PRESS RELEASE FROM SCOTTISH GOLF UNION

LOSS-MAKING GOLF CENTRE AT DRUMOIG PLACED IN RECEIVERSHIP


The Scottish Golf Union has today (Thursday September 25th) announced that the loss-making Scottish National Golf Centre in Drumoig, Fife, has been placed in receivership.

The centre, which was opened in 1999 to provide training facilities for Scotland’s amateur golf teams and coaching squads, as well as the general golfing public, has lost around £1 million over the last five years, and despite implementing a major restructuring operation during the past 15 months, the SGU believes it has been left with “no alternative” to receivership.

Alistair Low, chairman of Scottish Golf Ltd, the SGU operating company with responsibility for funding the centre, said: “We have made no secret of the fact that the project has been experiencing financial difficulties for some time, and whilst this is a step we very much regret, the level of losses at Drumoig is clearly unsustainable. We estimate that, had we not taken this decision, the cash shortfall for the year ahead would have been in excess of £310,000.

“The SNGC Board was appointed in May 2002 to seek a viable future for SNGC and has actively pursued all available strategies to achieve a financially acceptable solution. We believe we have taken all possible steps to try and make the centre viable, but the inescapable reality is that the scale of the facility and its location have combined to critically undermine its viability.

“We are in detailed discussions with the St Andrews Links Trust to ensure we have appropriate coaching and practice facilities available at all times. These would be facilities at the Links Trust’s site in St Andrews, and we are confident there will be minimal impact on the work the SGU carries out in coaching our various age group training squads from under 14 year olds up to our senior team, as well as junior groups from schools and clubs.”

Part of the annual per capita charge from each golf club member in Scotland (£6.50 in 2004) will continue to support the national coaching activities that have previously been based at the centre in Drumoig.

Ian Rae, the SGU’s national coach said; “When the centre was launched in 1999, it was certainly ahead of its time. Since then, however, a number of other similar facilities have been established, making quality coaching facilities available nationwide. I’m confident that the arrangements put in place by the SGU will enable a seamless transition for our developing golfers of all ages to ensure they continue to progress.”

Receivers KPMG have been appointed by the Scottish Golf Union and will determine the future for the centre, which received funding of £3.2 million from the SGU, and £1.2 million from sportscotland, with additional support of £150,000 from the R&A when it was built in 1998.

Discussions are ongoing with the Receivers regarding the position of the fifteen Scottish National Golf Centre Ltd staff employed at Drumoig.