I have never met Chris Johnston, have never been to Dismal River and in general do not like guys from Notre Dame (relax it is a Boston College insecurity issue, not Chris or Pat Mucci's fault!) but I appreciate the fact that he talks about the reality of golf course architecture rather than the coffee table book version.
Mike,
I can be counted amont the casualties of the "join it and lose it" gang. I joined a really cool club in Jackson Hole that went bankrupt. That's why I mentioned debt as an issue years back - I was burned by it, and that's why we operate the way we do.
I will forgive you the Notre Dame bias and affection for Boston College. If you ever happen to visit, be forewarned, you might not find some of our signs to your tastes, but we do hold Mass on the back deck from time-to-time.
If I were looking at an independently owned club, here are the "Top 10" things I would want to know, would ask and/or would pay attention to:
1. Does the club generate cash flow, if not net income? (Disclosure nugget for those curious: Happily, Dismal River does both)
2. Is the club overleveraged? (as many of us have seen firsthand, excessive debt kills)
3. Does the club take care of CapEx needs. You can easily "eyeball" this on the course and facilities.
4. Is the membership high cost and refundable, or lower cost and non refundable? (know what you are buying)
5. Have there been financial "red flags" in the clubs history, are they openly disclosed, and have they been addressed?
6. Is there any history of ownership, is ownership hidden or engaged, and can you meet the owner?
7. Is there a strong continuity of employees, or do they churn every year? (Stability here is a very good sign)
8. What is the "get out" procedure?
9. Are there any club minimums, or other limits, that aren't a good fit for me?
10. Do I like and fit into the club and it's culture, and do the members seem engaged in the club?
If the "top 10" generate a green light, you should be in good shape.