Grant85
Head Pro
There are quite a few clubs these days that have the opportunity to sell some land or re-jig their course or facilities and bank 7 figures from developers or land bankers.
For some clubs, this is a nice to have. For others more of a necessity.
There are 3 members of clubs in my office and all have / are talking about similar proposals at different clubs, all at different stages of planning.
So what would you club do with a significant cash sum?
The cynic in you, might say, just keep running a golf course until it was all done. But in reality, this is something that could easily happen. Given that the same or similar course that is just a bit better maintained is probably not going to suddenly have 100 or so new members. And it would be really easy for clubs to start thinking up projects to upgrade that, replace this or develop a new one of those and 5 years later the cash is basically done and the yearly finances look much the same.
Or, you could place the money into an investment and draw out 4% or so a year to help with running costs for the long term. But would this simply lead to the club building in a loss to their finances each year and not operating under the same pressure, that often leads to better and more conservative decision making. Once again, 5 years later, there wouldn't really be much change and the club could effectively continue to operate at a loss all the time.
For some clubs, this is a nice to have. For others more of a necessity.
There are 3 members of clubs in my office and all have / are talking about similar proposals at different clubs, all at different stages of planning.
So what would you club do with a significant cash sum?
The cynic in you, might say, just keep running a golf course until it was all done. But in reality, this is something that could easily happen. Given that the same or similar course that is just a bit better maintained is probably not going to suddenly have 100 or so new members. And it would be really easy for clubs to start thinking up projects to upgrade that, replace this or develop a new one of those and 5 years later the cash is basically done and the yearly finances look much the same.
Or, you could place the money into an investment and draw out 4% or so a year to help with running costs for the long term. But would this simply lead to the club building in a loss to their finances each year and not operating under the same pressure, that often leads to better and more conservative decision making. Once again, 5 years later, there wouldn't really be much change and the club could effectively continue to operate at a loss all the time.
