Frequently Asked Questions

Transcription

1 Frequently Asked Questions By Member-Owned Clubs Considering a Non-Equity Club Transition Golf Club of Amelia Island Will we members still have a voice in Club decisions? Yes. Concert Golf always establishes an Advisory Board of members, to guide us on capital priorities, service issues and overall club direction. Will Concert sell the Club quickly? No. Concert Golf is a long-term owner-operator of private clubs. In fact, we have never sold a single club. Our investors are wealthy families with a long investment horizon. If we ever We are long-term owners; we have never sold a single club. What will happen with our Staff? Concert Golf team. Our employee turnover is well below industry averages, because we Will quality decline while Concert tries to make money? No. Our members say that golf course conditions, food, service and activities have improved since we arrived. Concert Golf can purchasing programs and operating best practices. Heathrow Country Club 1

2 Will the Club still be private? Yes. Completely private. We provide a written club completely private. Carrollwood Country Club Will the Club remain upscale and prestigious? Will the Club remain selective about admitting new members? Yes. Our membership team carefully selects new members based Why shouldn t the Club just hire a 3rd party management company? Moreover, after hiring a management company, the members will continue to own and be members need to manage the relationship with the management company on an ongoing basis. How does the Non-Equity process work? Your Board shares information with us under a Non-Disclosure Agreement. Your Board studies the Non-Equity alternative. Agreements are executed with your Board. You host Membership Town Hall meeting(s) to inform the membership and answer also. You hold a Membership vote to ratify the transaction. 2

3 How can Concert Golf do better than us, and make the Club successful? This is our only business. We apply best practices learned across all our clubs. Our company is a recruiting magnet for the best people nationally. We have a laser focus on member satisfaction. We bring true operating discipline there are no other agendas. We have unlimited capital. What changes can we expect at the Club? Stays the same: Changes: stay the same. Membership categories and privileges remain unchanged. stay the same. Club bylaws remain mostly the same. All your Club activities and traditions remain. the same: The General Manager is your day-to-day point of contact. Years of capital projects are accelerated. New members are added gradually. Course conditions usually improve. The dining experience usually improves. The Club is now debt-free, which means the Club has long-term There will never be any member assessments ever. eliminated. There is less Board / committee time, while the Advisory Board helps Concert Golf with capital priorities and service issues. MacGregor Downs Country Club 3

4 Does Concert Golf bring in its own team, or does our staff remain? Who do we complain to after Concert Golf assumes operating control? Your primary contact remains your General Manager. If you continue to have concerns, is also available. Why have other member-owned clubs made this transition? Capital improvements fully funded up front Experienced, quality club operator Strong covenants to ensure Club preservation No assessments ever Home values protected private clubs have become corporately owned non-equity clubs. How many member-owned clubs have chosen to become non-equity private clubs? growing rapidly. Why can t the Club utilize bank loans to fund operations and capital projects? Debt service payments can starve clubs of needed capital improvement funding. Concert Golf prefers to capitalize private clubs on a debt-free basis. improvement projects. gross revenues. When the economy softens, we always continue to fund the capital improvement reserve. 4

5 Country Club at Woodmore Why should we partner with Concert Golf in particular? Concert Golf is a boutique private club operator Concert Golf is extremely well-capitalized and completed by Concert Golf We bring an equal focus on golf, dining and other amenities We listen to our Members What other private clubs are corporate-owned? realize that it is normal for private clubs to be owned by corporations and in fact some of corporately owned and operated. What happens to our equity in the Club? when faced with the choice, most club members typically prioritize capital investments returned to them. 5