THE GREEN

Dear Shaughnessy members,

On behalf of the Board of Directors, I am pleased to be able to provide the membership with an overview of the 2022 financial results for the Club, our current financial position, considerations for the 2023 operating and capital budgets, and approved dues and fees increases for the 2023 fiscal year.

Review of 2022 Operating and Financial Performance & Current Cash Position

We had another successful year in 2022 at the Club with what felt like a return to normal.  It was great to see a return of a full schedule of golf and social events along with a somewhat less busy tee sheet.  Total rounds played decreased to just over 41,000 (vs 49,000 in 2021).

The Club’s current financial policy is to plan to operate each year on a break-even basis, whereby our operating revenues match our operating expenses, which informs the dues and fees increases. Despite the economic backdrop of inflationary pressures and labour-related challenges, the current estimate of the year-end results is an operating loss of $137k for 2022.  Our net revenues of $6.7 million were within $100k of Budget with negative variances from Food & Beverage ($160k) and Green Fees ($41k) nearly offset by higher than expected dues ($87k) from lower than planned net attrition of members.  Our net expenses of $6.9 million were within $21k of budget, most notably, with positive variances in Course and Grounds offset by negative variances in F&B and Clubhouse.

Greenacres saw a significant reduction in rounds played (42,000 vs 52,000 in the prior year).  The operation remained profitable after a very slow start to 2022 (due to poor weather) leading to an operating surplus (revenues > expenses)  of $310k (2021- $780k).  All excess cash flow from Greenacres was allocated to fund Shaughnessy’s capital expenditures.

Our 2022 capital spending of $1.5 million was under budget by $700k.  The three key areas of focus of our capital spending in 2022 were our Clubhouse infrastructure, the golf course, and tennis-related infrastructure. Virtually all completed capital expenditures came in on or below budget in 2022. However, notable variances included the clubhouse area ending below budget due to delays in the arrival of the new carpet.  Also, the golf course expenditures ending below budget due to supply chain challenges delaying equipment and a decision to elongate the new irrigation repairs over multiple years to help Andrew Hart better manage his labour resources and reduce the impact on the golf course.  As well, the new outdoor tennis washrooms encountered unforeseen challenges that resulted in higher than anticipated costs.  Some smaller miscellaneous expenditures were delayed due to timing, but all are expected to be completed in 2023.

A key operating and financial challenge facing all private clubs post-COVID is the cost to support the Food and Beverage (F&B) amenity.  Labour market shortages in hospitality and increased food costs have certainly led the way increasing our overall cost of running the department. Having said that, we have benchmarked our F&B operations with our peer clubs and feel comfortable that our results compare favourably.  The Board recently met to discuss if we should reconsider the high-level of standards and offerings in F&B (e.g. hours/days open, menu, service quality, speed of service, etc.) and concluded that we should continue to maintain current standards and service levels to meet member expectations while continuing to look to improve efficiencies and reduce costs. The F&B experience at Shaughnessy for day-to-day dining and for member events remains consistent with our stated goal of maintaining the Shaughnessy Experience.  We objectively believe we provide better quality, value and experience in comparison to other local clubs, while maintaining a similar cost impact to the budget in comparison for this amenity.

As of December 31, 2022, we ended the year with cash of $3.3 million (2021: $3.8 million) including the Club’s Special Reserves and accessible cash from Greenacres.

2023 Budget, and Dues and Fees Increases

The 2023 Budget process has been through several reviews by the Finance Committee and the Board.  I would like to thank each of the members of the Finance Committee for their time and effort in this annual process.  We challenged each of the key assumptions in the Budget, all while trying to balance the “access to the tee” concerns with the economic challenge of the potential end of our lease on December 31, 2032.

We are expecting our operating costs to increase by over 6% in 2023 due to continued inflationary pressures and the desire to be fully staffed and operational in all departments in line with our mission statement. In addition, we expect to continue to see the attrition of dues-paying members and a net migration to lower dues-paying categories of membership.

In order to limit the annual dues increase, the Board and Finance Committee have recommended two important revenue-generating actions:

1. 1. With respect to new term golf members, the Board is recommending a larger intake of new members at a higher initiation fee than in prior years. We are budgeting an intake of 30 new term golf category members and 15 term tennis members, which will help offset the expected attrition of 42 golf members and the historical number of members reducing their dues-paying category as they age. When it comes to access to the tee, it was clear that the latter part of 2022 showed parallels to our most recent pre-pandemic years. As an additional measure to help control access to the tee, each new term golf member will once again be limited to a maximum of 25 rounds of golf for the first two years of their membership. This measure will restrict the tee sheet impact to a maximum of 750 rounds for the 30 new term golf members, for each of their first two years.
   2. To once again allow approximately 2,000 guest rounds as part of the 2023 budget

The Finance Committee recommended, and the Board has approved a breakeven budget for 2023.  In order to balance the books with the above revenue and cost assumptions, we will require a monthly dues and mandatory fees increase of 10% at the beginning of our Fiscal Year beginning January 1, 2023.  We would add a couple of important data points:

a. This annual increase will for the second consecutive year be the lowest increase across our peer clubs in the Lower Mainland (no small feat during these inflationary times) and

b. Our overall annual dues remain competitive with our peers despite our unique circumstances (i.e. an annual rent payment of nearly $1 million)

Dues and Mandatory Fees – Club Comparison

Though we hold ourselves to our own standards and expectations, we have had a long-standing practice of confidentially sharing high-level financial information with other clubs as a sanity check on our monthly fees. We have included a fee comparison for the most comparable golf and country clubs in the Lower Mainland to provide an additional data point. We would also highlight, unlike the other Clubs, we have a significant annual rent component to our operating costs.

Please see the chart below for Monthly Full Play Golf Member Dues and Mandatory Fees at comparable clubs (Marine Drive, Point Grey, and Capilano – in no particular order). Please note that these amounts include dues, assessments, locker fees, driving range, club storage, and gratuities.

2023 Capital Budget Overview

Management has prepared a long-term capital plan to 2032. As mentioned above, this capital plan has been front end loaded to ensure we receive the full benefit of the capital expenditures and is composed of mostly sustaining capital of $6.1 million and potential club improvements of $700K. We expect to spend over $1.8 million in capital expenditures in 2023, which will be funded by recent operating surpluses from Greenacres, entrance fees from new membership intake, and our cash reserves. Key areas of focus remain the golf course ($600k), the clubhouse and grounds ($900k), and other miscellaneous items ($300k).

Closing

A few final comments:

Given current inflationary pressures and labour-related challenges, a significant annual increase to our dues and fees was inevitable.  We believe the recent budget provides a fair balance by increasing membership to address attrition and sourcing revenue from additional areas such as guest fees.  All local golf clubs are facing similar pressures and in comparison, our dues increase is the lowest.    

 I know many of you have seen the recent notice that our Director of Finance, Harvey Dykes will be leaving the Club to pursue his next chapter in his career.  On behalf of the Finance Committee members past and present, we would like to thank Harvey for his dedication and passion for our Club.  Please know he leaves the Club under good financial stewardship.  We are pleased to report that we have recruited Thomas Wang back to Shaughnessy.

 Finally (if you are still reading), I would like to close by thanking our management team and staff for steering us through this challenging economic environment.  It is great to know we have such a competent and highly committed leadership led by Brian, Ashley, Andrew, and Jerome (and supported by their great teams).

Here is to another great year on the course and courts.

Respectfully submitted, 

Tom Whelan
Club Treasurer

Dear Shaughnessy members,

I hope everyone is enjoying a fantastic start to 2023.

Excitement is building for the CP Women’s Open, and planning is in full motion. The event is scheduled to officially take place from August 21st-27th and will require a full closure of the Club from August 19th-29th with these extra days needed to help with setup and takedown requirements. We can assure you that beyond the opportunities to take part in the event as a volunteer and spectator, there will be plenty of other initiatives and opportunities to participate in anticipation of the event.

As noted last week, B.C. Children’s Hospital was selected once again to be the primary charity beneficiary for the event and CP has communicated a fundraising goal of $2.5 million for the 2023 edition of the event. You may recall that despite the cancellations of the 2020 and 2021 CP Women’s Opens at the Club, CP still honoured their charitable commitment and raised $2.8 million for B.C. Children’s Hospital. Not only will it be a pleasure to host the best players in the world come August, but it is also certainly a nice feeling to know that the Club has assisted in providing a platform for what will likely amount to over $5 million in charitable donations to a worthy cause.

As Mr. Tom Whelan noted above, increases in dues and fees for 2023 are included in this month’s version of the member statement. You may notice in your statement what appears to be double charges for the increase – this is due to the backdating of increases to January 1st, 2023.

Please mark your calendars for the AGM that will take place on April 19th, 2023. This year the meeting will once again be offered in a hybrid format to accommodate all members.

Last month, we communicated that Harvey Dykes, our Director of Finance, would be leaving his position at the Club at the end of February. Knowing the importance of filling the position with a qualified and talented individual, we are thrilled to share the news of an exciting return to our Administration team. Thomas Wang, CPA, CMA will be re-joining the team as Director of Finance – starting February 27th, 2023. Thomas’ contributions to the Club during his previous stint in the Controller role were invaluable to the Club and it is truly a blessing to have him back with our team.

Finally, I would like to recognize and highlight Ashley Zibrik’s recent appointment as President of the PGA of BC. She becomes the 42nd President and the first female President in the association’s history. Beyond all that she does for the Club and her team, she is a true leader in the golf industry. Please join me in congratulating her on this well-deserved achievement.

Respectfully submitted,

Brian Mossop
General Manager and Chief Operating Officer

Hello fellow members,

I hope that some of you have been taking advantage of playing on the nicer days we’ve had so far. I can’t recall there being so few temporary greens this early in the season when compared to years past. Thank you to Andrew Hart and his team for keeping our course in such enjoyable conditions this winter.

A kind reminder to keep replacing divots, repairing ball marks on greens, and raking traps where applicable – this will ensure that we have a great course come spring and summer.

The Golf Activities Committee has been working on finalizing the 2023 events calendar which will be out shortly. Once published, please make sure to block off all of the important dates.

To “kick off” the season we have brought back Super Bowl Sunday at Shaughnessy on Sunday, February 12th. For those interested in beer, nachos, football and some 9-hole fun! Signup here.

See you around the club!

Respectfully submitted,

Chris Read
2023 Men’s Golf Captain

Dear Shaughnessy members,

Welcome to the 2023 Women’s Shaughnessy Program

Our high-level mantras of inclusion, kindness and having fun have resonated with our membership and the professionals at Shaughnessy.  The program will continue to ingrain these concepts in 2023.

I’m anticipating a wonderful year with the support of our Past Captain Carolyn Naylor, Michelle Yuan as our Vice Captain, Teri Christopher as our Charity coordinator, and the ever-competent Diane Fulton as our Member-at-Large. Back again to organize the Team Program are Kathy Forrest and Virginia Lam.

January has been a quiet month but I welcome the opportunity to highlight two special events at Shaughnessy this upcoming season.

The CP Women’s Open will take place August 21st-27th. Click here if you are interested in volunteering, which I highly recommend.

The annual Ladies’ Charity Tournament will take place on Friday, July 21st – please save the date.

I hope you are anticipating a wonderful golfing season.

Respectfully submitted,

Leslie Cliff
Women’s Golf Captain

Dear Shaughnessy members,

We recently said goodbye to Associate Professional, Michael Thompson who has moved on to become the Head Professional at Windermere Golf and Country Club in Edmonton as well as Assistant Professional, Carson Kallis, who will be pursuing a full-time teaching position in the golf industry. Our team wishes both Michael and Carson all the best in 2023!

I am excited to announce we have hired a new Associate Professional, Kat Kennedy who will start with us on a part-time basis while she coaches the SFU Women’s Golf Team and will become full-time over the summer months. Kat is originally from Okotoks, AB and is a skilled and experienced golf professional. She has been a member of the PGA of Canada since 2018 and holds a Bachelor of Science Degree from the University of British Columbia. Kat was a member of the UBC Thunderbirds between 2013 and 2017, winning 11 individual titles and assisting in 15 team wins. She finished her university career by earning the Marilyn Pomfret Trophy for UBC’s Top Female Athlete in 2018. After graduation, she captured the 2018 Alberta Women’s Amateur Championship and the 2021 PGA of BC Women’s Championship. As a Class “A” Professional, Kat is an active member of the PGA of BC. She previously worked at Point Grey Golf & Country Club and Kelowna Golf & Country Club. Kat is passionate about playing golf and sharing her expertise to help coach golfers of all levels to reach their full potential.

Our Professional staff is looking forward to the season ahead and we are working hard to plan a great instruction program and amazing member events! All of the new clubs are starting to show up and fit days have already begun! Over the next couple of months, we will be receiving our new spring apparel and accessories which always feels like Christmas for golfers. Hope to see many of you back at the club this month!

Respectfully submitted,

Ashley Zibrik
Director of Golf

2023 Al Dickey Memorial Mixed Doubles Tournament

Congratulations to the winners of the Al Dickey Memorial Event: Sharon Sauder and Mark Harrison, and finalists Carol Lau and Fumi Watanabe.

Tennis Pro Shop

• CLEARANCE SALE: 30% to 60% off on select items in the Tennis Pro Shop for a limited time.
• Select shoes are 20% to 50% off.
• New Winter Nike merchandise has arrived. Come check them out!

2023 Tennis Club Championships

Quick Reminders

• The new ladders began on January 1st and will run until the end of March. New ladders will begin on April 1st. Please contact me directly if you would like to join the next session.
• The ball machine can be booked for use the day-of.
• Members may bring guests to play tennis during non-prime hours. No guests are allowed on the courts between 6:00 PM – 8:30 PM on weekdays and between 9:15 AM – 1:00 PM on weekends. The same guest can only play at the Club once a month.
• Members can book the Indoor Courts for singles and doubles play. The available booking times are between 6:45 AM and 8:30 PM on weekdays and 6:45 AM and 6:00 PM on weekends. You can book a court by calling the Tennis Centre at 604.266.9165 or by calling/texting the booking phone at 236.878.4320.
• Tuesday Men’s Night Tennis – 6:00 PM and 7:30 PM. Sign up weekly.
• Ladies’ Dogwood League runs on Fridays from 11:00 AM – 1:00 PM, competing against various clubs.

Jerome Fournier
Director of Tennis

Dear Shaughnessy members,

It is hard to believe that 2022 has already come and gone.

Since the reopening from the annual January clubhouse shutdown, we have had a higher-than-normal volume of members dining in our dining areas. We thank everyone who consistently supports the Club, even during the winter season. Note that walk-ins are entertained as much as we can, but for important nights and prime times, reservations are highly encouraged. Dining reservations can now be made 30 days in advance – Please call the Host Stand at 604.264.5249 to book a table.

As the food and beverage department begins to plan for the summer, our team cannot help but buzz with excitement to host the long-awaited CP Women’s Open in August!

2023 will be about coming together and celebrating our traditional events and a few new ones with family and friends. We are thrilled to host you, particularly at many of our upcoming special events here at Shaughnessy. These are the events you would not want to miss over the next several months:

Tuesday, February 14th
Valentine’s Dinner

Saturday, March 11th
Around The World Dinner Series: China

Sunday, April 9th
Easter Brunch and Dinner Buffets

Saturday, April 22nd
Spring High Tea

Sunday, May 14th
Mother’s Day Brunch and Dinner Buffets

Sunday, June 18th
Father’s Day BBQ Dinner

Saturday, July 1st
Canada Day Pancake Breakfast

Sunday, July 16th
Family Fun-Day

Friday, July 28th
Summer Party: “A Night in Vegas”

We look forward to seeing you at the Club.

Respectfully submitted, 
Kerry Enzie
Director of Food & Beverage