The County of Los Angeles currently contracts out 16 of its 19 courses. Of these 16 courses, nine are leased to small firms or groups of individuals (mostly local golf pros) and the other seven to larger management firms.

The county started the contracting process as a way to increase revenue, and has been satisfied with the effort. An example of the county’s success is the Mountain Meadow Course. Before the course was privatized in fiscal 1989, it was generating revenues of approximately $570,000. After privatization, county revenues increased to $708,000. As of fiscal 1996, Mountain Meadow generated revenues of $1.4 million, more than doubling the profit of the pre-contract year.

The city of Detroit has privatized four of its six golf courses. (The city continues to manage two courses.) In the first year of private management, the total revenues generated for the four courses created a surplus of $200,000, compared to a deficit of $500,000 when they were run by the city. Detroit Free Press business columnist Doron Levin reported that "American Golf has invested $2 million in improvements and pays the city at least $250,000 a year." Rents continue to increase—in 1997 American Golf paid the city of Detroit more than $330,000.

According to Detroit’s former director of Recreation and Parks, Dan Krichbaum, "It's been a win-win situation." The new management "improved the condition of the course and increased the number of rounds played," making capital improvements the city could not afford. Krichbaum added that the competition has also improved operations at two courses the city continues to manage.

A key reason Detroit leased out its courses was its inability to make needed capital improvements. The city reports that the condition of the courses has significantly improved since the private contractor took over. In addition, the public has reacted positively to the improved playing conditions and the more efficient operations. No municipal workers lost employment due to the changes; all were either hired by the private contractor or transferred to other positions within the city.

Since contracting out 13 golf courses, New York City has gone from losing $2 million a year to realizing a profit of over $2 million a year. Seven of New York’s courses are run by American Golf Corporation (AGC). New York City officials are quick to emphasize the courses’ disarray and disrepair when run by the city. "Abandoned cars littered the courses, golfers had been mugged by others, and employees spent more time playing cards than working." To date American Golf has invested more than $4.5 million into improving the courses, far in excess of the minimum-contract requirements.

The company overhauled the clubhouses, repaired the irrigation systems, brought in new golf carts, and revamped the pro shops and snack bars. AGC has overhauled cash handling and security procedures and instituted full financial accountability and reporting standards. As a result, AGC now sets the standard for other city concessionaires. Rounds played at the seven courses have increased by 50 percent—from 300,000 before AGC took over to more than 450,000 in 1997. Before AGC assumed responsibility for the seven courses the city was losing $1 million a year on operating the seven courses. In 1997, AGC paid the city of New York more than $1.7 million in rent for the seven courses.

Privatization did generate some initial resistance from club members at these courses who were afraid they were going to lose their privileges. These problems have worked themselves out. Most of the employees were transferred to other departments or hired by the private contractor. New York City officials attribute the success of the privatization to a strong monitoring program.

In Chicago, privatized golf courses and driving ranges posted $279,000 in net income in 1996. Kemper Sports Management turned what was a $530,000 operating deficit on its golf programs in 1992 into a $550,000 profit in 1994 and, despite an abnormally hot summer, $250,000 in 1995. Golf now brings in about $400,000 a year in profits and generates another $250,000 a year for capital improvements.

As a result of the capital improvements and more efficient operations (such as computerized reservations), course reservations increased from about 4,000 before privatization to about 40,000 in its second year of operation Kemper runs Chicago’s courses under a 10-year lease agreement.

The golf courses have improved dramatically. Prior to privatization there were asphalt tees at Marovitz, security problems at Columbus, and graffiti on the walls at South Shore. Yardage markers were infrequent and largely inaccurate. Conditions were haphazard at all locations and the telephone tee time system was unreliable. In 1993 and 1994, the Kemper management program provided more than $570,000 for capital improvements at the courses and driving ranges. These improvements have included replacing 36 asphalt tees with natural grass, building 15 new tees and 16 new sand bunkers, and putting up a canopy at the Diversey range so golfers can use it year-round. At several courses, golf carts are now available, the instruction programs have been expanded, and Kemper held Chicago’s first ever Women’s Amateur Tournament.

In 1995, Arnold Palmer Golf was selected by the National Park Service to invest over $4 million in capital to renovate and operate the Presidio Golf Course in San Francisco. The course was opened for public play in 1995 for the first time in its 100-year history as a military course. To date Arnold Palmer Golf has invested over $6 million in course improvements without closing the course or interrupting play. The capital improvements include a three-phase project. First came refurbishing the two nine-hole courses including a $1.1 million irrigation system; the second phase included a 45-stall practice range featuring three tiers of grass tees and five target greens; the final phase will be the completion of a 7,000 square foot clubhouse with underground golf cart storage. In 1996-1997 the Presido has doubled the income paid to the National Park Service and surpassed their original revenue projections by 13 percent. Rounds have increased 250 percent since 1995 and revenues have increased by 550 percent. The Presidio Course is currently supporting 68,000 rounds per year and bringing in annual revenues of approximately $5 million.

In partnership with the Center for Resource Management, a nonprofit group which helps develop working relationships between industry and environmental groups, Arnold Palmer Golf is using the Presidio as a demonstration project for implementing environmentally friendly programs that can be utilized by golf courses throughout the nation. Specific environmental innovations include a multi-phased water conservation and management program based on a state-of-the-art irrigation system; a weather monitoring system providing the exact amount of water required, and the use of reclaimed water when available; the incorporation of a least-impact turf maintenance program aimed at preserving the quality of the grounds; and implementation of a chemical-applications management plan to control chemical use and minimize pesticide use. Based on Arnold Palmer’s innovative environmental practices, the Presidio Golf Course was selected as one of nine winners of the 1996 Environmental Achievement Awards by the San Francisco Green Ribbon panel, a nonprofit group of environmental professionals from the business community and the public sector.

Arnold Palmer’s management plan has been designed to provide maximum public access to the game. Programs include a project with the San Francisco police to bring golf to ‘at risk’ youths and partnerships with community-based groups—such as the Center of Independent Living and Whistlestop Wheels—to provide easier access for seniors and the disabled.

Arnold Palmer Golf’s approach to managing the Presidio course is also customer-oriented. Amenities includes a free "Palmer Shuttle" to provide transit to the course and other points in the park, and, in time, there will even be a staff pro "walking the range" to offer swing advice at no charge.

San Francisco’s entire parks and recreation program also benefits from privatization. Palmer Golf’s maintenance staff regularly shares state-of-the-art maintenance equipment with the city for use on softball fields and other open spaces and lends expertise in recreational services to the Gordon F. Moore Park.