The old line that pitching wins pennants is true for more than baseball. It used to work exquisitely well for The Cliffs Communities when it aggressively promoted its lush roster of amenities, but these days Cliffs’ Founder Jim Anthony is serving as its frontline pitchman with lots of defense but little offense behind him.

        Back in the good old days of selling $1 million properties

Jim Anthony is now shouldering much of The Cliffs' promotional duties himself.  Bad move.

and $150,000 golf memberships, the Cliffs marketing machine spent $14 million dollars annually on slick brochures and print ads, parties for potential buyers and elaborate booths at trade shows.  A team of professional pitchmen and agencies took care of the message delivery, and only on rare occasions did the machine trot out The Cliffs owner and developer; those few interviews seemed tightly scripted, and Anthony typically remained on-message.

        But the Cliffs marketing budget has been cut significantly from those lofty days, and Anthony himself is shouldering much of the communication load.  Bad move.  A few of the developer’s recent interviews demonstrate he could use a lot more training and scripting.  He has been inconsistent in his messaging, telling a local newspaper in February that construction would restart in April on the Tiger Woods golf course at The Cliffs at High Carolina, and then giving a TV interview (aired yesterday in the Asheville, NC, market) in which he admits construction is still on hold and utterly reliant on property sales, of which there have been virtually none recently.

        It is clear in the TV interview that Anthony was not properly prepared to handle even the most mildly negative questions.  Example:

 

Reporter:  “So you’re just as frustrated as anyone [about the lack of progress at High Carolina]?"

Anthony response:  [after some hesitation] “…frustration is probably as good a word as any.”

Better response (of many possible):  “Not frustrated, optimistic.  The economy is improving, more people are looking at properties in The Cliffs, the golf course will be great, and our owners have voted for our amenities plan with their financial support.  I’m optimistic, not frustrated.”

 

        Nothing in the suggested response is untrue; our sources tell us more people are looking at The Cliffs Communities, if not at High Carolina.  Honesty does not mean having to say you're sorry (or acting that way).  Anthony is an honest, genuinely nice guy, according to Cliffs residents we know.  But as baseball’s Leo Durocher once said, and we soften his words here so as not to seem unkind, “Nice guys do not finish first.”  The Cliffs developer needs to start aiming his pitches high and tight.

        Judge for yourself and watch the TV interview by clicking here.  It also offers a good view of the sweeping fairway of one of the Tiger Woods designed holes.

Enough already.  Golf is not dead, nor is it suffering from some long slog down the drain because (allegedly) our social network addicted children aren’t interested in the game; the gainfully employed have suddenly decided they can’t afford five hours of relaxation on the course; and Tiger Woods is not playing to his former level.  According to a National Golf Foundation study, the reason interest in golf is waning is the reason why all other forms of recreation that cost money are suffering –- it’s the recession and the related issues of job insecurity and personal expense cutting.

        The number of golfers fell a modest 3.6% in 2010, from 27.1 million

Golf isn't suffering so much because of inherent issues; it is suffering because of the recession.  This too shall pass...eventually.

in 2009 to 26.1 million last year.  The NGF defines a golfer as a person older than six who plays at least one round in a given year.  The numbers of golfers who play an average of eight rounds or more a year also fell 3.6% in 2010, to 14.8 million.  Although the sport lost an estimated 4.6 million golfers last year, it also gained 3.6 million.  The number of lost golfers declined significantly, according to the NGF report.

        With golf retail sales up in the first quarter of the year as well as an up-tick in “golf consumer confidence,” according to the NGF, and with a bit of clear-cutting reducing the over-supply of courses, only the strong golf clubs will survive -– as will the game.

Dog Eat Dog?  Dominion Club owner and members head to mediation sessions

        A bankruptcy judge in Richmond, VA, has ordered that the owner and members of the local Dominion Club settle their differences at formal mediation.  In one corner is the golf club owner, local developer HHHunt, which claims it cannot make good on its promise to repay members’ deposits…but which wants to continue to run the club after its Chapter 11 bankruptcy claim is settled.  In the other corner are the members of the golf club who are owed the deposits and, with some apparent justification, have lost faith in the developer’s ability to manage the club.

        At issue is the $1.6 million Hunt owes 100 club members, and another $10 million the developer will owe other members in the coming months and years.  It is hard to fathom a middle-ground solution to the dispute, as long as Hunt wants to have its cake -– wipe away the deposit promissory -– and consume it as well -– continue to own and manage the golf club.

        A mediator does not have a dog in a fight like this, but the one who has been assigned to this case has some experience related to dog-fighting, albeit indirectly.  Frank Santoro presided as the federal judge at Michael Vick’s bankruptcy proceedings in the wake of Vick’s felony conviction related to dog fighting at his Virginia home.  We will stay tuned to see if the fur flies at mediation.