Golf
Pro Forma Advisors’ principals provide the most experienced golf economics consulting services in the western United States. Pro Forma’s clients include municipalities, other public agencies, public/private joint ventures, private developers, financial institutions, and golf course owners/operators. Golf advisory services include: site evaluation and selection, market feasibility, financial feasibility, analysis of management options, operations review/audit, analysis of lease arrangements, developer/operator negotiations, and valuation/appraisal. The principals at Pro Forma Advisors have conducted well over 150 golf-related assignments in the Western United States over the past 10-15 years. Pro Forma Advisors’ golf advisory practice is heavily oriented to representing public agencies, with the principals providing services to over 70 government entities throughout the western U.S. region.
Project Experience
Project: Chambers Bay Golf Course
Location: Pierce County, Washington
Client: Pierce County
Planning Services: Economic Evaluation of Golf Course and Proposed Resort Component
Scale: 200 acres
Development Budget: US$60 million
Chambers Bay Golf Course is a world-class 18-hole championship golf course located on a dramatic water front site in the Olympia, Washington area of Seattle-Tacoma metropolitan area. The golf course, which opened in 2007 and hosted the U.S. Open Championship in 2015, is owned by Pierce County. While the golf course generates sufficient revenue to fund operating expenses, it has struggled to contribute much toward the course’s substantial debt service payments. In an effort to reach full economic sustainability, the concept of a modest size on-site resort is under consideration. Pro Forma Advisors was retained by the County to review current and prospective golf course operations, and evaluate the marketability of an 80-room upscale resort development at Chambers Bay, and to assess the economic impact of adding this additional component to the overall project economics and to the County’s fiscal position. In addition to the proposed resort component plan, a series of alternatives were formulated and analyzed.
Project: Los Angeles Golf System
Location: Los Angeles, California
Client: City of Los Angeles
Planning Services: Operational Audit of City Golf System
Scale: 13 Golf Courses
Development Budget: US$25 million
The City of Los Angeles operates a 13-course municipal golf system. Pro Forma Advisors was part of a team tasked with evaluating the long-term operating economics of the system, assessing capital needs, examining alternative operating structures, and developing potential revenue enhancement mechanisms. A number of recommendations were implemented, with clear overall improvement in system economic performance.
Project: TopGolf El Segundo
Location: El Segundo, California
Client: City of El Segundo
Planning Services: Economic and Fiscal Impact
Scale: 30 acres
Development Budget: US$25 million
TopGolf submitted a proposal to the City of El Segundo to develop a state-of-the-art TopGolf complex at the City’s existing Lakes at El Segundo 9-hole executive golf course and practice range. The plan calls for replacing the range with a traditional TopGolf entertainment facility, which also required some modification to the existing golf course. Pro Forma Advisors was retained to project performance of the TopGolf facility, evaluate the economic and fiscal impact of the TopGolf proposal on the City compared with continued operation of The Lakes, assess the proposed rent structure offered to the City and address any non-economic impacts of the project on the City’s public recreation program.