Wentworth - New course owners massively increasing membership fees

[b101]

Interesting article this - hope I'm allowed to post external links (feel free to remove if not and I'll summarise below anyway)

http://www.bbc.co.uk/news/uk-england-surrey-34591272

Basically, the prestigious Surrey course Wentworth was bought out a year or so ago by Chinese investors, who have since decided to double the membership subs from £8000 per year to £16 000, but are also asking all existing members to pay an extra £100000 as a joining fee, on top of the £15000 they would have paid when they joined! Granted it's an exclusive club, but it seems to be aiming to price all local residents out of the club. I'd be livid if this were my club, and the cynic in me suspects they want to create an almost Asian-exclusive golf club in London - at least, those are the mutterings I've heard from fellow players...

Thoughts?

[vangator]

That's what my thought was as well.  They may even charge different individuals a different rate. Unless there is access to the books, who would know.  Kind of stinks.

I opened this thread because there is a Wentworth golf club in my area (Tarpon Springs Florida)..  Obviously not the same course.

[rkim291968]

 

Thoughts?

It seems like cost increase will come with upgrading the course, and clientele.   Per article, at least one member welcomed the idea.    At the end of the day, it's the market demand that decides the price.   The last time I checked, UK is a capitalist country.   

Having said that, it seems to be unfair to existing members and I'd like to see the new course owners to give appropriate incentive/breaks for the members to stay.   If it were to happen to my home course, I'd be upset ... and move on to another course. 

[b101]

 

It seems like cost increase will come with upgrading the course, and clientele.   Per article, at least one member welcomed the idea.    At the end of the day, it's the market demand that decides the price.   The last time I checked, UK is a capitalist country.   

Having said that, it seems to be unfair to existing members and I'd like to see the new course owners to give appropriate incentive/breaks for the members to stay.   If it were to happen to my home course, I'd be upset ... and move on to another course. 

It's just the amount that's staggering to me, and that's what makes it seems like it's purely to price people out and therefore allow them to cherry-pick their clientele. There's no way the courses require £100 000 for each of the 4 000 members - a ridiculous £400 million - to update what is already a top-quality venue. 

Completely agree on the capitalism point, but it's the damage to existing members that is akin to ripping the heart and soul out of the club (although it is admittedly already very corporate). I agree, that I, too would look to move on somewhere else, but if you've been there for only a couple of years and can't find membership elsewhere at a club of that level, it's got to be tough to take. 

[Gator Hazard]

I wonder if the club would have been sold to the investment group in the first place if they knew that ultimately the members themselves would be paying for everything in the form of free debenture loans.  I would be extremely upset as an existing member that I am now expected to cough up  £100,000 and my membership fee was doubled.  They better run a Groupon for that.

#firstworldproblems,#mytrustfundisgroaning,#madwealthadvisor

[rkim291968]

It's just the amount that's staggering to me, and that's what makes it seems like it's purely to price people out and therefore allow them to cherry-pick their clientele. There's no way the courses require £100 000 for each of the 4 000 members - a ridiculous £400 million - to update what is already a top-quality venue. 

 

That is a huge change, enough to make me wonder if the investment will pay off.   How many members would they need to turn it into a profitable business?   As a lover of golf, I hope they flop and fall flat on their face.   

[bkuehn1952]

 4 000 members -

Possibly a typo?  Most USA clubs are well under 1,000 members. Or are they counting overseas members who may or may not even play a round in a given year?

[No Mulligans]

asking all existing members to pay an extra £100000 as a joining fee, on top of the £15000 they would have paid when they joined! Granted it's an exclusive club, but it seems to be aiming to price all local residents out of the club. I'd be livid if this were my club, and the cynic in me suspects they want to create an almost Asian-exclusive golf club in London - at least, those are the mutterings I've heard from fellow players...

Thoughts?

 

There are clubs in the San Diego area that are extremely expensive... seems they cater to the top 1% of the top 1%.  "The Bridges" for example with $350,000 initiation fee and $1,800 monthly fee; it's a club, and few can afford to be in that club.

 

http://www.sandiegomagazine.com/San-Diego-Magazine/March-2009/Life-on-the-A-List/

Edited October 21, 2015 by No Mulligans

[b101]

Possibly a typo?  Most USA clubs are well under 1,000 members. Or are they counting overseas members who may or may not even play a round in a given year?

The number seems about right given that there are three 18-hole courses and many of the members won't play all that often - it's quite a corporate club - but they may be counting some corporate clients as a group rather than individuals... Then again, 4,000 wouldn't surprise me at all given the club:

http://www.wentworthclub.com/

[rkim291968]

The number seems about right given that there are three 18-hole courses and many of the members won't play all that often - it's quite a corporate club - but they may be counting some corporate clients as a group rather than individuals... Then again, 4,000 wouldn't surprise me at all given the club:

http://www.wentworthclub.com/

Wow, what a web site!  A bit intimidating.  

[ay33660]

Wow !!!!!!!  Up to now it only cost £15,000 initiation fee to join that club.

I'm am serious when I say that is a GREAT deal.

That is only CAD$30,000.

There are 5 private golf clubs in Vancouver. Three of those clubs have initiation fees of CAD$80,000 to CAD$100,000.

My club has initiation fees of CAD$50,000.

NONE of those clubs come even close to the prestige of Wentworth.

 

 

 

[djfajt71]

Wow, what a web site!  A bit intimidating.  

I feel like I owe them money and all I did was peruse the website!

[Psyber]

 

There are clubs in the San Diego area that are extremely expensive... seems they cater to the top 1% of the top 1%.  "The Bridges" for example with $350,000 initiation fee and $1,800 monthly fee; it's a club, and few can afford to be in that club.

 

http://www.sandiegomagazine.com/San-Diego-Magazine/March-2009/Life-on-the-A-List/

As expensive as that is it's not top 1% of the top 1% kind of money. More like successful medium sized business owner money who counts golf as his main interest.

[rkim291968]

As expensive as that is it's not top 1% of the top 1% kind of money. More like successful medium sized business owner money who counts golf as his main interest.

I think some of these folks are in it for social aspects of it, mingling with the rich and famous.  

[vangator]

I hate when the club I play raises the twilight rates by $5 during the peak season.  I think I live in a different world then those at Wentworth.

[RussUK]

The number seems about right given that there are three 18-hole courses and many of the members won't play all that often - it's quite a corporate club - but they may be counting some corporate clients as a group rather than individuals... Then again, 4,000 wouldn't surprise me at all given the club:

http://www.wentworthclub.com/

Yeah, there are also a lot of celebrities and footballers that are members at Wentworth as well as other clubs so the figure seems about right. The big clubs here have a lot of "famous" mebers who join simply so they can say they are a member, it would be interesting to know how many of those 4,000 play there on a regular basis. Only the premiership footballers will be able to afford the fees at this rate!

[rkim291968]

On 10/30/2015, 6:52:06, RussUK said:

Yeah, there are also a lot of celebrities and footballers that are members at Wentworth as well as other clubs so the figure seems about right. The big clubs here have a lot of "famous" mebers who join simply so they can say they are a member, it would be interesting to know how many of those 4,000 play there on a regular basis. Only the premiership footballers will be able to afford the fees at this rate!

No doubt that a few members are joining to get a chance to run into the footballers.  

At the end of the day, it will be capitalism at its best (or worst).   If they can turn profit with the price increase, they have done their marketing right.  If not, they will lose money.  

[DaveP043]

The same thing happened a few years ago at a club near me.  The club was called Lowes Island at the time, a nice place, 36 holes, and a prime spot along the Potomac River.  The new owner came in, increased the cost of everything, rebuilt the golf course a couple of times, installed an extremely ugly fountain/waterfall, and (possibly illegally) cut down all the trees along the river, and somehow moved the course from Sterling, Virginia to DC.   Now its called Trump National Golf Club, Washington DC.