Several local golf clubs, including White Manor Country Club in Malvern and Philmont Country Club in Huntingdon Valley, are turning to investors in the hope of solving their financial issues, writes Joseph DiStefano for the Philadelphia Inquirer.
White Manor Country Club has been struggling to repay its debt after investing $6 million in renovations. California’s Concert Golf Partners, which has already acquired 14 troubled clubs nationwide, has now agreed to recapitalize the club by paying off its debt and investing more than $1 million in improvements.
The Philmont Country Club in Montgomery County is trying to make a similar arrangement, adding a guarantee that the club will continue for a minimum of five years. However, the question remains how can investors run a profitable golf course if members cannot settle their debts?
“We are not a ‘private equity investor,’” said Peter Nanula, head of Concert Golf Partners. “Our firm has 20-plus years of owning and operating country clubs, so we are a private club hospitality firm.”
He added that Concert’s capital comes mostly from wealthy families who invest in the long term.
“We make money, like hotel companies and restaurants, by operating more efficiently, attracting new members, and utilizing the club facilities better,” said Nanula.
Read more about each golf club’s restructuring in the Philadelphia Inquirer by clicking here.