Membership sports and recreation clubs 6.3 19.8 32.0 Motion pictures and other entertainment 8.0 44.2 18.0 Professional sports clubs...
Study Says Labor Growth Is Fastest at Nonprofits
The Washington Post; August 11, 1987; 690 words
...higher than in the for-profit businesses. Those areas were research labs, skilled nursing homes, membership sports and recreation clubs, certain health and allied services, child-care and social services. @Slug: C03STU
Assess New Branch Development Rates for Membership Sports and Recreation Clubs in the US.
M2 Presswire; June 21, 2007; 663 words
...Markets: Assess New Branch Development Rates for Membership Sports and Recreation Clubs in the US.(C)1994-2007 M2 COMMUNICATIONS...reports/c60386) has announced the addition of Membership Sports and ...
Fitness & sports clubs
Rough Notes; September 1, 1998; 680 words
...million in premium Fitness and sports clubs provide $768.6 million in...showing real average growth. Membership sports and recreation clubs represent the largest...The loss ratio is 55.7%. Membership ...
Fitness and sports clubs offer nearly $800 million in premium, but require careful selection
Rough Notes; May 1, 1996; 647 words
Fitness and sports clubs are a growing niche...of risk. Fitness and sports clubs provide just under...26,650 fitness and sports clubs in the United...ratio is 63.1%. Membership sports and ...

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