Running your own show

Tim Stare, superintendent and part owner of Raymond Heights (Wis.) Golf Center, handles most aspects of the business. Stare gets help from his long-time friend and business partner, Bob Maibusch, certified superintendent of Hinsdale Golf Club in Clarendon Hills, Ill. Maibusch, the other owner of Raymond Heights Golf Center, helps Stare with the technical aspects of maintaining the nine-hole public course. Stare says the two are like split superintendents at the golf center.
The par-3 course also has a lighted driving range and an 18-hole miniature golf course.

“It’s more of a family golf center,” Stare says. “A lot of people that get into a par-3, mom-and-pop course don’t know a whole a lot about golf course ownership.

“It’s a challenge because we don’t have the best equipment.We’re still using gang mowers and walk-behinds. We struggle along, hand mowing and gang mowing to keep customers happy. The customer’s aren’t very savvy players and are not overly critical of the course.”

The course is open seven months a year, and there’s only three months to make significant money, Stare says.

“It’s a struggle,” he says. “Every day can be a surprise – one minute I’m in the bar pouring drinks talking with customers, and the next, I’m hopping in my pick up truck to pull a golf cart out of the mud.”

Maibusch owns the course for fun. He also uses his ownership as a business plan, mainly as a retirement nest egg.

“It’s a struggle right now,” he says. “We may have to sell the course because we haven’t been doing well. We’ve lost a lot of days to rain.”

Maibusch isn’t very involved in the operations at the Raymond Heights Golf Center because his priorities are with Hinsdale. Some Saturdays he drives up to Raymond Heights to help Stare.

“I’m not very involved with the day-to-day decisions,” he says. “I have a partner that I’ve known my entire life. I trust him with my childrens’ lives. If it wasn’t for my partner, I wouldn’t have pursued this.”

Payment also can be different if a superintendent is also an owner. Jim Johnson, certified golf course superintendent of The Rail Golf Club in Springfield, Ill., draws one salary for both of his roles – superintendent and part owner. Johnson is one of several partners that have ownership in the club. There are cash payouts to the other partners once a year if the course is performing well. If the course isn’t performing well, there could be a cash call, in which all the partners are required to supply cash to help the operations of the course because it’s in the red, but that hasn’t happened yet.

“We get a nice return,” Johnson says.

The Rail is a public, 18-hole course designed by Robert Trent Jones.

Johnson says being an owner puts more pride in his job because he helped build the course. Also, Johnson’s relationship changed tremendously with the customers because part of the role of an owner is to be in front of and talk to customers.

“I get to meet a ton of people,” he says. “Now I get to meet and greet, talk with them and see them twice a week. When you’re out on the course, you don’t get to hear what people say about it. Now I can hear the complaints and the compliments and can pass them on to the assistant superintendent, who is more in charge of the day-to-day operations of the course.”

Johnson works more hours, too.

“When I was just the superintendent, I worked from 5:30 in the morning to about 3:00 or 4:00 in the afternoon,” he says. “Now, as both part owner and superintendent, I work from 5:30 in the morning until 9:00 or 10:00 at night.”

Control over spending also changes as an owner. Newark Valley (N.Y.) Golf Club, an 18-hole public course, used to be a bare-bones course until Cleve Cleveland, the course’s certified superintendent and owner, put money into it, and improved it by doing things like building his own irrigation system.
“I’ve been building the course since 1980,” he says.

Improving and operating the course is a cost-benefit situation for Cleveland.

“A lot of the low-end public courses don’t have the money to invest in their course, but it doesn’t make sense for them to put more money into the course because the fees they charge wouldn’t cover the expense of the upgrades,” he says. “A lot of my competition doesn’t have irrigated fairways or as good turf as I do, and they still attract customers.

“My budget figure is very flexible and many of my decision are based on whether or not I think the expenditure is going to make me money. My salary is what’s left at the end of the year.”

John Gehman, golf course superintendent of Butter Valley Golf Port in Bally, Pa., says one of the benefits of owning his own course is that he has complete control of the budget.

“I don’t have to work for someone else,” he says. “I get to make the choices. I’ll spend money where there is no return, but I know it makes the place look better.”

Last fall, a crew member left, and Gehman picked up the additional responsibilities. Looking back, he says he was spread too thin. Gehman’s son Joshua is coming in next year to take over the superintendent’s position and will be able to concentrate more specifically on turf management than he did.

Another aspect of ownership is dealing with customers, and Gehman has help with that.

“I’ve got a couple of good people in the pro shop to schmooze customers,” he says. “I don’t get the same reaction from them that these guys do. I like sitting on the tractor and mowing. Customers have said they like the course because they see the owner working.”

As an owner, Gehman says he can choose which customers he wants and which ones he doesn’t.
“If I’m on the course and I have problems with golfers, I’ve got no problem telling them to take a hike because they don’t know they’re talking to the owner.”

Some superintendents might not be able to own a golf course, but the next best thing could be a driving range. Dale Reash, certified golf course superintendent of Countryside Country Club in Clearwater, Fla., says his wife primarily runs the driving range they own. During the first two years of ownership, Reash was involved actively with the range but couldn’t continue that and do his job as superintendent of Countryside.

“We found good people to work the counter,” he says. “It’s done well enough where we can hire people. It’s been good.”

Superintendents’ ownership plans for the long term vary. Stare’s intention is to own Raymond Height Golf Center long term, until retirement.

“People come here to learn to golf,” he says. “We’re not looking to expand. We’re taking things slowly. Perhaps we could sell it after we pay off the debt and make some money. We’re in a quickly growing area between Chicago and Milwaukee. We have 36 acres. We could make more money selling it to someone who wants to build a business park. It seems like a pretty good retirement nest egg.”

Maibusch says it’s unlikely he will own another course anytime soon.

“My plate is full right now,” he says. “But I’ll always entertain the thought of a good deal. I’m happy with my job and my partner. For us, it’s kind of a labor of love. I’d like to think we’re doing something to market the game. We market our course to kids and families. There are not a lot of courses like that. We’re not going to get rich on the day-to-day operations. The investment comes with selling it, whenever that is. The return on investment isn’t huge with this business model. Many people are not willing to make the 10- to 15-year commitment before the payoff.”

Cleveland has no interest in owning or being part owner of another course because one course is all he can handle.

“I’m looking to retire,” he says. “I’m doing everything. I’m always scrambling to find employees to man the clubhouse. Having another course would be ridiculous.

“Down the road, I’ll get to a point where physically I can’t do the job and will need to hire people to help out. Eventually, I’ll sell it or bring in a young superintendent who’s willing to work like this.”

Gehman says his intent is to sell the course to his son, but Gehman won’t get top dollar for it because he doesn’t want to put his son behind the eight ball.

Reash, who works for ClubCorp, says there have been opportunities to acquire ownership of golf courses on the West Coast and in Florida, but nothing that’s attractive to him.

Superintendents who have ownership also have advice for other superintendents who might be thinking about ownership. Maibusch says every superintendent would love to have a piece of ownership, but not everyone is willing to jump through the hoops to get it.

“I looked at courses for more than 10 years before I found the right one,” he says.

Superintendents who want to be part owners of high-end courses need deep pockets, according to Stare.

“Ownership could be fun if it’s a municipal course that requires low maintenance,” he says. “If you’re doing it on the side, be open and honest with your main job and keep your priorities straight.

“Don’t let it consume you. There’s a balance between setting your own hours and working too much. You have to hire good people and trust them so you can spend time with your family.”

If superintendents were to be owners, that would be their life, Johnson says.

“It’s a tremendous amount of work,” he says. Your family life would be shortened. It’s time consuming, and you have to have the drive to do it. It gives a person a lot of pride. I was fortunate to be in a position to do that. It was one of my goals, but I didn’t think it would happen at The Rail.”

Nobody’s going to give ownership away, and superintendents will have to negotiate with the owner to become part owner, and that might include taking a pay cut, and many superintendent and owners are willing to do that, according to Maibusch.

“Superintendents who are owners are in one of two camps: They’re like me and wear many hats or are part of a group in which a couple of guys have deep pockets, and in that case, you’re still an employee,” Cleveland says. “It’s pretty hard for anything in between because of the cost.

“Very few superintendents are willing to take the risk of owning a golf course. When they weigh that against the salary they’re earning now and the hours they work, they chicken out. I’d love to go to a 50-hour work week. That would be like a vacation to me.”

Cleveland says for many superintendents ownership is a step below them because they are coming out of the top agronomy schools in the country and then work at prestigious golf courses.

“And for a superintendent to quit that and work at a low-end course for a piece of ownership, isn’t worth it to them,” he says.

For a superintendent to be an owner of a golf course, he has to make decisions about such things as green fees and tournaments, according to Cleveland.

“You’re not in the background, and that scares many superintendents to death,” he says. “Very few people are meant to be owners of businesses. It takes time, money, risk and personality. You can’t be introverted, you have to deal with the public and attracting people to your course. The public wants to be where they feel welcome. You have to be a salesman.”

A common theme is one in which a group of ownership partners get a superintendent on board, Cleveland says.

“I teach a number of [Golf Course Superintendent Association of America] seminars and tell them the best way to go for ownership is a little nine-hole course that’s family owned where the parents want to get out because the kids don’t want to take the course over,” he says. “You can buy a nine-hole course for between $250,000 and $800,000. The owner will be willing to hold on to the paper and mortgage.”

Cleveland says owning a course is a lot of hard work and there’s always a questionable return, but the benefits of owning a course are control over the product and not being as constrained with a budget.
“No one is second guessing me,” he says. “I’m willing to spend my own money on newer equipment because I don’t have a high payroll and I’m not that good of a mechanic.”

Reash says that by being a superintendent one gains knowledge of how a course is operated and that’s the one of the basics for running a business.

“Superintendents are resourceful and have the basics to run a job,” he says. “A lot of guys don’t know how to get started and are afraid to take the risk. There are a lot of superintendents involved with sod farms and are small ownership partners of courses in Florida.”

Because compensation for superintendents has improved throughout the years, superintendents who have ownership aren’t necessarily doing it as a retirement plan, but because they want to get ahead and be self-supportive, according to Reash.

He says the financial rewards of being a part owner of a golf course outweigh those of owning a driving range because of the real-estate value and the revenue generated by an 18-hole course.
“A driving range is a small business,” he says.

Reash says the important things he learned about business are to operate within a budget, understand the market and know what customers want.

“What you think is important might not be important to the customers,” he says. “We’ve built a good base of loyal customers.”

Cleveland predicts the industry will see more superintendent/owners depending on where the growth in the industry is.

“There is a lot of room for growth at the lower end of the market,” he says.

Gehman’s advice to superintendents who wish to own their own golf course is that they need to be willing to work hard and put in their time.

“You can’t do it for ego or prestige – that won’t work,” he says. “A superintendent who wants to become an owner should do a careful analysis of the course. It’s a tough racket right now. These places have to be marketed. Make sure you know what you are getting into.” GCN

Timing and money are keys to course ownership

Superintendents who want to buy a golf course or driving range need timing and money on their side. Persistence also helps.

Tim Stare, golf course superintendent of Raymond Heights (Wis.) Golf Center, and his long-time friend and business partner, Bob Maibusch, certified golf course superintendent of Hinsdale Golf Club in Clarendon Hills, Ill., have owned the golf center for 12 years.

Stare and Maibusch grew up together developing a love of the game of golf and wanted to get into the business of golf on a personal level.

An opportunity came about when Maibusch saw an ad in the Chicago Tribune about a golf course for sale.

“The price was something we couldn’t ignore,” Stare said. “It was $250,000 for the whole place. We didn’t have the cash, so we took out a five-year lease with an option to buy. After we took it over, it was making money, and we only had to take out a loan for a little more than $200,000.”

Maibusch, who has been a superintendent at Hinsdale, a private 18-hole golf course, for 22 years, always had an interest in owning a golf course.

“I looked at umpteen golf courses before I bought this one,” he says. “The stars were aligned. My partner left a successful career at IBM to run the course.”

The previous owners of the golf center weren’t interested in operating a golf course and wanted to use the land for something else. When zoning prevented them from using the land as they wanted to, they let the course deteriorate.

“There were dandelions growing in the fairways and on the greens,” Stare says. “We’ve rebuilt the reputation of the place. We won the Blue Chip Enterprise award from Mass Mutual Life in 1997.”

Jim Johnson, certified golf course superintendent of The Rail Golf Club in Springfield, Ill., has been there since 1975. When the course was built in 1969, he worked there while he was in high school during the summers. In 1973, the back nine opened, the same time Johnson went to Penn State University. After a year at Penn State, he went back to the course, and then management hired him as the superintendent.

In 2000, the club offered Johnson the general manager position in addition to the superintendent position he had already.

In 2001, the course was sold, and the new owner, Bill Smith of Green Fairways, gave Johnson an opportunity to become part owner. Johnson became one of the owners after working for Smith for a year. Johnson says the partial ownership did take cash (he declines to say how much) and that there are several other owners of the course.

“Being an owner changes your perspective,” he says. “You really look at the expense side of it and how you can save money here and there and still provide the same quality conditions.”

Cleve Cleveland, certified golf course superintendent of Newark Valley (N.Y.) Golf Club, an 18-hole public course, has been superintendent and owner since 1979. His parents built the course in 1958. He started working on the course at the age of 12 and bought the course from his parents in 1976.

“I’ve worked on this course my whole life,” he says. “I was an owner who was forced to be a superintendent.”

After high school, Cleveland went to college and majored in accounting because he wanted to work for the FBI. During his college tenure, he worked on the course.

“I then went to Houston to get experience in the accounting field, and my father fell ill,” he says. “I got a call from my mother saying that I would have to come back or they would have to sell the course. So I came back.”

The mom-and-pop operation, as Cleveland puts it, never had a superintendent other than his father, who was a farmer.

“We couldn’t afford to hire a superintendent, so I took on all the roles.”

Cleveland became a certified golf course superintendent in 1995.

John Gehman, golf course superintendent of Butter Valley Golf Port in Bally, Pa., says his family built the course in 1969 and his dad opened it. The land had been in the family since 1792. Gehman started working on the course for his dad when he was 14. His folks retired in 1985.

“This is a family business,” he says. “I have a tough time imagining how people go from one course to another. I know exactly where everything is on this course.”

A plan was in place for Gehman and his wife to buy the course from his parents. First, they become half owners of the course, and then in 1985, when his parents retired, they became sole owners. He says that in about 10 years, when his son Joshua will be 40, he will get him involved in the ownership of the course.

Dale Reash, certified golf course superintendent of Countryside Country Club in Clearwater, Fla., has been there 12 years, has been a superintendent for 25 years and has been with Club Corp. for 27 years.

More than six years ago, Reash’s wife was working for Club Corp. in the accounting department and wanted to leave the company. Around that time, Reash and his wife put together a group of people who wanted to buy a golf course, but that fell through, so he and his wife looked at other small businesses, such as motels and other real-estate ventures, to buy to have as a nest egg when he retires.

When looking for a business to buy, a business broker left Reash a message on his answering machine about a driving range that happened to be two miles away from his house. Reash and his wife have owned the range for six years.

“Operating a business is always a learning experience,” he says. “There is always something that pops up unexpectedly. It’s a lot of work.” GCN