Sequoia Golf purchased by Club Corp

[Eric Strulowitz]

Here is the link to the announcement:   http://www.ajc.com/news/business/sequoia-golf-to-be-sold-to-clubcorp-for-265m/ng2MX/

I am a member of Eagle Watch, which is a Sequoia property, one of over 20 in the Atlanta area.  Will be interesting to see how this unfolds and how our dues and membership benefits will be affected.  Sequoia will be missed, the conditions at all their properties has been amazing over the years, and they never seemed hesitant to spend money.  At my club, in just the last several years, new greens, new cart paths, a new driving range, and countless other improvements.  Their dedication to quality golf will really be missed.

Don't know anything much about Club Corp, other than they are a big player.  Time to do some research!   Is anyone here a member of a Club Corp property, and if so what has your experience been?

[Chris DeToro]

I'm not a member of a ClubCorp property but am very familiar with how they work.  It's a pretty good arrangment and you get reciprocal (cart fee only) at a number of clubs and courses around the country.  There are a few notable courses, though not really much that stands out from an architectural standpoint, such as Firestone, Mission Hills, Currahee Club, and Tiburon.  It's great if you travel a lot and just want to play

[Tom ORourke]

I am a member at a Club Corp course in Aiken, South Carolina. There are plusses and minuses. One plus is an upgraded membership which means you can play the other courses in their portfolio, only paying cart fees. You can play each course twice a month. Club Corp just added TPC Piper Glen in Charlotte, and Firestone is also on the list. Of course you find some places, like Country Club of the South near Atlanta, have a cart fee of $30 per person so check before you assume you are going to spend $16 - $19. We have people that do golf trips to Palm Springs as they pay more for air fare but do eight rounds in sets of the two rounds at four places, like Indian Wells, rather than spend high green fees on a Pinehurst trip. I am not arguing for the quality of the courses but just referencing dollars.
The downside can be that your club is now following Club Corp directives rather than your old structure. Your pro shop may no longer have much say in what they charge for their merchandise. They may want to drop the price on a certain set of clubs to match local competitors but may no longer have the ability to do that. And your greenskeeper is not beholden to your membership but to Club Corp management. If they want to water the course to death to keep it green they will do that. We have some experience with that. They can also decide to spend $500,000 to upgrade your bar and put in a patio rather than put the money into the course. We have some experience with that too. I would say that they basically know what they are doing and the positives outweigh the negatives. And they are expanding a bit as you see so I would rather throw in with them than join an equity club. In this economy solvency is usually a good thing.

[Eric Strulowitz]

I am a member at a Club Corp course in Aiken, South Carolina. There are plusses and minuses. One plus is an upgraded membership which means you can play the other courses in their portfolio, only paying cart fees. You can play each course twice a month. Club Corp just added TPC Piper Glen in Charlotte, and Firestone is also on the list. Of course you find some places, like Country Club of the South near Atlanta, have a cart fee of $30 per person so check before you assume you are going to spend $16 - $19. We have people that do golf trips to Palm Springs as they pay more for air fare but do eight rounds in sets of the two rounds at four places, like Indian Wells, rather than spend high green fees on a Pinehurst trip. I am not arguing for the quality of the courses but just referencing dollars.
The downside can be that your club is now following Club Corp directives rather than your old structure. Your pro shop may no longer have much say in what they charge for their merchandise. They may want to drop the price on a certain set of clubs to match local competitors but may no longer have the ability to do that. And your greenskeeper is not beholden to your membership but to Club Corp management. If they want to water the course to death to keep it green they will do that. We have some experience with that. They can also decide to spend $500,000 to upgrade your bar and put in a patio rather than put the money into the course. We have some experience with that too. I would say that they basically know what they are doing and the positives outweigh the negatives. And they are expanding a bit as you see so I would rather throw in with them than join an equity club. In this economy solvency is usually a good thing.

Thanks for the info Tom.

The thing I really wondering about is that I am an "Infinity" member with Sequoia.  What that means is that I had to pay a $5000 up front fee, and then I pay monthly dues of almost $400, and for that I get unlimited playing privileges at over 20 properties in Atlanta with no cart fee.  It is a helluva deal, especially  when your spouse is an avid player too.  I would hate to lose this, time will tell.   Be interesting to see if I have to pay another large amount up front to get into the premium Club Corp program, or whether  they will grandfather me based on monies I have paid before.  Oh well, it is out of my hands.  I certainly wish all the members of the Sequoia owed courses the best of luck in this transition!

[A.G._Crockett]

Boy, this is a BIG thing in Atlanta!  It will be very interesting to see how it plays out.  I'm not a Sequoia/Canongate member now, though I was long, long ago, but I live very close to The Manor, Atlanta Natl, and Polo and have a lot of friends who are members one place or another.

This make Club Corp a huge player in the ATL market instantly.

[David_Tepper]

It looks like Sequoia also runs clubs it does not own outright, either thru leasing a club or just managing a club on a contract basis. I presume ClubCorp will be taking over that aspect of Sequoia's business as well.

[Joe_Tucholski]

Eric I can't say for sure how it will work out for you.  I do know there are multiple membership options within club corp.  I'm a signature gold member and as Tom said I get 2 rounds per month at other clubcorp courses for a trail fee (you pay the fee if you walk).  There are also preferred rates at affiliate clubs. 

When I first joined the club I was given something like a 60 day option where the clubcorp initiation was waived if I joined.  One thing I will add is I don't get to play the other clubcorp courses in my local area.  For that there is something called a society or community, which comes with an additional fee.  There are other decent benefits as well.  Primarily the dining clubs provide 2 free meals a month.  Honestly none of the courses are great but I still consider it a pretty good setup.  If I had contacts at top tier courses in larger cities I don't think it would be worth while.

To get an idea of the benefits check out the following page and select something like Bears Best Atlanta for your home course to get an idea on what options you will have for areas you travel to.

http://www.clubcorp.com/Membership/Benefits-Finder

[Eric Strulowitz]

Eric I can't say for sure how it will work out for you.  I do know there are multiple membership options within club corp.  I'm a signature gold member and as Tom said I get 2 rounds per month at other clubcorp courses for a trail fee (you pay the fee if you walk).  There are also preferred rates at affiliate clubs. 

When I first joined the club I was given something like a 60 day option where the clubcorp initiation was waived if I joined.  One thing I will add is I don't get to play the other clubcorp courses in my local area.  For that there is something called a society or community, which comes with an additional fee.  There are other decent benefits as well.  Primarily the dining clubs provide 2 free meals a month.  Honestly none of the courses are great but I still consider it a pretty good setup.  If I had contacts at top tier courses in larger cities I don't think it would be worth while.

To get an idea of the benefits check out the following page and select something like Bears Best Atlanta for your home course to get an idea on what options you will have for areas you travel to.

http://www.clubcorp.com/Membership/Benefits-Finder

Thank Joe

I had the chance to review the different Club Corp packages and the buy-up programs really give you a lot for not a whole lot o extraf $$$.

I am surprised that people are not beating the door down to take advantage of these programs and all the access to some really top tier courses that are provided.  I am equally surprised that Club Corp has not shown a profit since 2010 and lost 40 million dollars last year.  What a tough business golf has become!

[Pat Burke]

Eric I can't say for sure how it will work out for you.  I do know there are multiple membership options within club corp.  I'm a signature gold member and as Tom said I get 2 rounds per month at other clubcorp courses for a trail fee (you pay the fee if you walk).  There are also preferred rates at affiliate clubs. 

When I first joined the club I was given something like a 60 day option where the clubcorp initiation was waived if I joined.  One thing I will add is I don't get to play the other clubcorp courses in my local area.  For that there is something called a society or community, which comes with an additional fee.  There are other decent benefits as well.  Primarily the dining clubs provide 2 free meals a month.  Honestly none of the courses are great but I still consider it a pretty good setup.  If I had contacts at top tier courses in larger cities I don't think it would be worth while.

To get an idea of the benefits check out the following page and select something like Bears Best Atlanta for your home course to get an idea on what options you will have for areas you travel to.

http://www.clubcorp.com/Membership/Benefits-Finder

Thank Joe

I had the chance to review the different Club Corp packages and the buy-up programs really give you a lot for not a whole lot o extraf $$$.

I am surprised that people are not beating the door down to take advantage of these programs and all the access to some really top tier courses that are provided.  I am equally surprised that Club Corp has not shown a profit since 2010 and lost 40 million dollars last year.  What a tough business golf has become!

And the stock was up 7% since IPO

[Wayne Freeman]

I belong to Old Ranch CC in Seal Beach, Calif. and we just received the news that Club Corp was taking  over from Sequoia.
 According to our GM there is no expectation of any major changes in the overall management of the club.  There is a 20 year
 master lease which Club Corp will assume. In Calif.  Sequoia also runs Pauma Valley,  Rancho Vista in Palmdale, and Spanish Hills in Camarillo.
We have been really happy with Sequoia.. they have done a lot to improve the course from the get go. For corporate folks who travel a lot I guess there is some advantage to reciprocal playing at their courses, but I don't think the portfolio has any great properties... I guess
Woodlands is probably the best known.

[Eric Strulowitz]

I belong to Old Ranch CC in Seal Beach, Calif. and we just received the news that Club Corp was taking  over from Sequoia.
 According to our GM there is no expectation of any major changes in the overall management of the club.  There is a 20 year
 master lease which Club Corp will assume. In Calif.  Sequoia also runs Pauma Valley,  Rancho Vista in Palmdale, and Spanish Hills in Camarillo.
We have been really happy with Sequoia.. they have done a lot to improve the course from the get go. For corporate folks who travel a lot I guess there is some advantage to reciprocal playing at their courses, but I don't think the portfolio has any great properties... I guess
Woodlands is probably the best known.

We received some communications from Club Corp and I am very pleased overall with what they will be offering down the road to all of us.  Unlike the Sequoia portfolio, which has a lot of good, but few really great venues, that is not the same for Club Corp, which includes the likes of Oak Tree, Firestone, Mission Hills, Black Creek, Country Club of the South, etc.   And if you are in certain upgraded programs, you can play these for cart fee only.  Can't wait to learn more and get signed up.

[Pat Burke]

I belong to Old Ranch CC in Seal Beach, Calif. and we just received the news that Club Corp was taking  over from Sequoia.
 According to our GM there is no expectation of any major changes in the overall management of the club.  There is a 20 year
 master lease which Club Corp will assume. In Calif.  Sequoia also runs Pauma Valley,  Rancho Vista in Palmdale, and Spanish Hills in Camarillo.
We have been really happy with Sequoia.. they have done a lot to improve the course from the get go. For corporate folks who travel a lot I guess there is some advantage to reciprocal playing at their courses, but I don't think the portfolio has any great properties... I guess
Woodlands is probably the best known.

We received some communications from Club Corp and I am very pleased overall with what they will be offering down the road to all of us.  Unlike the Sequoia portfolio, which has a lot of good, but few really great venues, that is not the same for Club Corp, which includes the likes of Oak Tree, Firestone, Mission Hills, Black Creek, Country Club of the South, etc.   And if you are in certain upgraded programs, you can play these for cart fee only.  Can't wait to learn more and get signed up.

Oak Tree CC    Not Oak Tree National    Just so you know