Thursday, July 05, 2001
CRC finds success with Kemper partnership
Product, profit improve under company's management
By Carey Hoffman
Enquirer contributor
Kemper Sports Management has a satisfied client in the Cincinnati Recreation Commission, which, by extension, has created satisfied golfers in Cincinnati.
Chicago-based Kemper won the bidding to take over management of the CRC's seven golf courses (Avon Field, California, Dunham, Glenview, Neumann, Reeves and Woodland) four years ago, after a management and financial scandal left them running at a deficit.
Kemper promised a return to financial stability through a program of course improvement and customer satisfaction.
A secret-shopper program run by Kemper showed “the courses are rated very high in both customer satisfaction and course amenities,” said Rob Williams, the supervisor of golf for CRC. “We did well on balance in how Kemper's performance is being viewed by the public and in the product being offered for the money, the perceived value scale.”
As far as improving condition of the courses, CRC probably has noticed the improvements more so than have local golfers, said Steve Pacella, the director of golf operations in Cincinnati for Kemper.
“I think our golf courses are in better shape, that we have a better understanding of turf from a budget standpoint and that we've benefitted because Kemper is a national company that has access to the latest developments,” he said.
The courses' bottom-line performance also has returned to health under Kemper's management. During the 2000 season, the CRC's golf operation produced total operating revenue of $6,425,629, $174,126 more than the projected year-end revenue of $6,251,503 Kemper had forecast at the beginning of the year.
That revenue came though 380,494 rounds were played at CRC courses, down 1percent from last year. But that figure looks more favorable when compared to a 2.3 percent overall decline in rounds nationally in 2000.
Under terms of its contract, Kemper guarantees CRC a certain revenue each year, then gets 20 percent of anything earned beyond that target. “Kemper has always met their budget as far as expenditures, and (CRC) has always met its budget as far as revenues,” Williams said.
“The accountability and credibility Kemper has lent to the city has been incredible,” said Pacella, who worked for CRC prior to Kemper's arrival. “Before Kemper, we had no idea of when it was slow at our golf courses, no idea about who was playing. Now, with their point-of-sale system, I can tell you who is playing, when they are playing, when our slow time is.”
2002 will be the final year of Kemper's five-year contract with the CRC. The next bidding process will begin next year.
Williams said that among the changes CRC is considering for next year is reducing league tee times by limiting the number of players per league. “The purpose of that is to give more people a chance to play an afternoon 18,” he said. “Right now, we have to cut off 18-hole play after 1 or 1:30 p.m., and it's hurting us financially.”
Check out our Tristate golf guide for a directory and features on local courses, coverage of the Men's and Women's Met, and other news.
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CRC finds success with Kemper partnership
