The Links Trust: A Money-Making Machine

The St Andrews Links Trust, a registered charity established by an Act of Parliament in 1974, is tasked with the management and maintenance of the historic Links at St Andrews, but that doesn't stop them from being an extremely profitable business.

In today's post, I want to do a very brief summary/analysis of the report and let you know how I feel about a charity being so lucrative. 

General performance

As you can imagine after that introduction, the Links Trust has had a great year from most angles. From hosting the Walker Cup to saving the course in time for the last day of the Alfred Dunhill, I have to congratulate all the frontline links workers and management for this year's work.

Show me the money

When it comes to the finances, the 2023 annual report reveals that the Trust experienced a remarkable financial year, despite facing the wettest conditions in its history. Some of the highlights from the report include:

• Golf Income Growth: Golf income grew by 35% to an impressive £24.4 million. This surge was driven by a record-breaking number of visitors as well as a record price increase in green fees.

• Total Net Income: The Trust's total net income reached £11.5 million, significantly bolstering its financial standing. This was achieved thanks to all of the services/ products they offer apart from golf, which totaled over £18 million.

• Investments: Despite these earnings, the Trust maintained a robust reinvestment strategy, spending £5.1 million on course maintenance and over £3.5 million on acquiring very much-needed land for sustainability efforts​

• Biggest costs: The Links's biggest costs were shown to be the well-deserved (at least for most) paychecks that enable us to enjoy such a high-quality experience. These amounted to £14.62 Million and were part of the total £29.72 million of operating expenses.

Biggest threats for the links:

• Travel constraints: As the Covid-19 pandemic showed us, the Links Trust, and the town of St Andrews is highly dependent on visitors. If any Geopolitical conflicts/ Pandemics affect world travel we could see a steep decrease in the link's financial performance.

• Adverse climate conditions: Call it climate change, global warming, or the earth’s cycle, it is clear that the Links have been severely affected by weather. A really hot summer followed by some of the heaviest rains has left a mark on all the 7 courses our town has. From storm Bavette bringing seaweed onto the fairways, to hell’s bunker being underwater for a month we have realised the links could be taken away from us at any point.

Charitable Status and Profitability

While the St Andrews Links Trust operates as a charity, its financial management and profitability raise questions about the balance between its charitable mission and commercial success. However, this profitability also highlights a potential disparity. The significant income generated, primarily from high green fees and luxury experiences, contrasts with the charitable image of the organization. 

While it might sometimes seem like the Links Trust forgets they are at the service of the people of St Andrews, I truly think most decisions made have had a positive impact on the Locals.  

We are used to thinking of charities as entities dependent on donations to create change but that’s not what they should be. We should embrace self-sustainable charities, they’re the ones that will always be able to create long-lasting impact. 

Conclusion

The St Andrews Links Trust exemplifies how a charitable organization can operate with remarkable financial awareness. Its diverse revenue streams, strategic investments, and robust financial performance make it a money-making machine, ensuring the continued legacy of the historic Links. 

As a yearly ticket holder contributing £360, I often find myself complaining about the price increase, but I am aware of how little we pay for how much we get. (Please don't raise the even more).

I hope you liked this new type of blog,

Best,

Fer.