Membership Sports and Recreation Clubs
SIC 7997
Industry report:
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.
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