This document provides an overview of trends in private clubs over the past decade from 2000 to 2010. It summarizes key financial metrics and challenges faced by private clubs, including membership numbers, initiation fees, operating surpluses, restaurant performance, and golf course finances. The decade began with the economic recession but saw innovation by clubs. Going forward, clubs will need to address changing member demographics and priorities to remain successful in the future.

1. A Decade of Change. A Future of Challenges. 2010 Florida Trends in Private Clubs

2. Agenda

3. A Decade of Infamy and Innovation

4. It began with the end…

5. Do you see a trend? Source: Wall Street Journal

6. A Historical Perspective Source: Wall Street Journal

7. A Historical Perspective Source: Wall Street Journal

8. A Backdrop to the Decade

9. The Story of Corporate Governance…

10. Has the front door been closed on the recession?

11. Who is your member today? Who will your member be tomorrow? Source: Wall Street Journal

12. A Social Revolution Source: Wall Street Journal

13. Membership & Operating Results

14. What year is it anyway? The money rolled in and the money rolled out, and we were all of us happy as larks. In the Spring of 1929, gently at first, the axe fell. There were a few more resignations than normal. Soon membership drives that had been leisurely became more vigorous, even desperate. The Club began offering bargain memberships, with no bonds to buy and no initiation fee. By 1932 the club was in serious trouble; any applicant with $25 in earnest money was admitted. Collecting past-due bills from members became a major task.

18. Future Perspective 63% of clubs plan a major capital improvement in the next twelve months

20. Delinquent A/R Balances 2006 2009

21. Number of Memberships

22. Ten Years Full Membership Joining Fees: Statewide

23. Full Membership Joining Fees By Region

24. Full Membership Joining Fees Changes

25. Refundable Equity Percentage

27. Annual Capital Assessment

29. Percentage of Clubs Increasing (Decreasing) Dues

30. Percentage of clubs with operating surpluses

31. Income & Expense Dollar: Statewide Pro Shop In-House

32. Income & Expense Dollar: S.E (non-Boca) Pro Shop In-House

33. Income & Expense Dollar: Boca Pro Shop In-House

34. Income & Expense Dollar: S.W. Non-CIRA Pro Shop In-House

35. Income & Expense Dollar: S.W. CIRA Pro Shop In-House

36. Income & Expense Dollar: N. & C. Pro Shop In-House

37. Income & Expense Dollar: Statewide No Pro Shop

38. Income & Expense Dollar: S.E. (non-Boca) No Pro Shop

39. Income & Expense Dollar: Boca No Pro Shop

40. Income & Expense Dollar: S.W. (non-CIRA) No Pro Shop

41. Income & Expense Dollar: N. & C. No Pro Shop

42. Income & Expense Dollar: Yacht & Beach Clubs

43. Payroll & Related Per Member

44. Memberships to Employees

45. Property Tax, Utilities, Insurance – Per Member

46. Restaurant Statistics

49. One “theme” feel throughout the entire club’s facilities12. Non-cash environment creates a competitive disadvantage in the marketplace when attracting “go getter” servers 13. Chefs and specialized positions hired in clubs vs. line cooks in theme restaurants 14. Lower ratio of members (customers) to servers in clubs 15. Only top quality products served (larger portions too!) 16. Menu price increases usually don’t keep pace with product cost increases (let’s raise dues instead!) 17. Member events (i.e. Valentines Day; New Years Eve; Kentucky Derby Day) are often subsidized (below-cost priced) events 18. The F&B operation is an amenity! Amenities cost money!

50. Restaurant: Ten Year Statewide Trend Country Clubs

51. Restaurant: Ten Year Statewide Trend Yacht & Beach Clubs

52. Restaurant Sales Per Member

53. Restaurant: Ratio of Food Sales to Beverage

54. Total Restaurant Sales

55. Restaurant Subsidy

56. Restaurant: Cost of Food Sales

57. Restaurant: Cost of Beverage Sales

58. Menu Price Increases

59. Restaurant Minimums

60. Restaurant Service Charges

61. Clubs With Service Charge & Minimum

62. Restaurant Salaries & Benefits Compared to Revenue

63. Golf

66. Golf Course Activity 10 Year Look Back NGF’s analysis of golf’s supply found that approximately 800 golf courses (in terms of 18- Hole Equivalents) closed during the past decade. It’s important to note that while 800 closures occurring since 2000 may give the initial expectation of overall contraction, the reality is that the U.S. golf course supply actually increased by more than 500 net 18HEQ courses during that period.

67. Ten Year Statewide Trend 18 Holes

68. Ten Year Statewide Trend >18 Holes

69. Cost Per Hole & Cost Per Acre: 18 Holes

70. Cost Per Hole & Cost Per Acre: > 18 Holes

71. Significant Costs Per Hole: 18 Holes

72. Significant Costs Per Hole: > 18 Holes

75. Cost Per Round: 18 Holes

76. Cost Per Round: > 18 Holes

77. Green Fees

78. Locker & Trail Fees

79. Bag Storage & Cart Fee

81. Questions? On behalf of The McGladrey Private Club Team, thank you for the last four decades of support. We look forward to serving you for the next decade and beyond.