Golf rebounds at Yorba Linda's city-owned Black Gold Golf Club, while expenses climb

 

Yorba Linda's city-owned Black Gold Golf Club saw a substantial increase in rounds played by the end of fiscal year 2021, which – despite some pandemic-related problems – resulted in a net income of $123,578 based on revenue just over $6.5 million

Green fee revenues totaled nearly $4 million, eclipsing the previous year's sum by close to $1.2 million, or about $860,000 more than was expected when the club budget was drawn up in 2020. Nearly 14,500 more rounds were played than last year.

And importantly, according to an annual report prepared by Rich Cessna, the club's general manager, “In looking to the future, the team at Black Gold will continue to strive to pay down the negative cash that was incurred during the years when the golf course lost money.”

Cessna noted the goal is to pay off the negative balance and establish a capital improvement project fund. “After two decades of operation, the facility is beginning to show its age and will require updating and replacement of furniture, fixtures and equipment,” he said.

Also up from the past year was revenue from the driving range, which increased by nearly $150,000. However, tournament rounds dropped from an expected 10,300 to 6,926. Also down was income from weddings and banquets, $246,391 less than last year.

The club's operating expenditures jumped by 56% over what had been budgeted, largely due to COVID-19 cleaning and sanitizing, Cessna noted, with more than $180,000 spent.

Derricks Grille income also increased, just over $260,000, as a plan was implemented to change the eatery's perception from a golfer's amenity to a full stand-alone restaurant to draw diners from Yorba Linda and surrounding cities.

Cessna reported, “”With the best view in Yorba Linda, guests could now enjoy the best food, service and environment.” Most meals were served outdoors on a patio because of COVID-19 restrictions.

The club's good fortune tracks the nation's golf trends. “With limited activities available, golf became the outlet many Americans needed, and golf's popularity soared,” with current golfers playing more, golfers who left the game returning and adding new golfers, Cessna said.

“With the total numbers of golf rounds dramatically increasing, it was challenging to host so many players while still maintaining all COVID-19 protocols,” Cessna noted. Golf cart dividers were added and carts were sanitized after each use, among other pandemic-related changes.

Cessna's year-end report added, “The management team is always monitoring new trends and technologies that will maintain Black Gold's competitive position in Southern California.”

Among the areas Cessna identified for improvement in the short-term: interior painting and lighting, wedding venue lawns, driving range equipment and banquet room audio upgrades.

“Additionally,” he said, “the golf course irrigation system will need to be replaced in 5-10 years, which will be a large-scale project.”