Scottsdale National GC -- Interesting concept

[Steve_ Shaffer]

Tom,

You are correct. There was no real estate component.

Nearby, if not adjacent,  is Lyle Anderson's new project: www.sierrareserve.com

I believe that Anderson passed on buying TGC Scottsdale.

I wonder if Trump passed too.

[David_Elvins]

How can the concept not work?

[JESII]

Only Parsons eventual loss of interest in funding it...

[Daryl David]

It will work and my bet is he will not grow tired of funding it. If he really wants his own private playground like other wealthy folks have, more power to him. There have been plenty of  folks "writing the checks" so clubs stay afloat the last few years and those with committed owners have done fine.  Think of it this way. Given his net worth, buying and funding Scottsdale National is financially the equivalent of an average club member deciding to join a second club.  Just as those decisions are not governed by business rationale, I doubt his is either.  I wish him the best as I do all who seek to add to their golf enjoyment.  

[Steve_ Shaffer]

[BHoover]

I wish him the best too.  But in my opinion, there is something distasteful about effectively forcing out long-time members for the sake of turning the place into some national destination club.  I don't dispute that he has every right to do it as the owner.  I just don't think it's the classy thing to do.  But then again, the members he wants out will get their money back, so it's fair.

[Tim Gavrich]

All the members he's thrown out of the club will ostensibly be wanting to join somewhere else, won't they? That sounds like a win-win--Parsons gets his money-is-no-object, turnkey golf playground and other area clubs take on a few new members.

[Jason Thurman]

I'm not sure why a club like this would have worked ten years ago but wouldn't now. This club is clearly targeting the wealthy elite and not the middle class golfer. It's not the wealthy elite who are walking away from golf right now. It's the middle class guys who can't afford it or don't have time.

I agree that it will work, if for no other reason because it looks like their owner won't mind running the place in the red a bit. As a member, I'd be out once I heard about the $100 service fee per day of use. But the clientele they're looking to attract won't mind. It sounds like Scottsdale doesn't currently have a real "big money" elite club, so there's a market niche available here.

Brian, there's nothing wrong with forcing out the long time members. They could have bought the course themselves if they wanted. Letting it sell to an outsider for $600k is pretty pathetic.

[BHoover]

I'm not saying it's wrong to force out members. There were guys at clubs I've been a member that I thought should be pushed out. I'm just saying it's distasteful IMO. But not wrong.

I'd also be out as soon as the club tried to charged me a daily service fee.

[Will MacEwen]

I wish him the best too.  But in my opinion, there is something distasteful about effectively forcing out long-time members for the sake of turning the place into some national destination club.  I don't dispute that he has every right to do it as the owner.  I just don't think it's the classy thing to do.  But then again, the members he wants out will get their money back, so it's fair.

He is giving them a free awesome sandwich. 

[JESII]

I actually think the daily service fee is an interesting concept.

At the end of the day there is a cost to running a club in whatever manner the club (membership, or single owner) prefers. How is that total cost split up?  The daily service fee shifts that cost from the people that don't use the club to those that do...seems to make sense to me.

Expect the 30 round rule to go away in short order...it's simply illogical. The guy just wants to see a commitment by members to support the costs of running a club.



Jason,

Do you have reason to believe this did work 10 years ago? The club only started 10 years ago and was insolvent the last couple so if it worked then, it didn't work for long.

[Brent Hutto]

It's interesting that your $110,000 initiation fee apparently puts you in the deadbeat category if you don't stick around to buy a beer and a sandwich after your round.

Bah, trunk slammers. Scourge of the game.

My club would make these guys a real deal. Instead of $110,000 initiation they could send us just $11,000 (one tenth the price!) and be perfectly welcome never to set foot on our property. Assuming of course they were the right kind of people...that being people whose checks for 11 grand don't bounce.

[Jason Thurman]

Jim, I think you missed my point. Brian said in the original post that he thought an idea like this might have worked ten years ago but that its time has passed. I'm not sure whether he's right on the first point or not. My only point is that the market targeting the wealthy elite hasn't collapsed in nearly the way that the market targeting the middle class consumer has.

[Steve_ Shaffer]

Parsons said Friday that he wants to redesign holes 15 to 18 and build a nine-hole par-3 course in a mountainous area of the course. A new, larger clubhouse with “breathtaking views” and underground parking are in the plans, along with a guard house and entry feature.

"I'd like it to be one of the premier golf courses in the world," he said.

So far Parson has added new carts and Toro maintenance tractors, brought in a new chef and increased staff pay.

Parsons said he is searching for a course designer and a clubhouse architect. Improvements are likely to begin in the late spring of 2015.

Members had until Friday to decide whether to resign or continue as members.

About 109 members chose to stay and 65 will leave the club, Parsons said.

http://www.azcentral.com/business/arizonaeconomy/articles/20140130godaddy-founder-bob-parsons-shakes-up-scottsdale-golf-club.html?nclick_check=1

[Steve_ Shaffer]

The 30 round limit has been waived!

http://www.azcentral.com/business/arizonaeconomy/articles/20140203godaddy-founder-sweetens-deal-members-his-golf-club.html?nclick_check=1

[Tom Yost]

I just saw that article in this morning's business section and came on to post the hot scoop but as always, Shaffer beat me to the punch.   

Sounds like he has succeeded in ousting the "cheapskates" and is now rewarding those that stuck with the plan.  As far as being "unfair," I don't think so.  Those that chose to leave got 100% of their initiation back - sounds tremendously fair.

[Steve_ Shaffer]

Lyle Anderson's adjacent new development referred to above (#29) has been sold to Parsons!! 223 acres....

SIERRA RESERVE SOLD

Open house events scheduled on March 15 - 16 have been cancelled.

We sincerely appreciate your interest and support of Sierra Reserve and would like to share with you the most recent news regarding the community.

On March 10, 2014, Mr. Bob Parsons purchased the 223-acre parcel of land known as Sierra Reserve, which is directly adjacent to his recently acquired Scottsdale National Golf Club. This acquisition affords Mr. Parsons the flexibility to achieve his objectives and goals for the Club. He very recently made the offer to purchase the land with terms and conditions that were carefully considered and ultimately approved by the Reserve Development partners.

While we are definitely disappointed that Sierra Reserve will not be developed, we are extremely grateful for the widespread enthusiasm that the community had for our vision. We also want to take this opportunity to express our sincerest gratitude to our prospective buyers, the real estate community, our vendor partners and members of the media for your time, interest and support, and to our incredibly talented team for the hard work, dedication and commitment to making Sierra Reserve a truly one-of-a-kind place to live.

[Howard Riefs]

The latest from Bob Parsons.

http://www.geoffshackelford.com/homepage/2014/10/8/hes-back-parsons-pens-another-letter-to-the-few-members.html

Essentially:

"Dear member, I'm investing my own money in your course. It's going to be great! Your monthly dues will increase about 300%. I hope you continue to be a member...."

[Steve Okula]

Whatever are the pros and cons of Parson's business plan, Scottsdale National sounds like a dream job for the superintendent.

An individual owner with deep pockets able to provide practically unlimited resources with minimal play and politics. It doesn't get much better than that.

[jeffwarne]

Whatever are the pros and cons of Parson's business plan, Scottsdale National sounds like a dream job for the superintendent.

An individual owner with deep pockets able to provide practically unlimited resources with minimal play and politics. It doesn't get much better than that.

Maybe......
but you'll note he has a new pro and GM for this year

[Brent Hutto]

For $2,000 a month I could make eight 10-day trips a year to England and be a member at Royal Cinque Ports. With enough left over to cover a huge bar tab (which as I understand it is a de riguer budget item when joining up at Deal).

Maybe I'd better say seven trips a year to be on the safe side.

[Jason Thurman]

Sure Brent, but what price can you put on being able to play the Augusta National of the West with no one else in sight?

Those new holes sound luscious. I wonder which one will end up being the Signature Hole?

[Matt Frey, PGA]

Not only are the membership's month dues increasing from $750 to $2,000, but they have a daily service fee of $50. If you play enough golf in a year (of course that's what the owner is trying to avoid), that can add up in a hurry. Then again, I'm sure most of the members who stick around won't really be too worried about $50 here and there, other than the principal of the thing.

[Steve_ Shaffer]

I wonder how Parson's plan compares to the numbers of other newer clubs like Alotian, Friar's Head, Sebonack, The Bridge ,etc?

[Andy Troeger]

I'm interested to see if this concept works in the long run. Given that the strategy is to only need a small membership base, it might be possible to find enough with deep pocketbooks to make this venture work.

The club is clearly basing itself on high quality amenities and facilities--things that are generally not valued as much by this group. This case is most interesting because it is one of the few (only??) clubs to start as a "regular" high-end club, only to go super-exclusive and high end. Most of the others started that way from the beginning and were always tough to access. Many potential guests may have already had a chance to play Scottsdale National, at least the original version. Does that impact how this venture fares?

I'm curious if the golf course is good enough to lend itself to that type of club. I enjoyed the course, but put it in the same category as most of the other high-end clubs in that area. I don't see the original course being any better than Whisper Rock, Desert Highlands, a few Desert Mountain courses, Desert Forest, or Estancia. Perhaps the changes improve it, but most of them seem to be non-golf related. Will be interesting to see.