"The fact that I can play the Biltmore for $55 in December, it blows my mind"
/J. Craig Anderson files a largely depressing story about the state of golf in Arizona.
So far, only about 5 percent of Arizona's roughly 340 golf courses have exhibited overt signs of financial trouble, experts said, while the number of "at-risk" courses across the U.S. is closer to 15 percent.
Roger Garrett of Phoenix-based Insight Land & Investments said golf-course owners are getting hit from all sides: Tourism is down, fewer locals are playing, water and labor costs are up, and too much competition has forced course owners to lower membership fees and greens fees.
Adding to those challenges is a decision by some lenders to place golf courses on their "toxic-asset list," he said, which means they won't consider lending money for a golf property under any circumstances.Three lenders that once provided the bulk of financing for golf courses - GE Capital, Textron Financial Corp. and Capmark Financial Group Inc. - "have all three closed their doors" to buyers, Garrett said.
For many Arizona golfers, the net result of these troubles is a positive one: Most courses have lowered their fees, and several members-only clubs have opened their doors to the public.