OK, I let the KSL PRESS RELEASE they sent out on the 26th mull for awhile giving everyone there a chance to take a deep breath and then jump in to let the over 200,000 dues paying members know what they are going to do to get things at most of the over 100 private country clubs they own going to improve the properties. Yes, many of these facilites need major renovation, if not overhauls, just to get up to the standard of the membership fees the members pay each month.
Here it is, New Year’s Eve, a perfect time to tell all what they plan to do. But NO!, Still no word, just speculations. Like…..
Are they going to ‘Flip-It’?
Are they selling off the properties that have large capital needs?
Are they going to change the add-on fees or do away with the member privileges?
Are they going to invest in the renovations so to shore up their investments?
Are they going to raise the membership dues?
Are they going to assess the member’s for large amount of cash to have the facilities overhauled?
Are they going to bring in innovative club managers who know how to treat all members (Yes, this means the ladies also), and want to do what the members want to make them happy and loyal?
OR, are they just going to sit tight while the good ship CCA slowly sinks with its $1.6 Billon on board?
My bet, they are going to ‘flip-it’ and then that starts all of this all over again since whoever they ‘flip-it’ to is going to have to deal with the problems that get worst each day.
I am sure one of the solutions KSL will consider is to hope that some of the members who are concerned with their decisions (or lack of one) will leave so they can bring in younger, and hopefully stupider, memberships who don’t know they are getting screwed. That could be in the plan and the smarter members, who also are not property owners, will probably take them up on that strategy.
But what about the ten’s of thousands of property owners who live or own property on these golf courses? Some of whom are not members. What takes place with the club affects their property value? How does their decision affect these property owners??
Well by selling off the club to a Daily Fee management company or to a golf management company that has developed a negative cash flow process and drives the course into the ground, this could affect the image of the property surrounding the dilapidated club. This results in cuts being made to quality and develops into a less desirable facility.
All of this would result in lower property value. If the property values go down, well then so does the Tax base. When the Tax base goes down then the Cities these clubs are in are not able to keep up the infrastructures of the neighborhoods around the facilities and then there goes the neighborhood. Who would want to be a member of a club that has shacks and run down homes along its fairways? Even homeowner associations could not hold up to the pressure that this change in local economy would make.
So, you see, the property owners hold HUGE interest in this venture that KSL and CCA seemingly are taking so lightly. And not revealing their plan causes concern, speculation and negative assumptions which result in Real Estate Agents leading potential buyers away from property on the club’s courses because of the uncertainty in the outcome of the club’s management style. This leads to stressed investments and reduced pricing to below the market to being buyers into the neighborhoods.
All of this keeps going on until there is so much negativity towards the owners of the club by the non-member property owners that….that…..well…on negative results could develop. And this is an example of how things have gotten out of hand because the plan was not announced when the sale for ClubCorp to KSL was final.
And here it is New Years Eve and still no plan.
Maybe KSL is hoping that once the headaches and hangovers from New Year’s are being felt they will cheer us due paying members up by telling us what they are going to do to this 50 year old company.