The Board continually wrestles with cost increases, seeks to develop efficiencies and cultivate smarter ways of doing things. Last year we were able to hold the increases to an average 3%. This year it should be no surprise that subscription increases will reach 7%. This update addresses the proposed subscription amounts for 2023/2024.
Increases in subscriptions are not random amounts, they are based on the total amount of money that is required to meet the ongoing costs of running PHGC, satisfy the expectations of Members, as well as to make necessary improvements to the golf course and protect the investment we have made in our club rooms so that we might remain one of Sydney’s leading private member golf clubs.
We have made it clear in previous discussions on membership that revenue is the result of the number of members multiplied by the subscription amount (price times volume). And it is the increase in the number of members (the volume effect) over the past couple of years that has delivered a substantial growth in subscription revenue. By way of comparison the number of members at June 30 2020 was 1,175 and gross subscription revenue was $2.892M, in this financial year with around 1,350 members we are forecasting gross subscription revenue of $3.590 m. This is an increase of $698K or 28.9%, proportionately far in excess of the percentage increases that have been applied to the rates of our subscriptions. Put simply, the rate of increases in our subs has been kept low in the past couple of years due to a considerable increase in the number of members joining our club.
However, we now have a waiting list for full members, 6 Day 2 is capped and we reserve space in Limited Playing for new members with existing handicaps to join the club as they wait for a vacancy to occur in the full playing category. There is limited capacity to transfer older full members not able to utilise Saturday play to 6 Day 2 and create further vacancy in the full member ranks. The obvious opportunity to enjoy the volume effect of increased subscription revenue is additional women members; there is a pipeline of some 50 potential new women members in the Try Before You Join program and currently registered as Provisional Flexible members. To maintain financial sustainability as well as accessibility to competition play for our Members, the Membership Committee is working within these constraints to develop strategies to hold the membership level around 1,350 members and will continue to encourage more women to join the club.
The rates of subscription for 2023/24 and the actual cash increases payable over previous years are outlined in the following table.
|
Membership Category
|
2022 / 2023 Fees
|
2023 / 2024 Fees
|
|
Sub
|
House
|
Total
|
Sub
|
House
|
Total
|
$ increase
|
|
Full Playing
|
$4,950
|
$500
|
$5,450
|
$5,300
|
$500
|
$5,800
|
$350
|
|
6 Day 2
|
$4,460
|
$500
|
$4,960
|
$4,780
|
$500
|
$5,280
|
$320
|
|
6 Day 1
|
$4,080
|
$500
|
$4,580
|
$4,380
|
$500
|
$4,880
|
$300
|
|
Limited Playing
|
$3,300
|
$500
|
$3,800
|
$3,600
|
$400
|
$4,000
|
$200
|
|
Flexible
|
$1,600 + green fees
|
$350
|
$1,950
|
$1,710 + green fees
|
$350
|
$2,060
|
$110
|
|
Under 21
|
$1,230
|
|
$1,230
|
$1,310
|
|
$1,310
|
$80
|
|
Country
|
$1,230 + green fees
|
$250
|
$1,480
|
$1,310 + green fees
|
$250
|
$1,560
|
$80
|
|
Absentee
|
$500
|
|
$500
|
$530
|
|
$530
|
$30
|
|
Emeritus[1]
|
$500
|
$250
|
$750
|
$530
|
$250
|
$780
|
$30
|
|
House Family
|
$300
|
$350
|
$650
|
$330
|
$250
|
$580
|
-$70
|
|
House
|
$400
|
$250
|
$650
|
$430
|
$250
|
$680
|
$30
|
A more comprehensive table including age, senior and special playing categories can be found on our web site, click here to view.
The Senior Playing category was set at 80% of the full playing subscription some years ago. However, it has gradually become clear that no actuarial assessment underpinned the decision. The number of Senior Players grows along with the total amount of the discount requiring subsidy from other members. As a result, the Board was obliged to impose a gradual adjustment to reduce the discount to 90% of the full playing subscription. The discounted rate in 2023/24 will be 85.7%. To ameliorate the effect of a reduced discount coupled with a 7% rise, the House levy has been reduced by $200 for this year for Senior Players.
The current entrance fee of $6,000 for new members will increase to $8,000 from 1 April this year.
Members are reminded that our Financial Year is the traditional fiscal period from 1 July to 30 June while our subscription year commences 1 April and ends 31 March. This allows the Board to set a budget with greater certainty as subscription income is known.
Members who are ill or who face extenuating circumstances are eligible to transfer to become Absentee members and should contact the General Manager. This maintains their golf link number and enables them to play social golf according to the conditions and entitlements of an Absentee member and to return when their circumstances allow.
Emeritus Membership is being made available to Members generally over the age of 70 and who have been members for 20 years or so. Members who meet these criteria may contact the General Manger and seek transfer to become Emeritus Members as part of the membership renewal process.
Membership invoices with subscription due on 1 April will follow this letter; I trust it puts the fees and the fee setting process in perspective.
At the foot of this letter, I have included a table that compares the Full Paying Subscription of our club with our PACK club. This confirms that we are delivering subscription value to members.
Good luck with your golf.
Michael Rowan
PRESIDENT
[1] Emeritus members domiciled out of NSW are not subject to house levy
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