Additional levy on members?

[timd77]

Anyone else ever had this before?

Essentially the club under estimated the energy and running costs by a massive amount, had issues with staffing and its running at a loss of 42k in the first quarter. This despite selling off part of the course to a housing developer to the tune of £320k. Club have decided to set that money aside to invest in the club.

A general meeting has been called where the club are proposing every member pays a £100 levy to cover the shortfall in running costs. Members to vote on whether this will be approved. If it is approved, any member not paying will have their playing rights revoked.

Personally never heard such a load of old tosh.

 

[Slab]

Anyone else ever had this before?

Essentially the club under estimated the energy and running costs by a massive amount, had issues with staffing and its running at a loss of 42k in the first quarter. This despite selling off part of the course to a housing developer to the tune of £320k. Club have decided to set that money aside to invest in the club.

A general meeting has been called where the club are proposing every member pays a £100 levy to cover the shortfall in running costs. Members to vote on whether this will be approved. If it is approved, any member not paying will have their playing rights revoked.

Personally never heard such a load of old tosh.

Ouch! That'll hurt

Re bold, Did they also outline what would happen if its not approved ?

 

[timd77]

Ouch! That'll hurt

Re bold, Did they also outline what would happen if its not approved ?

No, they haven’t said that as yet, assuming they’ll tell us at the GM. We’re all assuming that they’ll just bump up the annual fees even more in April!

Just seems so short sighted, annoying most of your current members, lots of whom will probably leave if it’s approved, me included. And of course, we all talk, so anyone thinking of joining will likely be put off because of things like this, as well as them putting up comp fees earlier in the year! Crazy.

 

[Orikoru]

Anyone else ever had this before?

Essentially the club under estimated the energy and running costs by a massive amount, had issues with staffing and its running at a loss of 42k in the first quarter. This despite selling off part of the course to a housing developer to the tune of £320k. Club have decided to set that money aside to invest in the club.

A general meeting has been called where the club are proposing every member pays a £100 levy to cover the shortfall in running costs. Members to vote on whether this will be approved. If it is approved, any member not paying will have their playing rights revoked.

Personally never heard such a load of old tosh.

Members to vote on whether they want to chuck another £100 in? Surely that'll be a unanimous 'no thanks'?

 

[GB72]

I know of a private members club where everything is like that, the club needs to spend on maintenance and each member finds an invoice in their pidgeon hole for their share. Just how they have always operated.

In this example, I am not sure how they remove playing rights as you have contracted with them for a year at an agreed price. I am guessing the membership rules would need to be changed to enforce that. Even then, based on the change of terms, I would be expecting a pro rata refund if I did not want to pay the levy.

 

[Slab]

No, they haven’t said that as yet, assuming they’ll tell us at the GM. We’re all assuming that they’ll just bump up the annual fees even more in April!

Just seems so short sighted, annoying most of your current members, lots of whom will probably leave if it’s approved, me included. And of course, we all talk, so anyone thinking of joining will likely be put off because of things like this, as well as them putting up comp fees earlier in the year! Crazy.

A bit weird to outline one consequence in advance but not the other, kinda tells its own wee story

Hope it all works out but doesn't look good

 

[Neilds]

Members to vote on whether they want to chuck another £100 in? Surely that'll be a unanimous 'no thanks'?

Or it could be phrased as ‘ pay £100 each or the club folds’

 

[HampshireHog]

Given that you claim they have cash reserves I’d be interested in why they aren’t touching it.

l’ve never heard of a levy to cover operating cost shortfall, and I’d be looking for assurances of where membership fees are going, and the financial state of the club. I would also check the validity of having playing rights suspended in members documentation, for an additional cost.

Typically, I would expect to be informed of a Levy prior the next years renewal and I would expect it to be compulsory across the membership, I’d be asking why the levy isn’t effective from next April and they aren’t using the reserves to the immediate need.

 

[GB72]

Or it could be phrased as ‘ pay £100 each or the club folds’

The club has £320k that they have decided to set aside rather then pay up for their error this year so not sure from what I read that it is a pay or close the club situation.

 

[mister v]

I think id like some of the £320k to be sorting this problem out,

 

[patricks148]

we had that about 5 years ago while doing the course changes.

 

[doublebogey7]

I've never heard of a club imposing an in year levy, though I guess it may have happened where a club has got into serious financial difficulty.
It would seem to me though that the members here ought to be looking at replacing the current board to give someone else a chance at properly managing the finances.

The second paragraph of the membership page on your clubs web site makes interesting reading.

 

[IanM]

I'm assuming the club is member owned?

I've seen lots of times a levy has been used for projects, but not an accounting error.

Members will have to swallow it somewhere on the accounts.

 

[abjectplop]

Had this at a club I was a member after they significantly overspent on a project......2 payments of £75 each were required over a few months or you lost your access to all facilities.

 

[Neilds]

The club has £320k that they have decided to set aside rather then pay up for their error this year so not sure from what I read that it is a pay or close the club situation.

Missed that bit

 

[JayB]

If it is approved, any member not paying will have their playing rights revoked.

I'd vote no just out of principle, threatening members who have paid a fee the club deemed to be acceptable just isn't on in my honest opinion. I'd also be letting the club know of my intention to leave at the end of the membership period

What happens with the future running costs? No doubt, the membership fee's will take a massive hike. Use the reserves, pay your debts and put a long term plan in place to never getting in this situation again.

If you need to levy the membership in the future, have it from the following membership year and use the money for improvements, not to cover mistakes.

 

[2blue]

Anyone else ever had this before?

Essentially the club under estimated the energy and running costs by a massive amount, had issues with staffing and its running at a loss of 42k in the first quarter. This despite selling off part of the course to a housing developer to the tune of £320k. Club have decided to set that money aside to invest in the club.

A general meeting has been called where the club are proposing every member pays a £100 levy to cover the shortfall in running costs. Members to vote on whether this will be approved. If it is approved, any member not paying will have their playing rights revoked.

Personally never heard such a load of old tosh.

Pleasington GC, Blackbuuuurn, has a challenge for old & new members at £1,438pa for 7 days with a £1,200 joining fee in all adult playing categories and a levy of £250 for, course improvements for the next 3 years.

 

[Swango1980]

I guess it is lovely to set aside at least £320K, and not have to use it in emergencies, but instead just get the members to cough up the extra dough.

 

[D-S]

Perhaps the £320k is the contingency put aside to cover winding up costs if the members can’t pay the levy.

 

[Orikoru]

Or it could be phrased as ‘ pay £100 each or the club folds’

Still no. That's effectively blackmail.