Equity vs non-equity pro golf shop memberships
There are different types of membership packages associated with private golf clubs and are open to anyone ready. So, perhaps you are already resolved to join a unique golf shop, but you don’t know which membership packages to go for; this article can guide you. Meanwhile, different golf shops or pro golf clubs may name their membership packages with additional terms. There are generally two types of private pro golf club memberships.
The two main types of private membership of golf shops are equity and non-equity memberships. Meanwhile, these two types of membership have to do with the financial structure and the ownership of the golf club. The new membership is decided on the grounds of the nature of membership that you, as an intending member, wish to be part of. Let us gradually look at each of these membership types and compare them towards making a final decision.
What is an Equity Golf Membership?
One can define equity membership of a golf shop as the type of membership that allows a member to own a portion of the golf club alongside other members. In Equity membership, each registered member has the right to a stake in the business where other people may otherwise have access. How important is this to your golf career? The truth is that equity memberships are costly because they offer exclusive services that many other non-member s cannot have access to.
Concerning the number of registered members of the golf club and the complete plan that comes with membership, it is worth considering. However, the typical initial membership of an equity membership in a golf course can range between 5,000 USD. The maximum amount can exceed 250,000 USD. You should also note that if you want to opt out of the membership, the registration fee or part is refunded to the golfer.
But the truth is, why would anyone want to let go of any of the premium benefits of equity membership? Even at retirement, one will also like to continue to enjoy these fantastic opportunities. Ideally, you can even get 100% of your registration fee, except that a transfer fee of 10 to 20% may be deducted from the original cost that was paid. Meanwhile, it is also possible for the membership fee to appreciate in value. And when or if it does, the equity member of a golf shop will be the one to benefit from the appreciation. In the case of an outgoing member, there may be a need to wait for a new member to join before getting the refund. On the other hand, the outgoing member may sell his membership directly to a prospective member.
What is a Non-Equity Golf Membership?
A non-equity pro golf club membership refers to a type of membership where all the club’s amenities are owned by a single entity and not all the members. For instance, the facility may be owned by the developer, an organization, or a company whose vision relates to owning and running such facilities. Usually, the facility’s management is entirely the business of the sole proprietor, which is not the same in the case of equity membership.
Moreover, with inequity memberships, the co-owners may not have the required skills or expertise to manage the facility. But non-equity membership leaves the management of the pro golf club into the hands of the technocrat, investor, or an industry-specific professional. Therefore, the professional can dedicate a lot of time to the club’s operations, maintenance, and total management. So, suppose you register as a non-equity member. In that case, you can freely come around and use the facility and all its benefits without any managerial or admin responsibility.
In terms of the registration fees, since it does not require any commitment from the paying members, the registration fee is usually non-refundable. This program has also grown over the years. There is a window condition for part of the registration fee refunded to the member who wishes to leave. However, any increment or appreciation of the enrolment fee cannot be claimed by the outgoing member. Instead, it belongs to the club or golf shop and her management.
Which Golf membership in a golf shop do you prefer, Equity or Non-Equity?
The discussions above show that any two membership types have their own benefits, advantages, and disadvantages. Whereas the difference in these membership types lies in the mentality of the member. For instance, if you don’t mind the extra obligation that an equity membership brings, you can choose it. But if you prefer to stand aloof all the managerial responsibilities, then a non-equity membership may be preferable.
For instance, some retirees may prefer to acquire the club facility because they will enjoy commitment, influence, and control. They may not even mind the extra work involved, as long as the owner is entirely theirs. In addition, there is a level of exclusivity and potential gains for equity club ownership with a fantastic attraction and other benefits. On the other hand, when looking for a more relaxed condition of membership, then a non-equity is fine for an ordinary member. However, if you plan to register with a country club, there’s no need for extra responsibility.
Can you own a Private Golf Community?
It is practically workable to set up a private golf club community because the requirement is not burdensome. However, it also requires some of these typical parameters: membership definition, transferability, refundability, and resignation. Setting up a perfect golf community with all its membership model attracts different needs, budgets, and their peculiar lifestyle. Meanwhile, the journey may have to start from setting up a pro golf shop.
In Sydney, Australia, golf has its peculiarities about club members, players, and club staff. Other items include other golf club members and other essential stakeholders in the business. Amazingly, an experienced golfer would appreciate registering for any one of his choices. It also has exciting investment value and an ability to change one’s lifestyle.