The Private Club and the Public Official: Creating Mutually Beneficial Government Relations

In today’s political environment, private club leaders often overlook the benefits that can flow from positive relationships with public officials.

One reason for this is the traditional attitude that a private club by its very nature is supposed to be “under the radar” and out of the public eye, which includes being beyond the awareness and thus the scrutiny of the government, especially regulatory bodies. Such a view is often based on a fear and distrust of government. But it is important to realize that the relationship a private club has with government representatives does not have to be adversarial in nature. Rather, it can be cooperative and even mutually beneficial.

Clubs can enjoy the same benefits from well-maintained and developed relationships with public officials as they do with people in general. And in this regard, it is important to realize that in dealing with government, we are dealing with people, not a faceless institution.

The Goals of Government Relations

When it comes to government relations, the primary goal is access, which simply means the opportunity to have meaningful communication with the public official when you need it. There are two secondary goals of government relations, both of which are made possible by the primary goal of having access to the public official. The first is the ability to create and enhance the image of the club in the public official’s mind. The second is the ability to influence the public official with respect to various club issues.

Why Build Relationships With Public Officials?

Inevitably, government-related issues will arise, and the club will need to access one or more public officials to resolve an issue or to gain relief. Thus, it is important for the club to establish access (through its leaders) to public official who can assist the club before an issue arises.

What Types of Issues or Needs Might Arise?

At the federal level, there seems to be an endless stream of issues affecting clubs, e.g., EPA’s WOTUS Rule, DOL’s proposed Overtime Rule and DOL’s new independent contractor/employee classification guidance, to name just a few. At the state level, similar issues and also minimum wage and sales tax issues exist. At the local level, examples include real estate and personal property tax issues, zoning issues, and various ordinance proposals and regulatory issues. But not all of the issues represent threats. Some examples are opportunities, such as tax abatements, redevelopment rights and pension funding relief.

Which Public Officials Should be Targeted?

Prudent clubs develop relationships with all types of public officials, at all levels of government and with both elected and non-elected officials. As mentioned, federal, state and local issues surface periodically, therefore it is important to develop and maintain relationships with officials at all three levels. Likewise, in addition to elected officials, many times we need to have access to non-elected officials, “appointees” and career bureaucrats. The key point is that clubs need to cultivate a broad array of relationships with various types of public officeholders and people who are employed by various governmental bodies.

Which Club Officials Should Build Relationships with Public Officials?

While typically a fair number of club members are politically active, and therefore have relationships with various politicians and public officials, it is important that key members of the club’s management team develop relationships with public officials. This normally includes the club’s general manager, but might also include other top executives such as the CFO/ controller and the clubhouse manager.

When interacting with public officials, management-level employees should become the face of the club to help ensure continuity in these relationships. Club presidents and board members come and go while club management tends to be in place for much longer periods of time. This stability is important since building relationships with public officials is a long-term proposition—and it takes time to develop meaningful relationships that can be available when needed. This is not to say that the existing relationships that club members have with public officials cannot be useful. In fact, club members can make valuable introductions in certain situations. In this regard, it behooves club management to know which members are already connected with specific public officials in case the need for a meeting ever arises.

People, Not Institutions

As mentioned earlier, when dealing with the government, we are always interacting with people, rather than with faceless institutions. In club relationship building activities, staff and members connect with people for the purposes of communicating, cooperating and creating mutually beneficial interactions.

When Is The Best Time To Begin?

The time to start developing relationships with public officials is now. It is never too late to start. Clubs that currently enjoy strong lines of communication with public officials did not always have those connections, but they chose to develop those relationships at some point and have continued to nurture the relationships over a long period of time. Relationship building is a never-ending campaign. Develop these relationships today to position your club for future benefits.

Principles of Building Relationships with Public Officials

• Proactivity – Relationships are created and built. Reach out and connect with public officials in thoughtful ways.
• Consistency – Maintain and develop relationships through consistent efforts over many years. Do not let long periods of time elapse between points of contact with the public official.
• Money is a tool – It can buy access. The expenditure of financial or other resources in relationship building should be viewed as an investment. Such expenditures include campaign contributions, but it can also take the form of simple generosity, e.g., inviting the public official to your club for lunch or to

What Works

So, what are some steps that can be taken to start or to continue building mutually beneficial relationships with public officials? Here are a few examples of what works:

• Arrange for the public official to visit your club. Such a visit will familiarize them with your club and give you the opportunity to present your club in the very best way to make a positive and lasting impression on the public official. Give the official a tour and inform them about the economics of the club, e.g., how many jobs it provides, tax revenue generated, etc.
• If you are aware of a member who is well-connected with an officeholder or candidate, suggest that the member arrange a fund-raiser to be held for the candidate at your club. This will bring the official to your club; generate revenue for the club; and present a situation where you can have valuable face time with the official, which will help to solidify your connection.
• When the public official visits your club, take photos and publish them in your club magazine or newsletter. Then mail a copy to the official. They will appreciate the exposure.

• Invite the public official to speak to your CMAA chapter. Such a speaking opportunity will give the official an audience and exposure to a group of business people that they may be seeking, especially if they are in campaign mode. In such a setting it will also be possible to educate the official about the economics of the entire club industry in your area.
• Show up at events and functions where you know the public official will be present or giving a speech. Then approach him, introduce yourself and mention who you are and mention your club. This approach will help you to register your identity and your role with your club. In such a setting you will also be able to meet and network with other people who are interested in politics and government including other public officials. Realize that some events will require a campaign contribution, which in most cases will have to be made from your own personal funds.
• Attend the annual NCA conference in Washington, D.C., and visit the offices of your congressman and senators while you are there. Arrange an appointment in advance for such a visit. If it does not work out for you to actually meet with the official while you are there, introduce yourself to one of their aides and leave your business card and preferably a handwritten note for the official. This approach will be another step in the direction of registering your identity and that of your club in the mind of the official.
• Court the gatekeepers. Be sure to reach out and connect with the public official’s aides and campaign personnel. Befriend them in a kind and courteous manner. Positive relationships with the official’s people will definitely facilitate access to the public official.
• Ask for favors. Public officials expect to be asked for assistance and favors, and they welcome it. They want to be able to help and to demonstrate their power. When you ask for help, it leads to interaction with the official and this activity in and of itself will help solidify the relationship. Conversely, if the public official or one of his aides asks for a favor or assistance, make every effort to be helpful. Louis Mayor Francis Slay speaking at a MAC press conference at the invitation of the club.

Summary

Some key concepts to remember about creating mutually beneficial relationships with public officials are:

• We are building relationships with individual people, not with faceless institutions.
• Begin building relationships with public officials before you have an issue that requires access to them.
• Build relationships with public officials at all levels of government (federal, state and local) and with both elected officials and non-elected officials (appointed officials and career bureaucrats).
• Maintain a disciplined bipartisan approach in developing relationships with public officials—do not favor one political party over another, because you may eventually need bipartisan support.
• Be creative and resourceful in your government relations building activities. Go the extra mile in your efforts to reach out and connect with the officials.
• Building relationships with public officials is a long-term proposition. It is important to start now and plan to continue working to enhance the relationships over time.
• The expenditure of our time, energy, financial and other resources in the development of positive government relations can be viewed as an investment in the club’s present and future well-being.

Larry J. Absheer has served as the Chief Financial Officer of the Missouri Athletic Club in St. Louis, Mo., since 1996. He can be reached at 314-539-4477 or [email protected].