RFPExhibitLDrivingRangeFinal.pdf

Update Report

Market and Financial Potentials for Toptracer at Brookside Golf Course

Pasadena, California

Prepared by: Pro Forma Advisors LLC

Prepared for: Rose Bowl Operating Company

April 2022

PFA ID: 11-544-2

Pro Forma Advisors, LLC Los Angeles T 310.616.5079 New York Metro T 203 604.9007 F 888.696.9716 www.ProFormaAdvisors.com http://www.ProFormaAdvisors.com http://www.ProFormaAdvisors.com

Introduction

The Rose Bowl Operating Company (RBOC) is considering expansion of the driving range at their 36-hole Brookside Golf Course. The current plan calls for selective realignment of the golf course which would free-up a site to construct a much larger single tee line, lighted range with 60 tee stations. An expanded golf practice facility would allow incorporating Toptracer technology on as many as 20 of the tee stations, as well as expanding a vibrant and profitable Players Club program which allows members use of the practice range. Toptracer is a relatively new electronic technology which tracks and evaluates golf ball travel through the instant processing of shot data, and provides an opportunity to create virtual entertainment and games for individuals and groups.

As part of the planning and decision-making process, RBOC retained Pro Forma Advisors LLC, an independent land use economics consulting firm specializing in commercial recreation, to update an evaluation of the potential impact of introducing Toptracer technology at Brookside Golf Course conducted in February 2020.

The following updated memorandum report provides a description of the project, brief overview of the new golf technology, documentation of the experience/performance at selected existing practice facilities offering Toptracer technology, and projections for the proposed project at Brookside. A brief summary of findings is presented in the following section, with analysis and documentation presented in subsequent sections of the report.

Toptracer

Summary of Findings

A brief summary of key findings is presented below, with documentation and analysis presented in subsequent sections of the report.

‣ Toptracer technology offered at golf practice ranges continues to be extremely well received at facilities across the country. In California, the number of practice ranges featuring Toptracer has increased from six in 2020 to twenty currently, and there are numerous other locations under consideration.

‣ Introduction of Toptracer at golf practice ranges has resulted in a broadening of the market area and attraction of a new class of recreational users distinctly different than the traditional golfer. These users are much more entertainment oriented than the traditional golfer use of the range. The new users generally have a longer length of stay and higher food and beverage spending profile.

‣ Many of the ranges in California which offered Toptracer in 2020 have expanded the number of tees equipped with the technology over the past two years. Substantial revenue growth has occurred at these facilities.

‣ At ranges offering both Toptracer and conventional tees, Toptracer equipped tees significantly outperform conventional driving range tees, typically generating at least 40-50% more gross revenue than conventional tees.

‣ Utilization of Toptracer bays is highest on evenings during weekdays, and all day on weekends. Thus, the Toptracer bays are often used by practicing golfers during the non-peak periods and Toptracer users during peak periods.

‣ Brookside currently offers an AGC Players Club membership with current dues of $45 per month.

Members enjoy a number of privileges including greens fees discounts and one large bucket of range balls daily, without charge. There currently are approximately 1,300 Players Club members at Brookside. This program has been very successful, with member dues revenue now totaling about $700,000 per year.

‣ The existing 20-tee Brookside range is significantly undersized given it serves same-day golfers on two 18-hole golf courses, as well as Players Club members. With only 20 tees at the existing Brookside driving range, the current Players Club membership is at full capacity. To expand the Players Club would require expansion of the driving range.

‣ Expanding the Brookside range from 20 tees to 60 tees on a single level with night lighting, of which 20 tees are equipped with Toptracer technology, is reasonable and appropriate. This expansion would allow Brookside to expand its Players Club to about 2,200 members, accommodate more daily fee range users, and maximize revenue from the state-of-the-art Toptracer product.

‣ The performance of Toptracer bays is directly related to the food and beverage service provided.

Those facilities offering convenient (often with customer servers) food and beverage service have performed much better than those which do not offer this support amenity. Integrating a quality food and beverage product with Toptracer creates a very appealing entertainment experience.

‣ Gross revenue projections for a redeveloped 60-tee station range, with 20 designated Toptracer tees, is projected in Exhibit 1. The projections are based on the current pricing for daily fee use of the range and Players Club member dues. It is assumed that Toptracer tees would be available to Players Club members and daily fee users for conventional practice from range opening to 3:00 p.m on weekdays.

Exhibit 1: Projected Brookside Range Stable Year Gross Revenue (constant 2022 dollars)

Exhibit 1: Projected Brookside Range Stable Year Gross Revenue (constant 2022 dollars)

Exhibit 1: Projected Brookside Range Stable Year Gross Revenue (constant 2022 dollars)

Existing Range New Range

Number of Tees

Toptracer --- 20

All Other 20 40

Total 20 60

Players Club Members 1,300 2,200

Annual Gross Revenue

Daily Fee $150,000 $200,000

Players Club 700,000 1,188,000

Toptracer --- 800,000

Total $850,000 $2,188,000

Revenue Per Tee

Toptracer --- $40,000

All Other $42,500 34,700

Average 42,500 36,500

‣ Twenty Toptracer bays at Brookside are projected to generate $800,000 annually in gross revenue, or $40,000 per tee station.

‣ While Toptracer bays at other ranges typically produce 40-50 percent more revenue per tee station than regular bays, the high utilization of the Brookside range by Players Club members results in modestly better performance for Toptracer compared with and conventional bays.

‣ Increasing the Players Club membership through expansion of the practice range potentially would also result in additional rounds of golf played on the courses.

‣ The expansion of the range, and particularly introduction of Toptracer on a portion of the range, also would result in higher food and beverages revenue. With a 60-tee range, additional food and beverage revenue of $400,000 to $600,000 per year would be expected.

Background

The Rose Bowl Operating Company (RBOC) is responsible for the operation of the Rose Bowl Stadium, Brookside Golf Course, and other selected activities on the Rose Bowl grounds. One of RBOC’s overall objectives is to enhance the economic value of this City of Pasadena asset. In this context, RBOC considers introducing new facilities and activities which would improve the overall economic return on the City’s assets.

The Brookside Golf Course currently features two 18-hole regulation length golf courses, a small non-lighted golf practice range with 20 tee stations, large clubhouse with restaurant and a number of special event rooms, a free standing 4,500 square foot golf retail center, and other support facilities.

The RBOC is considering expansion of the driving range (currently 20 tees) at Brookside by modifying the golf course to allow full redevelopment of the golf practice range. This redesign would yield 60 tee stations, all on a single southern tee line. The range would be lighted for night use, and the tee surface would be artificial turf. Introduction of Toptracer technology on 20 of the tees is under consideration.

In recent years, American Golf has established a Players Club program at Brookside. Membership in the Players Club offers a number of golfer benefits including discounted greens fees, one free large bucket of range balls daily, and other privileges. There currently are about 1,300 members, a 30 percent increase from the 2020 membership level. The current membership level is at, or perhaps exceeds, the effective capacity of the existing driving range. Membership dues are currently $45 per month.

The driving range also is available to same-day and practicing golfers who are not members of the Players Club. Current practice range pricing for non-member use at the range is as follows:

Bucket Size Price Price/ Ball

Small (35 balls) $7.00 $0.20

Medium (80 balls) 12.00 0.15

Large (110 balls) 15.00 0.13

Prices for daily fee public use of the range have not been increased since 2020.

The existing 20-tee station range generated about $820,000 in annual gross revenue in FY2021, comprised of about $165,000 per year in daily fee range use fees and $655,000 in Players Club dues revenue.

Combined range revenue was equal to $41,000 per tee station per year. The range currently operates without night lighting. Brookside’s driving range performance is extraordinary in light of the limited capacity of the range and no lighting. It should also be noted that the recent performance of the range is substantially improved from the pre-COVID-19 period, when total range revenue was approximately $600,000 in FY2019 ($30,000 per tee station per year). This improvement is due primarily to expansion of the Players Club membership, along with some increase in daily fee use.

The existing 20-tee Brookside range is significantly undersized given it serves same day golfers on two 18-hole golf courses, as well as Players Club members. This undersized range is evident by its very high utilization and management reports that range access for non-member use is substantially constrained.

Ranges at similar golf courses are substantially larger. For example, Griffith Park has 45, Arroyo Seco 28, Rancho Park 43, and Encino Balboa 40 tee stations. Each of these ranges has night lighting.

Toptracer technology allows golfers to use real time data to enhance their golf game. But more than merely serving the needs of traditional golfers trying to improve their skills, Top Tracer appeals to a much broader audience, offering a unique entertainment experience which is suited for all ages and skill levels. Toptracer driving range bays feature touch screen monitors that display the complete flight of the golf shot as well as valuable data such as ball speed, carry yardage, launch angle, and more. For an even more enhanced experience, users can download the Toptracer mobile application and get complete shot data sent directly to their cellular phone. The technology also facilitates golf “games” and competitions such as launch monitor, closest to the pin, long drive, and a points game, as well as the ability to play virtual golf on more than a dozen golf courses.

The technology, known as Protracer, was originally developed in 2006 by a Swedish company for television coverage of professional golf tournaments. In 2016, TopGolf acquired Protracer, and modified technology for its application at traditional golf driving ranges. The technology was incorporated in TopGolf facilities beginning in 2007, and is now the driving technology for the 80 TopGolf centers across the country, with many more in the advanced planning stage.

There are currently 20 driving ranges in California which offer Toptracer, and several in planning, up from only 6 at the beginning of 2020. Existing ranges in Los Angeles County include Glen Oaks Golf Center in Glendora, El Caballero Country Club in Tarzana, Griffith Park in the east San Fernando Valley and Rancho Park in West Los Angeles.

There currently are six driving ranges located within or on the periphery of the primary market area, all of them part of a golf complex featuring a golf course driving range:

Exhibit 2: Brookside Competitive Golf Practice RangesExhibit 2: Brookside Competitive Golf Practice RangesExhibit 2: Brookside Competitive Golf Practice RangesExhibit 2: Brookside Competitive Golf Practice Ranges

Range Location Driving Distance from Brookside

Number of Tees

Brookside Pasadena --- 20

Arroyo Seco South Pasadena 4 miles 28

Alhambra Alhambra 8 miles 45

Monterey Park Monterey Park 9 miles 100

Shoal Canyon Glendale 9 miles 40

Griffith Park Los Angeles 11 miles 45

DeBell Burbank 14 miles 20

Toptracer Range technology currently is offered only at Griffith Park, which converted 10 of its 40 tee stations to Toptracer use in 2021.

The primary market area for Brookside is defined as the 20-minute drive time from the Rose Bowl, assuming only moderate traffic. This area is well populated, with current population of 1.2 million, and relatively affluent with a median household income of approximately $110,000. The area is somewhat older than most other areas, with a median age of about 40. In general, these demographic characteristics are very favorable with regard to market support for a Toptracer product at Brookside.

Brookside Players Club Projections

There currently are approximately 1,300 Players Club members at Brookside. Members, with current dues of $45 per month, enjoy a number of privileges including greens fees discounts and one large bucket of range balls daily, without charge. The majority of members are attracted by the practice range privileges. With only 20 tees at the existing Brookside driving range, the current membership level is at full capacity. To expand the Players Club would require expansion of the driving range.

Based on the experience at numerous other American Golf operated golf courses offering a Players Club program, with a 60-tee single level practice range, without any Toptracer equipped tees, the membership theoretically could be increased from 1,300 members currently to about 3,300 members. The analysis assumes that the range would be lighted. At $45 per month in membership dues, this would yield annual membership dues revenue of about $1.78 million

With 20 of the 60 tees dedicated for Toptracer use, the membership could be increased from 1,300 members currently to about 2,200 members. At $45 per month in membership dues, this would yield annual membership dues revenue of about $1.2 million, a 70 percent increase in the gross revenue currently generated by Players Club members.

Players Club dues at other AGC facilities ranges from $45 to $55 per month, with a new state-of-the-art lighted range at Brookside likely supporting a pricing structure at the top of the range. Thus, there appears to be an opportunity to increase pricing for the Players Club program at Brookside.

Exhibit 3: Projected Brookside Players Club Membership and Dues Revenue

Exhibit 3: Projected Brookside Players Club Membership and Dues Revenue

Exhibit 3: Projected Brookside Players Club Membership and Dues Revenue

Exhibit 3: Projected Brookside Players Club Membership and Dues Revenue

Existing Range

New RangeNew RangeExisting Range Standard Top Tracer

Number of Tees

Top Tracer --- -- 20

All Other 20 60 40

Total 20 60 60

Players Club Members 1,300 3,300 2,200

Annual Member Dues $700,000 $1,780,000* $1,190,000*

* Based on $45 per membership dues.* Based on $45 per membership dues.* Based on $45 per membership dues.* Based on $45 per membership dues.

Selected Comparable Toptracer Experience

The experience of California golf practice ranges offering Toptracer Range technology has been analyzed and documented. This experience provides some indication of the potential for offering the Toptracer technology at Brookside.

There are twenty golf practice facilities in the State of California which presently feature Toptracer Range technology. The experience of six ranges provides an indication of the acceptance and potential of this product in the marketplace.

‣ Del Mar Golf Center, Del Mar, San Diego County, California

‣ Glen Oaks Golf & Learning Center, Glendora, Los Angeles County, California

‣ Mcinnis Park Golf Center, San Rafael, Marin County, California

‣ Dairy Creek, San Luis Obispo, San Luis Obispo County, California

‣ Twin Lakes Golf Course, Santa Barbara County, California

‣ Arrowood Country Club, San Diego County, California

A summary of the characteristics and operating performance for these six facilities is presented in Exhibit 4.

Exhibit 4: Selected Characteristics of California Toptracer FacilitiesExhibit 4: Selected Characteristics of California Toptracer FacilitiesExhibit 4: Selected Characteristics of California Toptracer FacilitiesExhibit 4: Selected Characteristics of California Toptracer Facilities

Del Mar Golf Center Glen Oaks Golf Center Mcinnis Park

Location Del Mar Glendora San Rafael

Facilities --practice range --mini-golf

--snack bar

--9-hole par-3 course --practice range

--Grill

--9-hole exec course --practice range

--mini-golf/batting cage --restaurant

Practice Range Tees (total) 70 35 52

Number of Levels one one two

Lighted Yes Yes Yes

Number of Toptracer Bays 12 29 52

Year Toptracer Introduced 2017 2018/2021 2015/2020

Proposed Additional TT Bays 0 0 0

Pricing--Regular Range Balls

Small $10.00 (45 balls) --- $6.00 (25 balls)

Medium 12.00 (75 balls) $8.00 (60 balls) 11.00 (50 balls)

Large 14.00 (105 balls) 10.00 (115 balls) 21.00 (100 balls)

Jumbo 17.00 (150 balls) --- ---

Toptracer Pricing $25/hour $5/hr non-peak; $15/hr peak

No Charge

Balls Included Yes (125 balls) No No

Annual Range Revenue

Toptracer Bays $360,000 $1,160,000 $1,400,000

All Other Tees 750,000 136,000 ---

Total $1,110,000 $1,296,000 $1,400,000

Average Annual Revenue/Tee

Toptracer Bays $30,000 $40,000 $27,000

All Other Tees 12,930 22,700 ---

Average--All Tees 15,600 37,000 27,000

Exhibit 4 (continued): Selected Characteristics of California Toptracer FacilitiesExhibit 4 (continued): Selected Characteristics of California Toptracer FacilitiesExhibit 4 (continued): Selected Characteristics of California Toptracer FacilitiesExhibit 4 (continued): Selected Characteristics of California Toptracer Facilities

Dairy Creek Twin Lakes Arrowood

Location San Luis Obispo Goleta Oceanside

Facilities --9-hole reg Course --Clubhouse

--Range

--9-hole Exec Course --Clubhouse

--Range

--18-hole SP Club --Clubhouse

-- Range

Practice Range Tees (total) 20 21 20

Number of Levels 1 1 1

Lighted yes yes yes

Number of Toptracer Bays 10 21 (mobile app only) 10

Year Toptracer Introduced 2021 2021 2021

Proposed Additional TT Bays none convert to full TT technology none

Pricing--Regular Range Balls

Small $4.00 (30 balls) $8.00 (35 balls) $7.50 (40 balls)

Medium 8.00 (65 balls) 16.00 (80 balls) 10.00 (60 balls)

Large 12.00 (100 balls) --- $14.00 (90 balls)

Jumbo --- 24.00 (145 balls) ---

Toptracer Pricing 10:00-2:00 $20/hr 2:00-5:00 $30/hr 5:00-10:00 $50/hr included Mon-Thurs, Fri-Sun before 3:00. $24.00/hr

Fri-Sun after 3:00 $36.00/hr

Balls Included yes yes yes

Annual Range Revenue

Toptracer Bays $980,000 $425,000 $225,000

All Other Tees 260,000 --- 100,000

Total $1,240,000 $425,000 $325,000

Average Annual Revenue/Tee

Toptracer Bays $98,000 $20,000 $22,500

All Other Tees 26,000 --- 10,000

Average--All Tees $62,000 $20,000 $16,250

Key findings from the survey of the existing California ranges which currently offer Toptracer technology include the following:

‣ Introduction of Toptracer at the ranges has resulted in a broadening of the market area and attraction of new, non-traditional recreational users. These users are much more entertainment oriented than the traditional golfer use of the range. The new users generally have a longer length of stay and higher food and beverage spending profile.

‣ Most ranges offering Toptracer in 2020 have converted most or all of their conventional tees to Toptracer technology over the past two years.

‣ The utilization and pricing at Toptracer facilities has increased sharply over the past two years, resulting in a substantial increase in revenue generated on Toptracer equipped tees. These increases are attributable to both the beneficial impact of COVID-19 on golf participation and the appeal of the Toptracer product.

‣ Utilization of Toptracer bays is highest on evenings during weekdays, and all day on weekends. Thus, the Toptracer bays are often used by practicing golfers during the non-peak periods and Toptracer users during peak periods.

‣ At many facilities, the Toptracer bays typically are designed to accommodate up to four users, but the average number of users per bay is about 1.5 persons.

‣ The performance of Toptracer bays is closely linked to the food and beverage service provided. Those facilities offering convenient (often with customer servers) food and beverage service have performed much better than those which do not offer this support amenity. Integrating a quality food and beverage product with Toptracer creates a very appealing entertainment experience.

‣ Pricing for Toptracer bays at the ranges surveyed varies considerable. Some ranges charge on an hourly basis, including the range balls. These prices generally are in the range of $25 per hour at non-peak periods and $35 per hour at peak times. Others charge $10-$15 per hour, plus the cost of range balls.

‣ Some Toptracer facilities employ a differentiated pricing structure based on time of day and day of the week. For example, discounted prices may be charged at all times on Monday through Thursday, and on Friday before 3:00 p.m. Premium prices are charged on Friday evenings and all day Saturday and Sunday.

‣ The estimated Toptracer revenue volume for the ranges surveyed is shown in Exhibit 5 below:

Exhibit 5: Performance at California Toptracer RangesExhibit 5: Performance at California Toptracer RangesExhibit 5: Performance at California Toptracer RangesExhibit 5: Performance at California Toptracer RangesExhibit 5: Performance at California Toptracer RangesExhibit 5: Performance at California Toptracer RangesExhibit 5: Performance at California Toptracer Ranges

Range City County Primary

Market Area Population*

Toptracer Tees

Toptracer Revenue

Revenue/ Tee/Year

Brookside Golf Course Pasadena Los Angeles 1,582,460 --- --- ---

Del Mar Golf Center Del Mar San Diego 888,740 12 $360,000 $30,000

Glen Oaks Golf Center Glendora Los Angeles 1,650,900 29 1,160,000 40,000

Mcinnis Park Golf Center San Leandro Marin 186,130 52 1,400,000 27,000

Dairy Creek Golf Course San Luis Ob San Luis Ob 290,000 10 980,000 98,000

Twin Lakes Golf Course Goleta Santa Barb 425,000 21 425,000 20,000

Arrowood Golf Club Oceanside San Diego 330,000 10 225,000 22,500

* Defined as area within 20-minute drive time (minimal traffic congestion.* Defined as area within 20-minute drive time (minimal traffic congestion.* Defined as area within 20-minute drive time (minimal traffic congestion.* Defined as area within 20-minute drive time (minimal traffic congestion.* Defined as area within 20-minute drive time (minimal traffic congestion.* Defined as area within 20-minute drive time (minimal traffic congestion.* Defined as area within 20-minute drive time (minimal traffic congestion.

‣ Toptracer equipped tee stations at the ranges surveyed, on a per tee basis, generate substantially higher revenues than standard bays. The distribution of revenue at Toptracer ranges surveyed is shown in Exhibit 6.

Exhibit 6: Distribution of Revenue at California Toptracer RangesExhibit 6: Distribution of Revenue at California Toptracer RangesExhibit 6: Distribution of Revenue at California Toptracer RangesExhibit 6: Distribution of Revenue at California Toptracer RangesExhibit 6: Distribution of Revenue at California Toptracer RangesExhibit 6: Distribution of Revenue at California Toptracer RangesExhibit 6: Distribution of Revenue at California Toptracer Ranges

Del Mar Golf Center

Glen Oaks Golf Center

Mcinnis Park

Dairy Creek

Twin Lakes Arrowood

Tee Stations

Toptracer 12 29 52 10 21 10

Other 58 6 --- 10 --- 10

Total 70 35 52 20 21 20

Annual Revenue

Toptracer $360,000 $1,160,000 $1,400,000 $980,000 $425,000 $225,000

Other 750,000 136,000 --- 260,000 --- 100,000

Total $1,110,000 $1,296,000 $1,400,000 $1,240,000 $425,000 $325,000

Revenue/Tee

Toptracer $30,000 $40,000 $27,000 $98,000 $20,000 $22,500

Other 12,930 22,700 --- 26,000 --- 10,000

Total 15,900 37,000 27,000 62,000 20,000 16,250

Brookside Toptracer Performance

Expansion of the range at Brookside will allow some additional use by same-day golfers and significant expansion of Players Club members (membership dues), as well as promote much broader range use by non-member practice golfers/Toptracer patrons. The expanded Players Club membership also would be expected to increase golf play on the two courses.

The concept of adding Toptracer Range technology at Brookside has a number of distinct advantages:

- Equipping driving range bays with Toptracer technology will both expand the market area and, more importantly, broaden the appeal of the range to a new, more diversified user. Managers at existing facilities offering Toptracer uniformly noted that the technology has attracted a different user than the traditional golfer.

- Toptracer users tend to stay longer at the facility, and spend much more on food and beverage.

As well, Toptracer substantially enhances golf instruction activity.

- Other than the lease costs for the technology and initial infrastructure improvements required for Toptracer, there is nominal incremental operating/maintenance expense related to the Toptracer equipped bays.

- In most, if not all cases, Toptracer has proven to be cost effective and produce high yields on the marginal investment in this technology.

The impact of incorporating Toptracer Range technology at Brookside can be estimated based, in large part, on the experience of other ranges which currently have this feature. Still, there are many major factors which need to be considered in determining potential revenue enhancement stemming from including Toptracer at Brookside:

‣ Presently, the Brookside range operates at an extremely high utilization rate, and the absence of sufficient capacity at most times of the day discourages use of the facility by non-members, particularly those golfers who are interested in practice only.

‣ The Players Club membership level is directly related to the capacity of the facility driving range.

‣ Introduction of Toptracer technology will mostly attract a new market segment--primarily non-golfers.

‣ It is assumed that night lighting will be added to the Brookside range. Without such lighting, the overall performance of the range would be constrained, and a Toptracer product would not be viable.

‣ The Brookside primary market area (20-minute drive time) is very strong, with 1.2 million population and substantially higher than average household income levels.

‣ A successful Toptracer product at Brookside is dependent on creating an appealing recreational experience which typically involves integration of food and beverage service with the Toptracer product. This would likely require food and beverage servers during late afternoon and evening hours.

‣ Introduction of Toptracer technology at competitive ranges potentially would impact revenue at Brookside, although the impact would likely be relatively small. Adding Toptracer on a portion of Arroyo Seco’s 28-tee driving range could occur in the mid-term, but again the impact on Brookside’s potential would be relatively modest.

The impact of 20 Toptracer bays at Brookside relative to a redeveloped 60-tee station range is projected in Exhibit 7. The projections are based on the current pricing for daily fee use of the range and Players Club member dues. Also, the alternative with Toptracer tees assumes that the 20 Toptracer tees would be available for conventional practice on a space available basis from range opening to 3:00 p.m.

Exhibit 7: Projected Brookside Range Stable Year Gross RevenueExhibit 7: Projected Brookside Range Stable Year Gross RevenueExhibit 7: Projected Brookside Range Stable Year Gross RevenueExhibit 7: Projected Brookside Range Stable Year Gross Revenue

Existing Range

New RangeNew RangeExisting Range Standard Toptracer

Number of Tees

Toptracer --- -- 20

All Other 20 60 40

Total 20 60 60

Players Club Members 1,300 3,000 2,200

Annual Gross Revenue

Daily Fee $150,000 $250,000 $200,000

Players Club 700,000 1,620,000 1,188,000

Toptracer --- --- 800,000

Total $850,000 $1,870,000 $2,188,000

Revenue Per Tee

Toptracer --- --- $40,000

All Other $42,500 $31,150 34,700

Average 42,500 31,150 36,500

The following observations are offered:

‣ Twenty Toptracer bays at Brookside are projected to generate $800,000 annually in gross revenue, or $40,000 per tee station.

‣ While Toptracer bays at other ranges typically produce 40-50 percent more revenue per tee station than regular bays, the high utilization of the Brookside range by Players Club members results in modestly better performance for Toptracer compared with and conventional bays.

‣ Most of the Toptracer bay revenue is incremental to traditional golfer generated revenue. As such, converting standard bays to Toptracer technology limits capacity and displaces traditional golfer range revenue generation to some degree. Thus, the overall impact of Toptracer performance is slightly dampened.

‣ A 60-tee station range at Brookside allows the Players Club membership to be substantially increased and Toptracer to be added. Introduction of 20 Toptracer bays generates about $320,000 in net incremental annual gross revenue compared to a 60-tee range with all conventional driving range tees.

‣ Increasing the Players Club membership through expansion of the practice range potentially would also result in additional rounds of golf played on the courses, albeit at a slight greens fees discount.

‣ The expansion of the range, and particularly introduction of Toptracer on a portion of the range, also would result in higher utilization of the clubhouse and purchase of more food and beverages items.

With a 60 tee range, additional food and beverage revenue of $400,000 to $600,000 per year would be expected.