According to the McGladrey LLP report on trends in Florida’s private clubs, the capital projects are averaging $5.6 million, as 70% of clubs report having third-party debt.
McGladrey LLP, a provider of assurance, tax and consulting services focused on the middle market, recently released the 2014-15 edition of Florida Trends in Private Clubs, the firm’s 40th annual report on the financial and operational trends in private clubs throughout the state with the highest concentration of clubs.
The report highlights trends uncovered through the last audit season as McGladrey audited more than 200 of its private club clients in Florida. Findings are presented from statewide and regional perspectives, and are segmented by type of club (i.e. golf versus yacht, etc.) as well as key comparisons from the previous year.
Key findings include:
• On average, clubs expended $2,020 per member on capital projects in the last year, and 40 percent of clubs plan significant projects in the current year at an average amount of $5.6m.
• Seventy percent of clubs have third-party debt—up from 68 percent in the prior year—with an average debt load of $5,660 per member.
• Full membership dues in 2014 increased three percent from prior year levels.
• Payroll and related per member increased 4.5 percent to $6,900.
• Fifty-one percent of clubs increased food prices by four percent on average, while 40 percent of clubs increased beverage prices four percent.
“The private, member-owned clubs included in our report have continued to build on their success, withstanding the recession,” said Philip Newman, partner and national private clubs industry leader at McGladrey. “We are seeing a significant reinvestment in club amenities and a determination to offer members more choices of services and activities. Running your club like a business isn’t just about cutting costs; it’s about understanding the lead indicators that drive financial results, then measuring, reading and reacting to those indicators with a speed that truly affects operating results. The most successful clubs today are meeting that challenge.”
For more information and to download this year’s report, visit our private clubs industry page at www.mcgladrey.com/privateclubs.