Many clubs have longstanding issues that require careful planning in these times. Mine did not recently decide to spend a bundle on a big clubhouse etc; we built it in in 1925, all 110,000 sq ft of it (course, we had 4 golf courses, a hospital, bowling alley etc. etc. and 1200 regular members then, not including families).
In 1970 we rejected a plan to tear it down for a smaller more efficient one, amid much controversy and dissension. Now, we live with it. Would cost a fortune to knock down, a fortune to build another one, and it costs a fortune to operate now, though a lesser fortune. We do a large banquet, wedding, business meetings etc. operation to earn some bucks and upkeep money. Obviously, in this economy, we expect that to fall off next year.
The decision in 1925 has a lot to say about how we operate the club, as does our 36 holes, members with families and location. Essentially, we have 2 clubs -- the men's club that plays weekend mornings, brings business guests during the week, and never uses the clubhouse except for the locker room and 73rd hole (our grill room). We also have a family club, with ladies 9 and 18 hole groups (about 130 in all, who play tuesday and thursday mornings), a 150 kid junior golf, tennis and swim programs. A few years ago we decided that the decision to join a club now rests with both spouses, so we had to make the club inviting for both spouses. We could have been a men's club, closed half the clubhouse, eliminated the pool, tennis, kid's stuff etc. etc., and just had a select group of golfers paying $18,000 per to play. Given our location, the board at the time didn't think that was the right way to go.
This year we are expecting that we may get a lot of use, but lower revenue, because families will come out rather than going on vacations, but we will have less guest revenue. We think that with the club being a "home away from home", families will be less likely to quit than if the club was only used by one spouse. We'll see.
I guess the point of this is that each club has different issues, and it's hard to make broad statements about what's best for them.
Bill, that's a pretty decent debt load for one course and what I guess is a relatively small membership. Must be around $5-600K P/I. We have less than that, and a large membership, but I'm still keeping basically a sinking fund of revenue from this year to ensure we won't have any issues about meeting our debt service, no matter how lousy next year is.