Chicagoland Golf welcomes letters from readers. Letters must include a name and address to be considered for publication. The opinions expressed in Readers' Soapbox do not necessarily reflect the views of Chicagoland Golf or its advertisers. Letters may be edited to fit space reuirements. Send them via email to:
letters[at]chicagolandgolf.com
NOTE: Letters appear in chronological order, newest first
Putting $60 million price tag on course deal is either hype or flawed strategy
Thought
I would compliment you on the continued quality of your publication as
I always enjoy receiving and reading it from cover to cover.
Regarding
your Winter 2007 issue, I will follow the progress of Cog Hill as the
changes will, I hope, get the Jemseks the U.S. Open they truly deserve.
Your recognition and the CDGA’s vote of Tom Studer as “senior player of
the year” were justly deserved, although it has been over 30 years
since I played Tom, who has been an amateur stalwart.
Finally,
I trust you will investigate the “blockbuster deal” for the six courses
being considered for purchase by Eagle Golf from American Golf. This
deal will have very little, if any, impact on the average golfer in
Chicagoland but I find it interesting how various magazines and
journalists become subject to the hype initiated by these deals –
without understanding the true financial implications/requirements of
the deal much less the lease/purchase/sale requirements.
As an
operator of ten courses (nine in Chicagoland and one in Florida) that
cover the gamut from $10 to $80 greens fees, I always find it
interesting how many management firms have hyped the value of their
deals through the media.
As you know, the industry has too
many courses, a static volume of play, extremely competitive
urban/suburban rates and an aging golf population who anticipate even
better rates – but all of this is for another conversation. We also
have too many golf magazines each with their own twist about golf and
some have certainly bowed to the golf management industry.
This
relates to “the blockbuster deal” reported because a $60 million
transaction makes the reader believe there is really big money in golf
and, to a certain extent, discredits the concerns of the industry
operators/owners who have been really stressed by rising costs and
reduced revenues. Since I review 15 to 25 facility budgets per year, I
can certifiably state that since 2002, most (but not all) courses have
seen revenues remain flat or even reduced by up to 25 percent while
costs have been pressured to rise by 15 to 25 percent over the same
five-year period, during which time the industry operators have
strained to lower expenses and stay in business.
Regarding the
Eagle Golf/American Golf deal, the scenario is again to report inflated
numbers presented by golf company executives, investors and venture
capitalists to satisfy egos, grow their business, and stretch values to
enhance the five-year “exit strategy” employed by the golf investment
industry. This entire subject could also be elaborated in a lengthy
article; therefore I’ll just conclude by sticking to the courses
mentioned in the article.
· Tamarack was successfully
developed by a Naperville real estate firm, sold to LinksCorp, resold
to American Golf and now is (and has been) on the market for a packaged
deal as it has financially underperformed since its inception, with a
resale value of less than $5 million, if not closer to $3 or $4
million.
· Eaglebrook in Geneva was developed on 565 acres as
part of a successful real estate development. The course was sold by
the initial developer for approximately $4.5 million (cost $7 million
plus land) without clubhouse, maintenance building, equipment and other
amenities. The operator subsequently built all of these amenities
(resulting in an adjusted cost of over $10 million); sold the course to
American Golf and it is now on the market again. Gee, I wonder why?
·
Mill Creek was again developed by a real estate firm and leased to
American Golf at payment that has stressed the management firm and put
a smile on the face of the developer, who is now in the process of
expanding an adjacent 9 to 18 holes in 2008. American Golf can “sell”
or assign a lease but the purchase could be questionable.
·
Fresh Meadows[sic] has been leased by American Golf for nearly 15 years
from the Archdiocese of Chicago and was one of the best deals they ever
executed, as the course had been leased by the Jemsek family for nearly
40 years, very successfully due to a favorable deal. This portion of
the blockbuster deal could again be sold or assigned but I doubt the
Church will sell the land, which is adjacent to one of their major
cemeteries.
· Ruffled Feathers is a legitimate part of the
package and has been successful but I doubt its value is that great
based on financial results probable.
· Mission Hills in
Northbrook was another one of those deals executed by American Golf
that was a stroke of good vision in the 1980s by the original,
“deal-driven” management team prior to the acceleration of course
development and competing management firms. The facility has suffered
an identity crisis for the past 10 years.
Placing a value of $60
million on this deal is either a hyped aberration or a flawed strategy,
which will come home to rest in five to ten years, at the feet of the
investors. Good luck to all, I say!
Respectfully submitted, Tim Miles, Sr. President, GolfVisions
The
story we broke last fall about six 18-hole golf courses in the Chicago
suburbs being sold changed in nature since the above letter was
submitted. While the four golf courses owned outright by American Golf
Co. were indeed sold, the two leased courses didn’t move. UPDATE: Deal completed as reported
As
exclusively predicted in Chicagoland Golf, American Golf Corp. sold
Tamarack GC in Naperville, Eagle Brook CC in Geneva, Ruffled Feathers
GC in Lemont and Mission Hills CC in Northbrook to Eagle Golf Corp. of
Dallas, Texas, dba Evergreen Alliance Golf Limited, L.P.
In all,
American Golf ceased operations at 27 facilities across the country
after the sale became effective on November 29, 2007, when they went to
the new owner.
The two courses in Chicagoland that were leased,
not owned by American Golf – Mill Creek GC in Geneva and Fresh Meadow
in Hillside, mentioned as part of the original package – still are
being operated by American Golf as part of the lease agreements. Mill
Creek is owned by developer Shodeen, Inc., and the land at Fresh Meadow
is consecrated ground for a future cemetery owned by the Archdiocese of
Chicago. It is not known whether either course will change hands in the
near future. Eagle Golf balked at some of the provisions it would
have inherited in the Mill Creek contract. It is not known why the
Fresh Meadow deal fell through. However, late last week we heard that
the two leases may finally be moving to Eagle Golf and we are awaiting
confirmation.
Tamarack and Ruffled Feathers are public
courses; Mission Hills and Eagle Brook are private clubs. All four
courses are parts of residential developments. Eagle Golf already had a
presence in the area with a management contract with Bull Valley GC in
Woodstock.
We note that while the six facilities may not be
worth “somewhere near $60 million” (as we wrote) for the purpose of
generating golf revenue as pointed out in the letter, some of them may
have a much higher value as real estate for possible future residential
and/or commercial use – this is pure speculation, but must be
considered. For example, sold as a golf course based on its financial
performance, Timber Trails might have been worth $7 to $10 million. It
sold for $47 million as real estate for a residential development.
However, the recent housing slowdown has already nixed several contracts for local courses to be sold for development.
Chicagoland public golfers need to know how good we have it here
Reference: Volume 19, No. 14 Article: Bloom is off the rose for golf.
This
article was excellent. Last summer, I vacationed at my sibling’s family
home in the Boston area. For the public, nine-hole courses, overused,
not well maintained, are the rule.
Years ago, my parents
belonged to a gorgeous, private, Boston North Shore golf club. Playing
there, I assumed that all Boston area courses, public and private, were
the same. They aren’t.
My parents were lucky they could join
and share that club with us. Today, a private course initiation of $50K
with big monthly expenses are beyond many golfers ability to pay.
Chicagoland public course golfers need to know how good we have it here and what we need to do to keep it this way.
Sincerely Jim Lewis Gurnee
Committed to improving his game, looking for quality instructor
Great looking website. Today was the first opportunity I had to view it. Cool.
I’ve
been playing golf for more than 30 years and, like most of us, have not
improved much. I am committed to make improvements in my game next
year. I am considering lessons and new equipment.
You often speak of how important it is to have equipment to match your swing and I couldn’t agree more. What
is the best way to search for an instructor that can provide me the
fundamentals for building a solid and repeatable swing? Not everyone
can play like Tiger and rightly so. I want my swing to be the best fit
for me as should the equipment I choose.
I would appreciate any
guidance you could provide. Hope you had a great holiday and
off-season. I look forward to listening to your weekly show this year.
However, I did prefer the original Saturday timeslot.
Philip A. Muchowski via email
Well, at least one of your wishes was granted. Our radio show has moved back to Saturdays. Perhaps
the best way to find a qualified instructor is by word of mouth. Ask
your friends and playing partners if they have employed any of our
local PGA professionals and what kind of results they got. Keep in mind
that while all PGA and LPGA pros teach the basic golf swing, some
specialize in various areas. For example, Kevin Weeks at Cog Hill and
Todd Sones at White Deer Run can teach fundamentals, but each
specializes in fitting putters and teaching a repeatable putting
stroke. Good luck.
(We will contact Mr. Muchowski and make some recommendations. – Ed.)
U of I coach Mike Small
Local pro shares his views about Mike Small competing in Illinois PGA events
As
a longtime reader and fan of Chicagoland Golf, I would like to add my
two cents in regard to the email questions from Bill Limbach in the
Fall issue concerning Mike Small’s eligibilty for Illinois Section
events.
First, a little about me:
I have been a PGA Member since
1997 and have competed in many tournaments in Illinois over the past 15
years. I have worked at Fox Bend Golf Course for 15 seasons, 13 of
those seasons under the direction of Leon McNair, a past president of
the Illinois PGA.
I have been lucky enough to compete on 9 Radix Cup
Teams (Top 10 Illinois PGA Professionals) and my playing career was
highlighted in 2003 when I won the Illinois PGA Match Play
Championship. In 1996, I finished third in the Illinois Open behind
Mark Hensby (PGA Tour member and President’s Cup Team member) and Rick
Dalpos (former PGA Tour member). In 2007, I finished T4th in the
Illinois Open behind Mike Small (former PGA Tour Member), Kevin
Streelman and Joe Cermak. Not bad for a “Club Pro.”
Mike Small is the
best “Club Pro” in America. Period. He has proven that by not only his
success in Illinois but his success in PGA Tour events and major
championships over the last few years. He is probably playing the best
golf of his life.
He has well-represented the PGA of America in
national events anchoring our PGA Cup Team against the European PGA and
won the PGA National Championship in 2005. As a PGA Member and someone
competing against Mike in the last few years, I feel he is the “Tiger
Woods” of Illinois golf. Which means he is good, really good, and he is
making all the other players better. We have to get better if we want
to compete against him.
Similar to the PGA Tour, their players
have to get better if they want to compete against Tiger. That doesn’t
mean we are giving Mike the trophy before we tee off. Heck, I want to
play against him and see where I measure up. I beat him the first round
of the Illinois Open (69 to his 70) and he came back the second round
and proved he was the champion (66 to my 70). No doubt, I needed to
play a little better if I wanted to win.
He has qualified for
and represented the “PGA” and the “Illinois PGA” in national events,
which makes me proud of him and our PGA Association. In my opinion, he
is representing all the golfers in Illinois, which should make us all
proud of his accomplishments and the quality of player we can produce
from this state.
A few weeks ago, he was the keynote speaker at
The First Tee of Aurora Fundraising Dinner. He gave the speech that
night after coaching his team all day at their invitational at Olympia
Fields. That is a long day.
Don’t get me wrong, I don’t want
to see him win all of our Illinois PGA events. There are plenty of
great players in the Illinois PGA and he better bring his “A-Game” next
season to every event, and if he doesn’t, I can think of a few guys
that might like to grab some of the “hardware”. Including me.
Bryan Luedtke PGA Member Head Golf Professional Fox Bend Golf Course
Since we first printed the original reader letter in our Fall, 2007 issue (scan down) that Bryan rebuts above, we've had a change of heart.
The original emailer forwarded a letter claimed to be written by an anonymous Illinois PGA pro, who questioned Mike Small's right to play in IPGA events with his fellow club professionals. In the print edition of Chicagoland Golf, to explain why we were not publishing this anonymous letter we wrote "We don’t do that
kind of journalism. If any pro would like to air a beef, they only need
to step forward and identify themselves and we’ll quote them. Heck, we
always sign our stories. Otherwise, making such statements while hiding
behind a veil of anonymity is just a cheap shot, and gutless." Although we still feel the same way, our decision is now to print it online, verbatim, where it won't waste newsprint but will surely amuse you with its "fascinating" point of view. But be forewarned – have a box of tissues handy:
"Please see the following response from an Illinois pro who ranks in the top
ten Illinois PGA point standings.
Sour grapes, maybe, maybe not. These points
are for your consideration and any future articles on the subject.
Name withheld for practical purposes.
... No one doubts that [Mike Small] is much more talented. The question is
first how did he earn his A-12 status. Was it via tour player A-3 which
enabled him to bypass all the GPTP classes or business school 1 and 2 or did
he actually spend the time and money to pass the classes.[?]
Number 2, He
does have an unfair advantage on top of being a better player. Many club pros
are not able to spend the time working on the game that he does. (Period)
So who is to say that some club pros cannot compete with him if offered the
same opportunity to play and practice as much as he does. If you doubt
he plays much just look at the events he plays in. This doesn't count pro
Am's, playing with sponsors or with potential recruits and with his team. I
would suggest that he should spend more time working so the U of I golf
team can actually compete for a Big 10 title and the ultimate goal of a
national title.
Club pros responsibilities
Thousands of dollars of
inventory 1 or more corporate events a week any one of them poorly run can
cost a job. Member events every weekend Weekly guest play Managing
staff of 30 or more if caddie program Managing a cart fleet Managing a
driving range Giving lessons Running Ladies league, Mens league and Jr
programs Held accountable for revenue numbers. Held accountable for
expense numbers. Play golf with members Play and practice for the
upcoming events.
Each one of these can be broken down further. The
great part of this is that each ONE of these categories can cause a pro to
loose a job. I would imagine playing too much would lead to neglect to
some of these tasks in the members eyes even if things are taken care
of."
Anyone sympathize with this poor, overworked guy?
Tiger closer to Jack’s record than most people care to admit
In the Mid-August issue of Chicagoland Golf, in the PGA Championship coverage columnist Jim Litke wrote, “Sunday’s win was Woods’ 13th career major, tying him with Bobby Jones...”
Excuse me, but Tiger tied Jones, who has 7 career majors, a long time ago. Oh, you mean Jones’ 13, counting his amateur majors? Well, Woods tied Jones a long time ago there, too – he has 16 now – and Jack [Nicklaus] has 20. Tiger’s closer to catching Jack than we thought.
I know it is said people considered the U.S. and British Amateurs as majors back then, although it was principally because of Jones (for whom else do we count the amateur majors?). Let’s stick to apples and apples, please.
Rod Peterson Ormond Beach, FL
Site used in Lexus commercial is none other than Glen Club
If you have seen the Lexus commercial which shows a man getting out of his car and playing over a seaside bay to a golf hole while it is raining and you have wondered where it is located, I have the answer.
It’s at the Glen Club, North Berwick Scotland. The view seen in the camera angle is not an actual hole you can play, but it’s a great view anyway.
Roger Scott via email
Article on why golf boom is over hits the nail right on the head
I’ve been saying it for years that National Golf Foundation is a big factor in why this is happening. I agree that in SOME cases building Munis on landfils and swamp land may have been a good use for this land. But only if it is not stealing business away from nearby, TAX paying businesses.
I know because of the author’s relationship with the Jemseks that he understands the struggle that privately-owned courses have, but the average Joe golfer has no clue, agrees that it’s not fair for government to compete with private enterprise, but in reality he doesn’t really give a damn. You have enlightened him.
Bill Salzman Hilldale GC
Looks to get involved with Wadsworth’s Links Across America
I am writing to see if you have contact info for the Wadsworth Foundation, the subject of Phil Kosin’s column in the Fall issue.
If you could provide this, it would be greatly appreciated.
I am very interested in getting involved with the Links Across America program in a way more than just monetarily. I did send a form e-mail to the Wadsworth Golf Charities Foundation via their website, but was looking for something a little more direct.
After reading your article (Wadsworth’s Links Across America concept worth a look) in Chicagoland Golf, this program is exactly what I have been dreaming of doing for some time now.
I grew up on a municipal 9-holer that was perfect for beginning the game. I live in Geneva and it amazes me that there is no place to learn the game, that is unless you can afford the Country Club route. Even the little chip and putt course at Mill Creek Golf Club is frustrating for new players, with weeds and water – let alone the $25 green fee. It just doesn’t make sense to me.
Anyhow, these are just my opinions. If you have any information that would help me contact Wadsworth it would be appreciated. Thanks in advance.
Tom Annett Geneva, IL
The most direct route is to call the offices of the Wadsworth Golf Constructuon Co., in Plainfield at (815) 436-8400 or Wadsworth Golf Charities Foundation at 3201 Milton Road, Middletown, Ohio 45042. Phone: (513) 424-3701
Says ‘some’ local club pros have questioned Mike Small’s elibibility to play in Illinois PGA events
I enjoy your publication and noted your kudos to Mike Small in your September column. You quoted him as saying that one of his greatest joys is being a club pro.
Do you know how he rates that qualification as a golf coach at the U of I? I would consider a club pro to be one who is employed at a golf club as head pro or an assistant pro.
Yes. Mike Small falls into the PGA official category of A-12, which allows a college, university or junior college golf coach to be a PGA member. See full list of categories below.
I know that some Illinois golf pros have questioned that status and his eligibility for club pro tournaments in the State. I don’t believe there have been any official protests on his status, but certainly behind the scenes.
That’s quite a statement. Mike’s A-12 status makes him eligible for just about any Illinois PGA event in the state. Any pro with questions can pick up the phone and speak with IPGA executive director Mike Miller.
You later forwarded a note from one such local pro who wanted his anti-Small thoughts printed here, but also wanted to remain anonymous.
We don’t do that kind of journalism. If any pro would like to air a beef, they only need to step forward and identify themselves and we’ll quote them. Heck, we always sign our stories. Otherwise, making such statements while hiding behind a veil of anonymity is just a cheap shot, and gutless.
It is also my understanding that club pros have to take specific courses and pass tests to achieve the club pro certification. Did Small take the courses and pass the tests or is he being given a pass on this as well as the employment status?
Like any other PGA professonal, Small has done everything to meet the requirements, according to Bill Ibrahim, the Illinois PGA’s senior director of operations.
You pointed out his dominance as a player in Illinois and rightfully so but is he on a level playing field? It is also obvious that the club pros in Illinois have a far different work load than Small. Their practice time and ability to play in local and national tournaments would be substantially less than afforded to Mike Small.
While it may be “obvious” pros working at clubs have a far different work load, how can you be sure about Small’s job requirements at Illinois? To think practice time could or should somehow be equalized in any group of of professional is a ludicrous concept. And, no local or national tournament is “afforded” to Small. He played his way into every one, with the same opportunities of any of his fellow PGA members.
So are these merely technicalities in your opinion or are there a separate set of standards for Small as opposed to the working club pros in Illinois? If so, why would he get a pass in this regard.
Again, Small gets no “passes”. He falls under the same set of standards as any other PGA member. Any club pro who harbors ill feelings toward Small’s accomplishments... well, that’s crybaby stuff.
Once again, no one questions his considerable talents, but it seems he has some very distinctive advantages when matched up with club pros in State tournaments.
Yup. He does have an advantage – his talent. He also has that advantage over about half of the PGA Tour right now, too.
I would appreciate your clarification and any other information that you can provide through your golf journalistic expertise. Thank you and looking forward to your reply.
Bill Limbach via email
Bill, here’s the complete list. In Illinois, all are eligible for events except the A-3s. – Phil Kosin
A-1: PGA Head Professional at a PGA-recognized golf facility; A-2: PGA Head Professional at a PGA-recognized golf range; A-3: Active member of a Professional Tour; A-4: Director of golf at one or more PGA-recognized facilities; A-5: Past PGA President who is eligibly employed in active member classifications; A-6: Self-employed teaching professional; A-7 Director of golf or head professional at a facility under construction; A-8: Assistant Professional; A-9: Executive or manager of more than two golf facilities; A-10: Employed as a golf clinician; A-11: An employee of golf associations; A-12: A college, university or junior college golf coach; A-13: A general manager or director of club operations; A-14: Director of instruction at PGA-recognized golf school or facility; A-15: An owner or manager at a PGA-recognized retail facility; A-16: A golf course architect or builder; A-17: A golf course superintendent; A-18: A reporter, editor, writer or publisher of golf-related publications in any form of media, or a golf commentator or broadcaster; A-19: Executive, manager or supervisor with a golf industry manufacturer or distributor; A-20: A sales representative for a golf manufacturer; A-21: A tournament director for organizations, businesses or associations; A-22: A Rules Official for recognized golf associations, tours or recognized golf events; A-23: Employed as a golf clubfitter or in golf club repair, with access to a PGA-recognized golf range or range of a PGA-recognized golf course; A-24: PGA members within the golf industry who are not eligible for another active classification; MP: Master Professional.
BMW is NOT the Western!
Was it just me, or were you also irritated that the TV announcers on Sunday kept talking about Tiger being the three-time defending champion of the BMW Championship? They kept trying to make out that the BMW Championship was the same as the Western Open.
Hell of a final round, eh?
Rod Peterson Ormond Beach, FL
Insulted BMW acted like Western Open never happened Like Ziehm, I too was insulted about BMW acting like the Western never happened and that they had been doing something for 100 years. Also, I am somewhat angry about there being zero PGA events in Chicago every year. That just does not make sense.
Attendance in the fall will never be what Cog Hill had in the summer with kids in school, two major league baseball teams and the Bears. Maybe something on the weekend, but weekdays will be weak even with good weather.
Pro golf players are about the only independent contractors left in America. That’s great in that they can think as people and not have to walk the corporate line. If the FedEx Cup [people] want to kill the event, just require all players to attend each event to win the cup. The big names will stop after the last major and get some rest until the Presidents or Ryder cup. Heck, they may even play in a few of the Fall events.
There is really not much to tweak on the Fed X cup rules. The people that played the best during the season played the best overall in the playoffs so there should not have been much change.
I was at the final round of Cog on Sunday and did not miss having a field of more than 70. My wife and I only wanted to see the best golfers anyway. So if there is anything to change, reduce the field from 144 to 125 in the first event.
[Your] display ads are great... I will try out Steeple Chase before the year is out. The golf course directory does not do much for me as the font size is just too small.
