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Modernising EG governance and redesigning the membership and affiliation model

January/February 2015

Club Consultation Sessions

2

Agenda For Today

4 The role of clubs

Introduction to the Review

1 The benefits of membership

2 The Affiliation process

3 Connection to independent golfers

Summary and close

3

Introduction to the Review

4Source: APS Data, EGP Strategic Review, EG Affiliation data, Portas analysis

Golf in England faces some significant challenges

Reduction in the number of golfers

Reduction in EG & county funding

External challenges

Weekly participation has declined by 20% since 2006 (2.5% p.a.)

Membership is down by 18% since 2006 (2.3% p.a.). Ave members per-club reduced from 396 in 2001 to 320 in 2013

Current trends point to a continued reduction in members

Reduction in EG affiliation income of £274k (2013-14) Further reductions will put pressure on funding, and will need

to be offset either by diversified income, or reduced activity £496k of EGP funding decommissioned in 2014

The golfing landscape is changing and consumers are demanding a different golfing experience

There is a move to make golf more accessible, allow greater flexibility, promote shorter formats and focus on the social aspect

Challenge Situation

5

Oct ‘15

Sep ‘15

Jun ‘15Apr ‘15

Mar ‘15

Dec ‘14

Oct ‘15May ‘15Mar ‘15Jan/Feb ‘15

Dec ‘15Aug ‘15Apr ‘15Nov ‘14

Process for modernising EG governance and redesigning the membership and affiliation model

Voting Member meetings Consultation sessions Online consultations Board meetings

Evaluate alternatives for improvement

Develop new models and action plan

Gather insight and understand current situation

Assess and review priority change areas

Implementation

Modernising EG governance and redesigning the

membership and affiliation model

Phase 1 Phase 2

Preparation

Highly consultative, flexible process

2016

Aug ‘15 – Dec ‘15

Oct ’14 – Jan ‘14

Jan ‘15 – Feb ‘15

Mar ‘15 – Aug ‘15

VM

CU CA

EG B

Feb ‘15

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The Objects of England Golf

Source: Portas analysis

Govern

1. Coordinate the administration of Amateur Golf in England2. Maintain a uniform system of handicapping3. Represent England in international golf affairs4. Lead relationships between relevant government departments and golf

Develop

1. Lead elite development & performance for Amateur Golf2. Support training activities relevant for Amateur Golf3. Provide guidance & support for affiliated clubs and golfers4. Develop the game of golf in England

Promote

1. Promote the game of golf in England2. Coordinate, organise & promote national and international competitions3. Lead & assist in commercial, marketing & public relations policies &

activities for Amateur Golf

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The purpose, vision & targets of England Golf

Source: England Golf strategy; Portas analysis

At the heart of a network of partners

supporting a thriving community of golf facilities and golfers

forward thinking and successful

MORE PLAYERS1

MORE MEMBERS

STRONGER CLUBS

WINNING GOLFERS

OUTSTANDING CHAMPIONSHIPS

IMPROVED IMAGE

EXCELLENT GOVERNANCE

2

3

4

5

6

7

VISION TARGETS

PURPOSE INSPIRE LIFELONG INVOLVEMENT IN GOLF

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Item 1

Benefits of membership

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The current benefits and services EG and counties provide to clubs and club members

Source: Rules of England Golf; England Golf interviews; Portas analysis

From EG to golf clubs Benefits from counties From EG to individuals

Business planning

Support to increase participation & membership

Advice on policies & procedures

National championships

Marketing support

Legal and HR support

Education & training

Financial support for green keeper training

Course rating & handicapping support

Advice around rules enquiries

Provision of a county card

Development support via CDO

Course rating & handicap provision

Talent development & elite performance

Running county teams

Running county championships

Official handicap

Non-golfing offers (e.g. discounted health insurance)

Golf related offers (e.g. YGT discounts)

Entry in to EG prize draws

Ability to represent National teams

Ability to participate in National competitions

Direct communications

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Discussion Topic 1 - What you want from EG

What benefits & services do you (as a club) want from England Golf centrally?

What benefits & services do you (as a club) want from your county?

What benefits would your members most like to receive from (a) England Golf; and (b) counties?

1

2

3

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Output – benefits & services for clubs and individuals

Source: Consultation output

From EG to golf clubs From counties to clubs From EG to individuals

Promotion of the sport to the wider public - image

Statistical information and key trends in golf

Sharing of insight & best-practice (reports, templates, workshops and roadshows)

National platform for clubs to promote themselves on – through golfer-facing website

Intranet for club comms.

Bulk-buy discounts

In-person contact via CDOs

CGP with more resources & capacity – greater presence at clubs

A first point of contact

Facilitate dissemination of EG initiatives at local level

Share best-practice

Networking opportunities for clubs

More competitions for handicap golfers

Expanded county card – used nationally

Automatic sign-up: all members get benefits

National card for discounted golf

Handicap – made more significant for recreational club members

Insurance

Access/ballot for pro events (money can’t buy)

Handicap tournaments for club golfers

The consultation sessions revealed a number of key benefits for individuals and golf clubs The high-priority benefits are highlighted below The emerging theme is for EG to effectively communicate the benefits to clubs & individuals

and how to access these benefits

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Item 2

Affiliation process

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The characteristics of good affiliation

Source: The Good Governance Guide, SE Governance Strategy, SRA Sports Governance Guide; Portas analysis

Com

preh

-en

sive

Tailore

d

SimpleBeneficial

Efficient

Responsive

EngagingIncreased revenue

More affiliated members

More affiliated clubs

Influence on behaviours

Good affiliation has these characteristics

Applying these has a positive impact

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The affiliation process to England Golf

Source: Rules of England Golf; England Golf interviews; Portas analysis

Men’s County Golf Unions (34) Women’s County Golf Associations (35)

England Golf

Clubs (1,960) redistribute the full amount to Counties

Male Members (608,930)~£14 individual

contribution

Ladies Golf Union

Female Members (99,500)~£16 individual

contribution

Female U18 Members (4,000)~£16 individual contribution

Affiliation is the annual process for clubs to directly link to their county and England Golf

The affiliation fee (amount) for EG is determined annually by the Voting Members (The affiliation fees for the counties are determined separately by the counties, with no involvement from EG (as such fees indicated above are average fees)

In total fees equal approximately £9.5m

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Discussion Topic 2 – The affiliation process

What would clubs most like changed in the affiliation

process?

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Outputs – changes to the affiliation process

1Support for a simplified process by having direct payment for the EG fee from clubs to England Golf - the opportunity was also identified for EG to collect the county fee and redistribute to the counties

It emerged that there is a clear need to simplify the affiliation process for clubs

Emerging themes highlighted an opportunity to change the payment process and for a central database to underpin the affiliation model

2Support for real-time fee collection – fees collected from clubs at a certain point in their financial year to ensure clubs have adequate funds to pay affiliation fees

3Data of members will be captured for all affiliated members in a central database – the need to further explore data-protection issues was identified

4Support for data collection at source, but clarity needed over how EG plans to use the data

5Support for a reduced-price fee for trial membership and free affiliation for juniors. Segmented fees for different membership categories to be examined

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Item 3

Independent golfers

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Discussion Topic 3 – Independent membership

Question

How should EG connect with independent golfers?

It is a strategic aim of EG to connect to independent golfers

# Benefits of connecting with independent golfers

1 Influence the behaviours of independent golfers

2 Assist clubs in getting independent golfers into club membership

3 Gain additional revenue for EG to allow EG to better serve clubs

4 Develop comprehensive database of independent golfers

5 Directly communicate with independent golfers

6 Understand the needs & expectations of independent golfers

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Outputs – the engagement with independent golfers

1Support for affiliation societies to EG – offer an insurance scheme and other benefits and connect with groups of independents, not just individuals

The consultations highlighted overall support for some engagement It was highlighted that this should encourage independents to become club

members, and should in no way compete with club membership

2The initial contact should be to get data and provide EG and clubs with the communications channel to increase participation and promote membership

3Support for making insurance a mandatory requirement for all golfers for the exchange of information and data

4The opportunity to put a levy on green-fees was raised – in return for insurance or other benefits (per round or seasonal basis)

5

Identified that clubs need to be flexible in how they engage with independent golfers and have the provision to offer compelling packages for independents – EG to support & share best-practice on this

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Item 4

Role of clubs

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Discussion Topic 1 – The role of clubs in EG

Question:

How can clubs best be engaged within England Golf

Golf clubs are currently non-voting members of England Golf Clubs are affiliated to EG through their county, and should attend 1-2

‘Club Delegates Meetings’ annually, which have the purpose of: Gaining insight into the work EG is doing Discussing the work EG is doing Raising and discussing concerns of their club members on all golfing

matters In addition, EG also consults with clubs on important matters, and

communicates directly with clubs on club matters as required by the club There is an increasing trend in NGBs for clubs to have closer

engagement in the running of the sport

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Outputs – the role of clubs in England Golf

1Clubs to have a more active role in determining the services that they most value from EG and the services that EG provides to them

The consultations highlighted that clubs would like more say in how EG and golf is run

There was no consensus in exactly how this would work, however a range of options were discussed and the emerging themes are presented below

2Clubs to have a more active role in delegates meetings – the structure of the meetings should also focus on how to create stronger clubs

3Clubs to share best-practice and experiences with EG, who can then share with all affiliated clubs

4Clubs to take a more active role in promoting EG and getting club members to sign up to the MBP (long term focus on data-sharing was explored)

5Clubs highlighted the need to have a ‘go-to’ website or intranet hosted by EG – forum for clubs to contribute to, and receive content on best practice etc.

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Summary and next-steps

Source: Portas analysis

1A summary from this discussion, and the other club sessions will be circulated to all attendees in February 2015

2 The next round of regional consultations for clubs will be in May

3Further contributions to the review are welcomed – if you have any additional comments & input, contact cd@portasconsulting.com or r.findlay@englandgolf.org