The 2012 Florida Trends in Private Clubs study found that 77 percent of clubs had recent annual capital assessments, 66 percent hold third-party debt, and payroll remains the largest component of club operating expenses, at 52 percent.
According to the 2012 Florida Trends in Private Clubs study, 59 percent of Florida’s private clubs reported positive working capital in the past year, an increase over the 57 percent reported last year and 47 percent reported five years ago, the South Florida Business Journal (SFBJ) reported.
The study, conducted by accounting firm McGladrey LLP, is a non-solicited statistical review comprised of data compiled from the latest annual reports of private clubs and associations audited by McGladrey.
The annual report is in its 38th year and highlights operating and financial trends of more than 200 clubs throughout Florida, the state with the highest concentration of private clubs, SFBJ reported.
Other findings of the report included:
• 77 percent of clubs had recent annual capital assessments and 38 percent plan to implement a significant capital improvement project in the coming year.
• Third-party debt has grown more acceptable, with nearly 66 percent of clubs throughout the state holding third-party debt, which is mostly unchanged over the past year. The average statewide debt per member totals $6,010.
• Payroll remains the largest component of club operating expenses, accounting for nearly 52 percent of total operating expenses.
• 35 percent of clubs raised menu prices, a higher rate than the 20 percent that had raised food prices in the previous year.
• Golf course maintenance costs per hole increased slightly, from around $76,000 to $77,700 and $78,600 for 18-hole and multiple course clubs, respectively.
A news release said the report reflected that more clubs are emphasizing that they should be run more like a business, SFBJ reported.