Drumoig Golf Centre in receivership

Gordon Berry, The Courier, 25 September 2003

The golf world is today reeling as a result of news that the troubled and loss-making Scottish National Golf Centre in Drumoig, has been placed in receivership, writes Gordon Berry.

The news came from the Scottish Golf Union, which said the £4.5 million centre, by the Dundee to Leuchars road, would have lost another £300,000 in the year ahead if the decision had not been taken.

The centre is continuing to operate until a buyer can be found.

It employs 15 staff and was opened with a blaze of publicity in 1999 to provide training facilities for Scotland’s amateur golf teams and coaching squads, and for members of the public.

There have always been criticisms, however, over its location away from the central belt of the country.

Over the last five years, the centre has lost around £1 million 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 today the body had made no secret of the fact the project has been experiencing financial difficulties for some time.

“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 14s up to our senior team, as well as junior groups from schools and clubs,” said Mr Low.

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 previously been based at the centre in Drumoig.

Ian Rae, the SGU’s national coach said that when the centre was launched in 1999, it was certainly ahead of its time.

Since then, however, he said, a number of other similar facilities have been established, making quality coaching facilities available nationwide.

He said he is confident the arrangements put in place by the SGU will enable a seamless transition for 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 15 Scottish National Golf Centre Ltd staff employed at Drumoig.

Blair Nimmo, head of KPMG Corporate Recovery in Scotland, today made it clear they had “failed to attract customers in sufficient numbers”.

“We are continuing to trade the centre while we seek a buyer.

“We hope to find someone who will be prepared to purchase this excellent facility and run it as a golf centre, and by doing so, secure a number of local jobs in the process,” he said.

The centre, which was established in 1999, offers state-of-the-art teaching, coaching and practising facilities, including an indoor practice area — which incorporates cutting-edge coaching technology in the form of the V1 Digital Coaching System — a gymnasium and fitness room.