As 2025 ramps up, I can’t help but look back on a productive and impactful 2024 for the NGCOA’s advocacy efforts. The challenges of 2024 provided many opportunities for our golf course owners, and with the arrival of a new administration in the White House, we anticipate further developments that will impact the golf industry.
Last year, several significant regulatory updates shaped our industry. The Waters of the U.S. (WOTUS) rule, issued by the EPA and the Army Corps of Engineers, saw major revisions after being deemed an overreach by the courts. While the updated rule received some industry support, questions about regulating adjacent waters remain unresolved. Legal proceedings are expected to continue in 2025, and the NGCOA, along with our allied associations, will stay engaged to ensure that the voices of our owners and operators are heard.
Labor policy was front and center in 2024, with numerous states enacting measures to raise minimum wages, expand paid time off, and enhance employee benefits. On the federal level, the Department of Labor (DOL) introduced two pivotal rules that significantly impacted our members.
First, the Independent Contractor Rule posed unique challenges for many in our community, requiring golf club owners, golf instructors, event planners, and other professionals to adjust their business models to comply with new regulations. Despite ongoing lawsuits, the rule remains effective. The NGCOA actively advocated for our members by voicing concerns to the DOL. Whether the new administration will modify or rescind this rule remains to be seen.
The second key regulation was the Overtime Rule, which increased the salary threshold for exempt employees in two phases. However, a federal court in Texas ruled this an overreach, halting its implementation. With the threshold returning to $35,568, this issue will require continued monitoring as the new administration takes office.
In 2024, the NGCOA played a pivotal role in two legal cases involving errant golf balls, highlighting the challenges faced by golf courses. In Massachusetts, Indian Pond Golf Club was sued by a homeowner over errant balls, prompting the NGCOA to file an amicus brief emphasizing the inherent risks of living near a golf course. The Massachusetts Supreme Court ultimately vacated the initial ruling, siding with the club. Meanwhile, New York's Cazenovia Golf Club faced a lawsuit from a golfer injured by another player's errant shot. Although the club initially lost in local court, it won on appeal, but the case has now advanced to the NY State Court of Appeals. The NGCOA has since filed multiple amicus briefs, advocating for the "assumption of risk doctrine" and the negative impact of requiring physical barriers between parallel fairways, supporting the club’s position. This case is scheduled to be heard on March 12, 2025.
The NGCOA also made strides in addressing a decades-old provision in the U.S. Tax Code that unfairly excludes golf courses from accessing federal redevelopment funds. Initially designed to target private clubs, massage parlors, and similar entities, the rule no longer reflects the realities of today’s industry, where most golf courses are open to the public.
In 2024, we successfully introduced H.R. 3124, a bill to remove golf from the so-called “Sin List.” Although the legislative session has ended, we are optimistic about finding new Congressional sponsors in 2025 to reintroduce this important legislation.
As we shift gears into 2025, the transition to a new administration and the arrival of first-time congressional members brings significant uncertainty. How will President Trump’s plan to increase tariffs impact our industry? President Trump has announced plans to implement significant tariffs on imports from countries such as China, Mexico, and Canada, aiming to bolster domestic industries and address trade imbalances. These tariffs are expected to increase the costs of imported goods, which could have several implications for golf course owners.
Increased Equipment and Maintenance Costs: Many types of golf course maintenance equipment and supplies, including mowers, irrigation systems, and fertilizers, are either imported or contain imported components. The proposed tariffs would likely raise the prices of these items, leading to higher operational costs for golf course owners.
Higher Construction and Renovation Expenses: If a golf course plans to undertake construction or renovation projects, the cost of imported materials like steel and aluminum could rise due to tariffs. This would result in increased expenses for building or upgrading facilities.
Potential Increase in Golf Cart Prices: Many golf carts are manufactured overseas or rely on imported parts. Tariffs on these imports could lead to higher purchase prices for new golf carts, affecting courses that need to update or expand their fleets.
Impact on Golf Merchandise: Pro shops within golf courses often sell imported apparel, clubs, and accessories. Tariffs could increase the wholesale costs of these goods, potentially leading to higher retail prices for customers or reduced profit margins for the shops.
Possible Rise in Membership and Green Fees: To offset the increased operational costs resulting from tariffs, golf course owners might consider raising membership dues and green fees. This could affect customer demand and overall revenue.
While the intended goal of the tariffs is to promote domestic production, they could lead to increased costs for golf course owners across various operational areas, potentially impacting profitability and pricing strategies.
President Trump plans to implement stronger immigration policies. Will the H-2B program, which so many in our industry rely on, see a further reduction in available non-immigrant workers? While uncertainty remains on the number of H-2B visas the Trump administration will fund, the administration may implement more rigorous vetting processes and stricter eligibility criteria for H-2B visas, potentially leading to delays and reduced availability of these workers.
Will access to capital be impacted by the lack of real tax reform? According to CFOshare, the administration aims to reduce regulations affecting small businesses, which may lower compliance costs and operational burdens for golf course owners. This could enhance profitability and make businesses more attractive to lenders.
President Donald Trump's proposed fiscal policies could influence golf course owners' access to capital in several ways:
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Extension of Tax Cuts: Trump plans to extend and potentially expand the tax cuts introduced in the 2017 Tax Cuts and Jobs Act (TCJA), which reduced corporate tax rates and provided a 20% deduction for pass-through entities. According to CFOshare, this extension could result in significant savings for golf course owners, allowing for reinvestment into their businesses and potentially improving creditworthiness.
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Deregulation Efforts: The administration aims to reduce regulations affecting small businesses, which may lower compliance costs and operational burdens for golf course owners. According to Inc.com, this could enhance profitability and make businesses more attractive to lenders.
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Potential Impact on Interest Rates: Associated Press reported proposed policies, such as significant tax cuts and increased tariffs, could lead to higher inflation. In response, the Federal Reserve might adopt a cautious approach to rate cuts, resulting in sustained higher borrowing costs for consumers and businesses.
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Tariff Implications: The administration's plans to implement tariffs on imports from countries like China, Mexico, and Canada could lead to increased costs for equipment and supplies essential to golf course operations. According to The Wall Street Journal, this might necessitate additional capital to cover higher expenses, potentially affecting cash flow and borrowing needs.
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Community Lending Programs: There is some concern that the administration may target programs like the Community Development Financial Institutions (CDFI) Fund for cuts as part of broader government spending reductions. Reuters reports such programs have historically provided financial assistance to small businesses, and reductions could limit funding opportunities for golf course owners.
2025 promises to be another busy year for the NGCOA’s advocacy department. From monitoring the evolving regulatory landscape to championing fair policies and legislation, we remain committed to representing the interests of our members.
This work is made possible thanks to the unwavering support of our Champions Circle members. With our growing list of contributors, the NGCOA is well-equipped to address challenges impacting our industry, from providing legal assistance to advocating in the halls of Congress.
Stay informed (and learn more about the Champions Circle) by visiting our info-center at ngcoa.org/advocacy and explore our legislative tracking map to see the latest proposals affecting the golf industry at the federal and state levels. Together, we can navigate the challenges ahead and build on the successes of 2024.
Here’s to a happy, healthy, and prosperous 2025!