2026 budget to tackle cash flow issues
Important
Our Golf Club, like many other organisations, is under an increasing amount of
financial pressure, and, like many others, is facing the prospect of cutting back costs
in order to sustain its long-term future.
As most members will be aware, the Golf Club receives no funding from Stoke by
Nayland Resort. Our individual membership fees are paid to the Resort and used to
help fund the maintenance of the golf courses, the Golf Club itself does not receive
any of that income and is totally self-reliant.
Our only sources of income are our competition entry fees and any profit we make
on any of our social events. That income is spent on supporting our Men’s, Ladies
and Seniors teams in County Competitions, as well as individuals representing SbN,
covering the three Captains’ expenses during their year in office, and a variety of
other things including trophies, engraving and, most recently, subsiding team
clothing.
Currently, we are spending more each year than we take in, and that cannot
continue.
When the Resort changed the legal status of the Golf Club in January 2023, cash
balances from each of the Sections were transferred into a new Club bank account
and we started out with a cash reserve of approximately £39,000. However, that
reserve is now well below £30,000 as each year we spend more than we generate.
Reluctantly therefore, the Management Board has decided to implement some
temporary measures, starting from January 1, to reduce costs and increase income.
• Competition prize payouts will reduce from 70% of entry fees, back to 60% as
it was previously. This will have the effect of increasing our income by 10%.
• Our biggest single expense item each year is refreshments for players and
caddies taking part in County Team competitions. From next season, these
refreshments will no longer be provided – unless in exceptional circumstances
where a team reaches the final stages of a competition.
• There are certain competitions each year where players receive a small gift
when taking part. For example, Captain’s Day where at £10 each, and with
120 players, the total can reach £1,200. That is a cost we can no longer
afford, and these gifts will no longer be provided.
These three measures will, we believe, have the effect of reducing our annual deficit
to manageable levels.
In addition, the Board is looking at ways we can generate more income. For
instance, after the success of this year’s Ladies Open, we are looking at the
possibility of a Seniors Open and a Mixed Open being added in 2026.
We are also looking to introduce some kind of Golf Club lottery, possibly along the
lines of a “100 Club” where members can sign up for a small sum each month and
be in with a chance of winning a cash prize.
Club President Peter Garnett said: “If we do nothing and run the Club with the
current annual deficit levels, we will have no reserves left in five or six years. These
measures we are taking will prevent that and, if we can start generating more
income, may well be rescinded in the future. But doing nothing is not an option”.
If anyone has any questions or suggestions, please contact Harry Hibbert on harry.hibbert@stokebynayland.com
financial pressure, and, like many others, is facing the prospect of cutting back costs
in order to sustain its long-term future.
As most members will be aware, the Golf Club receives no funding from Stoke by
Nayland Resort. Our individual membership fees are paid to the Resort and used to
help fund the maintenance of the golf courses, the Golf Club itself does not receive
any of that income and is totally self-reliant.
Our only sources of income are our competition entry fees and any profit we make
on any of our social events. That income is spent on supporting our Men’s, Ladies
and Seniors teams in County Competitions, as well as individuals representing SbN,
covering the three Captains’ expenses during their year in office, and a variety of
other things including trophies, engraving and, most recently, subsiding team
clothing.
Currently, we are spending more each year than we take in, and that cannot
continue.
When the Resort changed the legal status of the Golf Club in January 2023, cash
balances from each of the Sections were transferred into a new Club bank account
and we started out with a cash reserve of approximately £39,000. However, that
reserve is now well below £30,000 as each year we spend more than we generate.
Reluctantly therefore, the Management Board has decided to implement some
temporary measures, starting from January 1, to reduce costs and increase income.
• Competition prize payouts will reduce from 70% of entry fees, back to 60% as
it was previously. This will have the effect of increasing our income by 10%.
• Our biggest single expense item each year is refreshments for players and
caddies taking part in County Team competitions. From next season, these
refreshments will no longer be provided – unless in exceptional circumstances
where a team reaches the final stages of a competition.
• There are certain competitions each year where players receive a small gift
when taking part. For example, Captain’s Day where at £10 each, and with
120 players, the total can reach £1,200. That is a cost we can no longer
afford, and these gifts will no longer be provided.
These three measures will, we believe, have the effect of reducing our annual deficit
to manageable levels.
In addition, the Board is looking at ways we can generate more income. For
instance, after the success of this year’s Ladies Open, we are looking at the
possibility of a Seniors Open and a Mixed Open being added in 2026.
We are also looking to introduce some kind of Golf Club lottery, possibly along the
lines of a “100 Club” where members can sign up for a small sum each month and
be in with a chance of winning a cash prize.
Club President Peter Garnett said: “If we do nothing and run the Club with the
current annual deficit levels, we will have no reserves left in five or six years. These
measures we are taking will prevent that and, if we can start generating more
income, may well be rescinded in the future. But doing nothing is not an option”.
If anyone has any questions or suggestions, please contact Harry Hibbert on harry.hibbert@stokebynayland.com