News

For Canadian golfers, 'tis the season for eBay.

With fairways frozen harder than a Titleist, diehard duffers satisfy their golfing urges this time of year by sifting through the thousands of ads for clubs, balls and swing gizmos at the online auction site.

Sean Crogie, an Ottawa-area telecommunications worker and devoted golfer, would normally count himself among the legions of digital duffers.

But - as if anyone needed reminding - there's nothing normal about the economy these days.

"People at my work have been cut," the 40-year-old father of three says. "That's always playing in the back of your head."

So far this winter, usually his prime buying season, Mr. Crogie has not tendered a single bid. And this coming season he's looking at cutting back his usual green fee expenses.

He's not the only one.

Gauging by Mr. Crogie and other hibernating golf addicts, 2009 promises to be dismal for a golf industry in Canada already hurting after poor summer weather this past season.

"Golf courses will be forced to change what they're doing," says Barry Forth, general manager of Copetown Woods Golf Club outside Hamilton. "They can't be expecting people to pay full price to play golf in four and a half hours any more."

Canadians are among the world's most avid golfers, with about 21.5 per cent playing at least once a year and spending about $13-billion on the game, according to a 2006 Ipsos-Reid study conducted for the Royal Canadian Golf Association.

But participation is highest among men over 50, an age bracket whose retirement funds have tumbled right along with the stock market.

"The prime demographic for golf courses has been really clobbered," said David Pratt, a real estate agent specializing in golf course properties.

A growing aversion to pricey golf memberships is evident at online golf forums, where "people are selling their memberships valued at 80K, and asking about 25 or 30K for them," Mr. Pratt said.

In the United States, golf courses were hurting even before the recession. A recent National Golf Foundation study found that 10 to 15 per cent of U.S. private clubs were in poor financial health. For 2008, the NGF estimates that more courses will have closed than opened for the third year in a row.

"The pressures are the same here, it's just a matter of degree" said Jeff Calderwood, executive director of the National Golf Course Owners Association Canada. "It is realistic to think demand will be a little softer next year."

The PGA Tour is already feeling the economic squeeze. The Big Three auto makers sponsor a number of tournaments and their dedication is waning.

Last year, Cadillac withdrew as a sponsor of the Masters and Buick ended its nine-year endorsement deal with Tiger Woods.

So will gophers have the run of the fairways come April?

"Golf tends to come through recessions pretty well," Mr. Calderwood said. "There were previous recessions where more golf was played. It's good therapy in tough times."

While golfers could put in just as many rounds this season as last, the amount of cash they spend will almost certainly dwindle.

"Generally, when there's an economic downturn, golfers play the same number of rounds, but they'll play at cheaper golf courses, so that the more economy-minded courses will have a bit of a spike," said Boris Uvakov, vice-president of Kaneff Golf Group, operator of six golf clubs.

"Our corporate clients will cut back on how extravagant an event is. Instead of having a full filet mignon meal, they'll go to a buffet," he added.

Losses for courses could mean gains for golfers.

"The operators are going to have to get creative with their pricing," says Scott Stacey, a 4 handicapper who played 33 rounds last year. "With less demand and with petroleum and fertilizer prices dropping, courses have to pass those savings along to golfers or else they could be in trouble."

At Copetown Woods, Mr. Forth is revamping the course's pricing structure in preparation for a tough 2009.

"The stats prove that there are more courses than there needs to be," he said. "So we have to do things a little differently. Those that don't may not make enough money to stay afloat, though I hope that's not the case."

But participation is highest among men over 50, an age bracket whose retirement funds have tumbled right along with the stock market.

"The prime demographic for golf courses has been really clobbered," said David Pratt, a real estate agent specializing in golf course properties.

A growing aversion to pricey golf memberships is evident at online golf forums, where "people are selling their memberships valued at 80K, and asking about 25 or 30K for them," Mr. Pratt said.

In the United States, golf courses were hurting even before the recession. A recent National Golf Foundation study found that 10 to 15 per cent of U.S. private clubs were in poor financial health. For 2008, the NGF estimates that more courses will have closed than opened for the third year in a row.

"The pressures are the same here, it's just a matter of degree" said Jeff Calderwood, executive director of the National Golf Course Owners Association Canada. "It is realistic to think demand will be a little softer next year."

The PGA Tour is already feeling the economic squeeze. The Big Three auto makers sponsor a number of tournaments and their dedication is waning.

Last year, Cadillac withdrew as a sponsor of the Masters and Buick ended its nine-year endorsement deal with Tiger Woods.

So will gophers have the run of the fairways come April?

"Golf tends to come through recessions pretty well," Mr. Calderwood said. "There were previous recessions where more golf was played. It's good therapy in tough times."

While golfers could put in just as many rounds this season as last, the amount of cash they spend will almost certainly dwindle.

"Generally, when there's an economic downturn, golfers play the same number of rounds, but they'll play at cheaper golf courses, so that the more economy-minded courses will have a bit of a spike," said Boris Uvakov, vice-president of Kaneff Golf Group, operator of six golf clubs.

"Our corporate clients will cut back on how extravagant an event is. Instead of having a full filet mignon meal, they'll go to a buffet," he added.

Losses for courses could mean gains for golfers.

"The operators are going to have to get creative with their pricing," says Scott Stacey, a 4 handicapper who played 33 rounds last year. "With less demand and with petroleum and fertilizer prices dropping, courses have to pass those savings along to golfers or else they could be in trouble."

At Copetown Woods, Mr. Forth is revamping the course's pricing structure in preparation for a tough 2009.

"The stats prove that there are more courses than there needs to be," he said. "So we have to do things a little differently. Those that don't may not make enough money to stay afloat, though I hope that's not the case."