Buying a golf course

[minty18]

A year or so ago a website required a few thousand people to pay a fee so that they could as a group, by a football club.

Would the idea work with a Golf Course?

It might already be done but I've just thought of the idea and thought i'd get some views.

Anyway lets say we asked for £1650 off 1000 people, everyone can play the course as if they were a member. that would amass £1.650.000 enough to have bought this little beauty
http://www.humberts-leisure.com/86/article/1073/page.html

I'm seriously thinking about taking this idea further but are there any obvious flaws that i havent noticed? Other than getting 1000 people to part with £1650 of course.

 

[GB72]

Suppose the next problem would be splitting the running costs. Also have the problem of 1000 people wanting a say in most decisions. Before you know it you need to appoint a board of committee to run things and you are back to being in a similar position to being a member of any club.

 

[minty18]

Well maybe you could include the 1yrs running costs in the price each individual has to pay....

with regards to the decision issues every shareholder is equal, everyone gets a vote and the majority vote is what the club moves forward with..... all terms you'd have to agree to before getting invloved.

At the end of each tax year you could then divide 50% of the profits between the shareholders and keep 50% in the account for any unforseen problems.... every 5 years the club will pay out an individual lump sum to shareholders based on the other 50% profit from the last 5 years.

Just think, you could be an owner of 1 golf club or even 5 golf clubs...

 

[flandango]

sounds like a good idea! Keep me posted on any developments!

 

[minty18]

will do, i'm just doing a bit of research now.

doesnt seem to be anything similar on the net..........yet

 

[John_Findlay]

Would the idea work with a Golf Course?

Actually, as a member of a club you are an owner if the club owns the course, albeit a joint owner during the term of your membership and subject to the rules laid down by the committee who act on behalf of the club. Well, in Scotland anyway.

Sorry. The old lawyer coming out in me!

 

[minty18]

But John, if the club is doing good business you dont turn a profit.... however you would if you signed up to this idea.

You would also effectively have 1000 marshalls who would make sure the course isn't abused in anyway. Now i know members do this anyway but i'm sure everyone would look after the course that little bit extra.

just mailing dragons den.... ha!

 

[John_Findlay]

So it's just the same concept as every other club, Minty.

Most are owned by the members and the profits are ploughed back in to keep the annual membership fee down, others are owned by a Company (it's shareholders, like my own club) and charge non owning members an annual fee in the hope of making a profit.

If you had 1000 shareholders would you have room for non owning members and visitors to actually play the course and still make enough money to maintain it and still turn a decent profit out of green fees and bar sales alone? Maybe if you have 3 or 4 courses, not if there's only one, I imagine. It ain't an easy business, I'm afraid, though I would love to say I owned my own golf course!

 

[John_Findlay]

On the other hand, Minty, if the property had lots of adjoining ground to build houses or a hotel on then it would be worth looking at. Why do you think most newly built golf courses adopt this plan? The money's not in the golfers..it's in the real estate or hotel possibilities. Just look at Donald Trump's scheme near Aberdeen as an example. Over 1000 houses and an hotel.

 

[EchtLoon]

But John, if the club is doing good business you dont turn a profit.... however you would if you signed up to this idea.

Minty, as John says, the profits in normal golf clubs are ploughed back in in maintenance and in keeping the fees down.

I think we'd all love to own a golf club ourselves, but your suggestion is just what we have now (except for proprietary & municipals obviously) and wouldn't be like actually 'owning' a golf club.

 

[jeffc]

The club I recently joined did exactly that, they all put £1000 in and bought it from the owners. When you join now you can still become a shareholder for the same £1000 in addition to your annual subs. There's even an option to pay the sharholding in installments.
I've been told since it became a member owned club it has imrpoved beyond belief I'm just happy being a member of a super club with fantastic freindly members.

 

[minty18]

Thanks for the input lads.... it was only an idea after looking at the Ebbsfleet FC website.

I think you're right though unless the course came with land to build a hotel or something similar it wouldn't really be worth it.

 

[theeaglehunter]

If I win the lottery I may well buy one I will let all forumers have free membership as well.

Can't see it happening any other way though.

 

[HomerJSimpson]

I have always said if I win 3+ million in the lottery I'd buy the house and look after my family and then buy a golf course. Have a few in mind locally

 

[minty18]

Well euro millions is 100mill this week so i'd possible design my own golf course and have it made.....

The opening hole would be based on the 18th at Belfry!

I'd also have to have a par 3 where the green is 20ft or so below the tee...... i love par 3's like this.

 

[muttleee]

My old course is for sale...a snip at £3 million if you're interested!

 

[minty18]

that looks a lovely golf course!

Roll on friday!

 

[northender]

Most golf courses can't make any money or break even at best and with the loss of revenue from the wash out summer. There will be alot in financial trouble this winter.
So why would you want to buy one?

 

[Macster]

£3M might buy me the 1st and 18th on my Course, literally.

The Club is situated on perhaps the most prestigious road in the East Riding, and even in this 'Credit Crunch' would still fetch a small fortune.

I'm happy to carry on paying my membership for a slice of it per year

www.brough-golfclub.co.uk

 

[greensman]

That’s basically how all members clubs were formed. The sad fact is if you have more than one owner you will need a board of directors, or otherwise known as a committee.

The other sad point is golf courses are not making money, well not the members clubs.
I am a Course Manager and I have a tight budget, yet some will still be surprised that my budget is over £300,000 per annum.
Admin cost is also very high, and most club house bars actually make a loss, So do the catering and what about the pro’s retainer? It all adds up

My advice is stay well away.