HERITAGE SERVICES OVERVIEW
Situation
There is approximately $300K spent on Heritage Services in the 2012 budget. This is one area that has
been identified as potential cost cutting to help support the goal of an overall breakeven budget for the
organization, and some work has been done in this area. (see Appendix A which summarizes 2012 and
2013 budgets and Appendix B with summarizes the options outlined below)
Key facts
• 4,168 square feet in museum and 4,168 square feet in collection’s storage and office space
• Donation of $830,000 was made toward construction of the building with naming rights of the
building given to the Leonard E. Shore Foundation, and we have no legal obligation to the
Foundation going forward
• The building was included as part of the assets in the Glen Abbey sale in 1999, and now we pay rent
on this space.
• Currently, ClubLink is charging a $90,000 lease for the two levels.
• The value of the current collection is approximately $1.4M
• Heritage Services includes the Hall of Fame, the Museum and archival services
The Task
There are three questions that need to be addressed:
1. Why is Golf Canada running the HOF and Museum?
2. What other services are provided for by Heritage Services?
3. What is the impact of reducing or eliminating services provided?
Options
1. Status quo (lower rent, naming rights, NAGA contributions, fundraising)
2. Move to another site
3. Close the HOF/museum but keep archival services and a “virtual” museum
4. Transfer operation of the HOF/museum to someone else
5. Join forces with some other museum
6. Stop providing archival services function
Next steps
The Heritage Services Committee will review this document and the financial impact on the organization
and provide alternatives for staff and the Board to consider for 2013 and beyond.
Why is Golf Canada running the HOF and Museum?
1. Upholds a key component of our Golf Canada Mission statement: “As the governing body of Golf
in Canada, our mission is to grow participation, excellence and passion in the sport while
upholding the integrity and traditions of the game.”
2. Core function: Strategic Imperative # 3.2: Uphold and preserve rules, handicapping, course
rating, amateur status, and history of the game
3. The current museum built as the result of a donation from the Leonard Shore Foundation in 1996.
Prior to this the museum was maintained in a 1000 square foot room in the old Golf House.
4. Profile in the community (good for times when hosting the opens, general good business
practice).
5. Generates revenue through rentals, admissions, sales of branded merchandise
6. Showcases the tradition and stability of the game to potential stakeholders, sponsors, partners
etc
7. Demonstrates value of history by GC
8. Honors our “Living” artifacts and gives us Canadian heroes to emulate.
9. Space dual purposed as meeting room for GC purposes 20 days per year at which provide some
cost savings if outside space was rented
10. In 2007, during the strategic review of services, the Museum was not closed as it was deemed to
give legitimacy to Golf Canada as the lead organization
a. There are 28 current trophies, 100,000 photographs from Golf Canada’s past, the
Canadian Opens and some other golf associations.
b. There are over 5000 film reels/video tapes and other AV of the game
c. The records of the association, including minutes/ledgers etc from 1915 forward, annual
reports and relevant office files are catalogued and stored and retrieved as requested.
Preserving our heritage and operating the museum is consistently rated at high in “value of Golf
Canada” in member club surveys – between 3.80 and 4.09 out of five. Only handicapping service
consistently rates higher. It has the highest rating of services with individual member golfers. This has
been consistent for the past 10 years.
There are also a number of factors to consider in closing the HOF/Museum:
• Closing the museum doesn’t make the lease costs go away unless we chose not to renew after
May 31, 2013 (decision on this would have to be made not later than Dec 31, 2012)
• We would have to determine what to do with inventory of collection (mostly donated to GC)
and the associated costs to store these items
• What would the perception be of closing our largest organization “donation” just as we launch a
full fundraising campaign?
• All artifacts (almost all) are also the result of donations.
• The HOF room is used as free meeting space by many internal groups
• Closing the Hall of Fame sends a bad message to Honored Members suggesting that they are not
appreciated. Would also negatively affect the image of the organization.
There are a number of factors to consider in moving the HOF/Museum:
• The outfitting of the interior of the museum was approximately $150,000 15 years ago. Any
similar presentation would cost significantly more in today’s environment.
• Requires some specific outfitting for HVAC although less significant variation than in the past.
What other services are provided for by Heritage Services?
Golf Canada and their partners access materials from the Canadian Golf Hall of Fame collection every
day. There were over 80 requests for photos, fact verification, video etc in the months of April and May.
Most photo requests are for multiple images and come from member clubs, Golf Canada magazine, the
professional championship programs, media guides, etc.
In addition, we generate more materials every day. Photos from championships and events, records
from tournaments, corporate records, are all handled in the heritage services/museum area.
All staff serves the museum and the records management dually (ie. no dedicated staff covering the
museum alone).
There are a number of benefits that Golf Canada gets from Heritage Services:
• Keeping of corporate records
• Management of photographic records
• Management of film records
• Library of golf books
• Manage promotional activities with the trophies
• Provide information for media, internal communications, website, etc from archives
• Historical fact checking for our communications and outside
• There are volunteers provided 36 hours per week of time to maintain historical data
• Special projects to enhance services and improve access as required
• Trophy management – all championship trophies are cleaned, packaged for tournaments,
• stored/displayed and updated
• Other association trophy and record management
• Provide access to historical information and photographs etc for member clubs
• Manage the 100th anniversary program for member clubs and associations
• Identification as the source for golf information (Partner services: ie 100th anniversary of PGA,
Stanley Thompson Society, Golf Historical Society of Canada Content for Open broadcasts)
What is the impact of reducing or eliminating services provided?
The dissolution of the collections would be vastly confusing (many received through donation) and could
result in loss of trust in Golf Canada. The records and other materials would still require proper storage.
Reducing the staffing to one full time person plus some intern/volunteer help would impact services
provided:
• With one full time staff person it is inevitable that we would not be able to access research
under the current tight timelines created by the nature of our business (need to out put press
releases and respond to media in an very timely manner)
• Content would not be updated and catalogued with any consistency
• Image database would not be updated or able to be serviced
• We currently depend on volunteers to try to stay ahead of the amount of materials/requests etc
that are coming in to the museum so there is little additional opportunity through the use of
volunteers.
• We had three full time staff three years ago plus between 2 – 4 interns.
• Currently we have only two staff and receive some administration assistance from the
Foundation co-ordinator (room bookings, invoice processing, etc). We receive grants for
summer students and only fund one. If there was not museum perhaps we could manage
without one intern (who assists with staffing the museum on weekends). I anticipate we will
lose the services of the co-ordinator with the expanded operations of the Foundation so we’re
already reducing staff.
Eliminating these services provided would have an impact on the golf industry:
• In 2011 we co-ordinated many elements of the PGA of Canada 100th anniversary.
• We are currently discussing populating the photo management site with PGA photographs
• In 2012 we are assisting Alberta Golf with their Centennial
• Our collection provides information on all aspects of the game, and is the only resource with this
amount of information.
• Recognition as the “go to place” for information. Our communications department is not
currently staffed in any manner to be able to replace these services which means someone else
would have to be hired, negating any savings.
Options
1. Status quo (lower rent, naming rights, NAGA contributions, fundraising)
• Continue current operations, including museum lease, archives and services
• Financial impact
o Potential reduction in costs:
 Negotiate a lower lease payment (lower savings in 2013 due to renewal
date of June 2013)
 Elimination of PR, special projects, acquisitions could be reduced on a
short term basis, but would require increased in spending at some point
 An attempt to run HOF inductions on a breakeven basis or
suspend/eliminate ceremonies, again on a short term basis
 Travel could be reduced to cover only professional event appearances
and attendance at HOF ceremonies
o Potential revenue sources:
 NAGA contributions - $30,000 a year ($10,000 PGA/NGCOA and
Industry)
 Initiate a fundraising campaign
 Find a naming rights sponsor for the building
• Operational impact
o Minimal
 May need to provide additional services for NAGA partners if they make
a contribution
2. Move to another site
• Close existing museum/archives and relocate to smaller less expensive location
• Financial impact
a. Reduce space to 2,000 sq ft, plus storage of 3,000 square feet
b. Lower building costs (rent/hydro/taxes) by approximately $30,000
c. Reduction of PR, special projects, acquisitions could be reduced on a short term
basis, but would require increased in spending at some point
d. One time moving expenses of approximately $25,000
a. One time leasehold expenses, most/some of which could be covered as a
negotiated incentive from landlord to go to a new location
b. Loss of meeting space – additional cost for rentals in other properties
• Operational impact
a. Short term disruption of museum services and potential damage to collections
b. Significant disruption in other services (staff time to organize, co-ordinate move.
Loss of access to collections)
• If separate from Golf Canada offices
a. All of the above
b. Loss of integration / crossover of services
c. Additional shipping/transfer costs
3. Close the HOF/museum but keep archival services and run a Virtual Museum
• Close the existing museum to the public, disassemble the exhibits
a. Negotiate modified lease for lower space only
b. May have to move other services into offices with other Golf Canada staff
• Financial impact
a. Reduced lease costs, with need to rent some storage space that does not fit in
current GC office/storage areas
b. An attempt to run HOF inductions on a breakeven basis or suspend/eliminate
ceremonies, again on a short term basis
c. Reduction of special projects, acquisitions could be reduced on a short term
basis, but would require increased in spending at some point
d. Travel could be reduced to cover only professional event appearances and
attendance at HOF ceremonies
e. Loss of meeting space – additional cost for rentals in other properties
• Operational impact
a. Minimal reduction in staffing and staffing costs. (primarily eliminate interns)
b. Current staff will need to still catalogue archives and do ongoing work
c. A different tenant in current HOF/Museum may impact the impression at
entrance to Golf Canada offices
d. Traveling exhibits should be created and taken out to the people but could be
sponsorable by corporate partners.
4. Transfer operation of the HOF/museum to someone else
• Look for an alternative organization to operate the museum
a. Possibilities include:
i. NAGA (this would require our fair share contribution – 25%)
ii. Community
iii. Government
b. The likelihood of finding someone else to operate the museum is low to nonexistent based on past examples within the industry
• Financial impact
a. Eliminate burden of full lease payment and other building costs for top floor
b. Reduction of special projects, acquisitions could be reduced on a short term
basis, but would require increased in spending at some point
• Operational impact
c. If shared venture not with NAGA, archives would continue to operate under
Golf Canada, with two staff dedicated to this area
d. If shared venture with NAGA, then current staffing would operate both museum
and archives
5. Join forces with some other museum
• Look for a potential partner – one of the community museums, another sports museum,
another specialty museum
a. The likelihood of finding someone else to partner with to operate two different
museum is low based on past examples within the industry
b. One option would be moving our collection to share space at another existing
facility
c. A second option would be to provide space in our facility to another partner
(assume 50% space sharing)
• Financial impact
a. Hard to assess. Could be a reduction in lease costs. Could require new exhibit
develop costs, moving costs, disruption in services, additional or reduction in
staff dependent on location and partner.
b. Revenue upside for a partner coming to Glen Abbey to bring greater admissions
revenues
c. Reduction of special projects, acquisitions could be reduced on a short term
basis, but would require increased in spending at some point
d. One time moving and leasehold expenses of approximately $75,000
• Operational impact
a. Hard to measure without additional details
b. Likely affect service to GC
6. Stop providing archival services function in addition to elimination of HOF/Museum
• Pack up the archives, cease managing incoming corporate records, stop updating
championship records, give trophies to amateur championships/professional
championships to manage. Cease to provide fact checking, information, photos etc to
communications department (responsibility have to be dealt with within
communications.
• Financial impact
a. Collections would need to be stored and insured until dealt with and then the
storage and insurance costs would be eliminated
b. One junior position would be kept to maintain historical records in each
department, fact checking, etc
c. One time severance costs of $TBD
• Operational impact
a. All internal publications and website would have to purchase materials.
b. Fact checking would have to be outsourced or staffed by other departments
c. Loss of championships records maintenance, corporate record maintenance and
photograph/av and other collateral created by GC.
d. Golf Canada loses position as the “go-to” source for golf information
Recommendation
Heritage Services includes both the HOF/Museum and archival services. We feel the continuation of
archival services is important to the organization, and the review of options and potential savings is
taking this into account.
We recommend that the Heritage Services Committee work on a plan for each of these two options:
• Option 1
• This assumes that we are able to successfully renew our lease agreement with ClubLink
to remain at Glen Abbey
• The Committee will discuss/recommend what efforts and reasonability of
sponsorship/NAGA/donation funding or other revenue streams can be realized starting
in 2013
• Option 3
• This assumes that we are unable to renew our lease agreement with ClubLink and will
need to move our offices to a new location
• The Committee will discuss/recommend how material would be stored/maintained and
strategy behind travelling exhibits and virtual museum
REVIEW OF HERITAGE SERVICES AREA
Budget
2013
6485
6486/7
6483
6480
6478
6691
6488
6475
6471
6477
6472
6473
6479
6481
6482
6476
Revenues
Museum Entry Fees
Gift Shop Sales
Donations to HOF
Budget
2012
Museum
Other
Services
($8,000)
(7,000)
($8,000)
(7,000)
($8,000)
(7,000)
$0
$0
($15,000)
($15,000)
($15,000)
$0
90,090
7,000
89,612
15,000
10,000
4,000
5,000
220,702
100,823
9,000
89,612
15,000
10,000
4,000
11,000
239,435
17,250
4,000
0
5,300
0
14,200
6,000
0
10,000
1,000
2,000
42,500
8,000
0
5,300
0
24,600
10,000
0
10,000
1,000
8,000
66,900
2,000
2,000
40,500
Total Heritage Expenses
$263,202
$306,335
$94,885
$168,317
Heritage Department
$248,202
$291,335
$79,885
$168,317
Museum Expenses
Heritage Salaries
Administration (HVAC, insur, etc)
Rent
Building costs (20% of taxes)
Hydro
Gift Shop cost of sales
Public Relations/Marketing
Preservation Expenses
Displays/Books/Aquisitions
Conservation/Restoration
Hall of Fame Inductions
Donations
Travel - (MG, JC, KH)
Supplies
Special Projects
Collection Evaluation
Exhibits
$43,133
52,100
8,721
5,814
4,000
5,000
92,885
72,840
7,000
37,512
6,279
4,186
127,817
4,000
5,300
14,200
6,000
10,000
1,000