Colonial CC in Harahan La is being sold at sheriff sale on Ash Wednesday

[Tiger_Bernhardt]

Harahan is a New Orleans Suburb. The club is on 88 acres and owes 7.2 million. I have played some golf there over the years. It is another sad story of where reality in financial markets are for much of America.

[JMEvensky]

Harahan is a New Orleans Suburb. The club is on 88 acres and owes 7.2 million. I have played some golf there over the years. It is another sad story of where reality in financial markets are for much of America.

How does a club run up $7.2 MM in debt?

[Tiger_Bernhardt]

It seems compounding interest over a decadeish for refinance of renovation.

[Sam Morrow]

Tiger is the course any good? If I recall what I've been told it's right on or very close to the river.

[Mike_Young]

How does a club run up $7.2 MM in debt?

All it takes is a consultant like some of the guys the CMAA suggest.  WE have a 6 million debt on renovations to course and clubhouse, the consultant suggested doing it in a down time would give us a better deal and we would be ready when things came out of the recession.  Boards are an amazing thing...

[Ken Moum]

How does a club run up $7.2 MM in debt?

You'd be surprised at the mortgages of some clubs.

I know there are people here who find it unseemly, but as a member of a club that ended up in a Sheriff's auction, I was interested in just how much debt other clubs carry.  Since most of them are nonprofit, their 990 forms are available on the Web.

For instance, there's a famous Midwestern club that has held a bunch of Opens and a couple of PGAs was carrying a mortgage of more than $12 million at the end of 2010. It's been remodeled a few too many times, IMHO.

Another multi-course club with similar aspirations in the southeast was in the 6-7 million range in 2010 as well.

Since the debt at places like those is usually far less than the value of the place, they aren't in any real trouble, but in light of the food minimum discussion, I wonder about places that pay their chef 150-250 thousand dollars.

K

[JMEvensky]

How does a club run up $7.2 MM in debt?

You'd be surprised at the mortgages of some clubs.

I know there are people here who find it unseemly, but as a member of a club that ended up in a Sheriff's auction, I was interested in just how much debt other clubs carry.  Since most of them are nonprofit, their 990 forms are available on the Web.

For instance, there's a famous Midwestern club that has held a bunch of Opens and a couple of PGAs was carrying a mortgage of more than $12 million at the end of 2010. It's been remodeled a few too many times, IMHO.

Another multi-course club with similar aspirations in the southeast was in the 6-7 million range in 2010 as well.

Since the debt at places like those is usually far less than the value of the place, they aren't in any real trouble, but in light of the food minimum discussion, I wonder about places that pay their chef 150-250 thousand dollars.

K

I'm a big fan of Form 990's myself--nothing like a little nosiness about other clubs' financial condition.

Sadly,I speak the Board/bank borrowing language fluently.I just thought $7.2MM was a little steep for Harahan,La.The compounding of unpaid interest was the wild card I hadn't figured.

[Tiger_Bernhardt]

The Cal Club is certainly one that for most of its history would be considered above the economic fray. The last few years have been the opposite. they are living on the edge due to financing renovation costs.  Sam It is just an average course but one that I enjoyed playing.

[Paul Jones]

Tiger,

I have never played Colonial nor heard of anyone talk about it.  I just looked at there website and saw this:

Golf Special Limited Time
A Round of Golf for $20.00 per person
includes green fee and cart

The history said it was built in 1927, but I could not find who was the architect.

Paul