I ran across this little diddy I found on TimeOnline.com.
End of golf boom could signal closures
It could be that the economy will produce an opportunity for someone to pick up a golf course or private club or two and turn it around to get ready for when golf comes back.
I tend to agree, there are a large of number of golf courses and (especially) private clubs that just don’t get it when it comes to managing their operations or are refusing to face reality..for one reason or another.
Denial that the golf economy is really failing is still the method of the madness many golf courses are standing behind in managing their facilities. This mentality will force them to take uncalled for actions to keep face. Some of these actions will include auctioning off the club’s, lock-stock-and Sand Trap Rake, to the highest bidders.
Of course picking up one of these Hot Potatoes is not a short term landslide money maker, but for the well healed (and there are still many out there) the investment for the long run could be lucrative.
If you are one of these people or in a group of people who are really serious about saving golf, then keep your eyes and ears open..the auction gavels should start pounding soon.
Interesting article. As a part owner of a golf course here in Michigan, this is not a good time to buy a golf course in this State, unless you have a lot of money to invest with no return on investment. In Michigan there are too many golfing facilities available for sale or will be soon. People paying to golf, this coming year, will be down drastically. People just don’t have the money to spend this year In this Michigan economy. So unless one has time to wait and see if paying golf rounds will increase in the future, there are better investment opportunities, with a potential ROI.
Mark,
Thanks for your support. Yes, I totally agree..ROI is a huge factor but someone is going to have to bite the bullet if golf is to survive. I hope you will consider joining the Business Golf Country Club. Lots of discussion on this issue over there. http://bizgolfcc.ning.com
Scot and Mark,
Michigan is over populated with golf course. It has been for a very long time. Some have older clubhouse that just don’t meet today’s standards and would be costly to update. Others can’t maintain the conditions of the greens with today’s high prices of chemicals and gas. There are also many regulations facing today’s owners that were not thought of when the courses were first designed. Add to that regulations regarding water testing, liquor licenses, food service, etc and the owners have a lot on their plate.
Owners have been aware of golf numbers being down for some time thanks to the National Golf Course Owners Association. They have set many programs in place to address that problem. They have created a strong lobby in this state. Much more needs to be done.
Each owner has to look at his course with a critical eye and make adjustments in a proactive manner. Because of the diversity from the high end clubs to the Mom & Pop operations, one size does not fill all. Each club does need a plan of action and an exit plan.
In our neck of the woods we’ve seen one competitor fail within a year after opening and the bank took it back, and another was listed for sale just this winter. Hilda W. Allen Real Estate Inc. has about the same number of listing for golf courses as always and Loopnet seems to be the same. Some of these listing however, are for golf related properties such as developments or mini golf. It’s hard to get a true picture.
Do your homework like with any purchase. It could be like boat ownership – the best day of your life was when you bought it and the next best day of your life was when you sold it!!