Whether you’re struggling with previous project debt or owe members refunds, as a private golf club, you face many challenges in planning for the day-to-day and future. When left unchecked, these problems can prevent your club from staying up-to-date and attracting new members.
While you may be considering a third-party management company to offer quick-fix solutions, it’s more beneficial to recapitalize and address deeper issues at the root. Recapitalizing with a well-funded partner like Concert Golf Partners helps you address fundamental challenges and enjoy a financially secure future. Here are some signs your club should consider recapitalization.
Often, clubs can’t finance capital improvement projects since they are still in debt from a previous project. This leads to outdated club amenities and dissatisfied members, causing many to leave, and losing even more cash flow.
When you recapitalize, Concert Golf retires all your club’s debts, so you can start addressing your key capital improvement projects and stay competitive in your local market.
Assessments are common for one-time project funding methods, but when applied to the club regularly, they can make members dissatisfied and lead to them leaving the club. This can also deter new members from joining your club. Recapitalization is a better option for funding operating costs and other major expenses since it doesn’t dip into your members’ wallets.
Like assessments, membership dues are another way to drive revenue for your club. When these go down in order to attract new members, they no longer help your club financially. Clubs that recapitalize with Concert Golf can get their membership dues back to normal rates thanks to our financial backing.
If your club’s annual revenue continues to be below the amount needed to reinvest each year, your overall net worth will decline. This makes it difficult to maintain relevance in the market and compete with other golf clubs. Recapitalization helps increase your club’s annual revenue by close to 30 percent and ensures you have the funds needed to reinvest in your club.
Aging demographics is a common problem golf clubs face today. You may notice that your club roster has fewer young members than it once did and is having trouble attracting new members. Concert Golf’s team of experts is skilled in driving member growth by updating amenities and enhancing marketing so your club can continue to thrive for many more generations.
Despite no longer offering refundable memberships, your club may have a backlog of refunds from earlier years. This wait list for refundable deposits can drain your cash flow and limit your club’s borrowing capacity. Recapitalizing with Concert Golf allows your club to resolve any refund liability so that you can look forward, not back.
Many clubs struggle with board governance. Board members want what’s best for the club but often have trouble agreeing on issues, leading to delayed decision-making. Some clubs also restrict their board service to founding or equity members, limiting the availability of who can serve. With Concert Golf, you can sit back knowing that a team of dedicated experts will lead your club into a successful future.
Taking out a loan to fund a capital project may make sense in the moment, but as time passes, these loans can collect significant interest and lead to a series of defaults. Many clubs we’ve worked with have felt the bank’s pressure to make larger payments and pay even more money than they have. Fortunately, when these clubs recapitalize, they pay off their bank loan completely.
Maybe you started your club as a family endeavor and planned for your children to fill your shoes, but their interests lie elsewhere. Or, perhaps your club is part of a larger resort, and managing both sides of the business has become difficult. Concert Golf offers specialized golf management expertise to all our recapitalized clubs. A partnership with Concert means you don’t have to feel overwhelmed by club management logistics and can simply enjoy the club again.
Drawing people to homes near your club is important in driving memberships. Homes with mandatory membership requirements can depress the home values and lead to longer days on the market. With our help, clubs have eliminated their mandatory membership requirements and seen surrounding home values increase by as much as 63 percent.
If you can relate to any of the signs listed above, it may be time for your club to consider recapitalization. Schedule a confidential call with Concert Golf today to see how your club could benefit from our financial and management expertise.
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