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Tommy Williamsen

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Re: Paying dues while your course is being renovated?
« Reply #50 on: December 26, 2013, 11:04:39 AM »
Sheehy

We have had two assessments levied on the members; one for the reservoir and one for the new watering/drainage/pump system.  Though, the assessments will be carrying on for years, I think capped at £500 - £50 a year.  The club was quite sensible in looking for ways to pay for the new work using assessments, bank loans, reserves, member loans.  I must admit that over two winters there was barely any course disruption and most members were incredibly impressed by how smooth the two projects were carried out.  One major reason against closure of the course in the UK for major clubs is the loss of green fees.  The green fees will easily off-set any extra charges due to keeping the course open.  The members also remain much happier.  Its a win/win so far as I am concerned.  

At my old club a developer wanted to buy the land and offer us anotehr parcel to build a course.  More or less, the older members voted it down saying they only have so much golf left in them.  It didn't much matter if that golf was on a better course.

Ciao      

Every club, but one, where I have been a member of has had an assessment.  Each time a significant number of members have left.  One club had two $2000 assessment in two consecutive years.  Each time guys left.  I'm not sure assessment work.
Where there is no love, put love; there you will find love.
St. John of the Cross

"Deep within your soul-space is a magnificent cathedral where you are sweet beyond telling." Rumi

Lou_Duran

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Re: Paying dues while your course is being renovated?
« Reply #51 on: December 26, 2013, 12:02:52 PM »
What if it's not a member owned club?

Thats the question.  They were member/owners but now just members.  They seem to be drawing a line in the sand that they now don't want any responsibility in the salaries, taxes or upkeep.  Its a much older membership than its peers.  They just want a place to hit the ball and have no interest in the business.  Sadly they are either naive or ignorant to what it takes to keep a club operating.

How many members at club's really do have an idea of what it takes for a club to operate?  In my experience the people that have an idea of how to run a club are few and far between and often times have experience working in the golf industry.  

Perhaps because some clubs fail to provide a clear picture of the P & L?  At "my" club, the current rumor is that the owner is losing between $700k and $1Million annually.  Maybe if the books were in order and the members had some access, there would be less conflict.  However, to the extent that the membership has radically different expectations of what the club should be, the problem is insurmountable.  This is particularly so as long as the side pushing for more services and better conditioning, costs be damned, prevails.  Funny how golf is a microcosm of society at large.

Ulrich Mayring

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Re: Paying dues while your course is being renovated?
« Reply #52 on: December 26, 2013, 04:09:57 PM »
Ok, you did it, I'm getting on my soap box now :)

Funny how golf is a microcosm of society at large? You mean society of 300 years ago right? :)

Most courses we are talking about in this thread (i. e. private courses in the US and most UK courses) do not have enough members to justify their existence. Too many folks are carrying their nose too high to simply get together with other local golfers and make up an economically feasible club. In effect these clubs are doing the same thing that was the norm among nobility in feudal times: they reserve a large piece of land for their exclusive and sparing use. It used to be that hunting was forbidden by death penalty in royal forests - even though the King would go hunting maybe twice a year and the peasants would starve all year long.

So there, if golf courses were places that are utilised sensibly instead of kept empty artificially, then there would be no need for assessments or course closures for renovation work.

Ulrich
« Last Edit: December 26, 2013, 04:13:27 PM by Ulrich Mayring »
Golf Course Exposé (300+ courses reviewed), Golf CV (how I keep track of 'em)

Lou_Duran

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Re: Paying dues while your course is being renovated?
« Reply #53 on: December 26, 2013, 06:36:39 PM »
Ulrich- I am not well informed on kings and starving peasants, though I am very familiar with the tragedy of the commons and your affinity for soap boxes.

My comments were very specific to Mr. Warren's incredibly low opinion of club members, who though able to somehow put together enough nickels to join and support a private course, don't possess the necessities to understand how they operate.  My contention is that running a golf club is not rocket science and that with accurate figures and a good accounting system, it is well within the wheelhouse of the average member.

As I see it, the financial problems plaguing many clubs in the U.S. are more on the demand side- not enough people willing and/or able to play.  This, in my opinion, is primarily a function of economic policies enacted to further a collectivist political agenda which have yielded very little growth, high unemployment, and great uncertainty.  Without the creation of wealth and disposable income, golf will not flourish.  It is that simple or complicated.

My reference to golf as a microcosm of life is based on my experience playing widely throughout the U.S. and listening to golfers, superintendents, managers, and owners.  Members often place great demands on their clubs while resisting dues and price increases.  At my club which, reportedly, is bleeding cash, when I suggested that perhaps we didn't need to have an attendant deliver a cart to each arriving car in the parking lot, the then acting-GM responded that the members would not accept anything less.  The four or five outside operations guys and the two to three assistants in the pro shop to serve some 250 members doing 25k rounds in a 12-month year apparently are the right numbers.  So long as the owner is willing to subsidize the members, things are great.

In the U.S. today we have governments which consume over 40% of GDP while taking in through taxes and fees some 35%.  Of course, the spending doesn't include accruals for known mind-blowing deficits written into entitlement programs (Social Security, Medicare, Medicaid, ObamaCare, public employee pensions, etc.) which every private sector business would have to account for in its financial reporting.  The deficit is sustainable until we run out of other people's money, the rest of the world comes to its senses and refuses to fund our overspending, and the Fed's printing press finally tanks the value of the dollar.  I suspect that those who constantly demand more government freebies probably won't accept these as an excuse.  

At my club, the gravy train stops when the owner, who is near finishing the site work on the last tract of land for some 94 lots, sells the course to someone who will run it for cash flow.  Our demanding members will then have to decide whether a 50% dues increase is in order, or a substantial staff reduction, a more austere maintenance budget, and greatly reduced clubhouse services might do the trick.  Fortunately, unlike American society today, the members preferring a more substantial operation can't compel those who don't to fund it- the latter will leave short of assessments or large dues increases.      

Mark Chaplin

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Re: Paying dues while your course is being renovated?
« Reply #54 on: December 26, 2013, 06:44:46 PM »
Aren't assessments another word for poor management? If you cannot balance the books and the members bail you out every time there is little insentive to get the numbers right.
Cave Nil Vino

Pete_Pittock

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Re: Paying dues while your course is being renovated?
« Reply #55 on: December 26, 2013, 11:35:25 PM »
About twenty years ago, when Tualatin CC was 'upgraded" over a three year period members were assessed, but this was offset by incremental increases in the buyback if they later resigned.  

Mac Plumart

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Re: Paying dues while your course is being renovated?
« Reply #56 on: December 26, 2013, 11:40:10 PM »
Give to Caesar, what is Caesar's.
Sportsman/Adventure loving golfer.

Ulrich Mayring

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Re: Paying dues while your course is being renovated?
« Reply #57 on: December 27, 2013, 02:55:32 AM »
Lou,

thanks for your informative statement,it sounds like we are pretty much on the same page. You are bemoaning excessive spending, I am bemoaning under-utilisation. Both stem from individual views of entitlement.

The clubs would need more members to be sustainable and yet the members want to be alone, but have five attendants seeing to their every need. Sounds like feudal times to me :)

Ulrich
« Last Edit: December 27, 2013, 02:57:54 AM by Ulrich Mayring »
Golf Course Exposé (300+ courses reviewed), Golf CV (how I keep track of 'em)

Adam Warren

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Re: Paying dues while your course is being renovated?
« Reply #58 on: December 27, 2013, 07:07:57 AM »
Ulrich- I am not well informed on kings and starving peasants, though I am very familiar with the tragedy of the commons and your affinity for soap boxes.

My comments were very specific to Mr. Warren's incredibly low opinion of club members, who though able to somehow put together enough nickels to join and support a private course, don't possess the necessities to understand how they operate.  My contention is that running a golf club is not rocket science and that with accurate figures and a good accounting system, it is well within the wheelhouse of the average member.

As I see it, the financial problems plaguing many clubs in the U.S. are more on the demand side- not enough people willing and/or able to play.  This, in my opinion, is primarily a function of economic policies enacted to further a collectivist political agenda which have yielded very little growth, high unemployment, and great uncertainty.  Without the creation of wealth and disposable income, golf will not flourish.  It is that simple or complicated.

My reference to golf as a microcosm of life is based on my experience playing widely throughout the U.S. and listening to golfers, superintendents, managers, and owners.  Members often place great demands on their clubs while resisting dues and price increases.  At my club which, reportedly, is bleeding cash, when I suggested that perhaps we didn't need to have an attendant deliver a cart to each arriving car in the parking lot, the then acting-GM responded that the members would not accept anything less.  The four or five outside operations guys and the two to three assistants in the pro shop to serve some 250 members doing 25k rounds in a 12-month year apparently are the right numbers.  So long as the owner is willing to subsidize the members, things are great.

In the U.S. today we have governments which consume over 40% of GDP while taking in through taxes and fees some 35%.  Of course, the spending doesn't include accruals for known mind-blowing deficits written into entitlement programs (Social Security, Medicare, Medicaid, ObamaCare, public employee pensions, etc.) which every private sector business would have to account for in its financial reporting.  The deficit is sustainable until we run out of other people's money, the rest of the world comes to its senses and refuses to fund our overspending, and the Fed's printing press finally tanks the value of the dollar.  I suspect that those who constantly demand more government freebies probably won't accept these as an excuse.  

At my club, the gravy train stops when the owner, who is near finishing the site work on the last tract of land for some 94 lots, sells the course to someone who will run it for cash flow.  Our demanding members will then have to decide whether a 50% dues increase is in order, or a substantial staff reduction, a more austere maintenance budget, and greatly reduced clubhouse services might do the trick.  Fortunately, unlike American society today, the members preferring a more substantial operation can't compel those who don't to fund it- the latter will leave short of assessments or large dues increases.      

So what is it that members have done to not allow me to have an incredibly low opinion?  I would imagine that the fact that they see the excessiveness and don't care how much it costs is a direct indication that they do not know what goes into running a golf club.  I guess my thing is its not that they don't know what it takes, it is that they don't WANT to know what it takes.  They want to pay as little as they can and get as many luxuries from it as possible.  Don't we all.

Brent Hutto

Re: Paying dues while your course is being renovated?
« Reply #59 on: December 27, 2013, 07:20:51 AM »
I view my club more like my cable TV service. I'd love to get and pay for what I actually use. A well maintained golf course and ideally a clean men's room to use before and after the round.

But in order to get that I have to also pay for an enormous clubhouse, rambling great locker room, not one but two dining rooms, not one but two kitchens, blah, blah, blah right on down to the salary of the fellow who drives out to the parking lot every time I arrive and asks if I want a ride to the clubhouse (which I decline, it being around 40 paces walk).

So yeah, somebody is demanding those luxuries. A lot of it is demanded by the 20% of the membership who live within a couple miles of the club. The like the luxury of having a nearby place to eat and drink which mostly sits empty and staffed awaiting the occasional drop-in. But I suppose part of their dues go to pay for "my" golf course and part of my dues go to pay for "their" dining room(s) and kitchen(s).

It can all work as long as some tipping point in one direction or the other is avoided. But it can all come crashing down in a hurry if the cost gets beyond what people like myself are willing to pay to get their golf. Or presumably equally bad news if all the locals decide to go play golf cheaper because the dining room isn't open enough nights a week.

JMEvensky

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Re: Paying dues while your course is being renovated?
« Reply #60 on: December 27, 2013, 09:23:03 AM »

Aren't assessments another word for poor management? If you cannot balance the books and the members bail you out every time there is little insentive to get the numbers right.


Assuming  we're talking about operating assessments (not capital assessments) at a member owned club,then no--and frequently they're a sign of good management.

In a perfect world,you'd want your club to charge the members enough to cover all the expenses and end up with a zero balance on 31 December.Absent that,they can either charge too much (and have money  left sitting looking to get spent by somebody on something) or charge too little (and assess the members the shortfall).

It's like paying income taxes.If you get a refund on 15 April,all that means is you paid the IRS too much during the year.

Why let the IRS,or your club,hold your money for you?


Lou_Duran

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Re: Paying dues while your course is being renovated?
« Reply #61 on: December 27, 2013, 10:35:57 AM »
So what is it that members have done to not allow me to have an incredibly low opinion?  I would imagine that the fact that they see the excessiveness and don't care how much it costs is a direct indication that they do not know what goes into running a golf club.  I guess my thing is its not that they don't know what it takes, it is that they don't WANT to know what it takes.  They want to pay as little as they can and get as many luxuries from it as possible.  Don't we all.

I don't think most people believe that what they prefer or require is necessarily excessive.  It is not that they can't or don't understand the financials, as much as they are more than willing to have others help them pay for what they want.  This is true of mandatory caddie programs, gourmet dining, or a variety of concierge services which can't pay for themselves if priced entirely based on their use.  

Your last two sentences- "They want to pay as little as they can and get as many luxuries from it as possible.  Don't we all." - speak to the terrible problem afflicting all social democracies, that active, organized minorities are able to vote themselves benefits whose costs are disproportionally borne by others (e.g. Bloomberg's "Labor-Electoral Complex").  We want someone else to pay for our back operation just like we prefer that the cost of the cart boy meeting me at my car some 40 paces from the front door is picked-up by fellow club members.

Mark C- most assessments that I am aware of take place at member-owned golf clubs (Club Corp. and other for profit private club operators actually use a "no assessments" policy as a competitive advantage), and are typically for improvements beyond normal maintenance and depreciation.

Ulrich-  unlike many here, I am not nearly as critical of the National Golf Foundation, appraisers, financial institutions, and developers for the so-called glut or oversupply in the U.S.  I believe that golf is an ideal sport for optimists, which most Americans were until recently, and that the demographics supported the participation rates and the number of rounds in aggregate identified in the 1980s.  

It is impossible to address the subject without delving into politics and economics, so I will stop here and only suggest that we had a major shift in the demand curve beginning in the 1990s.   As I recall, Supply was based largely on retiring Baby Boomers partially spending their massive wealth on the golf course, while other age cohorts held their participation rates.  Of course, with near zero returns on safe investments, constant attacks on "the rich" with demands to raise their taxes, and the prospects of real medical costs going through the roof as Medicare rapidly heads into bankruptcy, the oldsters aren't much feeling like spending their diminished resources.  Coupled with the young, even the college-educated, unable to find employment, and those working concerned about keeping their jobs, it is a wonder that demand has finally flattened a bit after declining considerably.        

Ulrich Mayring

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Re: Paying dues while your course is being renovated?
« Reply #62 on: December 27, 2013, 11:19:03 AM »
Lou, I think your economic / social comments are very interesting. You are probably aware of the fact that most other countries from the "Western democracy" category spend even more on social benefits like medical care and mitigation of unemployment or old age. Let's use Germany as a comparison (other European countries have similar numbers):

Public spending in % of the GNP: USA 16%, Germany 26%
Private spending in % of the GNP: USA 10%, Germany 3%
Citizens per golf course: USA 20000, Germany 110000

Maybe there is a relationship between massive private spending and a multitude of private courses with few members? Then my argument with under-utilisation would hold some merit. But maybe not and then your argument holds that Obama is to blame for shifting spending from private more towards public :)

Ulrich
Golf Course Exposé (300+ courses reviewed), Golf CV (how I keep track of 'em)

Tommy Williamsen

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Re: Paying dues while your course is being renovated?
« Reply #63 on: December 27, 2013, 11:33:23 AM »
There is a change taking place in private clubs in the US.  More and more member owned clubs are being purchased by private owners.  John McConnell bought 8 clubs in NC and SC.  Some were struggling and some were not.  My club in DC was also sold to a private firm that has gotten into the business of owning and operating clubs.  Each of the owners has promised no assessments.  The dilemma is most of the clubs that were purchased lost members.  They no longer owned the club.  On the other hand, each of the clubs have had significant upgrades to both the course and infrastructure.

Years ago initiation fees took care of capital improvements and dues paid for day to day expenses.  Initiation fees have plummeted in many clubs.  Consequently, member owned clubs have financial problems:  make improvements and assess or do not make necessary repairs and the quality of the club goes down.

It will be interesting to see what happens over the next decade.
Where there is no love, put love; there you will find love.
St. John of the Cross

"Deep within your soul-space is a magnificent cathedral where you are sweet beyond telling." Rumi

Lou_Duran

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Re: Paying dues while your course is being renovated?
« Reply #64 on: December 27, 2013, 01:07:36 PM »
Public spending in % of the GNP: USA 16%, Germany 26%
Private spending in % of the GNP: USA 10%, Germany 3%
Citizens per golf course: USA 20000, Germany 110000

Maybe there is a relationship between massive private spending and a multitude of private courses with few members? Then my argument with under-utilisation would hold some merit. But maybe not and then your argument holds that Obama is to blame for shifting spending from private more towards public :)

I have no idea where your numbers come from or what the categories contain.  Data that I have seen show that expenditures at all levels of government in the U.S. exceed 40% of GDP.  And though state and local spending has grown very rapidly, a large portion is due to federal mandates partially funded by Washington at the outset, which then become part of the local budget baseline and are increasingly funded by taxpayers at that level.  To the extent that consumer spending accounts for about 2/3 of GDP (some of that money includes government transfer payments which the recipient then spends on consumer goods), what you are calling "private spending" appears way low to me.

Comparing the U.S. to Germany (or even using Germany as a proxy for Western Europe) is as useful as comparing apples to oranges.  Account for the vast demographic differences (your median age is some 8 years older; older populations tend to require greater govt. services) including immigration impact, your diminished role in national and world defense (which has been greatly subsidized by the American taxpayer since the end of WWII), and maybe we're not that far off.

As to your comments on Obama, he was a little-known community organizer then a back-bencher in the IL state senate when the demand shift for golf started to take place.  Again, trying hard to avoid offending my friends on the left, I look at the period when Clinton declared that the "era of big government" was over after gutting defense (aka spending Reagan's peace dividend, and leaving Bush to fight with the depleted armed services which the Dems then proceeded to criticize Bush and Rumsfeld for- remember, charges of going to war with ill-equipped forces) while increasing non-defense federal-related employment by one million HC and greasing the skids and providing protection for Fannie, Freddie, and various "community reinvestment" schemes as the beginning of the end.

I also think that 9/11 had a profound impact in how we did things and looked at the world.  The great focus of will and resources on security no doubt has had a big impact on the economy as well as on the national psyche.  Without this transformative event, I doubt that Bush would have been much of a hawk or a big government spender.  He might have also fought a big harder against the excesses of Fannie and Freddie and the cheap housing activists in and outside government.

By the time Newsweek ran its famous "We Are All Socialist Now" cover in 2009, we were well along on the road to serfdom, barely weeks after Obama took office.  That he has done everything to make the U.S. look more like Western Europe, but more in the model of France than Germany, is probably hard to argue.  Do I like it?  No.  If I liked European style governance and the effects it has on society, I would probably immigrate to Spain, the land of my parents.  As it is, I remain relatively comfortable in the State of Texas, leery of what's happening to my country, but resigned that there is not much that I can do about it.      
« Last Edit: December 27, 2013, 01:20:00 PM by Lou_Duran »

DMoriarty

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Re: Paying dues while your course is being renovated?
« Reply #65 on: December 27, 2013, 01:38:10 PM »
Thanks Lou.  The Holiday Season just wouldn't be complete without an angry uncle droning on about the evils of Clinton, Obama and Socialism.
Golf history can be quite interesting if you just let your favorite legends go and allow the truth to take you where it will.
--Tom MacWood (1958-2012)

Ulrich Mayring

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Re: Paying dues while your course is being renovated?
« Reply #66 on: December 27, 2013, 03:42:40 PM »
Thanks Lou - and I mean that seriously. It looks like my theory is wrong or at least I can't do enough to substantiate it for now. However, I'm still not sold on your take that this is primarily a problem of dwindling demand. That may also be the case, but even in the good times it wasn't ever feasible to have so many private clubs with so few members per.

It's like the royal forest: the King can afford it, but it makes no sense economically.

Ulrich
Golf Course Exposé (300+ courses reviewed), Golf CV (how I keep track of 'em)

Carl Johnson

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Re: Paying dues while your course is being renovated?
« Reply #67 on: December 27, 2013, 04:54:45 PM »
Aren't assessments another word for poor management? If you cannot balance the books and the members bail you out every time there is little insentive to get the numbers right.

Mark, the club has been well managed, books balanced, economies effected, etc., but the duly elected board decides that some changes need to be made -- doesn't matter what kind.  These changes will cost money.  Now, I suppose you'll say that the changes should have been anticipated and a capital fund established and built up long ago to cover the costs, but as the membership and its desires change over time, it's not always possible to anticipate everything that the members are going to want in the future.  So, now you can: (1) establish a fund (little bit of the increased dues being set aside each year for the fund) and make the changes later when the money's been saved; (2) borrow the needed funds, make the improvements now, and pay back the loan out of increased dues (especially useful if the board has doubts about whether the membership would approve an assessment (assuming their vote is required)); (3) finance through an assessment; or (4) some combination of the foregoing.  In short, I don't see how you equate assessments with poor management.  Caveat: I have not read every prior post in this thread, so I may have missed a key issue that your post doesn't expressly identify.
« Last Edit: December 27, 2013, 04:56:44 PM by Carl Johnson »

Lou_Duran

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Re: Paying dues while your course is being renovated?
« Reply #68 on: December 27, 2013, 06:20:58 PM »
Thanks Lou.  The Holiday Season just wouldn't be complete without an angry uncle droning on about the evils of Clinton, Obama and Socialism.

My pleasure David.  Merry Christmas to you.   Still projecting anger I see.  Pity.      

DMoriarty

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Re: Paying dues while your course is being renovated?
« Reply #69 on: December 27, 2013, 07:35:37 PM »
Merry Christmas to you, too, Lou.  No anger here, though.  Skimming your posts here actually brought a smile to my face.  Its somehow affirming that days away from 2014 you are still going on about the Clinton Administration.  

I guess that some things are forever frozen in time, but wish you a Happy New Year, nonetheless.
Golf history can be quite interesting if you just let your favorite legends go and allow the truth to take you where it will.
--Tom MacWood (1958-2012)

Patrick_Mucci

Re: Paying dues while your course is being renovated?
« Reply #70 on: December 27, 2013, 08:32:25 PM »
Mark Chapin stated:

Aren't assessments another word for poor management?

Not at all.
If a club starts the year with 400 members, and formulates their budget based on historical changes in the membership rolls, and for financial or other reasons, 50 members resign, resulting in an operating assessment, how can you attribute that to poor management ?

If a structural defect/malfunction caused the club to spend emergency funds for repairs, resulting in an assessment, how can you attribute that to poor management ?

If Hurricane Sandy damaged the golf course, requiring substantive repairs, resulting in an assessment, how can you attribute that to poor management.

Budgets are merely estimates based mostly on historical data and reasonable projections.

If an unusual weather pattern presented itself, causing the club to have to purchase considerably more in chemicals, etc.., how can you budget for that.

If the town the club is located in, suddenly doubles or triples their real estate taxes, resulting in an assessment, how can you attribute that to poor management ?

You have so much to learn and I can only devote so much time to your education  ;D


If you cannot balance the books and the members bail you out every time there is little insentive to get the numbers right.

Balancing the books at the end of the year is predicated upon your being able to predict the future at the beginning of the year, and that's no easy task.

There's something else to consider, some clubs don't want to raise their dues to cover expenses for fear of losing members at the beginning of the year.  Keeping dues flat, and assessing at the end of the year for the known shortfall is a strategy some clubs employ in difficult times

Lou_Duran

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Re: Paying dues while your course is being renovated?
« Reply #71 on: December 28, 2013, 11:14:31 AM »
Merry Christmas to you, too, Lou.  No anger here, though.  Skimming your posts here actually brought a smile to my face.  Its somehow affirming that days away from 2014 you are still going on about the Clinton Administration.  

I guess that some things are forever frozen in time, but wish you a Happy New Year, nonetheless.



Thanks again David.  2013 was a good year for me and my family as I hope it was for yours.  I am glad that I brought a smile to your face; mirth is far superior to anger.

2014 is gearing up to be a great year with several golf trips already penciled in, perhaps, in a small way, lessening the need for a few clubs to resort to assessing their members.  Maybe I'll see you at one of the events in the new year.

Regarding my alleged fixation on Clinton, nothing could be further from the truth.  In a some ways I admire the guy- he certainly  maximized his talents and did extremely well for himself.  His very considerable role in promoting public financing of housing can't be dismissed in the subsequent meltdown of the real estate and banking industries.  To whatever extent supply (of golf courses) is a problem plaguing golf today- though I argue in my comments to Ulrich that it is secondary to a shift in demand- the easy money/everybody should own a home fostered by government had a big role in it.

Patrick Mucci-

Golf clubs have other tools to bridge imbalances in their budgets besides assessments.  While it is true that some events evade the crystal ball, we haven't had anything close to a 9/11 to shake things up (Sandy perhaps in your area) for quite awhile.  The point is that the negative trends have been ongoing for some time, and though the top tier clubs seem to have weathered them nicely, the rest of the market has had to adjust.  I would think that a year-end surprise is much less palatable than a letter from the president early in the year, noting the relevant impacts and the mid-course adjustments to the budget which might include austerity, working capital loans (from a bank or a small group of well-off members), and a slight dues increase.

Assessments, IMO, should be reserved for major initiatives to improve the club and not as a stop-gap measure to keep the status quo in operations (which leads to the thinking suggested in Mark C's questions).  If a club is going cheap on insurance and deferring maintenance just to stay alive, it may need to consider an alternative operating format or structure before its too late.   I hear that for-profit private club operators are out scouring for such opportunities, perhaps putting greater pressure on member-owned clubs to keep their financial houses in order, even if it means mothballing part of the clubhouses or finding incremental revenue-producing uses for them.    

Mark Chaplin

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Re: Paying dues while your course is being renovated?
« Reply #72 on: December 28, 2013, 02:05:54 PM »
US member clubs have far more predictable revenues due to the lack of weather and economy sensitive visitor play.

Pat - if my club lost 12% of the membership I'd resign as well.

Doubling or tripling land taxes, where do you live, Zimbabwe?

Structural deficit/malfunction is exactly why clubs should have reserves.

Natural disaster - contact the clubs insurer.

Need more chemicals, it's a golf course not Bhopal.

Member clubs need to make a sensible profit to build reserves and deal with the replace of capital assets. If your watering system cost £250k and is expected to last 30 years then you cannot be assessing them when it needs replacing.
Cave Nil Vino

Tom_Doak

  • Karma: +2/-1
Re: Paying dues while your course is being renovated?
« Reply #73 on: December 28, 2013, 03:04:05 PM »
Member clubs need to make a sensible profit to build reserves and deal with the replace of capital assets. If your watering system cost £250k and is expected to last 30 years then you cannot be assessing them when it needs replacing.

But clubs are now being convinced that the best new irrigation systems cost $1.5 million or more ... and no club has saved up anything like that from normal operations.

Mark Chaplin

  • Karma: +0/-0
Re: Paying dues while your course is being renovated?
« Reply #74 on: December 28, 2013, 04:28:28 PM »
Tom - the best Savill Row suits cost $5k but that's out of my range so I buy accordingly, I'm sure clubs can get a perfectly acceptable system for a lot less money. It's obviously easier for Boards to spend other peoples money freely!

Cave Nil Vino

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