By Lorin Anderson, Founder
We’ve been posting highlights and analysis on data generated by the 2023 Proponent Group Operations and Compensation Survey and this week we present another installment. It takes on the largest expense most golf coaches have to absorb—revenue sharing or rent/lease payments. A coaches’ employment situation will likely determine if they pay one or the other (66 percent of our coaches reported paying one or the other this past year). Revenue sharing is typically the requirement for a coach who’s an employee and rent/lease payments are the norm for independent contractors who use space at a public facility.
This year 46 percent of our coaches reported paying a revenue share with an average of 24 percent going back to the facility. This is a decrease from an average of 26 percent five years ago. The average revenue share back to private clubs was 17 percent and to public facilities 29 percent. For those who paid a revenue share the average was $34,761 with the median at $20,000.
The range of percentages for revenue sharing was dramatic going from 5 to 100 percent but that is indicative of the salary or guarantee structure included in that coaches’ compensation package. A lower salary typically means a lower revenue share back to the employer while a higher salary often means a higher revenue share paid by the coach.
For coaches paying rent or leasing (20 percent of coaches surveyed), the average annual payments totaled $16,529 with the median at $12,000. The average payment was down 8 percent from last year’s survey.
For those who pay rent or lease, the top five amenities included were:
- Student range balls 88 percent
- Private teaching tee area 71 percent
- Utilities 51 percent
- Wi-fi 49 percent
- Inclusion in facility promotions 43 percent
An indoor teaching building was included for 41 percent of coaches as part of their rent/lease.
Overall revenue sharing and/or rent lease payments were equivalent to 9 percent of our coaches’ gross revenues ($16,306 in payments versus $177,386 average gross revenues per coach). Many factors could account for an individual coach keeping significantly more or less of their revenues such as facility type, guaranteed salary, teaching position type, business supports provided, etc.
Proponent Group is pleased to run a set of comps to your current position if you are interested in seeing how your costs compare to other coaches in similar situations.
To view the entire summary report from the 2023 Proponent Group Operations and Compensation Survey simply click on the Compensation Survey Results green button on our website homepage.