KEY POINTS:
It has been, sadly, another forgettable week for golf in New Zealand. The Eisenhower Trophy team, of whom much had been expected, were never in contention and, by finishing in a tie for 19th place, reinforced the distressing standard of this country's players at international level, amateur and professional.
Then, just a few hours after the depressing news from Stellenbosch, New Zealand Golf chief executive Larry Graham admitted that this year's New Zealand Open, finishing at Gulf Harbour four weeks today, would run at a loss of about the same size as last year.
That loss was $459,100 and sent New Zealand Golf spiraling into the red for the 2005 financial year to the tune of more than $340,000.
Even worse the, loss was paid for out of NZG's reserves and reduced the organisation's equity from just over $3 million to $2.663 million. So, by the time this year's Open is finished and paid for, the last two events will have depleted New Zealand Golf's coffers by over 30 per cent, nearly a million dollars.
This is a financial disaster of unprecedented proportions. So much for "reclaiming the family silver" as Mr Graham boldly proclaimed after the 2005 Open.
The decision to ditch former tournament promoter IMG last year and not engage another professional management company until too late was a catastrophic mistake for which New Zealand club golfers are going to pay, indirectly, through controversial increased levies.
There are some encouraging signs that this mess can be turned around. Adelaide-based tournament promoter Bob Tuohy is now working closely with NZG about the future of the New Zealand Open.
Tuohy, a former tournament professional, knows the golf business inside out and showed his true capabilities last week when he announced HSBC as the new sponsor for the New Zealand PGA. To get one of the heavyweights of world finance, and a significant sponsor of golf tournaments around the world, for an event in New Zealand is a real coup.
Tuohy's company uses Christchurch legal firm Saunders Robinson for its affairs in this country and one of that firm's principals, Geoff Saunders, is newly elected to the board of New Zealand Golf.
Saunders stated at the time of his election that he was disturbed at the direction the New Zealand Open had taken and, as a regular competitor in the event during his amateur playing prime in the 1970s, he wanted things turned around. Now he has the chance to do so.
There are some big decisions to take. Does the event stay part of the European Tour? Does it stay at a course near Auckland or does it move to one of two truly international class venues we have - Cape Kidnappers or Kauri Cliffs? Should it be played in February or in November?
There have already been strong hints that the scheduled five-year association with the European Tour may be cut short. That would be a mistake. The European Tour is the second most important in the world and to move to another sanctioning arrangement would be a downgrade.
It's all about what this country and its golfers can afford. We can't afford any more Opens like 2005 and 2006. It's time to draw breath, get it properly managed and start again in February 2008.
The NZG balance sheet says it's the last chance.
- HERALD ON SUNDAY
