GOLF IN MADRID GOLF FEDERATION MARCH 2016 CONTENTS

GOLF IN MADRID GOLF FEDERATION MARCH 2016

CONTENTS § INTRODUCTION – AIM & OBJECTIVES – METHODOLOGY – SUMMARY & RECOMMENDATIONS § CURRENT SITUATION – OVERVIEW OF GOLF VENUES – VENUE DISTRIBUTION – VENUE CAPACITY § THE VIEW FROM GOLF VENUES – CURRENT SITUATION – STRATEGY AND MARKETING – GOING FORWARD © SPORTS MARKETING SURVEYS INC. 2 § THE VIEW FROM CURRENT GOLFERS – PROFILE & PLAY HABITS – CHANGING GOLF HABITS – GOING FORWARD – GOLF GROWTH INITIATIVES § THE VIEW FROM LAPSED GOLFERS – PROFILE & ACTIVITIES – REASONS FOR LEAVING GOLF – GOLF PLAY IN THE FUTURE – GOLF GROWTH INITIATIVES § THE VIEW FROM POTENTIAL GOLFERS – PROFILE & ACTIVITIES – IMPORTANCE OF SPORT – GOLF PLAY IN THE FUTURE – GOLF GROWTH INITIATIVES October 20, 2021

THE AIM OF THE RESEARCH IS TO PROVIDE A COMPREHENSIVE EVALUATION OF GOLF IN MADRID FROM CURREN T GOLFERS FROM GOLF VENUES FROM POTENTIAL GOLFERS © SPORTS MARKETING SURVEYS INC. FROM LAPSED GOLFERS 3 October 20, 2021

KEY RESEARCH OBJECTIVES Understand the current situation of golf in Madrid through the eyes of the golf venues themselves Assess the golfer experience in Madrid to understand how often people play, their membership profile, how their golfing habits have changed and what could be done to encourage greater engagement in golf Evaluate the situation amongst lapsed golfers and potential golfers – why do these people not take part in golf and what can be done to encourage them to engage with the sport © SPORTS MARKETING SURVEYS INC. 4 October 20, 2021

METHODOLOGY Data to inform this report was gathered from four separate elements of fieldwork § An online survey distributed by the Madrid Golf Federation to their database – To reach current golfers and lapsed golfers § § § A series of in-depth telephone interviews carried out with golf venue operators in the Madrid area A set of face-to-face interviews carried out with visitors to four Decathlon stores and one Go. Fit gym in the Madrid area – To reach people who are open to sports activity but do not currently play golf 2016 completed interviews from the MGF database In-depth interviews covering venues in the Madrid area 26 golf 256 face-to-face interviews with potential golfers 15 responses to the venue benchmarking survey An online benchmarking survey to understand the specifics of golf venues in the Madrid area and the extent to which they believe their venue is operating at capacity © SPORTS MARKETING SURVEYS INC. 5 October 20, 2021

GOLF IN MADRID Golf exists in two extremes in Madrid… § The first extreme is the group of current golfers – golf is well integrated into their lives, they are used to paying money in order to take part in the sport they love and they see many benefits in taking part – This group is likely to carry on playing golf and is generally happy with the opportunities available to them in Madrid § § At the other end of the scale, new people are not engaging with golf This is a threat to the next generation of players as people will not come through to fill the golf courses in future – At the moment this scenario is only felt by some clubs, which are experiencing a low capacity, but in future this problem may be more widespread © SPORTS MARKETING SURVEYS INC. 6 § § § The non-golfer group prefers to take part in sports that require less organisation and can be done individually without a partner or a set booking time at a venue – Going to the gym and running in particular are popular - these sports are also believed to fit in well with busy lives and family and work commitments This pattern, partnered with the belief that golf is boring, for old people, not energetic or just not something that exists within an individuals’ sphere of relevance means there is a threat to the development of golf in the future While experience at the top end of the scale amongst current golfers proves positive, there must be action at the other end of the scale to ensure the future of golf in Madrid – It is important to cast the net wide and appeal to the elements of sport that people find important, and apply this reasoning to golf October 20, 2021

MADRID’S GOLF TRAP For those who may be willing to try golf, a series of challenges around actually taking part in the sport – understanding how and when to play and justifying trying y o pla t e r e something new, may mean that new potential golfers give up y d wh difficult n a d before they have even managed to reach the golf course n how e an o m i t n o – i rmat to play nt o f n i e w Easy s on ho equipm s Positive experience ption l to hire r’s term O a I’ll try it! i e t y n and good quality Pote n the pla o venues – setting the Golf scene for the golfer I don’t Slow Expensive to develop like golf ? Lack o Gam f informa e t Perc feels co ion mplic eptio n a be ‘a ll or n that golf ted Time has t o o and thing’ mon ey fe els li ke a sac Boring rifice © SPORTS MARKETING SURVEYS INC. 7 Plenty of other sports to try instead – why bother with golf? October 20, 2021

WHAT SHOULD THE MGF DO? § § § To cast the net as wide as possible, a marketing campaign should be launched which has the widest possible reach – through multi-media channels including television, radio, and through flyers handed to people or mailed out Focusing on the idea of “Give golf a chance” the campaign will help to remind people about golf and then offer them an opportunity to take part Other popular sports activities such as running and going to the gym are easy for people to § do – golf will require them to think outside of their usual frame of reference and understand something which may well have negative connotations in their eyes – So the first challenge is getting them just to consider golf as an option § It is then very important to make it easy for them to find out more about the sport and what it offers – information should be given to them on how, where and when – and all made as simple and clear as possible © SPORTS MARKETING SURVEYS INC. 8 It is easy for non-golfers to find reasons not to take part – they may think of golf as a confusing sport or something that requires an initial investment in expensive equipment, so any kind of campaign should address their concerns – Including use of equipment in the offer would also increase its appeal – Encouraging people to come with a friend or explaining that other partners will be available would also be helpful Once people understand that they can go along to a golf venue and give it a try – with no assumption of previous knowledge – a natural interest in sporting activity will mean their curiosity is sparked and take-up of this element should be productive Once non-golfers have been to a golf venue and seen for themselves what the sport is all about, it is then a smaller step for them to integrate golf into their everyday lives October 20, 2021

“GIVE GOLF A CHANCE” § § The best way for the MGF to enable this process to start, is by tailoring a marketing campaign to suit the needs of the non-golfer group Non-golfers and lapsed golfers alike believed that ‘inexpensive have a go golf days’ would be an effective way to grow the game in Madrid. – However many said that nothing would persuade them to personally consider golf The campaign should be tailored both to address commonly held misconceptions of the sport and to offer people a way of exploring the option to take part A “give golf a chance” campaign, which also proposes an appealing offer to those who are involved in other sports is the best way to address this © SPORTS MARKETING SURVEYS INC. 9 § § “Give golf a chance” would integrate specific offers such as “try golf for € 15” or “bring a friend for free” which should be easily understood by those unfamiliar with golf should appeal to many non-golfers, but many will also be put off by a lack of equipment – Again, including equipment rental in taster sessions would make it clear that individuals have very little to lose by trying the sport In terms of imagery, it is important to link the campaign to people’s current lives and behaviour For example, showing a young man waiting to use a particular fitness machine at a sweaty gym, then a young woman running on the side of a busy and noisy road, followed by imagery of them together, wearing normal clothes on a sunny and attractive golf course will link golf to people’s normal sporting activities but will also show the benefits that they would get over and above their normal exercise choices October 20, 2021

WHERE WOULD IT HAPPEN AND HOW? § Many golf club members did not want to see ‘have a go golf days’ taking part at their club, and many golf clubs do not experience any problems with declining membership, being under capacity or replacing members when they leave – For these clubs there is little benefit in implementing such a scheme and indeed newcomers to the game may find this kind of environment off-putting and too far removed from their everyday lives § The MGF should give the option to all 33 venues in the Madrid area to take part in the new “Give golf a chance” initiative – For struggling venues this will be a great opportunity to build visitor levels and raise the profile of their venue © SPORTS MARKETING SURVEYS INC. 10 § Facebook is by far the social media portal of choice for non-golfers and lapsed golfers, so as part of the advertising around “Give golf a chance” people would be directed to a dedicated Facebook page which showed a list of participating clubs and gave all the relevant information – They would also be able to ask questions and get feedback from others who were starting on their golf journey – This would also enable simple directions and details of the nearest offering “Give golf a chance” October 20, 2021

THEN WHAT? § § § For those who do choose to give golf a chance, a strategy then needs to be put in place for them to continue with the sport Carrying on the potential for club rental would be ideal, or some kind of hirepurchase scheme for golf equipment so that people could continue to develop their interest in golf without having to commit financially until they were ready or able Continued use of the Facebook page would allow people to talk about their new golf experience and would also provide a way for participants to feed back to the MGF, who in turn could make adjustments to the scheme – For example if demand was higher in the evening, a package could be offered including golf and dinner © SPORTS MARKETING SURVEYS INC. 11 § The Facebook page would also serve as a forum where the MGF could test new ideas and even test concepts for new venues to be developed in Madrid § It is important not to assume that if nongolfers try golf a few times and like it, that they will automatically develop into traditional golf club members – Many of the negative perceptions around golf may well be linked to ideas of a traditional golf club and its members § Instead flexible options must continue to be offered to new golfers, so they can keep playing golf on their own terms and within their own time and budgetary constraints October 20, 2021

CURRENT SITUATION

CURRENT SITUATION | Overview of golf facilities § § 13 Public clubs Private clubs § 13 § 3 © SPORTS MARKETING SURVEYS INC. Clubs without course 13 There are 33 golf venues in the local area of Madrid, 29 of which fall within the Community of Madrid itself These 29 golf venues are home to 63, 650 golfer registrations Data from the MGF shows that levels of lapsed membership are lower in 2014 than 2013, suggesting a strengthening in the membership base in Madrid overall The majority of golf facilities are situated in a band across the central area of the community, slightly north of the city – Access to the majority of facilities may be difficult for those living in the south and particularly the south-eastern areas of the community October 20, 2021

CURRENT SITUATION | Distribution of golf venues Click on the map for a larger version… A concentration of golf facilities in the northern area of the Community of Madrid may case difficulties for those living in the south-east, with drive times in excess of an hour through the city centre © SPORTS MARKETING SURVEYS INC. 14 October 20, 2021

CURRENT SITUATION | Capacity of golf venues Click on the map for a larger version… © SPORTS MARKETING SURVEYS INC. Golf facilities on the periphery were more likely to be operating at a higher capacity – possibly due to ease of access for those living in more northerly areas of the Community 15 October 20, 2021

THE VIEW FROM GOLF VENUES

ABOUT THIS ELEMENT | Golf venues TARGET GROUP – VENUE OPERATORS § The target group for this element of the research was the people who run Madrid’s golf venues § In depth telephone interviews were carried out with these individuals, covering 26 clubs in Madrid. § Over 18 hours of conversation with the venue operators was carried out in total § KEY TOPICS COVERED § Background information on the structure of the club and its offering § Opinions of the current situation of golf in Madrid § Observed trends in golf participation and use of the venue § Feelings on how golf can be grown in Madrid and what the Madrid Golf Federation can do to aid growth A separate report covers the findings from this group in more detail © SPORTS MARKETING SURVEYS INC. 17 October 20, 2021

GOLF VENUES | Background and Current Situation PROFILES There are various socio-demographic and socioeconomic profiles of members and players These varied on the location of the club and time of the week, with key groups identified as: § Players with more spare time- These were golfers who played during the week, they are generally retired men with time to play § Family sport practice- Weekend players, with clubs seeing a rejuvenation of young fathers playing the game § They see opportunity to practice sports as a family © SPORTS MARKETING SURVEYS INC. 18 MOTIVATIONS There are different motivations to join the different types of club § Private clubs – Exclusivity provides members with an elitist identity. This drives a protectionist attitude, which leads to respect and care for facilities § Subscriber clubs with playing rights – To play golf in its own right. They are less driven by status and social image § Subscriber Clubs – The practice of sports and golf. Social elitism is ruled out § Clubs without course – Golf with friends and belonging to a community, this gives a family mentality October 20, 2021

GOLF VENUES | Background and Current Situation ASPIRATIONS § Golfers very much join for the intended purpose of the club: – Private- Members want to voice their opinion, respected and valued as shareholders – Subscriber clubs with playing rights. Share golf moments with friends and family – Subscriber clubs- Practice with flexibility of not paying when unable to play – Clubs without course- Play courses with freedom and without commitments TRENDS IN GOLF MADRID § No substantial differences between the different types of golf club, however there are differences seen in the interests of the player profiles. These depend on a number of key factors: © SPORTS MARKETING SURVEYS INC. 19 – Life stage- Time plays a significant role in golf potential, and with retirees having the most free time compared to other groups, they play most frequently – Economic factors- Economic crisis has led to cancellations in memberships. There has been an upturn but numbers are still down – Imagery- Actions put in place to democratize golf, however still seen as elitist and for the rich § Retirees, men with young families, mothers of young families and children of young families are the core groups for golf venues in Madrid – Making familial connections and encouragement of the game important for increased participation and membership – Encourages continuity if one family member plays October 20, 2021

GOLF VENUES | Strategy and Marketing At club level, venue operators identified two There are two main viewpoints of the current main strategies to deter this decline: situation 1. There are not enough golf players, “People are 1. The first referred to the economic scales households use to adjust their budget not playing golf; it is a problem and a threat for golf” – In this sense, commercial courses represent a cheaper option for – The result of the economic crisis mixed members who want to play golf with no with the specifics of golf a problem contracts binding them to a fixed – Golf is also no longer used as a business membership tool – They would also provide members and – Lack of time again also cited as a problem families the option to practice other – Golf is not a priority amongst most groups sports in the club facilities, which makes the membership worth paying 2. There are players but available offers do not for cater to their needs – Children would also receive training – With lingering issues like lack of time and which may drive other members of the economic crisis, clubs are not meeting family to participate these requirements 2. Promoting social values at the golf club – There a lot of golfers but many are – Clubs would promote the benefits of unable to play with the current structure going out on the course with other for access, financial commitment or members who they may not know requirement on play frequency to – With a common interest, this may help generate value for money to build better connections. October at the © SPORTS MARKETING SURVEYS 20 20, club 2021 INC.

GOLF VENUES | Strategy and Marketing Venue operators also identified four areas around which strategy could be developed to counteract barriers to golf participation: 1. It is time consuming- consider shorter courses of 6 or 9 holes to make it a 2 hour not 5 hour sport 2. It is expensive- Promote equipment rental for beginners (similar to skiing) 3. It is elitist- Work on the human dimension of sport, use referencing figures to eliminate the stigma created over the years 4. It is challenging- Change the rules to make it a fun sport WHAT CAN MADRID GOLF FEDERATION DO FOR CLUBS? § Achieve the highest satisfaction levels among members – There is a feeling of distance between federation members and the federation itself © SPORTS MARKETING SURVEYS INC. 21 § § Continue promoting the already successful Golf in Schools initiatives Continue developing junior tournaments programmes Help clubs with negotiations of the price of water, VAT and property taxes – Also helping clubs to exert pressure on the government or the community of Madrid to negotiate prices, which is currently the highest cost to clubs in the area Support clubs in promotion and marketing – Share ideas to increase the level of interest in golf – Provision of more materials to assist clubs in attracting new players – Provide advice on how best to market a particular venue October 20, 2021

GOLF VENUES | Strategy and Marketing WHAT CAN MADRID GOLF FEDERATION DO FOR GOLF? 1. Alter negative perceptions of golf – Challenge the myth linked to golf fostering the image of an accessible, sustainable, eco-friendly sport 2. Raise the profile of golf – Promote and encourage the practice of golf as a popular sport through TV, media, reference figures etc. – Promote the idea that golf is for people of all ages and a sport that can be shared with the entire family © SPORTS MARKETING SURVEYS INC. 22 – Promote golf tourism in the city. Implement similar initiatives used in other communities – Research potential players rather than focusing on the number of memberships – Business campaigns to promote golf as having social benefits – Invest in training geared to golf pros and staff who work on golf courses October 20, 2021

GOLF VENUES | Going forward Golf is facing a number of issues that make it difficult to thrive within today’s society. Lack of time is a standout problem as playing 5 hours or longer can make it difficult for many groups to get out on the course § Young active players and children do not fit with the traditional offer of clubs, so offering shorter formats would help make golf a 2 hour experience The economic crisis has also been a problem. Families reviewing expenses are being forced to cancel memberships § Many of these families (particularly women) don’t play golf § To counter this, it is advisable to promote the use of other facilities available to appeal to spouses/children to foster the idea of a family club © SPORTS MARKETING SURVEYS INC. 23 The strategies that focus on cross-generational products that promote the game from grandparents to children stand out § Other options mentioned are the education of young players. Not only does this have long term benefits, but also encourages other family members to join in It is also important to demystify golf as a sport. § Golf’s image needs to better reflect reality § It needs to be seen as sustainable, ecofriendly, popular, cross-generational and affordable to counteract the image of an expensive and elitist sport. § The main suggestion here is to better incorporate features in the media and communication in the world of golf October 20, 2021

THE VIEW FROM CURRENT GOLFERS

ABOUT THIS ELEMENT | Current golfers TARGET GROUP – CURRENT GOLFERS § The target group for this element of the research was people who currently take part in golf, agreeing that “I am a golfer and I have played golf in the last 12 months” § This group was reached through an online survey, which was distributed by the Madrid Golf Federation to its database § Routing within the survey meant that the golfer group only saw questions that were relevant to them § In total, the survey to Madrid Golf Federation’s database yielded 2016 Madrid residents – Of these, 1866 were current golfers § Fieldwork for this element ran from the 7 th December 2015 to the 10 th January 2016 © SPORTS MARKETING SURVEYS INC. 25 KEY TOPICS COVERED § Background information on golf habits and behaviour § The amount of golf play in relation to 2014 and predictions for 2016 § Reasons for playing golf § Perceptions of Madrid as a city for golf § Ideas for boosting the popularity of golf in Madrid amongst people who are already involved § Resonance of particular initiatives for implementation at respondents’ own golf clubs October 20, 2021

CURRENT GOLFERS | Group profile 28% There was a fairly even split between club members and nomadic golfers – 43% have never been a club member, while a further 9% have let their club membership lapse 27% 20% 16% 43% 6% 2% 34% 16 -24 25 -34 35 -44 45 -54 The current golfer group is mostly male, and in their forties or fifties 55 -64 Female 22% 9% 9% 6% I am a I used to be I am a I have never member of a golf club member of been a golf one golf more than member but a country or country club one golf am not club which club anymore offers golf member Male 78% © SPORTS MARKETING SURVEYS INC. 65+ 26 October 20, 2021

CURRENT GOLFERS | Play habits I don’t have. Scratch to 5 a handicap 4% 5% Play frequency - April to December Play frequency - From December to March Daily 2% 1% Several times a week 35% 23% 24 and above 49% 18 to 23 18% 13% 15% Twice a month Less often 12 to 17 14% 37% Once a week Once a month Even in the off-season, golfers in Madrid are dedicated – with the majority playing once a week or more 6 to 11 9% More than 10 years ago 36% 9% 10% 5 -10 years ago 29% 7% 2 -5 years ago 24% 13% © SPORTS MARKETING SURVEYS INC. The majority of golfers are well-established in the sport – 65% have been playing for more than 5 years 1 -2 years ago 8% Less than 1 year ago 3% 27 October 20, 2021

© SPORTS MARKETING SURVEYS INC. 28 Skiing/winter sports Walking (recreational) Golf club member Cooking for pleasure Taking exercise/ keeping fit Female Playing sport other than golf 43% 41% 40% 39% 44% 36% 43% 37% 33% 51% 37% 24% 21% 34% 23% 21% 29% 21% 25% 23% 22% 27% 24% 21% 20% Male Watching sport on TV 64% 53% 49% 50% 47% 62% 49% 53% 44% 41% 56% 43% 43% 38% 61% 46% 41% 47% Golfers overall Reading Dining out Cinema Travel 51% 47% CURRENT GOLFERS | Other activities – Top 10 Non-member Golfers are an active group, taking part in a lot of other activities in addition to golf October 20, 2021

CURRENT GOLFERS | Social media use Use any social media. . . Golfers overall 51% 49% 54% 81% 80% 93% Google+ 33% 32% 33% 84% 76% 81% 87% Social media usage was high across the board, with Facebook and Google+ the two most popular portals 78% 81% 29 Non-member Facebook 48% 49% 47% 84% © SPORTS MARKETING SURVEYS INC. Golf club member 29% 28% 30% Linked. In Twitter 14% 12% Instagram 15% October 20, 2021

5% 1% 7% 2% The opportunity to play in attractive surroundings The challenge the game offers The ability to reduce stress and help me relax 38% © SPORTS MARKETING SURVEYS INC. 41% 36% 24% 13% 3% 30 7% 9% 6% 43% 44% 23% 20% 24% The opportunity to socialise with (potential) business associates 39% 24% The opportunity to attend social events organised by and at the golf club 29% 23% The opportunities formal competition 37% 54% The opportunity to socialise with friends 38% 57% The opportunities for informal competition (with friends etc. ) 55% 46% The opportunity to play at different courses 6% 1% 11% 4% The exercise/physical benefits CURRENT GOLFERS | Reasons for playing golf 4% 13% Don't know 25% Quite important 36% 31% 20% 36% Very important Not very important Not at all important 54% The exercise, play environment, challenge of the game and the relaxation element were the most important draws of golf for golfers in Madrid October 20, 2021

CURRENT GOLFERS | Main reason for playing golf 7% 14% 7% 7% 4% 7% 20% 14% 18% 14% 17% 15% 23% 27% 31% 44% 30% The opportunity to socialise with friends The challenge the game offers The main reason for playing golf varied somewhat by age – younger golfers were more attracted by the challenge offered by the game, while older golfers were more attracted by the exercise and physical benefits of golf 55+ 35 to 54 Under 35 8% Golfers overall The ability to reduce stress and help me relax The exercise/physical benefits 20% © SPORTS MARKETING SURVEYS INC. The opportunity to play in attractive surroundings 31 October 20, 2021

CURRENT GOLFERS | Golf in 2015 How many played at the main course? How many rounds in 2015? 27% 29% 8% 19% © SPORTS MARKETING SURVEYS INC. 32 12% 100% 76 -90% 51 -75% 26 -50% 8% 25% or less More than 100 rounds 52 to 100 25 to 51 12 to 24 12% 1 to 11 None 3% 21% 90 -99% 18% 23% 21% October 20, 2021

CURRENT GOLFERS | Golf breaks 59% had taken a golf break within Spain during 2015 15% had taken a golf break outside Spain in 2015 © SPORTS MARKETING SURVEYS INC. 33 October 20, 2021

Played less golf in 2015 than in 2014 14% CURRENT GOLFERS | Changing golf habits Played the same or a very similar amount of golf in 2015 and 2015 47% Played more golf in 2015 than in 2014 40% Encouragingly, the level of golf play was either the same or had increased in 2015 compared to 2014 Less than 15% had played less golf in 2015 than the previous year © SPORTS MARKETING SURVEYS INC. 34 October 20, 2021

CURRENT GOLFERS | Why was there a difference? Why did you play less in 2015? Main reason © SPORTS MARKETING SURVEYS INC. 36% 26% 4% 5% 2% 3%1% 35 Increased work commitments Reduced family commitments Encouragement from other people Reduced work commitments Growing interest in the game 8% 14% All reasons Main reason 32% Increased family commitments 17% Reduced social commitments 15% Feel more closely attached to my club 16% 27% Better weather 25% 40% Reduced golf play was generally related to external commitments 9% 8% 8% 6% 5% 5% 1%1% Less favourable weather All reasons Feel less closely attached to my club A growing interest in golf was the main reason for increased play in 2015 – very positive news for the MGF 45% Growing interest in other activities 56% Increased social commitments Why did you play more in 2015? October 20, 2021

CURRENT GOLFERS | Going forward Don’t know 7% Play more golf in 2016 than in 2015 49% Play a similar amount of golf in 2016 as 2015 40% Continuing the positive trend, the majority anticipated playing even more golf in 2016 than in 2015 Play less golf in 2016 than in 2015 3% © SPORTS MARKETING SURVEYS INC. 36 October 20, 2021

Non-member Lapsed golf club member Golf club member 55+ 35 to 54 Under 35 Female Male Current golfers overall CURRENT GOLFERS | Level of golf play I play as much golf 16% 17% 14% 16% 6% 27% 21% 8% 12% as I want to I feel frustrated I play as much golf that I am unable to play as I want to 16% as much golf as I would like to 23% I play as much golf as can reasonably expect to given my responsibilities 61% I play as much golf as can reasonably 61% 60% 55% 69% 53% 65% 58% 57% expect to given my responsibilities I feel frustrated that I am unable to play 23% 22% 26% 29% 25% 20% 14% 33% 30% as much golf as I would like to © SPORTS MARKETING SURVEYS INC. 37 Less than a quarter felt frustrated because they couldn’t play as much golf as they wanted This was highest amongst lapsed golf club members and conversely lower amongst those who were members of a golf club October 20, 2021

CURRENT GOLFERS | Golf club members Why did you join this new club? 48% 33% 32% Have not joined a new club in the last year 81% © SPORTS MARKETING SURVEYS INC. 38 Better clubhouse facilities Lower cost Better value for money Desire to play where people you know are members A change was often due to the proximity of the case to home or work The quality of the course Few club members had joined a new club in the last year Proximity of the course to where you live/work 8% 6% 3% Less formal rules on etiquette and behaviour 35% More formal rules on etiquette and behaviour Have joined a new club in the last year 19% October 20, 2021

© SPORTS MARKETING SURVEYS INC. 39 16% 15% 14% 13% 11% 10% 7% 7% Like to/need to travel so am often in different locations On course facilities were no longer good enough for me On-line booking sites have resulted in greater choice/reduced rates 26% Like to play golf without getting heavily involved in ‘club’ issues I am currently evaluating local courses with a view to deciding which one to join Desire to play on a variety of courses Belief that annual cost would reduce CURRENT GOLFERS | Lapsed club members Why did you decide not to continue with membership of one specific club? 37% 33% All reasons Main reason 9% 6% No - nothing could have been done to make me carry on with membership 61% Yes something could have been done to make me carry on with membershi p 39% “Reduce the price” October 20, 2021

CURRENT GOLFERS | Growth initiatives 79% Inexpensive ‘have a go at golf’ days to attract non-golfers to try the game 35% 40% Better prices to play golf as a family 29% Club members thought that 32% inexpensive ‘have a go’ golf days 23% would be the most effective way of introducing 35% new people to the game Initiatives to attract more children to play the game 9 hole golf competitions to enable people to play who have limited time available 21% Less than half of this number actually 14% wanted to see this kind of golf tester 15% day take place at their own club though 22% Initiatives to attract more women to play the game Stronger links between driving ranges, pitch n putt/ adventure golf outlets and golf clubs 13% 5% 5% (More) crèche facilities at golf clubs Thought to be most effective 5% Relaxation of rules around dress Would code/ clubhouse etiquette 2% like to see at own club (members only) 3 or 6 hole golf venues None of these © SPORTS MARKETING SURVEYS INC. 40 5% 2% 2% 14% October 20, 2021

CURRENT GOLFERS | Why do friends and family not play? Lapsed Golf club golf club Nonmember All current golfers Male It takes too long to play 41% 42% 37% 44% 39% 43% 40% 38% It is too expensive 35% 34% 39% 44% 33% 36% 30% 43% 40% It is too difficult 31% 33% 25% 33% 28% 31% 29% 32% 28% 27% 31% 19% 27% 31% 28% 31% 27% 26% 25% 27% 38% 26% 23% 25% 22% 27% 9% 9% 9% 6% 11% 8% 8% 9% 10% 7% 7% 9% 15% 8% 6% 7% Golf is too slow 5% 5% 5% 8% 6% 2% 6% 4% 3% There are too many rules 3% 3% 2% 4% 3% 2% 2% 4% 2% There aren't enough facilities for them to practice They have a negative image of the game They don’t have anyone of a similar age to play with It is not athletic enough / not good enough exercise © SPORTS MARKETING SURVEYS INC. 41 Female Under 35 35 to 54 55+ October 20, 2021

CURRENT GOLFERS | Opinions of Madrid for golf 32% 35% 21% 36% 14% 5% 16% 17% 43% 1% 3% 42% 23% 42 Pitch and Putt / Par 3 courses 20% 18% Adventure/crazy golf courses High quality driving ranges © SPORTS MARKETING SURVEYS INC. 11% Opportunities to learn golf other than at school 3% 5% 1% 3% 11% 3% 3% 5% 24% Don't know Very good Good Average Poor Very poor 25% 24% 14% 34% 13% 28% 23% High quality courses 24% 27% 39% 8% 3% 2% 4% 9% 49% 26% Opportunities to learn golf at school 26% 9% 5% Shorter forms of the game (3 or 6 hole courses) 4% 9% Venues with affordable green fees 6% Madrid’s golf courses themselves were seen as good Other areas received less positive feedback, such as opportunities to play golf at school, availability of alternative golf formats and venues with affordable green fees October 20, 2021

CURRENT GOLFERS | Growing golf in Madrid Free broadcast television through competitions involving Spanish players. Open Lower prices, not having to be federated, and federate only if you compete, not having to have handicap to take to the course Courses with fewer holes, for Attract people aged 25 to days in beginners. Easier, faster and 35 and they will also cheaper. bring their partner and clubs children. To do this, Promote golf as fun, relaxing and stimulating create four practice Creating more public courses, centres in the corners of where you can go play at affordable Competitions Madrid at affordable prices, without becoming a member. scheduled for Friday Increase rates. Lower prices for children / youth. afternoon or awareness of the Saturday morning sport, they try it, I think we should create public You have to courses with reasonable they see the approach people prices (for example, the environment. I think Spanish Golf Federation has and not wait for most see it very high prices for a public them to seek us course) and put golf in schools distant, unachievable Give more information and remove that image of class © SPORTS MARKETING SURVEYS INC. 43 October 20, 2021

THE VIEW FROM LAPSED GOLFERS

ABOUT THIS ELEMENT | Lapsed golfers TARGET GROUP – LAPSED GOLFERS § The target group for this element of the research was people who do not currently take part in golf but have done so in the past, agreeing that “I used to play golf but have not done so in the last 12 months” § This group was also reached through the online survey distributed by the Madrid Golf Federation to its database § Routing within the survey meant that the lapsed golfer group only saw questions that were relevant to them § In total, the survey to Madrid Golf Federation’s database yielded 2016 Madrid residents – Of these, 96 were lapsed golfers § Fieldwork for this element ran from the 7 th December 2015 to the 10 th January 2016 © SPORTS MARKETING SURVEYS INC. 45 KEY TOPICS COVERED § Background information on previous golf habits and behaviour § Reasons why respondents have stopped playing golf § Likelihood of taking up golf again in the future § Perceptions of Madrid as a city for golf § Ideas for boosting the popularity of golf in Madrid amongst people who are already involved § Resonance of particular initiatives to encourage respondents personally to take up golf again in future October 20, 2021

LAPSED GOLFERS | Group profile 33% Even though the lapsed golfer group have not played golf in the last year, 35% still maintain some kind of golf or country club membership Lapsed golfers tended to be younger – a third were aged 35 -44 27% 22% 11% 6% 1% 16 -24 25 -34 35 -44 45 -54 55 -64 46% 65+ 25% 19% 4% Male 55% © SPORTS MARKETING SURVEYS INC. Female 45% 46 6% I am a I used to be I am a I have never member of a golf club member of been a golf one golf more than member but a country or country club one golf am not club which club anymore offers golf member October 20, 2021

© SPORTS MARKETING SURVEYS INC. 47 49% Skiing/winter sports Walking (recreational) Listening to music – classical 19% 32% 23% 17% 28% 23% 17% 30% 14% 21% 29% 30% 35 to 54 16% Under 35 Cooking for pleasure 31% 25% 40% 43% 35% 23% Playing sport other than golf 40% 35% 36% 27% Female 23% 23% 58% 43% 35% 53% 57% 46% 35% 44% 68% 77% 71% Male 35% 31% 42% 29% 40% 29% 14% 57% 49% 55% 46% 40% 51% 38% 56% 52% Lapsed golfers overall Taking exercise/ keeping fit Dining out Reading Travel Cinema 55% 56% LAPSED GOLFERS | Other activities – Top 10 55+ October 20, 2021

LAPSED GOLFERS | Social media use Use any social media L. . . 76% M. . . 77% 3. . . 77% 5. . . N. . . 52% 48% 58% Male Female Facebook 41% Google+ 33% 51% F. . . G. . . Lapsed golfers overall 25% 29% 21% Social media was widely used, but slightly less so amongst lapsed golfers who retained golf club membership 71% 57% 84% © SPORTS MARKETING SURVEYS INC. 48 Linked. In 22% 25% 19% Twitter 9% 10% Instagram 9% 1% Snapchat 2% October 20, 2021

LAPSED GOLFERS | Why did you lapse? Why did you stop playing golf? Increased family and work commitments were the main reason for not continuing with golf, corresponding to the age profile of lapsed golfers – in the young family 50% All reasons 34% Main reason © SPORTS MARKETING SURVEYS INC. 49 14% Feel less closely attached to my club Increased social commitments 7% 7% 5% 7% 2% 2% 0% Prohibitive cost – my financial circumstances have not changed A health problem 9% 12% 9% 9% Prohibitive cost – my financial circumstances have changed 15% Growing interest in other activities 16% Reduced passion for golf An injury Increased work commitments Increased family commitments 14% 13% 10% Positively, a reduced passion for golf or a feeling of detachment from the golf club were not significant reasons for not having played golf in the last year The majority of lapsed golfers were planning to take part in the sport again in future once their personal circumstances had changed October 20, 2021

LAPSED GOLFERS | Likelihood of golfing in future Not at all likely Not very 4% likely 9% Very likely 33% Quite likely Very likely 33% 25% Quite likely 53% 44% 28% Of those who were likely to play golf again in the future, 74% thought they would start playing golf again within the next year, and a further 11% thought they would do so in 2 years’ time © SPORTS MARKETING SURVEYS INC. 50 39% Lapsed 53%golfers overall 60% Male Female 47% 60% 35 to 54 48% 55+ October 20, 2021

LAPSED GOLFERS | Why? 67 people gave a reason why they would take up golf again in the future… When family commitments My children have changed I will be older hope to resume the sport The recovery of the knee injury I've been having Because I'll be retired and will have all the time in the world Improvement in the economic situation and to enjoy with my son, if he plays. I miss being out on the course and hitting the ball, especially the sound when hit well. © SPORTS MARKETING SURVEYS INC. 51 My family commitments will no longer require so much of my attention 11 people gave a reason why they would not take up golf again in the future… I have lost interest I do not have time Costs. It has become a sport only for the wealthy It is not worth paying for a license considering how little it will be used October 20, 2021

LAPSED GOLFERS | Growth initiatives 60% 53% Lapsed golfers thought Inexpensive ‘have a go at golf’ days to attract non-golfers to try the game 47% Better prices to play golf as a family 35% 38% 9 hole golf competitions to enable people to play who have limited time available 3 or 6 hole golf venues Initiatives to attract more children to play the game Initiatives to attract more women to play the game (More) crèche facilities at golf clubs 24% 14% Availability of 17% short format competitions and 31% venues was also 15% thought to have 16%potential 13% 12% Thought to be most Stronger links between driving ranges, pitch n putt/adventure golf outlets and effective 16% golf clubs 11% 13% Relaxation of rules around dress Would encourage to code/ clubhouse etiquette 4% None of these © SPORTS MARKETING SURVEYS INC. 52 that inexpensive ‘have a go’ golf days would be the most effective way of introducing new people to the game, and also felt this would encourage them to play golf in the future play golf in future personally 3% Initiatives relating to children and family involvement were thought to be good ideas, but respondents weren’t as likely to agree that these initiatives would encourage them to play more golf 11% October 20, 2021

LAPSED GOLFERS | Why do friends and family not play? All lapsed golfers Male Female 35 to 54 55+ It takes too long to play 50% 49% 52% 51% 55% It is too expensive 36% 39% 31% 40% 29% There aren't enough facilities for them to practice 35% 36% 35% 39% It is too difficult 21% 22% 19% 16% 29% They have a negative image of the game 20% 24% 17% 22% 13% 12% 10% 12% 9% 11% 8% 14% 11% 3% Golf is too slow 5% 6% 5% 7% 3% There are too many rules 4% 6% 2% 5% 3% They don’t have anyone of a similar age to play with It is not athletic enough / not good enough exercise © SPORTS MARKETING SURVEYS INC. 53 October 20, 2021

LAPSED GOLFERS | Opinions of Madrid for golf 5% 17% 23% 14% 5% 14% 10% 7% 12% 3% 3% 10% 22% 29% 30% 34% 28% 1% 4% 14% 21% Very poor 61% 15% 19% 23% 26% Adventure/crazy golf courses Shorter forms of the game (3 or 6 hole courses) Pitch and Putt / Par 3 courses © SPORTS MARKETING SURVEYS INC. 54 Good 27% Venues with affordable green fees 7% Very good Average 35% Opportunities to learn golf other than at school 12% 1% Don't know Poor 28% High quality driving ranges High quality courses 3% 30% 24% 4% 1% 21% 13% 43% 36% 32% 8% 1% 4% 5% Again, Madrid’s golf courses themselves were seen as good Opportunities to learn golf at school 13% Other areas received less positive feedback, such as opportunities to play golf at school, availability of alternative golf formats and venues with affordable green fees October 20, 2021

LAPSED GOLFERS | Growing golf in Madrid More free courses promoted by the federations to attract more people Better education makes it more fun, it becomes a less frustrating sport in which the player can start having fun in no time. Short holes facilities also help in this regard. Greater access to facilities More advertising Lower price green fee © SPORTS MARKETING SURVEYS INC. 55 More pitch & putt More information about the sport and its health benefits More amateur tournaments for those who do not belong to any club Access to more courses. October 20, 2021

THE VIEW FROM POTENTIAL GOLFERS

ABOUT THIS ELEMENT | Potential golfers TARGET GROUP – POTENTIAL GOLFERS § The target group for this element of the research was people who do not currently take part in golf § This group was reached through face-toface interviews carried out at 5 locations around Madrid. § Sport-based locations were chosen for the interviews so that we were speaking with non-rejectors of sport. § The locations were: – Decathlon Alcobendas – Decathlon San Sebastian de los Reyes – Decathlon Majadahonda – Decathlon San Fernando de Henares – Go Fit Montecarmelo § In total, 256 relevant people were interviewed for this part of the project § Fieldwork ran from the 18 th to the 25 th January 2016 © SPORTS MARKETING SURVEYS INC. 57 KEY TOPICS COVERED § Background information on previous golf habits and behaviour § Reasons why respondents do take part in sport in general § Reasons why respondents do not play golf § Likelihood of taking up golf in the future § Ideas for boosting the popularity of golf in Madrid amongst people who are already involved § Resonance of particular initiatives to encourage respondents personally to take up golf in the future October 20, 2021

POTENTIAL GOLFERS | Interview locations © SPORTS MARKETING SURVEYS INC. 58 October 20, 2021

POTENTIAL GOLFERS | Group profile Potential golfers are the group who are non-rejectors of sport in general, but do not currently play golf 30% 16% 21% 18% Average number of sports played 9% 5% 16 -24 25 -34 35 -44 45 -54 55 -60 60+ 1, 9 1, 8 1, 7 1, 9 1, 7 1, 5 Male 49% Female 51% © SPORTS MARKETING SURVEYS INC. This group has a younger profile than the current and lapsed golfers, and is likely to be engaged in an average of 1. 7 sports already 59 Potential Male golfers overall Female Under 35 to 54 35 1, 4 55+ Have played golf in the past October 20, 2021

POTENTIAL GOLFERS | Current sports activity The top five sports played by the potential golfer group corresponds with the general participation we would expect to see in Spain All sports Main sport 12% 7% 7% 7% These sports fit well around the lifestyle of those with limited free time and greater external commitments 11% 7% 6% 5% © SPORTS MARKETING SURVEYS INC. 60 Skiing Tennis Swimming Football Padel tennis Cycling Running Going to the gym 0% 5% 2% 4% 2% 1%1% 1%0% 1%1% 1% 0% Weight training 14% Rugby 16% Yoga / pilates 17% Expenditure on these activities is also relatively low Basketball 18% Martial arts 22% Handball 30% Going to the gym, running and cycling are sports which require a relatively low amount of organisation – people can take part whenever they want and do not need to organise a group or partner, or book a specific time at a venue Baseball 38% October 20, 2021

POTENTIAL GOLFERS | Previous golf experience Within the last year Crazy/adventure golf More than a year ago 4%21% 75% Pitch and Putt 1% 5% Driving range 9% Golf Simulator 5% 95% Par 3 or shorter 5% 95% © SPORTS MARKETING SURVEYS INC. Never 94% Previous experience of golf was very low, with the only real cut through seen for adventure / crazy golf 90% 61 October 20, 2021

POTENTIAL GOLFERS | Social media use Use any social media. . . 88% 70% 84% 87% 77% Facebook 58% 31% 35% 27% 39% 32% 88% Amongst potential golfers, Facebook was the social media portal of choice 88% 96% 37% 87% Potential golfers overall 72% Male Female 94% Under 35 35 to 54 92% 55+ © SPORTS MARKETING SURVEYS INC. 62 Twitter 8% 19% 19% Instagram 12% 3% 16% 17% 16% Linkedin 18% 17% 11% 7% 8% 6% Google+ 8% 7% 6% 5% Snapchat 14% 1% 2% 3% 1% Tumblr 1% 3% October 20, 2021

POTENTIAL GOLFERS | Importance of sport © SPORTS MARKETING SURVEYS INC. 63 11% 14% 9% The challenge the sport offers 21% 4% 4% 3% 5% 3% 3% 12% 5% The challenge the sport offers 32% Informal competitions with friends 33% Playing in attractive surroundings Socialising with friends The exercise/ physical benefits 12% 20% 25% Relaxation and stress reduction 28% Relaxation and stress reduction 36% 14% 14% 16% 41% Socialising with friends 52% Business networking 70% Formal competitions 86% Potential golfers overall Male Female Under 35 35 to 54 55+ 14% 19% 10% 18% 11% 18% Quite important Exercise and relaxation were the two main reasons for taking part in sport – these match the reasons current golfers give for playing golf The exercise/ physical benefits Very important Most important factor 65% 58% 71% 56% 68% 74% Importance of factors in playing sport October 20, 2021

POTENTIAL GOLFERS | Likelihood of golfing in future Quite likely Very likely 2% Intention to take up golf in the future was relatively low, and potential golfers were ‘quite likely’ rather than ‘very likely’ to intend to take up the sport Quite likely 12% Not at all likely 63% Not likely 23% Those who already take part in two or more sports and those who have played golf in the past were most likely to want to play golf in the future Of those who were likely to play golf in the future, 24% thought they would start playing in more than 10 years time, and a further 32% said they didn’t know when they would start. © SPORTS MARKETING SURVEYS INC. 64 Very likely Poten 12% 2% tial. . . 14% 2% Male Fema 1% 9% le Under 14% 2% 35 35 to 11% 1% 54 11% 3% 55+ 2% 3% Take 18% part. . . Have 20% golf. . . October 20, 2021

POTENTIAL GOLFERS | Why? 23 people gave a reason why they would take up golf again in the future… 222 people gave a reason why they would not take up golf again in the future… When I retire - it is for older people with time I have a friend who plays lack of time I've never done it, it doesn’t appeal When I'm older, I like the more active sports now Because it is expensive It is a sport for money and retirement I prefer other sports It’s a passive sport, even if it is outdoors Because I do not have time to play golf I find it boring It’s not energetic enough I see that this sport is focused on older people I do not like it, I consider it boring It’s a complicated game and very expensive and difficult to get to a course No courses nearby © SPORTS MARKETING SURVEYS INC. 65 October 20, 2021

POTENTIAL GOLFERS | Why unlikely to play? 62% 26% The main reason for a lack of interest in playing golf in the future was that potential golfers were just not interested in golf Beyond this, being ‘boring’, expensive and time consuming were also reasons named Much of this opinion may be changed through greater marketing and raising the profile of golf, to encourage a better understanding of the sport and its many forms © SPORTS MARKETING SURVEYS INC. 66 . . . . 12%. . . 8%. . . 5%. . . 4%. . . 3%. . . 1%. . October 20, 2021

POTENTIAL GOLFERS | Growth initiatives 51% 9% Would encourage to play golf 5% in future personally 8% 4% 1% 4% Relaxation of rules around dress code/ clubhouse etiquette 8% 3% onger links between driving ranges, pitch n putt/adventure golf outlets and golf clubs None of these © SPORTS MARKETING SURVEYS INC. 67 16% Have golfed in the past; 46% 3 or 6 hole golf venues 55+; 55% 3% 4% 35 to 54; 63% 9 hole golf competitions to enable people to play who have limited time available Nothing would encourage to take part personally Under 35; 49% (More) crèche facilities at golf clubs Thought to be most effective 3% Female; 56% Initiatives to attract more women to play the game 17% Male; 58% Initiatives to attract more children to play the game The under 35 year old age group and those who have some previous experience of golf were most likely to agree that one of these initiatives would encourage them to play golf in future 9% Potential golfers overall; 57% Better prices to play golf as a family 25% Take part in 2 or more sports already; 49% Inexpensive ‘have a go at golf’ days to attract non-golfers to try the game 57% October 20, 2021

Potential golfers overall Male Female Under 35 35 to 54 55+ Take part in 2 or more sports already Have golfed in the past Inexpensive ‘have a go’ golf days were most likely to appeal to potential golfers – especially the under 35 s, very sporty people and exgolfers Affordable prices so families can play © SPORTS MARKETING SURVEYS INC. 68 5% 5% 4% 5% 3% 2% 3% 0% 3% 7% 7% 5% 5% 2% Inexpensive ‘have a go at golf’ days to attract nongolfers to try the game 8% 11% 9% 8% 8% 12% 10% 6% 9% 17% 18% 16% 15% 19% 13% 22% 20% 22% 24% 25% 25% 30% 32% 35% POTENTIAL GOLFERS | Personal appeal of initiatives Initiatives to attract more 9 hole golf competitions children to play the game women to play the game to enable people to play who have limited time available October 20, 2021

POTENTIAL GOLFERS | Increasing the appeal of golf Nothing / I just don’t like it: 37% © SPORTS MARKETING SURVEYS INC. 69 October 20, 2021

CONTACT DETAILS The Courtyard, Wisley, Surrey, GU 23 6 QL www. sportsmarketingsurveysinc. com +44 (0)1932 345539 JOHN BUSHELL | MANAGING DIRECTOR john. bushell@sportsmarketingsurveysinc. com RICHARD PAYNE | SENIOR MANAGER SPORTS ACCOUNTS richard. payne@sportsmarketingsurveysinc. com ERICA HEALY | HEAD OF RESEARCH erica. healy@sportsmarketingsurveysinc. com © 2015 SPORTS MARKETING SURVEYS INC. No part of this report may be reproduced or transmitted in any form or by any means, including photocopying, without the written permission of Sports Marketing Surveys Inc. , any application for which should be addressed to Sports Marketing Surveys Inc. Written permission must also be obtained before any part of the report is stored in a retrieval system of any nature. Disclaimer Whilst proper due care and diligence has been taken in the preparation of this document, Sports Marketing Surveys Inc. cannot guarantee the accuracy of the information contained and does not accept any liability for any loss or damage caused as a result of using information or recommendations contained within this document. © SPORTS MARKETING SURVEYS INC. 70 October 20, 2021