One of the most persistent challenges in private club governance is the often unspoken assumption that clubs should operate like corporations. They do not. Private clubs exist to deliver value and experience to their members, and amenities such as food and beverage, golf, aquatics, and racquets are not profit centers. They are part of the value members pay for through dues. Yet despite this fundamental difference, boardroom conversations often drift back toward corporate thinking.

This disconnect is not rooted in bad intent, but in misapplied expertise. Many board members come from corporate environments where success is defined by profitability, margins, and return on investment. That experience creates confidence, and sometimes overconfidence, that the same rules apply in a private club setting. Without a clear understanding of the club business model, well-intended leaders can unintentionally apply the wrong metrics, ask the wrong questions, and make decisions that conflict with how clubs actually operate.

The club industry has written extensively about governance and why private clubs are fundamentally different from corporations. This distinction is not new, nor is the conversation. What remains challenging is not explaining the difference but translating it consistently and effectively at the board table. This is where the modern club CFO, working in close partnership with the head of club (HOC), becomes essential.

Understanding the Difference Isn’t the Same as Leading Within It
Knowing that clubs are “different” and leading effectively within that difference are two very different things.

In a corporate environment, a department that consistently loses money signals a problem that must be fixed or eliminated. In a private club, a department that operates at a loss may be doing exactly what it is intended to do: support member satisfaction, engagement, and retention.

When board members ask why F&B loses money or why labor costs are high relative to revenue, they are often asking reasonable questions through a corporate lens. The issue is not the question itself. It is the framework being used to answer it.

The CFO as Translator at the Board Table
Today’s club CFO is not simply presenting financial results. The CFO is actively translating financial information into club-specific meaning, ensuring the board understands not just what the numbers say, but what they represent within the club’s mission, culture, and business model.

A strong CFO reframes board conversations in real time by explaining:

• Why amenities such as F&B, golf, aquatics, and racquets are designed to deliver value and experience, not profitability
• How member satisfaction and retention serve as leading indicators of financial stability
• Why healthy financial performance in a private club looks different than it does in a corporate environment

This translation shifts the focus from isolated departmental results to the club’s full economic ecosystem. Losses are evaluated intentionally rather than emotionally. Investments are assessed strategically rather than defensively. Financial outcomes are measured against member expectations and long-term sustainability, not corporate benchmarks.

Why the CFO/Head of Club Partnership Matters
The CFO cannot do this work in isolation.

The most effective translation occurs when the CFO and HOC operate as a unified leadership team. The HOC brings a deep understanding of member expectations, club culture, and operational priorities. The CFO brings financial clarity, discipline, and a long-term perspective. Together, they provide context and consistency.

When the CFO and HOC speak with one voice, boards gain confidence. Financial data aligns with operational reality. Strategic discussions become clearer, more productive, and more forward-looking.

When this partnership is misaligned, boards may receive mixed signals, operational advocacy on one side and financial restraint on the other. The result is confusion, friction, and governance that becomes reactive rather than strategic.

Where Financial Clarity Changes Governance
One of the most critical translations the CFO provides is helping the board clearly understand the club’s true economic engine. Private clubs are in the dues business.

Dues fund the organization. Amenities justify the dues. Member satisfaction drives retention. Retention protects long-term financial health.

Viewed through this lens, amenities are not necessarily failing when they operate at a loss. They are succeeding when they consistently deliver the experience members expect and value.

The CFO’s role is to ensure this relationship is understood, measured, and communicated clearly. When boards evaluate performance through the proper framework, financial discussions improve, governance strengthens, and strategic decisions align with the club’s mission rather than competing with it.

This is the CFO as translator in action. A role that extends beyond reporting, ensuring the financial story is clearly told, the board is properly educated, and the HOC’s leadership is reinforced, so decisions are guided by a shared understanding.

HFTP Clubs Online – January 2026

Michelle A. Riklan, ACRW, CPRW, CEIC, CJSS is a Career Strategist, Search & Consulting Executive at KOPPLIN KUEBLER & WALLACE (KK&W). KK&W is the leading executive search and consulting firm in the private club industry. Michelle can be reached at 833-KKW-HIRE (559-4473) ext. 717 and at michelle@kkandw.com.