The first six months of the new Board's tenure has been a busy one with several capital works projects having been completed, a number still in process and the prospect of our course safety work now upon us.

From a course perspective, I'm constantly told by members that they've never seen the course in better condition, and for that I thank our Course Superintendent Simon Blagg and his team for their commitment and hard work. No doubt, the course conditioning, new cart paths and service within the Pro Shop and Clubhouse, are contributing to the positive culture and atmosphere amongst the membership.

A specific focus of the Board this year has been the Club's finances and viability, and I am pleased to report that our main sources of operational revenue - green fees, gaming, food and beverage have seen solid growth since the difficulties of the Covid period.

In determining the subscriptions for the coming year, the Board and management considered a number of key factors, specifically:

a)     Expenses: The cost of our course equipment and supplies have increased well beyond CPI, with the cost of new Course equipment due later this year having risen 60% in four years.

b)     Quality of our Product: The Club and course facilities continue to improve and are comparable with many of Sydney's private Clubs.

c)      The scope of upcoming Capital Projects: The Club is preparing to undertake a number of large capital projects including the course safety work and the development and implementation of a Clubhouse Master Plan.

Taking the above into account, the fees for the 2024/25 year have been set as follows:

-         Seven-day Membership            -           $2898

-         Six-day Membership                 -           $2166

-         Five-Day Membership               -           $1698

-         Two-Day Membership               -           $858

The logic and context behind next year's membership fees are set out in the Q&A below.

Q1: Where have costs increased the most?

Most expenses in the budget are service related, with wages, food and beverage, utilities, course equipment and materials (e.g. chemicals, sand and soil) seeing the greatest price increases in the past twelve months.

Q2: Have we looked at where we can reduce costs?

All businesses face cost centers which need to be managed closely, and our management team are very conscious of minimizing losses where possible. To this end the Club has recently engaged an industry benchmarking service to assist us in ensuring our costs are appropriate for a Club our size, and to assist us in identifying areas of inefficiency within the business. 

Q3: What has been budgeted for in Joining Fees?

The benchmarking service mentioned above has been beneficial in determining what our joining fees should be set at, with a lengthy waitlist and strong interest from members of other Sydney Clubs putting positive pressure on our joining fees.

Taking the above information into account, our 2024/25 joining fees have been set as follows:

-        Full (7-day) Membership           -           $2500

-        Six-day Membership                 -           $1250

-        Five-Day Membership               -           $625

The Club will continue to only open spots in the six- and seven-day categories as space on the timesheets permit.  

Q4: What other fee increases are being implemented (1^st July 2024)?

The Member's Guest green fee will increase from $45 to $55.

The Member's cart fees will increase from $35 to $40 having remained at this level since 2018.

The two-day member's social fee on Tuesday, Wednesday and Friday will increase from $18 to $25, and the weekend fee for two- and five-day members from $35 to $50.

The Club's competition fees will not be increased.

Q6. How has the Club's internal Food & Beverage operations performed?

Unlike many Clubs, the Club appears on track to post a small net profit for its Food and Beverage services this year. This is a terrific result at a time when most Clubs view their significant food and beverage losses as a 'cost of doing business'.

That being said, the membership fee increases covered earlier, include a house (bar tab) account of $150 for use by members during the 2024/25 financial year. This mandatory levy supports our food and beverage operation by encouraging clubhouse visitation during the year.

Q7: What capital works are to be undertaken in the 2024/25 year.

As was communicated to members recently, the significant expense faced by the Club this year will be the course safety work. The Board has been aware of this upcoming expense for some time and has carefully costed the project and annual budget to ensure it can be completed without the need of additional levies or fees.

Whilst this project will be the Club's most significant, it is expected that the Club will make progress on a Clubhouse Master Plan, with a specific focus on the entrance to the Club and car park along with the outside of the residence.

Other than these projects, there may be some smaller capital works projects undertaken by our course team throughout the year, and these will be communicated to members in due course.

Q8: Is there a Pay early discount?

The Board has once again approved a 1.5% discount on the membership component of your annual fee if paid in full before 30th June 2024.

Those members who are unfinancial as of the 15th of July 2024 will be deemed 'suspended' and their membership resigned if their fees remain unpaid by the 31st of July 2024. Members who choose not to renew will be subject to the waitlist and joining fee should they wish to re-join at a later date.

Q9: When are 2024/25 subscriptions due?

Subscriptions are due by 30 June 2024, with members encouraged to contact the Club at: accounts@eastlakegolfclub.com.au should they have any queries relating to their fees or payment options.

The Club accepts cash and card payments in person via the Office, direct deposit (with no surcharge), or by using the online payrix payment portal on your invoice (surcharge applies). 

Q10: Will the Club be offering monthly instalments?

Members who currently pay by monthly instalment will continue to be billed in this manner unless you advise us to stop. Payments for each month are usually processed on the 15th of each month through  Payrix which links with our membership system. From 1st July 2024, any rejected instalment payment will be charged a $5.00 bank fee from Payrix. The first instalment will include one month's membership, $150 house account, $55 NSW Golf Association fee, $5 Golflink fee and a one-off $100 admin fee to set up and manage the payment plan. The breakdown of instalment plan fees are summarized below:

Summary

It is the Board's intention to support a vision of ongoing improvement at Eastlake Golf Club, based on a strong financial model that will enable this vision to come to fruition.

We trust that the explanations above provide the logic behind, and context to the decisions that the Board has made in its 2024/25 financial modelling and planning.

Thank you for your ongoing support.

 

Rob Blain

General Manager