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Fancy a round of golf?
Posted: Wed Oct 21, 2015 8:50 pm
by Gob
One of the UK's most exclusive golf clubs is to start charging £125,000 ($193,000 US) to new joiners.
Wentworth, which was bought by the Beijing-based Reignwood Group in September 2014, has told existing members they must stump up £100,000.
Annual fees on top of that are to rise from £8,000 to £16,000. James Wyatt said he and other members faced having to pay "an enormous amount".
The Surrey golf club said membership pricing "is a private club matter".
Mr Wyatt, who learned of the new fees at a meeting on Tuesday evening, told the BBC: "You'll have to pay a debenture of £100,000 and if you want to join as a new member it'll be £125,000.
"A debenture is essentially a loan note with no interest on it, but there was some doubt as to whether we're looking at what we all think a debenture to be, or if it is really just a payment to the owners to fund their purchase and improvements in the club.
"On top of that you'll have to pay annual subs of £16,000.
"People were completely shocked."
Re: Fancy a round of golf?
Posted: Wed Oct 21, 2015 9:07 pm
by Long Run
Sounds like you're treating, I think we're all in!
Re: Fancy a round of golf?
Posted: Wed Oct 21, 2015 9:18 pm
by Guinevere
Par for the (private club) course.
Re: Fancy a round of golf?
Posted: Wed Oct 21, 2015 10:11 pm
by Big RR
My only quibble is that this seems more like purchasing an equity interest in the club which basically gives you the right to vote and have certain membership privileges. Debentures, as I understand, are long term unsecured debt which generally do not grant an ownership interest or confer voting rights, although they could give some benefits. The debentures are unsecured debts of the club and would ordinarily be repaid when the member leaves (or could be sold to someone else). but if the club is owned not by the members but an outside concern, then I guess it might well be a debenture. In any event, I would think the entire purpose of any such payment is to fund improvements, etc.
Of course it could also be just an entry fee, much like the seat licenses in many US football venues that are not a loan but an additional payment.
Re: Fancy a round of golf?
Posted: Mon Oct 26, 2015 6:35 pm
by oldr_n_wsr
They can charge whatever they want. And call that "fee" whatever they want.