Golfblogger

It was posted today on AnnArbor.Com that the lender for Ann Arbor Country Club (Citizens Bank) has called in the club’s loan. The club’s membership dropped below 120, which triggered the foreclosure.  The $1,700,000 note is going to be auctioned off.  High bid right now is $600,000.

http://www.annarbor.com/business-review/ann-arbor-country-club-facing-lender-forced-sale-as-17m-loan-called-due/

Both Washtenaw Country Club and Ann Arbor Country Club seem to have run into problems after borrowing money to upgrade or improve their clubhouses.  Perhaps the lesson to be learned is that private clubs should raise additional capital from their operations and members rather than borrow.  If the membership can’t or won’t support the club, then the outlays are most likely a bad idea.

Wow. Another one bites the dust. The loans certainly were a big deal, but the loss of membership was the core problem. I wonder if the Country Club model isn’t a thing of the past in most cases. Perhaps these clubs should think about going semi-private, or public with season-pass benefits (such as locker room use).