Current Financial Update

A golf scribe once observed Rory McIlroy’s grand slam swing to be “effortless balance.” Balance is as critical to swinging a golf club as it is to managing one.  But the whole (hole) truth is, there is nothing “effortless” about either.  Welcome to the 8^th edition in our ongoing effort to keep our members on the same financial page!  If you are a new member or just want a refresher, prior versions are on our website (access instructions at the bottom).  Updates are published twice annually, with the “Fall Financial Update” discussing how we did, and the “Spring Update” sharing what we did – along with other financial notables.  

The theme of this Update is “balance.” As we run our own businesses, careers, households, and families, we all experience the necessary but difficult challenge of balancing the many competing opportunities we face daily – and it’s no different managing MGC.  One glance at Congress tells us our diverse combination of members won’t always agree with every decision made at MGC – and never will.  But we hope to make you aware of what’s behind the constant balancing act our managers, board, and finance committee perform to keep our club operating.  So, hop on the tightrope and walk with us as we talk “balance” and catch up from our last Financial Update. 

Capital Investment List Items:  Must Have vs Nice to Have:  We’ve talked before about the numerous items on our Capital Investment (CI) list that are paid for from our Capital Investment Fund.  Most big-ticket CI items are deferred maintenance “must haves” that aren’t exactly fun (think Irrigation Tank Trailer).  So, as we prioritize the list, we balance the irrigation tank trailers with “nice-to-haves” that directly improve member experience (additional beer taps, paving, new furniture).  We do all of this while staying within pre-established funding parameters.  Below are items approved since our fall issue, which we hope include some that directly improve your MGC experience:  

Convection Oven for the Kitchen	Paint Striper
New Bar Area Furniture	Irrigation Tank Trailer
Toro5410D Tractor	Top Dress Mount/Heavy Duty Utility Vehicle
Heritage Bunkers/Sand Master Plan	New AEDs (require regular replacement)
2-Stage Air Compressor	Cart Barn C Baseboard Repair
Benches for new putting area	Hot Dog Roller for “Mike’s Place”
Drink holders for new putting area	iPads
Additional Table for Bar Area	Comfort Height Toilets
New Screens for POS System	New Credit Cart Processors
New Slicer for Kitchen

Buy vs Lease: Regarding our capital investment in golf course equipment, we mentioned previously we now purchase additional items outright rather than leasing, all other terms being equal.  This approach matches cash outlay with the year earned, eliminates annual payments in future years for cash flow, and saves the contract interest normally paid over the term of the lease.  However, this policy pales in comparison to the tens-of-thousands of dollars Craig and his crew save us every year by maintaining our equipment internally, extending useful life beyond normal service capacity, and allocating these resources efficiently to maximize utilization between two extraordinary golf courses.  

As members, we see the daily effort our Pro Shop and Clubhouse staff extend to give everyone who comes up our driveway the best experience we can provide.  So, we thought it only right to balance things a bit by giving Craig and his Wizards of The Dark a shout-out because the vast majority of what they do is something we never see.  Their impeccable care is vividly apparent when we arrive for golf, but it is quite far from effortless and virtually unseen.  

Paying Down Debt vs Investing in the Club.  The pre-established funding parameters mentioned above are yet another balancing act.  How much operating cash do we need to pay our bills during the season?  How much do we set aside for new things we need for our courses this year?  How much do we need for the 7-figure backlog of deferred maintenance items?  How much do we need for new equipment?  How much should we allocate to our “reserve” account to pay down our loan balance before it comes due next spring?  And that’s if nothing goes wrong.  Welcome to juggler’s paradise.  

The good news is, we have plans in place for all of it and the ability to adjust when unknown contingencies develop.  The board recently approved a $100,000 allocation from our operating surplus toward our Capital Investment funding goal for the year (see Appendix A for the latest Capital Investment Fund Summary).  Full funding will occur prior to budget time in the fall, with additional surplus then spilling into our “Unallocated Reserves” account – formerly the “Heritage Irrigation Fund.” For those who have followed our updates, now that our Heritage Irrigation project is fully funded, we have renamed the account “Unallocated Reserves” with the intent of using those reserves for debt reduction next March at loan renewal time.  (see Appendix B for a full accounting of that fund).   

The Present vs. Our Future.  As you may know, the club is interested in purchasing 14 acres of property behind Greywalls along Pioneer Road.  Since we always talk about retiring our debt and our $1,000,000+ of deferred maintenance, some may wonder – why we would do that?  In this case, we are balancing what is presently needed & wanted for our club vs. what best serves the future of our club.  Purchasing this “buffer” property not only preserves the quiet, serenity, and unique beauty of Greywalls, it provides a platform for possible future expansion.  Our club will celebrate its 100-Year Anniversary next year and we need to set up the next 100 years to be just as successful.  And the bottom line is, should we prove successful in obtaining this addition to our campus, we won’t be raising your tuition to pay for it.   

Member Play vs Outside Play vs Community.  The first line of the MGC mission statement is:  To provide a high-value golf experience to membership, supported with public play, while serving as a contributing community partner and Midwest recreational attraction.  How’s that for a balancing act right out of the gate?  Greywalls is our main attraction and a highwire act in every way.  It thrills the crowds that come, but also creates internal drama and presents potential peril should we make an uncalculated misstep.   

2024 was a tipping point in terms of the amount of outside play we can manage with our current membership base.  While external revenue is the lynchpin of our current success model, our #1 priority it to provide a high-value golf experience for our members.  This, along with being a good community partner by hosting tournaments for our city’s most prominent non-profits (and many other noble civic causes), makes it the toughest balancing act of all.  

After looking at member survey comments and listening to members, we have further increased member-only tee times to now include the first 30 minutes of each day from June through August.  It should be noted that our member block times are in what would be considered the most-valued times at virtually any public or semi-private course. We are also blocking even more times than last year during our busiest outside play days. This alone will reduce outside play as fewer external times are available.  We’ve also increased outside play rates again in an attempt to keep this lifeblood revenue stream near its previous level.  

Finally, we will continue to preserve member access by balancing the demand to use Greywalls and Heritage for outside tournaments while honoring our commitment to community stewardship.  

The season is thankfully (and finally) upon us once again.  Things start moving so fast that there are days we want to swap out our golf spikes for a pair of running shoes – New Balance, of course.  See you out there!!!

As we do with all our financial updates, here are 5 things we’d like you to remember: 

1. Managing a 36-hole golf club is a constant balancing act that is not a lot different than the one each of you perform in your own homes and businesses.  We hope this update helps you understand the MGC balancing act, the latest on our financial status, and the reasons behind the decisions we make.  
2. Past success does not guarantee future success as economies slow and interests change. We must and will continue to practice sound financial stewardship to best ensure the long-term viability of MGC.  
3. Outside play is a fortunate necessity for club finances, member dues rates, and our community economy.  It is also a balancing act to be closely managed toward maximizing member access and thus 2025 membership dues were not raised, but outside play rates were, and those outside players should continue to drive merchandise and clubhouse sales.  
4. As members of MGC, you have access to 36 beautiful holes of golf, a clubhouse to enjoy after golf, and truly dedicated managers and staff who make every effort to provide a great experience every time you set foot on the property.  So, please thank our managers and staff the next time you see them and maybe even thank one of those “stay & play” folks – they’re keeping your dues down. 
5. We are truly grateful for every one of you for being a critical part of the exciting future of MGC.  If you have any questions or concerns regarding our finances, please contact a Board or Finance Committee member.

The MGC Finance Committee, Board of Directors, and Staff

Appendix A

Appendix B

How to Access Financial Updates from the “Member Home” Section of our Website: Go to:

“golfgreywalls.com”

• Click on “Member Home”.
• Enter the password.
• If you do not know the password, please contact the Business Office at 906-225-0721, ext. 3.
• Select the box titled “Current Financial Update” or “Archived Financial Updates”.