Is this a good deal? golf club membership will refund your fees in 10 years

patswin · Apr 17, 2008

A local golf club in the area is advertising a limited time only special, offering life time memberships <st1:stockticker>AND</st1:stockticker> they claim they will refund the dues in 10 years (for a limited time only). There are 2 18 hole course, 1 is a good course, the others is nothing special. I usually play these courses a few times a year. My boys are young both under 8 but I'd like to get them playing the game when they get older. Normally I would not consider joing a golf club but if they refund your money in 10 years I guess you could really make out on this deal. Family membership would be $17,775. The wife and I are tied to the area with both our families so I don't see us moving within the next 20 years.

I've never seen this type of offer, is it a good deal?

From their web page the details are
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Webster Golf Club 50th Anniversary<o

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Lifetime Platinum Membership*<o

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Super -low, all-inclusive membership, Single $12,500, Family $17,775.<o

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Unlimited golf on 36 holes; both the East Course and the West Course<o

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Free lifetime golf cart -Golf Logix <st1:stockticker>GPS</st1:stockticker> on every cart<o

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Unlimited use of our practice facility; the best practice range in the area! Never pay for range balls or practice time again!<o

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Numerous Reciprocals<o

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Lifetime Bag Storage<o

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20 % discount on food & beverage<o

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Advanced tee times<o

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Access to Tournaments and Social Events<o

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3 Easy Payment Installments-Final Payment not due till 2009<o

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*The actual terms and conditions of the Lifetime Platinum Membership are set forth in the Webster Golf Club, Inc. Lifetime Membership Agreement<o

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For a limited time, WE WILL REFUND YOUR
MEMBERSHIP FEE IN FULL IN JUST 10 YEARS!That's right,YOU WILL <st1:stockticker>GET</st1:stockticker> YOUR MONEY BACK IN FULL
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mike0187 · Apr 17, 2008

sounds like a good deal to me...have to pay by end of '09 though

but unlimited free practice range can't be undervalued, and free cart included with your rounds...

makes me wonder why they would give you your money back, but I would do it in a heartbeat if I had the money

VIEJODINOSAUR · Apr 17, 2008

Great deal...is it a nice course? How's the clubhouse? Any fine print? Any poker games or gin games for members? I would go for it....

bdgear · Apr 17, 2008

its a great deal if you have kids that age

TheKinz · Apr 17, 2008

great deal unless they go belly up! Watch weird promos like this. Many courses are in trouble from over-saturation. They go under or sold my guess would be all contracts are null and void. Maybe I am wrong but make sure to read the fine print.

kid44 · Apr 17, 2008

Just check the fine print. As a member a couple years ago of a local club they want you to spend x amount of dollars per month in the pro shop or restaurant.

If you do not you have a running total that needs to paid at years end.

i am sure all clubs are different.

TomGshotput · Apr 17, 2008

Generally when someone owes you a substantial amount of money and you have little recourse if they don't pay, it is not a good deal

HPark1 · Apr 17, 2008

"...IN JUST 10 YEARS!"

lol, yeah just a decade. Strange offer, in 10 years a lot of things change. Even if the current owner is being sincere you certainly can't bank on getting that refund.

buddyboy · Apr 17, 2008

sounds like the bank wouldn't loan them money.

you are basically loaning them money interest free for 10 years.

so the cost of the membership is the money you would did not earn (not considering taxes)

4% compounded 10 years = 26,311.34 - 17,775.00 = 8536.34
5% compounded 10 years = 28,953.60 - 17,775.00 = 11,178.60
6% compounded 10 years = 31,832.32 - 17,775.00 = 14,057.32

$8536.34 is that a good price for a family lifetime membership? and do your kids stay on for life or do they get kicked out at 18,21??

also you need to compare the cost if you didn't do this deal... would they take $9000 cash for the same membership and not pay you back in 10 years? payments?

it is really just a math problem, solve it and you'll know what to do.

patswin · Apr 17, 2008

VIEJO DINOSAUR said:
Great deal...is it a nice course? How's the clubhouse? Any fine print? Any poker games or gin games for members? I would go for it....

They have 2 courses, the east course is a solid course, I'd say probably in the top 10 or 15 of the local courses, the west course is very average but still not a bad course. Its the closest club to me so I play these 2 courses mostly. One thing I have to consider is I don't have 18k lying around that I could pay for it right away, I'd probably need a loan to pay for it. But if I was to get the money back in 10 years it would not bother me to do this. Not sure how financially sound the club is, they have been around for 50 years so I would hope they are sound. I would worry about the place closing though or getting sold or going bankrupt and getting nothing back. The only way I'd do this is knowing I'd get my money back.

kid44 · Apr 17, 2008

Also consider if the club is sold in that time. The new owners may not honor the deal you made with initial owners. Clubs get bought and sold by investors all the time.

WorldNumberOne · Apr 17, 2008

even if you dont get your money back , 17 grand for 10 years worth of use of every inch of the place is still a good deal.

just make sure their arent any hidden fee's.

bigtendominator · Apr 17, 2008

This equates to a scam in my book. What do you do when the ownership group simply declares BK and then their own group purchases the golf course under a new name.

I would think it were a better deal, if they weren't offering money back.

Let us assume they do return your money, as someone stated earlier, this is a beautiful interest free loan for them.

G.MONEY · Apr 17, 2008

I would ask a few questions......It says free carts for your membership, are you paying for every round? If you are giving them intitation money and then there are no other fees, you have no chance this club will be around in 10 years. Most clubs that are private, as a member you pay for carts or caddies and do not pay for your rounds of golf. If you are paying for neither you can see there maybe a problem here.

There are only a few areas to make money in a Private club...Food and Beverage, Guest fees, and cart fees....Hope this help you some

patswin · Apr 17, 2008

G. MONEY said:
I would ask a few questions......It says free carts for your membership, are you paying for every round? If you are giving them intitation money and then there are no other fees, you have no chance this club will be around in 10 years. Most clubs that are private, as a member you pay for carts or caddies and do not pay for your rounds of golf. If you are paying for neither you can see there maybe a problem here.

There are only a few areas to make money in a Private club...Food and Beverage, Guest fees, and cart fees....Hope this help you some

Thanks for the advice G, I think I will call for more details. I'm always skeptical of these types of offers because they sound too good to be true. My grandfather has been a member there for a few years and he does pay for his cart but gets his golf for free with his membership. I asked him about the offer and he said he didn't know anything about it. He's in his 80's and plays 3-4 times a week in the summer. I think Buddy was right on calculating the interest costs for 10 years on the $17k so you know what the true cost is. One thought I had would be was to use my HELC that I have on our house, we have a low balance on that. Then at least the interest would be tax deductible.

msubulldog · Apr 17, 2008

had close to same thing happen at my country club. they sold stock and the deal was everyone who owned a share was supposed to get their money back in 10 years. course got in trouble with cash and owner had to sell; stock was worthless.

did not mind buying the stock as our community only had 9 hole course at time and new course was 18 holes very nice and helped community bring in new businesses and other things.

do not plan on getting your money back.

patswin · Apr 17, 2008

Just called the course and spoke with the manager, the deal is as is stated above, he said 50% is required upfront, 25% 4 months later and the last 25 % 4 months after that. This covers greens fees and the carts also. Kids are covered up to age 21. If at anytime you wanted to get out of the membership it is transferrable to someone else. I asked about a sale before 10 years is up and he said it is written into the contract that if the club is sold before 10 years the new owners would have to honor the contract or give the member a full refund of their membership. So I guess unless they go out of business I would not lose the money. He said I could stop by and get a copy of the 'fine print' which I think I may do. I am still skeptical but I am thinking about it.

$tinky · Apr 17, 2008

I'd offer them 9k for the same deal they just don't have to pay you back. That way you don't have to worry about getting paid back.

It ends up working out about the same when u factor in interest.

OJ_SIMPSON · Apr 17, 2008

Is it an equity club or corporate? I always prefer equity clubs so at least, theoretically, you have a say. Corporate owned clubs always making changes and typically don't give a crap about what members say.

Just my 2 cents. Either way, good luck.

The Juice

kid44 · Apr 17, 2008

Pat, please go in and have the manager show you that in the contract. Make sure they will honor it. Always skeptical of these types of agreements. Do your homework.