MEMBERSHIP REVIEW – EGM
OBJECTIVE
Following the 2013 Annual General Meeting a review into the membership categories was initiated
by the committee. The initial phase of the review was the establishment of a base line position
which examined more than 25 years of membership data within the Club, particular focus was
placed on the last 5 years. Scanning of economic and social data was blended into the analysis and
presented to the Membership in September 2013. Members comments led to a series of proposals
being made by committee at the 2014 AGM, these were narrowly defeated however, it appears to
Committee that the membership recognise the need for change and intend to have further
consultations on this subject with a view to holding an Extra Ordinary General Meeting in March
(EGM).
AIMS


Establish a stable membership platform which encourages the recruitment and retention of
members, particularly ladies and youth, within the Club
Establish a stable economic framework for membership within the Club
OPTIONS
The committee presented options to the membership, based on the suggestions that had been
made to Committee in September 2013. These were used to formulate proposals that were
considered at the 2014 AGM. The majority of the proposals appear to be accepted with concerns
raised regarding the alterations to age and service in specific categories.
When Life membership was introduced it was designed to be self-funding and remove prospective
members from the waiting list. It increased the overall membership and was designed to increase
turnover, it had initially failed to be passed by the membership at previous AGM and was sold as a
means of rewarding members for service (25 years). Initially, life members paid no subscription
although as changes in membership and economies developed, a 2004 membership fee was
introduced. Life members currently received a 62% discount, this is now fully funded by Ordinary
Members as the Club no longer has a waiting list and currently as a 20% reduction on the
membership numbers of the 1980 and 1990’s. It is difficult to accurately establish the cost to
Ordinary Members but is estimated at £70, the Ordinary membership fee has already seen 10%
increases in 2007 and 2009 compared with the usual inflationary rise.
Golf and membership of clubs generally has been declining over the past 5 years, the SGU have
reported significant reductions in club membership over the last 4 years, they anticipate a further
4% reduction for 2013. This has led to significant recruitment campaigns by both Clubs and the SGU,
one of the biggest factors identified by the SGU and local clubs is the increase in the transient nature
of golfers (as waiting lists have been depleted, golfers are increasingly transferring from one club to
another based on price, benefits and course condition).
From a club perspective, almost 10% of the Ordinary membership in 2013 either resigned or
transferred into legacy categories (Senior/Life/Clubhouse). Almost 2% of the Ordinary membership
over the next 5 years will transfer into Life membership and a further 1% into Senior, if the primary
membership category continues to deplete without membership recruitment, this percentage will
increase. If 2013 was used as a case study in 2014, Ordinary membership would fall to 440,
subscriptions would not be able to remain within the 2.5% threshold.
In the next 10 years, over 20% of the current Ordinary Membership will transfer into either the
Senior or Life categories (78 Life and 57 Senior – 135).
Life members, in particular, argue that they should be rewarded for service and have made
significant contributions to the Club. It could be argued that they have enjoyed the benefits of
membership during that time and in the last 30 years they have been rewarded for their loyalty by
receiving discounts ranging from 100 to 62%. As life membership no longer meets it’s initial
objective (reduction in the waiting list) and is now effecting the subscription cost to Ordinary
members, it is questionable if it remains viable as a membership category.
The current average age of person entering the membership is 48 (2013) and current economic
thought is that members would rather receive a reduction in their subscription now rather than
potentially receiving a significant reduction around their state retirement age. For the majority, they
will never recoup the additional subscription they are paying to sustain current discounts enjoyed by
Life members.
It has been argued that the Committee have and do not factor death rates into calculations made
regarding life members. It is almost impossible to accurately calculate mortality rates, however
there is significant data with regard to life expectancy which show that people are living and playing
golf longer than they were in the 1980’s. This is also demonstrated within Life membership numbers
which have remained around the 100-130 mark over the last decade. This data suggests that there
will be no significant or alteration to life membership unless action is taken.
Research was recently undertaken with regard to eligibility for external funding, these bodies
indicated that the Club would not be considered as we currently attach service requirements to
discounts received by members over the age of 65.
OPTIONS/PROPOSALS
The committee proposed increasing the service qualification to 50 years, the proposal detailed an
accompanying age of 78 which should have read 68. This would not have effected current life
members however would have reduced the number of members qualifying for this category, the
earliest an Ordinary member would have been eligible for qualification would have been 72. This
proposal was defeated.
Almost 15% of the current Ordinary members will qualify for Life membership in its current format in
the next 10 years.
The membership suggested the following:
OPTION 1 - LIFE MEMBERS
Change in the age of qualification to mirror state pension age and increase the service required to 35
or more years.
Life Membership is open on application in writing to the Secretary to Ordinary Members who
are (a) aged at least 65 before the 1st November of the year in which the subscription becomes
payable (b) are in receipt of the state old age pension and (c) have completed a period of at
least either 40,45 or 50 consecutive years as a full Ordinary Member. Life Members will pay
the appropriate concessionary rate of subscription as decided at an Annual General Meeting.
BENEFITS
Increased age in line with state pension.
Increased service from current 30 years to between 35 and 50 years.
Maintains discounts for current and prospective life members (approx. 15% of current
Ordinary Members in next 10 years).
BARRIERS
Current constitution
No long term guarantee for potential candidates as to sustainability.
RISKS
Relies on continued subsidy from Ordinary Members
Club remains vulnerable in respect of future funding as many of current Ordinary members
will never qualify.
May become subject of future equality legislation (age currently not a protected characteristic
or applicable to clubs).
Makes the club potentially ineligible for external funding or grants
OPTION 2 – SENIOR (REMOVAL OF LIFE)
Remove Life Membership from the membership categories. The qualification age is linked to
the state pension age and the service requirement moves in line with the current requirement
for Life. It continues to place over 15% into the Senior category over the next 10 years.
Replace with:
Senior membership is open on application in writing to the Secretary to Ordinary Members
who are (a) aged at least 65 before the 1st November of the year in which the subscription
becomes payable (b) are in receipt of the state old age pension and (c) have completed a
period of at least 30 consecutive years as a full Ordinary Member. Senior Members will pay
the appropriate concessionary rate of subscription as decided at an Annual General Meeting
and will have the rights and privileges of an Ordinary Member subject to all the obligations
of an Ordinary Member.
BENEFITS
Removes tong term risk category of Life Membership
Discounts offered to members is reduced (and as a consequence cost to the Ordinary
Member).
Recognises and rewards service with the Club
BARRIERS
No long term guarantee for potential candidates as to sustainability.
RISKS
Relies on continued subsidy from Ordinary Members
Club remains vulnerable in respect of future funding as many of current Ordinary members
will never qualify.
May become subject of future equality legislation (age currently not a protected characteristic
or applicable to clubs).
Makes the club potentially ineligible for external funding or grants
OPTION 3 - SENIOR with HOUSE PRIVILEGES
Remove Life Membership from the Membership Categories. Remove Life Membership from
the membership categories. The qualification age is linked to the state pension age and the
service requirement moves in line with the current requirement for Life. It continues to place
over 15% into the Senior category over the next 10 years. It recognises service within the
Club and offers a form of reward for loyalty in terms of Clubhouse Membership.
Replace with:
Senior membership is open on application in writing to the Secretary to Ordinary Members
who are (a) aged at least 65 before the 1st November of the year in which the subscription
becomes payable (b) are in receipt of the state old age pension and (c) have completed a
period of at least 30 consecutive years as a full Ordinary Member. Senior Members will pay
the appropriate concessionary rate of subscription as decided at an Annual General Meeting
and will have the rights and privileges of an Ordinary Member subject to all the obligations
of an Ordinary Member.
And
CLUBHOUSE MEMBERS
Clubhouse Membership is open to persons who wish to make use of the Clubhouse
facilities. Such members may play golf on payment of the normal Green Fee charges or as a
guest of a Member as provided for in Paragraph 12 hereof. A Clubhouse Member is debarred
from taking part in the management of the Club. Senior/Life Members who have achieved 50
years continuous service as any combination of an Ordinary, Senior or Life Member may at
any time apply to transfer to Clubhouse Membership on written application to the Secretary
and on such application being granted, shall not be liable for any subscription or any other
charge of any kind.
BENEFITS
Removes tong term risk category of Life Membership
Discounts offered to members is reduced (and as a consequence cost to the Ordinary
Member).
Recognises and rewards service with the Club
BARRIERS
No long term guarantee for potential candidates as to sustainability.
RISKS
Relies on continued subsidy from Ordinary Members
Club remains vulnerable in respect of future funding as many of current Ordinary members
will never qualify.
May become subject of future equality legislation (age currently not a protected characteristic
or applicable to clubs).
Makes the club potentially ineligible for external funding or grants
LIFE MEMBERSHIP (CLOSURE)
Close the Life Membership category to perspective candidates, those currently within the
category would remain unaffected (currently 85).
Life membership is no longer open to any membership category and was achieved by
Ordinary members who had reached the age of 65 and completed either 25 or 30 years
service. Those within the category as at 31st October 2014 will continue to pay any
subscription as set at the Annual General Meeting.
BENEFITS
Reduces and eventually removes the liability of Life Membership on Ordinary Members.
Those currently within the Life category remain unaffected.
The fee for the remaining Life Members will continue to be governed by the Annual General
Meeting.
BARRIERS
Current Constitution
RISKS
Relies on continued subsidy from Ordinary Members (although
this will reduce in the future).
Makes the club potentially ineligible for external funding or grants
ADJUSTMENT OF FEE’S
Adjustments could be made to the fee’s of Life Members with the caveat that these will be
reviewed if and when the number of Ordinary members reach 600.
This adjustment could be planned to occur over the next 3-5 years and the maximum discount
that can be achieved without 600 members is 50%.
BENEFITS
Would not require constitutional change
Life members continue to be unaffected by either qualifying criteria
BARRIERS
Membership would require to agree increases over 2.5% each year
RISKS
Objection from current membership, particularly Life members.
SENIOR MEMBERSHIP
The committee proposed increasing the age for Senior Membership from 65 to 68, this was
designed to create an increased age rather than service requirement and an element of
contribution towards the discount that would subsequently be received. It would also have
delayed the entry date and transfer of members from our primary membership category.
Over 11% of Ordinary members will transfer to Senior Category in its current format.
Suggestions at the AGM included:
INCREASE SERVICE
Senior membership is open on application in writing to the Secretary to Ordinary Members
who are (a) aged at least 65 before the 1st November of the year in which the subscription
becomes payable (b) are in receipt of the state old age pension and (c) have completed a
period of at least 30 consecutive years as a full Ordinary Member. Senior Members will pay
the appropriate concessionary rate of subscription as decided at an Annual General Meeting
and will have the rights and privileges of an Ordinary Member subject to all the obligations
of an Ordinary Member.
BENEFITS
Increased qualification criteria based on service (gradual reduction on qualification numbers).
BARRIERS
Current Constitution
RISKS
Increased pressure on the Ordinary subscription, no long term sustainable financial solution.
May not comply with equality legislation in the future
Makes the club potentially ineligible for external funding or grants
5 DAY MEMBERSHIP
The committee proposed increasing the number of members in this category from 75 to 100.
It also proposed allowing 5 day members to participate in the management of the club.
The purpose of this increase and change in status was based on the success of this category in
attracting new members and retaining members, particularly ladies, within the Club following
changes to subscriptions in line with the terms of the Equality Act 2010.
Research with Ladies and others who had left the Club in recent years suggested that they
may consider returning if the category remained open (many suggested that they had
enquired at the time of resignation and there were no vacancies at the time). Research also
suggested that non weekend golf remained attractive in terms of recruitment of new members
(if marketed properly).
BENEFITS
Increased membership of the club
Provides equality in terms of rights attained by subscription
BARRIERS
Current constitution
RISKS
Increased transfer from Ordinary to 5 Day (particularly ladies)
Increased number of those who can participate in management of Club
Depending on transfers increased pressure on Ordinary Subscriptions
RETENTION/RECRUITMENT OF FEMALE MEMBERS
The Equality Act is prescriptive in terms of the actions that can be taken in terms of Positive
Action. Action would require an
Equality Impact Assessment
Taster Sessions/Open Days
Universal and long term discounts on basis of gender are illegal
Potential for offers on first year and joining fee’s
Ladies golf is suffering from a particular decline and the National Golf Unions offer no long
term solutions or suggestions to the current reduction in lady members within golf clubs.
The Equality Act has had a particular negative impact on lady members within clubs. The
general issue is that the majority have no appetite to play on a Saturday (which remains the
most popular day for competitions for gents) and object to the change in the previous
discount afforded to them. Women also generally remain as the primary carer for siblings or
extended family members which places increased pressure on their ability to play golf, the
majority now calculate their willingness to renew on the average cost of the number of games
of golf they have played.
YOUNG PERSON MEMBERS
The Committee proposed the introduction of the new category with a staged subscription
based on age. It provided an opportunity for young persons aged between 23 and 27 to
gradually enter Ordinary membership and graduated the subscription instead of the current
300% increase in fee at the age of 23.
The proposal also clearly allowed young people to take an active role in the management of
the Club. Those aged between 18 and 22 can currently vote at AGM’s but are unable to
participate in the management of the Club.
The AGM did question the need for this category and whether it should be further amended
to the age of 30 based on the actions of other clubs in the area. Economic data and recent
recruitment at the Club does not support the need to increase the age to 30, the average age of
new member is 48 and this maybe reduced by the introduction of this category.
(c)
YOUNG PERSON MEMBERS
Young Person membership is open on application in writing to the Secretary to persons
between the ages of 19 and 27 years of age inclusive before the 1st November of
the financial year in which the appropriate age group subscription becomes payable. A
Young Person Member will have the rights and privileges of an Ordinary member subject to
all the obligations of an Ordinary member.
BENEFITS
Gradual level of subscription for young people (removes
300% cliff edge)
Allows young people to participate in the management of
the Club
BARRIERS
Current Constitution
RISKS
Initial increase between 18-22 of subscription currently paid
Initial impact on Ordinary Membership numbers
(slower transfer into this category (23-27)
CONCLUSION
It is clear that there is an appetite to change the constitution within the club and the majority
are aware of the potential effect on subscriptions of subsidised categories. The changes in the
membership demographic within the club coupled with economic factors increase the risks
faced by the club in terms of future funding and its ability to attract new members.
The majority of members now calculate their willingness to renew their club membership
based on the average cost of a game of golf in the past year (i.e. played 10 times – cost £69
(based on 2014 subscription).