Background: Capital City Country Club members voted overwhelmingly to sell the club to an outside group of investors that promises $30 million in greens and facility renovations.
Charles McMurry
| Letter to the editor
The golf course business in Tallahassee is not a big money-maker.
Memberships average about $300 per month, so if you have 300 members you could expect about $90,000 a month in membership fees.
Total sales for ancillary items like carts, pro shop merchandise, restaurant/bar, tournaments, and special events like weddings could add another $90,000 a month during parts of the year.
That said, no one is going to invest $30 million in golf course renovations and expect it to pay for itself.
The debt service on that amount of money amortized at 6% over 30 years is about $180,000 per month. Even borrowing $10 million dollars provides a mortgage payment of $60,000 a month.
I don’t think any prudent investors would put money into a business that can’t service the debt, let alone provide a profit.
Just watch the shark tank.
Charles McMurry, former owner of Southwood Golf Club, now lives in St. Marks. He can be reached at mclaw@mcmurrylawfirm.com.
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