Frequently Asked Questions
Frequently Asked Questions
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The Big One: How much income can the course expect?
The Big One: How much income can the course expect?
It depends on the size of course & golfer volume. Since all paying golfers are offered 2 free shots, we assume most golfers will be drawn to the challenge. We can roughly model course income based on average daily golfer volume. More participant volume = more profit.
Between all sources of revenue, we conservatively project these annual course incomes (your profit), based on 6 month season:
Avg 80 - 120 golfers / day: $45,000 - $65,000 / season
Avg 120 - 150 golfers / day: $57,000 - $75,000 / season
*Contact us for customized course income projections and financial structure details*
With increased NOI, course value should increase by approx. $300k - $500k (assuming 11-12% cap rate).
Where does this challenge take place?
Where does this challenge take place?
On the driving range, ideally at the corner tee box closest to clubhouse (for easiest access, most traffic, out-of-way / less other balls on green).
A small green (approx. 20ft diameter) will be installed (110 yards to pin). There will be an employee-operated station (tent, table, signage, equipment) behind the tee box.
Why do we only allow paying golfers to participate?
Why do we only allow paying golfers to participate?
This challenge will be an attraction for golfers and draw in more demand for your course. We don't want to overcrowd the challenge area, course facilities, or parking lot by allowing the general public.
Want to make it available to the public for special occasions/weddings/events? We can make it happen!
By only allowing paying golfers, there should be a steady cadence of participants as groups finish up their rounds. This will limit overcrowding and wait times.
Who pays for the buildout, equipment, & operating expenses?
Who pays for the buildout, equipment, & operating expenses?
Buildout: We offer two options for buildout of the small green (based on your preference). We assume the tee area is already present on the driving range, but we can provide turf tee box if needed.
You install green (grass or turf): We compensate you with a one-time start up payment.
We install green (turf): No start up payment, but we pay for installation.
*Small green - approx. 20ft diameter
Equipment: We supply everything needed to operated this challenge. Station equipped with: tent, table, signage, tablet for challenge operation, payment hardware/software, cameras (to ensure integrity of challenge), etc
*all golf merchandise (prizes) will be purchased directly from your pro shop
Operating Expenses: Course has zero operating expenses. Staffing will be addressed in next question
Who provides staffing for the challenge?
Who provides staffing for the challenge?
You will staff the challenge with your own employees - but we provide hourly compensation for challenge operation (at agreed upon hourly rate).
This is a simple system to implement and only takes one employee to operate. We'll provide training and clear operating procedures/guidelines.
We'll make weekly bulk purchases from your Pro Shop - and supply you with our company credit cards for on-spot purchases to supply inventory as needed
This staffing structure is meant to offer you control & peace of mind that the challenge won't negatively effect your atmosphere or customer service standard.
Is this considered gambling? Aren't there rules/limitations to offering cash prizes?
Is this considered gambling? Aren't there rules/limitations to offering cash prizes?
Due to the specific structure of our challenge - no, this is NOT considered gambling. There are rules/regulations & legal complexities to operating a sports challenge with payouts involved, but we've done extensive legal research and structured the challenge in a way that ensures full compliance with state rules/regulations, Michigan Gaming Control Board, and USGA.
Why wouldn't a course run this challenge themselves?
Why wouldn't a course run this challenge themselves?
With our structure - golf courses spend less, risk less, and manage less than if they tried on their own. That was our goal from the start.
Your income will be consistent & reliable - while not being responsible for payouts, prizes, operating expenses, start-up costs, or legal liability.
Any more questions?
Any more questions?
Feel free to reach out to us via email or call with any additional questions. Contact info at bottom.
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