It has been almost a year since the announcement the Robert Deadman, Sr. family made on wanting to sale CCA. It has been over six months since CCA was sold to KSL, an investment group out of Colorado. And for the same amount of time there has not been a plan provided the tens of thousands of members of the private clubs all across the country on what is going to take place now that KSL has purchased all of these clubs.
Yet, some changes have been made. The CEO of CCA was pulled and placed on KSL’s board…duh! That move was seen when the CEO was placed to run CCA soon after Mr Deadman Sr. passed away.
Since the sale, KSL has pulled the resorts out of the CCA’s package and placed them in the KSL Resorts division. OK, was that KSL wanted to buy CCA?
There has been little improvement made to any of the clubs since KSL has taken over? Does that mean they are thinking things over?
Maybe so, but from the recent actions of letting General Managers, Club Managers and Golf Directors go from a number of clubs it would seem they have other things in mind. Things like playing the “Recouping Funds” game.
These recent resignations and terminations have again got the dues paying memberships questioning what is going on. Some of the deletions of leadership were needed and in some cases a standing ovation should be provided, but the savvy membership knows that there is another shoe about to drop and on who will it be dropped on?
The smart bet would to not drop it directly on the source of revenue, the membership. No, KSL is going to need them to keep the value of the assets up. What is obviously taking place is KSL is attempting to recover their investments quickly, or to get as much of a return on the investment they can, by cutting the payroll.
This tactic is stale and very old business methods. Usually what takes place is they get rid of the higher salaried managers and bring in lower salaried personal to do four people’s jobs. Then quality of service hits bottom quickly and in this case the members leave by the droves. Not a smart move if that is what is planned.
Or, with the void they are making in the club’s leadership KSL could be setting the stage to sell off the properties that need hundreds of millions of dollars of updates to a golf management firm to come in to run the aging private clubs like a daily fee golf course?
Who knows what KSL is planning? The members are not being told anything. So what else are they to think?
Anyone in business knows the pressure from investors is going to be high to quickly regain the money spent to purchase a package the size of the CCA sale to KSL. But is gaining funds by cutting operations smart business? I can truthfully say it will and should be part of a solution to getting their asset’s value up, but in this particular case there are better solutions to getting to where they want, should or need to be.
Do they want to know what they are? Another questions going unanswered.