Somewhat OT- New Course Management/Membership Model

[Jamey Bryan]

I've been reading up on the McConnell Golf Group (out of Raleigh, NC) and their recent acquisition of Reserve Golf Club in Pawley's Island.  It seems that they have a fairly unique philosophy, acquisition of very high quality courses in a convenient, but not really contiguous area.  This allows them to offer:

1)  A normal private club membership at (given their reasonable acquisition costs) fairly reasonable dues levels.
2)  Attractive reciprocal privileges in areas their members are likely to travel or which are convenient enough that they might want to.
3)  A national membership program offering non-residents (to any of their courses) relatively inexpensive access to six (and growing) high quality clubs.
4)  A limited number of "public" rounds via a "McConnell Golf Trail" travel package including golf, travel, and meals (all luxury level).

McConnell Golf now owns and operates:

Raleigh Country Club (Donald Ross)
Old North State Club (Tom Fazio)
Treyburn Country Club (Tom Fazio)
Musgrove Mill Golf Club (Arnold Palmer)
Cardinal Golf and Country Club (Pete Dye)
Reserve Golf Club (Greg Norman)

McConnell first acquired Raleigh Country Club in 2003 and appears to have a history of investing significantly to improve the courses and conditions post-acquisition.  They do not spend extravagantly, but are willing to invest in  facilities which offer significant value-added to the experience (eg cabins for national members).

Is this model unique to NC/SC and McConnell, or are there others offering similar deals?

Jamey

[Bill_McBride]

Somebody I was talking to recently was a member of a club owned and operated by Club Corp.  Apparently there are a bunch of courses they operate and the members have privileges that include free golf at many of them.  Club Corp owns Pinehurst; I'll bet there's a healthy surcharge on #2!

Members of the Woodlands in north Houston are part of another consortium owned by a Georgia company.  Maybe Steve Lang can tell us how that's working out.

With the desire of many to belong to one or more out of town clubs, that could be an attractive model if it's well done and people and staff are friendly at the other clubs.

[Steve_ Shaffer]

I am a resident social member with limited golf privliges at Talamore CC in the Philly 'burbs. Talamore also owns a new private club in the western Philly 'burbs (about 45 minutes from me) that is about to open(Applecross CC) and two courses in the Pinehurst, NC area-Talamore and Mid-South. The owner owns condos at the Pinehurst clubs and offers good rates for the residents of his PA clubs. There's a lot of cross marketing going on.

http://www.talamorepa.com/clubmembership.html

http://www.talamoregolfresort.com/

[Jamey Bryan]

Bill:  

Actually, the early Club Corp had a lot in common with McConnell Golf Group (not the least of which is that they both were founded in very difficult economic times).  The early Club Corp, however, did not focus on the quality golf architecture that McConnell is emphasizing, but focused on quantities of clubs (both city dining and golf).  Club Corp certainly did have some quality courses in their portfolio, but they had many, many middle-of-the-run courses and clubs.

BTW, four or five years ago the Dedmon family sold Club Corp but RETAINED the Pinehurst Resort.  It's no longer a CC owned property....  CC may have a management contract, but I really don't think so.  CC does still own the Homestead and some other really nice properties.

Jamey

[rjsimper]

Jamey,

I don't know much about models beyond McConnell outside the Carolinas, but it is a very interesting model to me. As someone who is more interested in playing nice golf courses and less interested in a pool, dining room, or other such extras, I think I'd strongly consider joining a McConnell club - having played a couple of the courses on their roster, that's pretty enticing.

I wonder, though, if this is more of a band-aid in the down economy rather than the possibility of this being viable in a stronger economy with waiting lists on single-club memberships. Seems that the courses of this quality might return to that point. Kind of like the non-resident membership vs resident membership quotas involved in some golf/live communities (Hasentree in Raleigh, for example)