REPORT: Australian Golf Clubs Face Strategic Growth Hurdle Amid Governance Gaps

A study of Australian golf club governance has revealed significant structural vulnerabilities across the multi-billion-dollar industry, highlighting an ongoing struggle by boards to separate long-term strategy from day-to-day operations.

The 2026 National Club Governance Report – Making Par in Golf Club Governance surveyed 1,139 leaders from more than 600 clubs across every state and territory. Jointly produced by Golf Business Advisory Services (GBAS) and Board Benchmarking with the support of Golf Australia, the report represents the most comprehensive assessment of golf club governance ever conducted in the country.

The data surfaces at a critical time for the sport. Golf clubs operate as major business enterprises in Australia; the top 150 clubs manage combined revenues approaching $900 million and hold assets exceeding $2.4 billion. Nationwide, approximately 1,300 clubs cater to more than 470,000 members and 1.8 million round players, supporting roughly 30,000 jobs. However, the study indicates that administrative oversight is failing to keep pace with commercial growth.

The Accountability and Perception Gap

The report’s primary finding highlights a persistent boundary issue: only 57% of golf leaders believe directors clearly understand where the board’s role ends and management’s begins. This metric represents the lowest-rated governance measure in the study for the third consecutive year. Furthermore, 44% of boards remain focused on club operations rather than long-term strategy, and only 63% of respondents believe their board possesses the skills and expertise required to meet current and future strategic needs.

“Golf clubs are significant community assets, employers, volunteer-led organisations and increasingly sophisticated businesses managing major infrastructure, people, risk and community expectations,” said James Sutherland, Chief Executive Officer of Golf Australia. “This report makes clear that while many boards are doing a commendable job under real constraints, structural governance weaknesses persist across the industry.”

The data also exposed a multi-year perception gap between boardroom directors and club managers. While 80% of directors rate their board as effective, only 70% of managers agree. This 10-point discrepancy extends into capital planning, where 72% of directors believe their board actively governs long-term capital planning, compared to 60% of managers.

“Boards are consistently overestimating how effectively they are performing, and the gap between how directors and managers experience governance is significant,” Sutherland said.

Volunteer vs. Professional Management and Stalled Diversity

The structural divide is most pronounced when comparing professionally managed clubs to those entirely run by volunteers. Clubs utilizing paid management scored +18 on the report’s strategic balance scale, indicating a firm focus on long-term strategy. Conversely, fully volunteer-run clubs scored between -17 and -19, reflecting heavy immersion in daily operations. This poses an acute challenge for smaller facilities; 74% of the survey respondents were from regional areas, and 51% represented clubs with revenues under $1 million.

Boardroom demographics also remain misaligned with the sport’s changing player base. Women accounted for only 20% of the survey respondents, showing negligible change from prior years. This stagnation occurs despite women making up 60% of new golfers. The lack of boardroom diversity challenges the industry’s Big Swings 2026–2030 strategy, which mandates that 100% of people in the golf community feel they belong, specifically women and families.

Sutherland emphasized that the research is not intended to force corporate models onto community assets. “Importantly, this work is not about making golf clubs more corporate,” he stated. “It is about helping clubs and their leaders build the capability, confidence and structures required to make better long-term decisions, support their communities and harness the significant opportunities currently in front of the game.”

Mark Rigotti, Managing Director and CEO of the Australian Institute of Company Directors (AICD), added: “Good governance doesn’t happen by accident. It requires investment in skills, ongoing education and a commitment to continuous improvement. Strong governance is also central to maintaining an organisation’s social licence. As expectations continue to grow, particularly in areas such as safety, integrity and inclusion, boards must lead with consistency, transparency and sound judgement.”

Mandurah Country Club: A Case Study in Modernisation

The report highlights Mandurah Country Club in Western Australia as evidence of how structural reform drives operational success. Recently named Golf Australia’s inaugural Most Outstanding Club, Facility or Place to Play (Metropolitan), Mandurah transitioned from a traditional committee structure to a streamlined six-person board with specialist governance subcommittees over a two-year period.

(Image Left to right: Ron Stone, President Mandurah Country Club, Peter Margin, Chair of Golf Australia, Gary Colquhoun, PGA Professional Mandurah Country Club)

Following the restructure, the club achieved:

• A record-high membership exceeding 1,200 members.
• An operating surplus surpassing $940,000 alongside record participation levels.
• Clearer accountability and faster decision-making.
• The execution of major infrastructure projects, including a clubhouse expansion and a fully funded $2 million irrigation upgrade.

According to the report, the club’s success stemmed from modernizing its decision-making and planning frameworks without altering its core culture or community focus.

Five Frameworks for Improvement

To rectify the widespread structural issues, the report outlined five priority recommendations for Australian clubs:

1. Clarify the role of directors: Adopt a Board Charter and enforce the boundary between governance and management.

2. Build a more capable board: Implement skills-based recruitment, staggered terms, training, and succession planning.

3. Strengthen board leadership and accountability: Focus heavily on the effectiveness of the chair.

4. Focus the board on business and strategy: Shift attention away from day-to-day operations.

5. Strengthen long-term planning: Prioritize capital planning frameworks.

In response to the findings, Golf Australia is expanding its national governance education program. Developed in partnership with the AICD, the pilot year of the Golf Australia Club Governance Program trained 775 participants from more than 360 clubs, with 52% of participants reporting direct changes to their club’s governance practices as a result. The formal program is scheduled to relaunch on 21 July 2026.

“We are thrilled to release this report, knowing it will be a highly valued resource for clubs looking to improve their governance practices,” said Jeff Blunden, Managing Director of Golf Business Advisory Services.

The underlying survey was conducted between January and March 2026, analyzing 922 full responses from directors and management leaders nationwide. The complete Making Par in Golf Club Governance report has been released publicly, and registration for the upcoming July training program is currently open for club leaders.

The full Making Par in Golf Club Governance report is available now. Golf clubs, directors and leaders seeking to strengthen their governance capability can register their interest in the Golf Australia Club Governance Program, powered by the AICD, ahead of its relaunch on 21 July.

The 2026 National Club Governance Report was based on a survey conducted between January and March 2026, with 922 full responses analysed from directors and management leaders across every state and territory.

Source: GOLF.COM.AU