"The members decided an auction was the quickest and easiest solution for the club that’s been around roughly a half century."
/Thanks to Del for Dawn Wotapka's Wall Street Journal blog item on the May 10 auction of Oak Lane Country Club in Woodbridge, Conn., which the item says is "the latest sign of trouble in the golf-club industry."
With the reserve price set at $1.6 million, the club’s sale price starts at a song. But bidding could be intense. With large tracts of residentially zoned land rare in the crowded Northeast, everyone from developers to church congregations have shown interest, says Oren Klein, partner and auctioneer for Tranzon Integrated Property Group.
The buyer might not be a golf course operator: Players continue to abandon golf – a single game can take several hours – in favor of quicker, easier and more affordable activities. Fewer club members equals lower revenue.
The things you learn from the WSJ!
At one point, Oak Lane club had several hundred members, but that has fallen to around 200, which didn’t generate enough money to pay the bills, according to Mr. Klein. Plus, several nearby courses pose stiff competition for everything from green fees to catering orders.
“The numbers don’t work anymore,” he says. “They’re in default with their mortgage.”
The members decided an auction was the quickest and easiest solution for the club that’s been around roughly a half century.