By Lorin Anderson, Founder
The largest expense that most golf coaches have to absorb in their businesses are revenue sharing or rent/lease payments. A coaches’ employment situation will likely determine if they pay one or the other (71 percent of our coaches reported paying one or the other this past year). Usually revenue sharing happens when the coach is an employee – often at a private club – and rent/lease payments are for independent contractors who use space at a public facility.
This year 52 percent of our coaches reported paying a revenue share with an average of 23 percent going back to the facility. Good news for coaches: This is a decrease from an average of 26 percent five years ago. The average revenue share back to private clubs was 20 percent and to public facilities 25 percent. For those who paid a revenue share the average was $27,189 with the median at $20,000.
The range of percentages for revenue sharing was dramatic going from 5 to 50 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 (19 percent of coaches surveyed), the average annual payments totaled $20,024 with the median at $12,000. The average payment was up 21 percent from last year’s survey.
For those who pay rent or lease, the top five amenities included were:
- Student range balls 82 percent
- Private teaching tee area 63 percent
- Wi-fi 49 percent
- Onsite marketing opportunities 47 percent
- Permanent teaching building 42 percent
- Exterior signage 42 percent
Revenue sharing and/or rent lease payments were equivalent to 9 percent of our coaches’ gross revenues ($14,406 in payments versus $165,424 average gross revenues per coach). That percentage was unchanged from last year’s survey. Many factors could account for an individual coach paying 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 2024 Proponent Group Operations and Compensation Survey simply click on the Compensation Survey Results green button on our website homepage.
