On what basis are the different types of golf course (pay-and-play, muni, members, etc) owned? The reason I ask is that the company that own ours want to sell, and the "members" may buy it. But what would the members actually own, and would each member own a share of something tangible? Thanks in advance.
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 As the member of a private golf club I theoretically own a share in the club. But I have no right to sell this "share" and it has no tangible value unless the club decides to sell off any or all of it's assets. In that case each member would be entitled to a share of the proceeds.
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Members also have a share in the liabilities should a club go bankrupt.
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Tim and Andrew, yours sound like a reasonable situation (Tim's if "limited by guarantee", Andrew's if "unincorporated"). However, speaking to a club secretary, Tim's is unlikely to be the case (company articles dependent) - in that the club's assets can't be equally divided up between the members, but must be put into other "sporting endeavours"(?) I'd have thought if you were a full member of a members' club (say a membership of 1000), and a property developer offered "the club" £10mill, each member would get £10K. Speaking to the sec, that's not right. Any other takers?
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Depends really on what assests the members are buying. If buying the freehold of the land then yes you would own the Course, however alot of times clubs lease the rights to the course from the owner, therefore you'd only be buying a lease.
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my anwer used to be the same as Tim's above, but a little while ago my club incorporated and became a company limited by guarantee. The members are the shareholders. If the members were to buy Bridgey's club, they would probably form a vehicle to do it, and it would probably be a company limited by guarantee. Much less unweildy than an unincorporated association, and it makes things like bank borrowing etc much easier.
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And what would you want easier borrowing for so that they can build fancy club houses that they can't afford as many have found out. You can or could borrow off R@ A for course developement . I am a member of a privately owned club which has it written in constitution members can't share in the proceeds of a sale to protect it from Carpetbaggers. This was done as a result of members of other clubs voting to sell ground which they benefitted from personally. Some people would sell their granny never mind a golf club which should remain a leisure facility in the community whether private or not, some people know the price of everything and the value of nothing.
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"I am a member of a privately owned club which has it written in constitution members can't share in the proceeds of a sale to protect it from Carpetbaggers. This was done as a result of members of other clubs voting to sell ground which they benefitted from personally. Some people would sell their granny never mind a golf club which should remain a leisure facility in the community whether private or not, some people know the price of everything and the value of nothing. " Wanputt - that makes a lot of sense - thank you. That would certainly preserve my "little piece of England" for my and my kids' future use.
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| Edited: 10/08/08 20:49 |
 Just spotted this thread and it wasn't what I was expecting. I remember 10-15 years ago reading an article in a golf mag, I think it was FORE! magazine (perhaps Bob Warters can confirm since he was the ED?), where listings of golf courses currently for sale were given. I think at the time the cheapest was just under £1 million rising to several million. The lowest price course had really been let loose to nature if I remember right. It was a really interesting article I thought and made me dream about having enough dosh to buy a golf course all of my own - how would I run it - how would I improve it. It would be great to see that article again and also see an update on what happened to the featured courses.
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| Edited: 10/08/08 21:19 |
Wanputt, in our case we needed to borrow the money to buy the course, as the lease was running out.
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DEC, I spoke to a "pro in the know" last week, who said that clubs were hugely overvalued at the moment, and were up for sale all over the place - he told me of one course that was up for £2.5M, but would be lucky to get £1M. Also, banks aren't interested in lending for "leisure ventures" at the moment.
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Many clubs are struggling to keep their memberships up and are having to slash/abolish joining fees and offer special membership packages. The market is rather oversupplied i reckon.
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