The McMahon Report June 2024

T H E S O U R C E F O R P R I V A T E C L U B E X C E L L E N C E™ JUNE 2024 THE McMahon Report® 3Boca West Country Club Pool Project 4The Kernwood Country Club Story 72024 Excellence in Club Management® Awards 6The Really Big Club Facility Question 2024 Excellence in Club Management® Awards Gala!

ABOUT MCMAHON GROUP Our Mission: “To be the premier club consulting firm dedicated to private club excellence by providing clubs and their management with the best possible strategic and facility planning expertise. We are committed to identifying the key trends impacting the club industry, enhancing the profession of club management and to assisting presidents and Boards with adopting the best practices to foster effective governance to create successful clubs.” Family- and managementowned since 1983 with an outstanding professional staff. We have served clubs and communities throughout the world in all aspects. OVER 2000 CLUBS SERVED OVER 150 HOA’S SERVED McMahon Group, Inc. 670 Mason Ridge Center Drive, Suite 220 St. Louis, Missouri 63141 • 314.744.5040 info@mcmahongroup.com www.mcmahongroup.com www.clubmanageraward.com www.clubleadershipalliance.com www.mcmahoncommunity.com For more information or to schedule a First Impressions Visit, please contact Alison McMahon at amcmahon@mcmahongroup.com. WHATWE OFFER • Strategic Planning and Implementation • Facility Planning and Funding Programs • Membership Surveys and Research • Existing Facilities Condition Analysis • HOA Community Consulting $3.5 BILLION RAI SED CONNECT WITH US ONLINE FOR VIDEOS, BROCHURES AND EVEN MORE UP TO DATE CLUB INFORMATION! 2 The McMahon Report® FROM THE FOUNDER Chicago | Florida | Missouri | NewHampshire | Pennsylvania | South Carolina 40+ I N BUSI NESS YEARS Dear Club Executive: We hope you enjoy this edition of The McMahon Report® as we report on the 27th year of the Excellence in Club Management® Awards presentations held at the National Club Association’s conference in Texas. This year’s Award winners, as highlighted in this McMahon Report, each brought unique backgrounds and significant achievements to their clubs. Of special interest in understanding what makes great managers and great clubs was the Award winners’ panel discussion at the NCA Conference, moderated by our Chairman Frank Vain, which explored the very different paths that each manager took to develop their special management skills. Fromwinners beginning their careers with Ritz-Carlton, to managing at ClubCorp, to traditional mentoring and access through golf, we see many good ways that managers can learn to excel in club management. In this edition we also highlight success stories we are seeing in the club world. Fine clubs of years gone by can find themselves outdated and lost in an ever-changing world. Clubs that lived by golf alone have found it takes more than golf to have a great club. We have a very interesting club story in this issue about Kernwood Country Club that shows how a dedicated Board and talented General Manager are reshaping an almost 100-year-old Boston club. Finally, Martha McMahon Acker, our President, explains some of the variables and options we have developed to fund and finance large and small capital projects. McMahon Group has raised over $3.5 billion in funding for club facility projects, and this is as much an art as it is a science. In asking members to pay for the facility improvements they want, there are many ways McMahon has helped clubs develop intuitive ways to determine beforehand what projects will gain the most support. In closing, we invite you to contact us if we can help you with your facility planning, strategic planning and membership survey needs. We are presently serving over 60 clubs across the world, and our team is always at your service. My best, William P. McMahon, Sr., AIA, OAA McMahon Group would like to formally introduce our newest team member, Kevin Morganfield. Throughout his 29–year career in the private club industry, Kevin has been instrumental in managing over 1,000 client relationships, guiding private clubs through the implementation of strategic marketing plans aimed at enhancing revenue streams and fostering long-term growth. Welcome aboard Kevin!

The McMahon Report® 3 Boca West Opens its Lifestyle and Wellness Center Featuring World-Class Aquatics Center FACI L ITY SPOTL IGHT Boca West Country Club continues its success as one of the finest Clubs in the nation with state-of -the-art Aquatics facilities. The Club is serving its 3,600 Member/Homeowners who approved the Lifestyle and Wellness Center in a $45 million overall project with the Aquatics Center opening in December 2023. The Club with its Board and Management are to be congratulated for its leadership in guiding the project with a special recognition for its President, COO and GM, Matthew Linderman, CCM.

just have a golf course, but to have Donald Ross design it. These same founders and their followers also had the foresight to create a family-focused country club, which this recently approved club improvement programwill rejuvenate. Kernwood, like many other clubs over the years, had properly maintained its great golf course. But it had slowly let its non-golf offerings slip away, to the point of the club becoming more a golf club with limited dining, swimming and tennis facilities. The club’s family aspect slipped away along with the non-golf activities, causing an exodus of traditional member families to join other nearby clubs, instead of staying at Kernwood. This will now all change, as the club is renovating its clubhouse dining and kitchen areas, building a new swimming pool, adding pickleball and expanding its wellness/fitness facilities. With these complements to the Donald Ross golf course, Kernwood will again become one of the signature country clubs in Boston. The Kernwood success story was achieved by following the triedand-true path for developing and approving major club-improvement programs. No shortcuts were taken as the planning and approval process took two years to complete, and it will now take 18 months to finish the project. But the results are already being seen, as the club begins to attract its newmembers. REBIRTH OF A GREAT CLUB AND HOW ITWAS DONE C lubs get old, just like all of us do. But they can come back to greatness with insightful leadership and dedication from key members and managers. Of course, it helps to be located in a great city like Boston, to have Board leadership that wouldn’t quit until it succeeded, and to find a talented General Manager who loved the challenge of achieving success. Kernwood Country Club was founded in 1927 on the banks of the Danvers River as it winds itself out to the Atlantic Ocean. It is probably one of the most scenic locations in the Salem/ Marblehead area, north of Boston. Its founders also had the wisdom to not by Bill McMahon, Sr., AIA, OAA - Founder 4 The McMahon Report® The Kernwood Story (Doing it Right the First Time)

670 Mason Ridge Center Drive #220, St. Louis, MO 63141 314.744.5040 - McMahonGroup.com Scale: 1/16"=1'-0" On A 48"x36" Sheet New Floor Area: F I R S T F L O O R P L A N Total Floor Area: Existing Floor Area: 9,200 s.f. 32,500 s.f. 12 Graphic Scale 0 16 16 64 32 Feet 96 Preliminary - NOT FOR CONSTRUCTION, RECORDING PURPOSES OR IMPLEMENTATION The Club, not McMahon Group, shall be responsible for all code compliance and environmental issues. (Massachusetts) License - # 6709 William P. McMahon, Architect Salem, Massachusetts KERNWOOD COUNTRY CLUB Ü North 41,700 s.f. Loading Dock Connecting walkway along the Event Space P R I V A T E C L U B P L A N N E R S RECOMMENDED INITIAL IMPROVEMENTS 13,200 s.f. existing pool deck 2,650 s.f. existing pool 1,015 s.f. Shade Pavilion Legend Indicates Circulation Indicates Service Functions Indicates Private Functions Indicates Member Functions Indicates Fitness Functions Indicates Demolished Site Features Indicates Existing Conditions New Refurb. Reno. Green 2nd Green 18th Tee 1st Tee 3rd Pro Shop Cart / Bag Storage 6 ADA spots W O O D E D A R E A Dn Dining Room (Event Space) Bar Bar 200 s.f. Coats 2,500 s.f. Women's Room 900 s.f. Ladies Card Room 250 s.f. Reception 100 s.f. Office 140 s.f. Office 80 s.f. Office 80 s.f. Office 375 s.f. Lockers Pool Womens 320 s.f. Lockers Pool Mens 70 s.f. Office 225 s.f. Snack Bar 90 s.f. Stor. Porte Cochere 4,500 s.f. 298 people Entry Main Entry Pool Locker 5,200 s.f. existing Men's Lockers 1,550 s.f. Existing Patio Existing Patio 975 s.f. 6,500 s.f. 4,000 s.f. Kitchen 740 s.f. Card Rm. Men's 3,300 s.f. 200 s.f. Reception 340 s.f. Women's Bathroom Entry Members Renovate Interior Men's Relocated Lockers Dining 150 s.f. Storage 330 s.f. Men's Bathroom 300 s.f. Storage 130 people View View 190 s.f. Bar Back 6 Lane Pool 3,440 s.f. 3,500 s.f. Fitness, Spa & Simulator Space 260 s.f. Storage Cocktail Lounge Poolside 1,300 s.f. Adult Bar New Entry Corridor Employee Lounge 375 s.f. Exciting Pool Complex Member New Outdoor Covered Entryway Members' Dining Dining New 600 s.f. Spa Splash Zone New Pool Equipment Under Deck New Pool Fence & Landscaping & Support Existing Deck Th McMahon Report® 5 THE KERNWOOD PLANNING AND APPROVAL PROCESS 1. It all started with developing a Board Strategic Plan, which brought unity and consensus for doing something to save the club. The club’s Mission to be a full-service, great golf and family country club was agreed upon through the development of the Strategic Plan. 2. Next, the membership was surveyed to further sharpen the focus on what kind of club they wanted and would be willing to pay for. The club had to be what members wanted. 3. With consensus achieved for Board and membership planning, the Board acted by selecting the best possible management team and appointing a dedicated facility planning committee to create the facilities for the Kernwood Country Club of the future. 4. The committee and McMahon Group then developed an overall Facility Master Plan, selected a portion of it ($9.2 million worth) for improvement, established a funding program ($350/month capital dues) and asked members to approve it. The rest will be history, as the new Kernwood was born on the spring evening of April 29, 2024. The members approved the project with an 83% majority vote. Now the most fun and interesting parts—building and opening the new facilities—begins. THE KERNWOOD LESSON LEARNED: DOING IT RIGHT THE FIRST TIME ASSURES SUCCESS ALL OF THE TIME. Congratulations to a great club with great leadership and a great manager. McMahon Group is proud to be part of the Kernwood story. EXISTING CONDITIONS IMPROVEMENTS

6 The McMahon Report® needs ten years out and set aside annual funds for them. However, this rarely works, as today’s members don’t want to pay for future improvements that will be of more benefit to future members. Likewise, the temptation for future Boards to tap big reserve funds that are sitting idle is just too tempting for favorite Board projects. THE SOLUTION For clubs, it is best to raise capital for future projects on ten-year cycles when a club needs them and can justify themwith members. The best way to test club fundraising is by surveying a club’s membership to learn: • First, their satisfaction or dissatisfaction with existing facilities; • Second, what new facilities they want, and • Third, howmuch they are willing to pay for new, improved facilities. A comprehensive membership survey at the beginning of a facility-planning program provides the answers to these three questions. With the answers gained through the survey, a club can develop its major capital-improvement funding strategies not only knowing what to build, but also howmuch members will pay to achieve them. You also learn how to best communicate about the projects to get the most votes. MAJOR WAYS TO FUND MAJOR PROJECTS In today’s fundraising world, there are three basic strategies for financing facility-improvement projects beyond using cash on hand. They are: I t is relatively easy to see what facility improvements are needed at any club. But it is difficult to crystal-ball the ability or members’ willingness to help pay for them. There are many factors that go into the development of a funding program, especially when the construction costs have increased as they recently have. Fortunately, thanks to Club Benchmarking, most clubs have now begun to take care of their depreciation liabilities, so they don’t fall into major facility-maintenance deficits. But capital-replacement dues don’t fund the future capital dues required to keep clubs viable with cutting-edge facilities. At McMahon, with our 41 years of survey research and capital-planning experience for over 1,500 clubs, raising over $3.5 billion, we know that clubs normally do major capital projects in ten-year cycles. These projects are the necessary new features that clubs must add or improve to stay viable in their marketplaces. These projects almost always require new capital-funding requirements, as they must be developed for club and marketplace conditions ten years in the future. Some clubs try to estimate their future capital by Martha Acker - President Option One: Upfront assessments with very short payment periods of one to two years. Option Two: Monthly capital payment programs that support bank loans for time periods of 5, 10 or 15 years. Such payment plans expire upon a member leaving a club prior to the loan’s length of years. This forgiveness of payments is feasible because all newmembers usually pay an increased initiation fee when joining. Option Three: This is a combination of some upfront assessment and a monthly capital payment; in effect, a combination of options one and two. In reality, Option Three is the best funding option. Some simple lessons learned in McMahon’s 41 years of project planning and approvals are as follows: 1. Make sure the Facility Plan is a part of the club’s Strategic Plan. If you don’t have a Strategic Plan, develop one. 2. Make sure the Facility Plan is the members’ plan based on a member presentation survey. 3. Make sure there are no other major club controversies occurring at the same time. 4. Be aggressive when proposing facilities with scope, cost and financing. You can always lower costs, but you can’t raise them once presented. 5. Have the first presentations of a project include a straw-poll survey before a final vote is taken. This is the best way to assure project approval. So, if your club needs to make capital improvements, do it the right way and achieve maximum success the first time. A little investment at the beginning assures success at the end. FACI L ITY PLANNING The Really Big Facility Question... HowMuch Will Members Pay? 6 The McMahon Report®

McMahon Group and the National Club Association were honored to host the 2024 Excellence in Club Management® Awards Ceremony & Gala in Frisco, Texas! This is the program’s 27th year of honoring the best of the best club executives in the private club industry. Once again, we were also excited to recognize the Award namesakes James H. Brewer, Mead Grady, Mel Rex and John Furlong for lending their support and names to the Awards. We also thank and ask your support of this year’s Awards Dinner Sponsor: Kopplin Kuebler & Wallace. 2024Excellence in Club Management® Awards Ceremony & Gala The McMahon Report® 7

Proudly Sponsored By: P R I V A T E C L U B P L A N N E R S & C O N S U L T A N T S ® Selection Committee Joseph Krenn, ECM, CCM, CCE, Chairman Farmington Country Club Mark Bado, MCM, ECM, CCE Mizner Country Club Robert Crifasi, ECM, CCM New Orleans Country Club Steve Cummings, CCM, CCE, ECM The Harvard Club of Boston John Dorman, ECM, CCM The University Club of New York Peter Holt, ECM Lambton Golf & Country Club Brandon Johnson, CCM, ECM Farmington Country Club M. Kent Johnson, CCM, ECM Baltimore Country Club Patrick King, ECM, CCM, CCE Army Navy Country Club Kristen LaCount, CCM, ECM The Country Club Jeffrey McFadden, ECM, CCM, CCE The Union League of Philadelphia Robert Sereci, CCM, ECM Colleton River Club Anne Stryhn, ECM, CCM The Country Club of Virginia Crystal Thomas, MCM, ECM, CHE, CAE CMAA Golden State Chapter Chairmen Emeritus Kevin Carroll, ECM, CCM, CCE David Chag, CCM, ECM Phil Kiester, ECM, CCM The Country Club of Virginia Jeffrey Kreafle Congressional Country Club Kevin Vitale, CCM Baltusrol Golf Club David Voorhees, ECM, CCM, CCE ClubManagerAward.com 8 The McMahon Report® Mark began his career in 1982 with a 13-year run with Club Corporation of America. Mark’s experiences with ClubCorp taught him to be an efficient business manager as well as giving him a comprehensive understanding of private clubs. After ClubCorp, Mark worked at Gulfstream Golf Club in Delray Beach, FL, International Country Club in Fairfax, VA and has been the General Manager at Riviera Country Club in Coral Gables, FL for the last sixteen years. In those sixteen years, Mark has managed $275 million in gross revenues and completed $70 million in capital projects. The Club now has a $22 million project in the works to build a Tennis Center, parking garage and new Golf Learning and simulator facility. Since Mark’s hire in 2007 the Club’s gross revenues have grown from $11 million to $36 million annually. Riviera continues to be the top country club in Miami and Miami-Dade County. Mark’s hobbies over the years have been golf and sporting events. Along with his wife of 42 years Leigh Anne and son Brandon, they spend time at New Smyrna Beach and in the Florida Keys. Also, Mark has spent untold hours looking out for the personal well-being of his staff, friends and members over the years. Through Mark’s mentorship, numerous employees have risen to the ranks of Club Managers, Executive Chefs, Golf Professionals and Golf Course Superintendents. Mark has an agreement to stay at Riviera for the next four years at which point he will be 70 years old. MEAD GRADY AWARD Mark Snure, ECM Riviera Country Club JAMES H. BREWER AWARD Steven Freund, ECM The Landings Golf & Athletic Club 2024 Excellence in Club Management® Award Winners Steven Freund has devoted his 48year career to hotels, resorts, restaurants and now, private clubs. He spent 20 years as an executive with The Ritz-Carlton Hotel Company, serving as general manager at several locations before opening The Ritz-Carlton Lodge at Reynolds Lake Oconee in 2001. He successfully opened and established The Lodge as one of the top golf destinations in the world. During his tenure with The Ritz-Carlton, he served in 6 Five Diamond properties and 2 Mobil (now Forbes) Five Star hotels. He was also involved in opening numerous hotels in Asia and North America as well as a certified presenter for the Ritz-Carlton Leadership Center. In 2010, he was named Executive Director of The Landings Golf & Athletic Club in Savannah, Georgia. There he leads a Club of over 3,400 membership households, 550 staff, with 6 championship golf courses, 30 tennis courts, 15 pickleball courts, 10 dining venues, 5 pools, and a 52,000 square foot wellness center in coastal Georgia. The Landings Golf & Athletic Club is recognized by BoardRoom Magazine as one of America’s Distinguished Clubs, reaching Emerald status, ranking among the top private clubs in the United States.

The McMahon Report® 9 David Main is the General Manager at the Toronto Lawn Tennis Club, where he has knowledgeably led operations for the past six years. With a career that began in 1990 as a PGA professional, David has a rich history in club management, having served as a head professional for a decade before completing his MBA and stepping into more senior roles such as GM/COO. His experience spans several prestigious golf clubs throughout Ontario, which has provided himwith a robust foundation in club leadership. Beyond his professional commitments, David has been a prominent figure in various volunteer leadership roles, including serving as president of the Ontario PGA, the Ontario Club Managers Association of Canada (CMAC), and more recently, as president of the national CMAC. In additional to being a distinguished club manager, David is also an accomplished golfer and overall sports enthusiast. He is a PGA of Canada Professional and once embarked on an impressive 8,000km solo bike ride across Canada to raise funds for cancer research. His mentorship has guided many young managers and golf professionals to successful careers, highlighting his dedication not only to club management but also to contributing to the broader community. Ryan joined The Country Club of Virginia in April of 2018 as the Director of Food & Beverage. Prior to CCV, Ryan worked the previous 7 years at Woodfield Country Club in Boca Raton, Florida. During Ryan’s time at Woodfield he held various Food & Beverage management positions, spending his last three years as the Director. After growing up in Alaska, Ryan attended The Culinary Institute of America in New York, where he earned both culinary and hospitality management degrees. Ryan served as the President of the Virginias Chapter of the Club Management Association of America in 2022, and has been on the Board of Directors since 2019. Ryan has had the honor of speaking at various management and leadership conferences in the club industry, including BMI F&B in Texas, the Chef’s Summit in Kentucky, and on behalf of the Club Management Association of Europe in Dubai, U.A.E. and Montreux, Switzerland. In his free time Ryan enjoys cooking and spending time with his spouse Merideth and their two golden retrievers. Charles C. Johnson has served as the Executive Manager of the Detroit Athletic Club since 2020, and the title of Chief Executive Officer was added in 2022. Prior to that appointment, he served as the Club’s Assistant General Manager from 2014 to 2020. His career includes positions across the country including John’s Island Club (Vero Beach, FL), Saucon Valley Country Club (Bethlehem, PA), and Montauk Yacht Club (Montauk, NY). Johnson is an alumnus of Central Michigan University, where he earned a Bachelor of Science in Business Administration and Organizational Administration. In 2022, he earned the Master of Business Administration from the Executive MBA program of Michigan State University where he was inducted into the Beta Gamma Sigma Honor Society. An active member of the Club Managers Association of America, currently serving as President for its Greater Michigan chapter and as a director for the national chapter, Johnson attained CMAA’s Certified Club Manager designation in 2016. That same year, he received the Rising Star Award for Excellence in Club Management. Charles C. Johnson is a resident of Clarkston, Mich., where he lives with his wife and three children. His dedication to the well-being of the city of Detroit and the region is evidenced by his participation in various organizations, and his efforts to preserve and celebrate the 137-year old Detroit Athletic Club, its Albert Kahn-designed Clubhouse, and its role as an anchor institution in the city’s history and its future. RISING STAR AWARD Ryan Bender, CCM, ECM The Country Club of Virginia JOHN FURLONG AWARD David Main, PGA, MBA, ECM The Toronto Lawn Tennis Club Congratulations to all of the 2024 Award Recipients! MEL REX AWARD Charles Johnson, CCM, MBA, ECM Detroit Athletic Club

It’s interesting that each of you started your careers in parts of the hospitality industry that were quite different from the clubs where you’ve earned Excellence in Club Management recognition. How did those different types of experiences transfer and prove influential in helping you achieve success at your current clubs? Steven Freund, ECM, The Landings Golf & Athletic Club, Savannah, Ga.: When you work for a corporate entity, you get rewarded by the degree to which you work the system. There’s a stated outcome and clear direction for the suppliers you use and the processes you have to engage in. It’s a system, because a brand like Ritz-Carlton or Marriott or Hyatt is seeking to replicate a core experience that they want their travelers and guests to be able to count on. So you have to think systemically, and consequently those were the things that were measured and what you got rewarded for. When I came to The Landings, however, I realized you were no longer working the system and that you had to shift into being the system architect. For example, because of our size, we have 10 dining venues and it takes my Director of Club Operations about 12 miles to go visit all of them. So effectively, he’s running a regional restaurant group that’s generating about $24 million in revenue. We started by thinking and looking at the systems as they related to people, because that’s where we had the biggest deficits. We thought about howwe select our people, howwe orient and certify them and make sure the basic skills training is there, and howwe reinforce it all to create a values-based culture. We had to think about everything systematically, whether it was people, product, process or profit. I think that my background and time with Ritz-Carlton clearly gave me an education that I was able to adopt to the environment at The Landings. Mark Snure, ECM, Riviera Country Club, Coral Gables, Fla.: With ClubCorp, you’re held completely responsible for the numbers and if they’re off, you take your inventory every week. So that helped a lot at Riviera, where we needed to get better control of what was going on. I went in and looked at everything to see what the numbers should be in percentages relative to how the departments were run, and then looked at where the problems were. It was like going deer hunting when the deer were tied to trees, but the bullets were hidden. Between all the personnel and people and relationships, it took a while, but it happened faster than I thought. And we haven’t varied more than 2 percent either way at the end of the year fromwhat our budget was. Charles Johnson, MBA, CCM, ECM, Detroit Athletic Club, Detroit, Mich.: The biggest difference between the country and yacht clubs where I worked before coming to a city club like the DAC are the obvious ones, like boat slips and golf. But the perspective I got fromworking in so many various places was as different as they are, they’re the same. Private clubs is the business we work in, and while culture is perhaps the biggest variable, that spans beyond just the type of club. So when I talk to young people, particularly college students, I’m always telling them it’s really about who you’re going to work with and for, and the culture of the place, that becomes the most important. Now that we’ve had the COVID bump that’s helped most clubs enjoy a new period of prosperity, the question for most leaders in the industry today is, how do we maintain the momentum for our clubs and create opportunities for continued growth? What do you think will be some of the areas of concern and the biggest threats for clubs going ahead that might stand in the way of sustaining the jump-start COVID gave us? Charles Johnson: Particularly in city clubs, this evolution of howwork has changed for people and what that means is something we’ll have to watch. In Detroit, in just the last week or so, our main building in town is General Motors’, and they’ve said they’re going to leave it and go to a new building. There’s just been such a big transition since COVID in how people function at work and at clubs in general. So being attuned to that and monitoring how people are now using downtown, and being able to react and be prepared for the unknown is perhaps the most important thing. There are some pros and cons to what these changes can mean for clubs. The “pro” is that it can be nice to come to the club, do a couple of Zoom calls, get a workout in, have some lunch, and do a fewmore Zoom calls or work on your computer. So we can leverage that and become this one place Q Q 10 The McMahon Report® 2024 ECMWinners Featured on National Club Conference Panel After being honored the previous night during the Excellence in Club Management (ECM) Awards Presentation and Dinner (see pages 7-9), three recipients of the 2024 ECM Awards participated in a panel discussion, moderated by Frank Vain, Chairman of McMahon Group, as part of the educational agenda for the National Club Conference held in Frisco, Texas from April 28-30. Here are selected highlights of the panelists’ responses to questions posed by Frank Vain; additional comments made during the panel discussion will be included in the profiles of the ECMwinners and other articles in upcoming issues of Club Trends magazine later this year.

for every thing you could need. But when so much of your business was predicated on business functions, now it’s going to shift to social. For us, that’s going to change our business model. We are losing more in food and beverage than we used to and that impacts us somewhat significantly at the financial end. So what do you do financially to make sure you’re still modeling the way you want to model, and performing the way you want to perform? For me, there’s also some caution from dealing with inflation and other things, and we’ve had several years of significant dues increases. There’s a delicate balance there between what happens in the next few years to give us the financial ability to continue to do what we need to do and still be a value for membership. Steven Freund: I think it’s fair to say we’ve all experienced an influx of membership. Our club’s 50 years old, but one-third of our membership joined in the last five years; I think we’ve added 1,350 members in that time. There are some ins and outs to that. It’s a different generation of members; they’re younger and the expectations are different. We’ve adopted a model of creating free-standing restaurant concepts, with different concepts stratified by price point and their degree of formality—everything from sushi and noodles to steakhouse to fast-casual to seafood to Italian to sports bar. And we’ve really endeavored to make them as competitive as if they were a free-standing restaurant, because I think that’s how our members want to live their lives. They want to go to a quality place, not just “go to the club.” We’re also giving a lot of thought to what the future looks like and what this generation wants from their club. As Charles said, the “one place” idea. My house is where I sleep, but my club is where I do everything else. This helps us because we’re a residential club – while your house is your “crash pad,” your club is where the rest of your life happens. So that leads to many things that we need to give serious thought to now. While we have a couple of treatment rooms, it’s not a spa, and we believe we now need, be cause of the membership base we have, a proper spa and salon to service our members. We also believe we need newmanifestations of golf – yes, we have six championship golf courses, but whether it’s a par-three or putting course, we think that’s a relevant amenity to that segment of our membership. We’re also going to add a Toptracer range with 10 hitting bays this year, because we think that’s a gateway into the game that will help keep our golf program robust. We’re also looking at having an adult pool—while we have two big pools, with the intergenerational conflict, we think some of the adults would appreciate a sanctuary or refuge-type of experience. And we’re looking at further expansion of our wellness centers. We have 52,000 sq. ft under roof as it is, but the minute we built it, or expanded it the last time, we realized it’s not big enough; we need more functional training space and redundancy in all of our strength-training equipment. I hate to use it as an example, but at Planet Fitness, they have a ton of equipment and redundancy of all their most popular pieces of equipment. And we believe that we need that because of the patronage we now have. Just in general, we’re all dealing with space constraints to some degree, because we’ve seen this influx of membership. Luxury by definition has the quality of abundance and space. It has this perception of ‘I can do what I want to do when I want to do it with my friends, and I’m not standing in line or competing for tee times.’ So we’re giving a lot of thought to those elements as we think about the future of the club. Mark Snure: We’re trying to stick to what we are. We changed our banquet policy and we’re now doing $4 million more a year in member revenue because the club’s more accessible—it doesn’t have all the charities and banquets glomming it up, and members want to be there and use it. The McMahon Report® 11

BoardRoom magazine’s industry peers and experts reviewed and selected McMahon Group as one of the outstanding suppliers and consultants, representing various aspects of course and club operations. Winners, each year, are selected for overall excellence in their respective fields, achievements, innovation, vision for future growth and continued impact on private club operations. BoardRoom Magazine 2023 Strategic Planning & Member Survey Firm of the Year! 12 Years in a Row! T H E S O U R C E F O R P R I V A T E C L U B E X C E L L E N C E™ M C M A H O N G R O U P We Can Help Make Your Club Successful Click to download our brochures today! OVER 2000 CLUBS SERVED $3.5 BILLION RAI SED Scan to view all of our online brochures 40+ I N BUSI NESS YEARS

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