Today there are some 3,300 private-equity, member-governed private clubs in the U.S.
Experts agree: More than half are carrying dangerous levels of debt.
That debt makes capital reinvestment challenging. Without reinvestment,
clubs struggle to keep members and compete for new ones.
In the face of these challenges, hundreds of clubs have transitioned to
non-equity status in recent years.
Why? Because recapitalization through a well-funded partner like
Concert Golf addresses the underlying problems:
Member assessments - These are done away with under our model.
Concert Golf funds all capital expenditures.
High debt levels - Mortgage debt is eliminated, as part of the transaction.
Concert Golf will retire your club's debt.
Deferred capital projects - Because funding is no longer tied to assessments or borrowing,
there is no reason to defer the improvements that clubs must undertake to keep and compete
for members. We fund these capital projects now.
High dues - Many equity clubs simply assess members over time,
via special dues or monthly dues increases. The Concert Golf model eliminates
this funding mechanism, keeping monthly dues at normal, market levels.
Inefficient decision-making - Rare is the equity club Board that boasts
any real hands-on operating expertise in the private club sector.
Managing anything part-time, by committee, is difficult...
Concert's team of industry-specific professionals works 24/7,
all year long, to manage the day-to-day operations and provide
continuous capital project reserves.
Yes Debt service drains cash for capital projects
None Club is debt-free
Yes Can cause member attrition
None Covenant prohibits member assessments
Funded by assessments Long-term plans sometimes deferred
Funded by owner-operator Immediate multi-million dollar projects
Yes Yes, but pressure to accept outside play
Yes Covenant ensures private club status
Market-rate dues No other surcharges
Often promised But often not sustainable
Restructured or eliminated Priority is capital projects and debt-free
Managed by owner-operator Member Advisory Board provides guidance
Hear Peter Nanula on Private Club Radio
Peter Nanula: Top 10 Myths of Private Clubs
Board Chats: Tim Nelson of Blue Hill CC (Boston).
Peter Nanula: Golf Isn't Dying, Just Some of its Older Ways.
Peter Nanula: Most Private Clubs Need Fresh Equity Capital.
Learn more about Concert Golf Partners and member-owned clubs: