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Drummond Golf oct 2020
National Research Reveals Persistent Governance Challenges Across Australian Golf Clubs

Landmark report finds only 57% of directors clearly understand where their role ends and management's begins — as industry calls for step-change in governance capability.

A landmark study into the governance of Australian golf clubs has revealed persistent structural weaknesses across the industry, including a significant accountability knowledge gap between boards and management, persistent gender imbalance, and a gulf in governance maturity between volunteer-run and professionally managed clubs.

Golf is a big industry that plays an important role for communities across the country. There are around 1,300 golf clubs in Australia that cater to more than 470,000 members and 1.8 million round players. The clubs are governed by more than 11,000 volunteer directors and support around 30,000 jobs nationally. Collectively the top 150 clubs manage revenues approaching $900 million and assets beyond $2.4 billion.

Yet the 2026 National Club Governance Report found only 57% of golf leaders believe directors clearly understand where the board's role ends and management's begins, the lowest-rated governance measure for the third consecutive year, while almost half (44%) of boards remain focused on club operations rather than long-term strategy.

Making Par in Golf Club Governance, the most comprehensive assessment of golf club governance ever conducted in Australia, surveyed 1,139 leaders from more than 600 clubs across every state and territory, providing an unprecedented view of how clubs are governed and where opportunities for improvement exist.

The report, produced by Golf Business Advisory Services (GBAS) and Board Benchmarking supported by Golf Australia, comes as the sport prepares to expand its national governance education program following a successful pilot that trained 775 participants from more than 360 clubs last year.

The Golf Australia Club Governance Program, delivered in partnership with the Australian Institute of Company Directors (AICD), saw 52% of pilot participants report that governance practices at their club changed as a direct result of the training.

Key findings include:

  • A persistent perception gap exists between boards and management — 80% of directors believe their board is effective, compared to only 70% of managers (a consistent gap from past research)
  • Only 63% believe their board has the right skills and expertise to match current and future strategic needs
  • Capital planning falling short — 72% of directors believe their board actively governs long-term capital planning, compared to only 60% of managers
  • Gender diversity remains low — women represent only 20% of respondents, with negligible change on prior years
  • Volunteer-run clubs and professionally managed clubs are operating in almost opposite governance cultures — clubs with paid management structures score +18 on the strategic balance scale, while fully volunteer-run clubs score between -17 and -19

James Sutherland, Chief Executive Officer, Golf Australia said: "Golf clubs are significant community assets, employers, volunteer-led organisations and increasingly sophisticated businesses managing major infrastructure, people, risk and community expectations. The quality of governance within those organisations has never been more important.”

"This report makes clear that while many boards are doing a commendable job under real constraints, structural governance weaknesses persist across the industry. Boards are consistently overestimating how effectively they are performing, and the gap between how directors and managers experience governance is significant.”

"Importantly, this work is not about making golf clubs more corporate. 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 & CEO, Australian Institute of Company Directors said: "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.”

"This report highlights both the challenges and the opportunities facing the diversity of golfing clubs and organisations today. It reinforces a simple but powerful principle: good governance, applied well, is the foundation on which sustainable, effective organisations are built."

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

The report identifies five priority recommendations for golf clubs:

  1. Clarify the role of directors — adopt a Board Charter and enforce the governance-management boundary
  2. Build a more capable board — through skills-based recruitment, staggered terms, training/education and succession planning
  3. Strengthen board leadership and accountability — particularly through chair effectiveness
  4. Focus the board on business and strategy — not operations
  5. Strengthen long-term planning — especially capital planning

Golf clubs, directors and leaders seeking to strengthen their governance capability are encouraged to register their interest in the Golf Australia Club Governance Program, powered by the Australian Institute of Company Directors (AICD) due to relaunch on 21 July. 

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