A Coach’s No. 1 Business Expense: Revenue Sharing or Rent/Lease Payments 

Apr 20, 2022 | News

The two largest expenses golf coaches must absorb in their businesses are revenue sharing and rent/lease payments. A coaches’ employment situation will likely determine if they pay one versus the other. Usually revenue sharing applies when the coach is an employee—generally at a private club—while rent/lease payments tend to be paid by independent contractors who use space at a public facility.

This year 49 percent of our coaches reported paying a revenue share, sending an average of 23 percent of what they take in back to the facility. This is a slight increase from from the 21 percent average we saw five years ago. The average revenue share back to private clubs was 18 percent and to public facilities 26 percent. For those who paid a revenue share the average dollar amount was $31,375 and the median amount was $25,200.

The range of percentages for revenue sharing was dramatic, stretching from 5 to a full 100 percent. Where a coach fits on that wide spectrum is very much dependent on the salary or guarantee structure included in their compensation package.

For coaches leasing or paying rent (38 percent of those surveyed), the average annual payments totaled $17,941 with the median at $12,000.  These payments were up an average of 9 percent from last year’s survey and are up 34 percent from a decade earlier. (Over those 10 years, inflation has risen 21 percent.) 

For those who rent or lease space, the top five amenities they get in return were as follows:

  • Student range balls                             82 percent
  • Private teaching tee area                    76 percent
  • Wi-fi                                                     56 percent
  • Inclusion in facility promotions            47 percent
  • Utilities                                                44 percent
  • Onsite marketing opportunities           44 percent

The biggest long-term change in amenities provided to the coach as part of a rent or lease agreement is an increase in access to teaching buildings—that figure jumped from 24 percent to 42 percent between 2011 and 2021. These buildings likely account for some of the increase in rent costs, as facilities work to recoup the capital expense of putting up a permanent structure.

Revenue sharing and/or rent lease payments were equivalent to 8 percent of gross revenues. Factors that account for an individual coach keeping significantly more or less of their revenues include facility type, guaranteed salary, teaching position type, business supports provided and so forth.

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 2022 Proponent Group Operations and Compensation Survey simply click on the Compensation Survey Results green button on our website homepage.