2017-18 TRENDS IN PRIVATE CLUBS - RSM US

1 P R I VAT E C L U B SRSM is proud to be an Education Partner of the Club Management Association of America (CMAA)2021-22 TRENDS IN PRIVATE CLUBS2 2021-22 TRENDS in PRIVATE ClubsRSM PRIVATE club servicesIt s amazing how on your game your club s business can be when you are served by people who understand RSM, we fully understand our PRIVATE club clients and provide the insights they need to make critical business decisions in a volatile and uncertain environment. We supply strategic guidance, optimism and confidence to help more than 300 PRIVATE CLUBS control costs, comply with regulatory requirements and provide excellent member benefits.

2 Our services include: Audit Ta x Consulting -Performance improvement -Benchmarking -Amenity pricing -Turnover consulting -Fraud and forensics -Information technology (IT) security and controls -Seminars for boards and management -Construction contract auditsVisit us online to learn more about our services to the PRIVATE club industry, and access our resource center for insight on contemporary issues that matter to is a bimonthly electronic newsletter that provides timely information and insights for the PRIVATE club industry. Contact a local client service representative to subscribe, or visit us online at are also invited to join the conversation on RSM Club World an online discussion group hosted on Linkedin.

3 RSM is proud to be an Education Partner of the Club Management Association of America (CMAA)For more information about this report or any questions on RSM services please contact one of our PRIVATE club industry team leaders listed below:Editors Philip Newman, Tammy Tassitano, Club Thought Leadership Center 5551 Ridgewood Drive, Suite 401 Naples, FL 34108 Contributors Frank Lucas, McAndrew, Stefanov, Syma Molla-Ahmad, Pepple, Cecil, Sullivan, TRENDS IN PRIVATE CLUBSBoca Woods Country Club, Boca Raton, Fla.*Cover image: BallenIsles Country Club, Palm Beach Gardens, Fla. 2021-22 TRENDS in PRIVATE CLUBS 3P R E FAC ECOVID-19 AND PRIVATE CLUBS THE FACTSW elcome to our 2021-22 report.

4 We compiled the information from our audits of more than 200 CLUBS with year-ends through Dec. 31, 2020. We hope the story told by this data is never to be repeated; however, the results achieved by the CLUBS we work with are a testament to the fortitude, skill and hard work of leadership, management and few things to note as you review the report: All government support has been removed from operating data presented in the main section of the report since not all CLUBS were deemed equal in the eyes of Uncle Sam, in terms of the various fiscal aid programs offered. The COVID-19 impact section allows the reader to identify what happened, by region, and as CLUBS responded to the pandemic in 2020.

5 Given the timing of various government shut downs, and re-openings, this section displays certain key operating data by fiscal q u a r te r. As in prior years, the report also includes key information based on a club s revenue and questions on this publication and any aspect of club financial management are you to our professionals for their continued dedication to this industry, and thank you to the hundreds of CLUBS served by RSM for their continued support and allowing our firm to have a role in their mission to create a meaningful experience for their Dunes Club, Palm Coast, 2021-22 TRENDS in PRIVATE ClubsBear's Paw Country Club, Naples, 's Nest Golf Club at Pelican Landing, Bonita Springs.

6 TRENDS in PRIVATE CLUBS 5 TABLE OF CONTENTSPre fa ce 3 Table of contents 5 Executive summary highlights 6 Nontraditional data can give club budgeting an edge 7 TRENDS from the balance sheet 8 Final regulations released on seperately computing unrelated business income tax 19 Food and beverage 28 Golf update 39 TRENDS by revenue 48 The COVID-19 impact 50 Experience the power of being understood 57 RSM Classic 596 2021-22 TRENDS in PRIVATE ClubsEXECUTIVE SUMMARY HIGHLIGHTSA verages per club, including data for CLUBS with common interest realty associations (CIRAs) Total membership levelFull member equivalent (FME)Mandatory membershipEmployees - in seasonMemberships (FMEs) to employeesFull membership - dues (2021)Full membership - joining feesFull membership - refundable equity percentagesFull membership - total annual cost (includes dues, assessments, minimums and service charges)Full membership - % that had a dues rate increaseClubs with an annual capital assessmentClubs with an operating assessmentThird-party debt per FMEC ombined revenuesF&B revenuesFood sales to $ of beverage salesF&B subsidy to combined F&B salesF&B departmental subsidyF&B departmental subsidy.

7 Total dues revenueF&B departmental subsidy per FMEGolf course maintenance (GCM) 18 holes - roundsGCM 18 holes - cost per holeGCM 18 holes - GCM cost: total club operating expenseGCM multiple course - rounds per 18 holesGCM multiple course - cost per holeGCM multiple course - GCM cost: total club operating expenseYacht and beach clubs75069019% $7,100$40,70015% $15,460 56% 63%19%$7,960$7,588,000$1,887,300$ $762,90018% $1,110 n /a n /a n /a n /a n /a n /a North and central88076038% $13,700$77,70018% $21,840 62% 71%5%$6,370$11,836,000$2,139,500$ $1,273,90018% $1,68025,800 $92,80021% 30,900$84,10023%Southwest CIRAs990900100% $6,200$4,2000% $10,940 100% 84%5%$1,610$7,774,000$1,191,800$ $857,20018% $95042,900 $88,50023% [1] [1] [1]

8 Southwest without CIRAs72055040% $13,700$83,2004% $20,550 100% 88%8%$15,180$11,879,000$2,014,300$ $1,031,30014% $1,88027,300 $103,80027% 25,600$102,50028%Boca Raton area1,00086094% $20,300$85,90014% $28,290 53% 71%0%$17,440$23,299,000$3,542,600$ $4,169,70025% $4,85023,900 $98,90016% 24,500$95,90015%Southeast without Boca62060042% $17,000$109,50025% $23,739 58% 58%13%$13,650$14,664,000$2,130,100$ $1,631,80016% $2,72017,800 $123,50026% 24,000$88,80021%Florida statewide82072059% $15,900$90,10016% $23,560 75% 72%7%$10,980$13,585,000$2,173,000$ $1,700,00019% $2,36028,500 $101,30023% 26,500$94,50023% Note: [1] The Southwest CIRA region has insufficient data for multiple TRENDS in PRIVATE CLUBS 7 NONTRADITIONAL DATA CAN GIVE CLUB BUDGETING AN EDGEBy Ryan McAndrewDeveloping a PRIVATE club s operating budget can be a complicated affair.

9 Myriad stakeholders including management, the board of directors, internal subcommittees and other interested parties must all reach consensus. Traditionally they ve done this by relying on historical data. But there is now a clear opportunity to tap forward-looking data sources to give budgets a competitive CLUBS across the country have slowly increased their reliance on data analytics. The use of available inputs, like food and beverage covers and golf rounds, and traditional key performance indicators have become common influencers in budget meetings. Customer relationship management platforms, known as CRMs, are used to assist with membership and marketing, and have provided a significant upgrade to archaic club systems.

10 The ability to promote events, evaluate prospective members and connect their applications to geographic tracking and real-time feedback data has assisted CLUBS in monitoring their performance and adjusting their staffing levels. While these CRM tools have iteratively improved performance, predictive alternative data offers the ability to better target goals based on internal and external alt data is already widely embraced in the investment community as a means to predict changes in financial markets rather than react to them. In the post-COVID-19 world, spending by buy-side investment companies on alt data has accelerated to a projected $ billion in 2020 versus $ billion in 2019, according to YipitData, representing a considerable uptick from $232 million in 2016.