What would your club do with £1 Million?

Grant85

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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.
 

HomerJSimpson

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Interesting question. We got c£75k a year over three years from Red Bull for the Air Race which enabled us to do essential and effective drainage work from our 12th-16th which has made a massive difference to the playability of the course in wet winter conditions. If we had a significant amount of £1m it would be dependant on whether this has come at a cost to the course and a need to lose/redesign holes which would have a significant impact on whether I decided to stay as a member.

If the money came as some sort of windfall and the integrity of the course was intact I would hope the club initially invested in replacing, maintaining and expanding their equipment. The better the machinery, the better the quality of course the green staff could produce. To be fair, ours have done really well on their limited (and in some cases ageing equipment). Other than that I hope they'd have the common sense to save the rest, get the interest on it and prepare for a rainy day.

I always said if I won the lottery and it was one of these big amounts, I'd invest in a quality short game area and give a sum to redevelop the clubhouse, add a top tier and maybe change the design which are things the club has looked into before.
 

shortgame

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I hear a few clubs are in a similar position (due to hefty VAT rebates rather than land sales).

Mine would be Clubhouse refurb / Spike bar. Bunker renovation. Machinery upgrade. Practice ground upgrade.

Pretty happy with most everything however there's always scope for improvement to take the club up to the next level.
 
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FuzzyDuck

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The owner of the course I play at wants to add hotel rooms to the clubhouse initially 12 but later this rose to 21, it currently has none.

About 3 years ago they applied for, and got, planning permission for a large care home that would sit in unused land between the 2nd and 3rd fairways. After this was approved they put in the application for 12 hotels rooms, this was also granted. And then nothing happened until July last year when a new application for the 21 rooms was lodged but also within the application was a plan to build 18 "executive" homes on a strip of land boarding the 7th fairway and green. Support for the hotel addition was virtually unanimous however the 18 house proposal was almost universally condemned for a multitude of reasons. It was even hinted that if the applications was refused that the golf course might have to close. The application was refused, chiefly because the housing had no affordable homes included in the plans.

We are now waiting for the owners next move.
 

HomerJSimpson

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The owner of the course I play at wants to add hotel rooms to the clubhouse initially 12 but later this rose to 21, it currently has none.

About 3 years ago they applied for, and got, planning permission for a large care home that would sit in unused land between the 2nd and 3rd fairways. After this was approved they put in the application for 12 hotels rooms, this was also granted. And then nothing happened until July last year when a new application for the 21 rooms was lodged but also within the application was a plan to build 18 "executive" homes on a strip of land boarding the 7th fairway and green. Support for the hotel addition was virtually unanimous however the 18 house proposal was almost universally condemned for a multitude of reasons. It was even hinted that if the applications was refused that the golf course might have to close. The application was refused, chiefly because the housing had no affordable homes included in the plans.

We are now waiting for the owners next move.
Which club is that? PM me if you don't want to put it on here
 

Garush34

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If the club was to get that sort of cash, I think the main investment would be with equipment and the course. They are currently looking at upgrading equipment at the moment but with limited funds it is a case of holding out for a better deal. An upgrade to all the equipment and investing in new equipment would allow for more jobs to be done around the course. At present some jobs can't be done due to the cost of hiring equipment.

I would hope that they would invest in some new tees on the course, as some of the current tees are not great, but what I would like to see if the option of additional tees on some of the holes. As a small 9 holer I think it would be great to play some of the holes from a different angle for the second time round.

Other than that I think saving some of the funds for the future would be the best bet. Get the best interest rate bank account they can get and save for say 5 years and just invest the interest back into the course every year. That way they have a steady income that they can for sure invest and improve on a yearly basis.
 
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Proprietor run, so probably would take the money and run:LOL:
 

Orikoru

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Hopefully sort out the fairways, and the rough, and the tee boxes, and actually get a catering company in so we can have a pint afterwards.
 

Wolf

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Our club is actually in discussions with a developer about a plot of land adjacent to our 9th hole/practice area. The plan is to build 3 luxury houses on that piece of land which will give them views over the course and part of South Kyme countryside. The money raised for sale of that piece of land if planning is approved will allow for a reshape of the 9th hole Itself to give it more of a risk reward option to players and then adding in a another tee further back to be able change how it plays further still.

After that work there would still be something like 450k left over for which would be used to maintain the course and machinery.

Other than that I like the black jack and hookers option.
 

jim8flog

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We had this sort of proposal a few years ago. A development company were going to buy our overflow car park to build a hotel. The money was going to be used to build a new clubhouse with a separate function room for hiring out. Sadly this was in the pipeline just before the markets crashed and the recession kicked in.
 

Wabinez

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Same. Probably spend it on more signs, more bunker rakes and more flags to put on flag poles.

Can’t do anything for the course as it’s on SSI land, so fairway irrigation is out. Maybe they’d do a full bunker refurb, but would probably replace the chairs in the clubhouse instead
 
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