PEOPLE who are SHAPING the FUTURE of private clubs

1 10 PEOPLE who are SHAPING . the FUTURE of private clubs Today's private club industry is transforming to meet the needs of a changing membership. We identify 10. PEOPLE on the cutting edge of the latest trends. BY REBECCA LARSEN. private clubs have a reputation for being stodgy reluctant to change and stuck in tradition. That has caused many clubs to JEFFREY MCFADDEN. n Chief Operating Officer and General struggle in recent years, as they have been manager slow to adapt to changing demographics, n The Union League of Philadelphia technology and social mores. n Philadelphia But that's not the case for all clubs . A few see the FUTURE as very bright, so long as they adapt. McFadden, who was only 30 when he was hired We are about to enter a time that will be 19 years ago, said The Union League has been remarkable for private clubs , said Jeffrey transformed from what some might call an old McFadden, general manager of The Union boys network.

2 The result is dramatic changes League of Philadelphia. Millennials value in the private club's membership and facilities authentic experiences more so than posses- that have placed McFadden among the most We have a waiting list there to join as well, . sions, and that's what clubs deliver. But to get respected leaders in the private club industry. McFadden said, adding that the club is consid- what we never had, we have to do what we His club has increased from 1,500 to 4,000 ering adding a second golf course. have never done. members, which has pulled it out of a financial Another major amenity for members was McFadden is one of the leaders who is try- tailspin to make it one of the most successful better parking; the club bought a 400-car garage ing new things, creating unique experiences clubs in the nation.

3 He has increased dues to near its main clubhouse. And dining options for his members and watching as his club pay for amenities that give up-to-date value to have expanded with the purchase of two sub- grows at an exponential rate. members. urban restaurants for members: the Guard PHILIP GABRIEL PHOTOGRAPHY. Golf Inc. identified 10 of the most innova- This includes the acquisition of a Donald House in Gladwyne and The Bungalow at Stone tive individuals who work at or with private Ross golf course last year. The course, 12 miles Harbor. clubs . These visionaries are taking steps to from the club's Center City clubhouse, was The club has also increased membership, he bring about the resurgence in private clubs . previously known as the Torresdale-Frankford said, by offering members $3,600 if they get They are bringing new energy and growth Country Club and had gone through difficult someone new to join.

4 And making changes that extend far beyond times. Renamed the Union League Golf Club, He also requires members to propose a new the norm. it went from 140 to 450 full-time golf members. member before they can serve on a committee, 8 Golf Inc. March/April 2017. 8 2/23/17 1:08 PM. something he said has changed the culture of There is a lot more media, a lot more light the club. MARK BURNETT entertainment and much greater use of sports n Chief Operating Officer-President bar themes, he said. Aquatics is a big focus: n ClubCorp splash pads and slides for the kids and new out- KEVIN VITALE n Dallas door bars for their parents who are at the pool n General manager and Chief Operating to watch over them.. Officer The company has introduced cabanas around n Baltusrol Golf Club When it came time last year for the largest club pool areas and charges users a fee.

5 N Springfield, ownership and management company to select On golf courses, new family tees have been a new chief operating officer and president, they introduced for kids and seniors. The fitness didn't have to look far. Mark Burnett, who had areas have been enlarged and now include more Although Baltusrol had a led ClubCorp's efforts in reinventing many of group exercise programs and classes. Expanded long and sterling reputation, its 133 country clubs and alumni, business and business space in clubs includes small meeting it was in need of changes sports clubs during the previous decade, was rooms plus areas where PEOPLE can use their when Vitale arrived 15 years waiting in the wings. laptops and power up their electronic devices. ago. Under his leadership, In announcing the change, CEO Eric Affeldt There have been no assessments on members the club came back to life said the company was fortunate to have Burnett for the improvements, but members have been and made a lasting impres- available to lead FUTURE efforts to improve the closely involved in the changes.

6 Sion, which the world saw company's many properties. After all, Burnett when Baltusrol hosted the had already been a key player in the largest PGA Championship in 2016. acquisition ever made by the company: Sequoia STEVE GRAVES. When I came to Baltusrol 15 years ago, Golf, which added 25 golf and country clubs to n President and Founder I said, Let's find out who we are and who we its portfolio. n Creative Golf Marketing want to be and what we want to do,' Vitale said. Burnett has spearheaded far-reaching n Manhattan, Kan. As in any business, we wanted to have a long- improvements at dozens of ClubCorp facilities, range plan, a mission statement, capital plans focused in many cases on the food and beverage and financial models before trying to make area, adding patio space for outdoor dining and Creative Golf Marketing, a consulting firm for improvements.

7 Strategically, we wanted to be at giving inside dining rooms a more comfortable private clubs of all kinds, includ- a higher level. and casual look. ing sports, yacht and ski clubs , is The club had deferred maintenance on its known for focusing on the basics historical property to avoid raising dues. But and improving club revenues, mar- that meant buildings were crumbling, the food ketability, efficiency and long-term and beverage operation was in poor shape and stability. the golf courses needed work. Graves is a popular inspirational Vitale convinced members and directors that speaker in the private club industry the landmark property needed upgrades, and with a special knack for identifying he led a crusade that resulted in $55 million in upcoming trends and helping others improvements.

8 The changes were paid for with turn clubs around. He has worked profits without going into debt and without with 1,300 of the 3,400 member-owned private special assessments on members. clubs in the United States. The 80,000-square-foot clubhouse and the private clubs used to be for the blue blood, two golf courses underwent renovations. A new but now they're for the new blood, Graves said. restaurant and new locker rooms were added. Newer members used to have a father who was Twenty-five guest rooms were renovated, as was a doctor, lawyer or company president. Now housing for 55 employees who live on the prop- their moms and dads are plumbers or teachers. erty. There is a new two-level golf performance They're dual-income families with income of center and renovated landscaping. An addi- $100,000 to $200,000.

9 For many of them, this is tional $5 million in improvements is underway. the first time they've ever joined a club.. You need membership with a vision and Generations X and Y are pouring into pri- staff with a vision to accomplish all that, Vitale vate clubs that have the right focus, Graves said. said. Today's members are older when they join, per- March/April 2017 9. 9 2/23/17 1:08 PM. KK. haps because they have waited until their 30s or the industry, Kuebler said. Every search we do ence with families. This is particularly true at 40s to marry and have children. for a club that wants to fill a job involves exten- Silver Creek Valley Country Club in San Jose, Now they've matured, and they're tired of sive survey work. Calif., DeMore said. the bar scene. private clubs are a wonderful private clubs want managers who are visible Youngsters at Silver Creek are introduced to option for them and their families, he said.

10 And engaged with the staff. Members want to golf using simulators. Kids can participate in clubs that resist change and cling to tradi- know the executives who lead the club, he said. swim teams at the pool as well as use the tennis tional settings and activities are not prosper- Club executives must have exceptional lead- courts and fitness center. There's even a home- ing, Graves said. That's partly because 30- and ership skills, Kuebler said. There's an art to get- work club that picks up kids after school and 40-somethings want to socialize in a setting ting things done. They have to be able to work takes them to the club to study or take part in where they can dress casually and eat infor- efficiently with club board members. athletic activities. mally, he said. They want to bring the kids.