Walking away from a share option

Wftablueboy

Lads , it's decision time , I've been a member of a golf club for the past 8/9 years. When joining we bought a "share" costing just under 10k . In the last year and a half my golfing days are getting less and less , looking at the subs for next year almost 1,500 euro I'm thinking of jacking it in and paying a couple of hundred just to keep my handicap . The decision is do you walk away from the 10k and forget about it or do you hold out and hope that someday you might get your money back?

thewobbler

Wftablueboy wrote: »

Lads , it's decision time , I've been a member of a golf club for the past 8/9 years. When joining we bought a "share" costing just under 10k . In the last year and a half my golfing days are getting less and less , looking at the subs for next year almost 1,500 euro I'm thinking of jacking it in and paying a couple of hundred just to keep my handicap . The decision is do you walk away from the 10k and forget about it or do you hold out and hope that someday you might get your money back?

I reckon your "someday" will happen circa 2030.

Peregrinus

In what circumstances would you expect to get your money back?

Kevinmarkham

Honestly, I'd give it up. If you're not getting the full value of your annual sub at the moment, then you're compounding the situation. It could easily be another 10 years before your share is worth anything (and not the 10k you paid), by which time you'll have spent a further €15,000 on annual subs (assuming that the current sub stays fixed), versus an estimated €2,000 to keep your handicap.

It depends on what you think will happen with your golf in the future and how good your friends are at the current club. If all you want to do is hold onto a GUI handicap so you can play at other courses when the opportunity arises, then move on.

Put it this way: that 10K share money is down the pan - so don't let it dictate your decisions.

Wftablueboy

Kevinmarkham wrote: »

Honestly, I'd give it up. If you're not getting the full value of your annual sub at the moment, then you're compounding the situation. It could easily be another 10 years before your share is worth anything (and not the 10k you paid), by which time you'll have spent a further €15,000 on annual subs (assuming that the current sub stays fixed), versus an estimated €2,000 to keep your handicap.

It depends on what you think will happen with your golf in the future and how good your friends are at the current club. If all you want to do is hold onto a GUI handicap so you can play at other courses when the opportunity arises, then move on.

Put it this way: that 10K share money is down the pan - so don't let it dictate your decisions.

Yea cheers Kevin , that's kinda the way I'm thinking at the minute , a couple of other members are talking about doing the same . I'm happy to pay 900-1000 euro per year cos I could just about justify that amount so it's a matter of shopping about and finding somewhere half descent that we d get value for money

Mister Sifter

Wftablueboy wrote: »

Yea cheers Kevin , that's kinda the way I'm thinking at the minute , a couple of other members are talking about doing the same . I'm happy to pay 900-1000 euro per year cos I could just about justify that amount so it's a matter of shopping about and finding somewhere half descent that we d get value for money

I agree with Kevin ... although, if you have doubts, one suggestion might be to try and lease your membership out (if your club will allow it).

frost53

I'm afraid what you have now is a receipt , not a share. The shares in Golf Clubs are all gone. Fingers and Seanie and their ilk have seen to that.

davo10

Hold the phone there everybody. OP first thing to do is check your contract, see what it says about non payment of sub. Second, do you get a lower sub if you are a shareholder than if you are not, if you do, see can you get a non shareholder to use your share entitlement to a lower fee, our club allows this. But the biggy is this, is your club part of a hotel complex?, if so and the hotel is sold in the future, the new owners may be obliged to buy out the shareholders if they want control of the whole estate.

8under

What did you buy the "share" in ? Is it that you bought a share in the total assets of the golf club (i.e. a members owned club) or did you buy a share in something else, such as company that runs a golf club but does not own the land asset (the golf course). ?

There are examples where people have bought in to the latter type and the company went under or struggle financially. This type is probably a more risky investment and you don't have ownership of the course. If I had this type of share and I was in your position, I 'd cut my losses now and go. Spread the €10k over the last 9 years and think of it as just spending more on your annual subs in that time when you had the good times and the money. Now it's time to tighten the belt

Different times now and there are plenty of very reasonable offers out there right now.

rafared

8under wrote: »

What did you buy the "share" in ? Is it that you bought a share in the total assets of the golf club (i.e. a members owned club) or did you buy a share in something else, such as company that runs a golf club but does not own the land asset (the golf course). ?

There are examples where people have bought in to the latter type and the company went under or struggle financially. This type is probably a more risky investment and you don't have ownership of the course. If I had this type of share and I was in your position, I 'd cut my losses now and go. Spread the €10k over the last 9 years and think of it as just spending more on your annual subs in that time when you had the good times and the money. Now it's time to tighten the belt

Different times now and there are plenty of very reasonable offers out there right now.

Those type of shares are more or less worthless. I have a couple of mates who paid large sums for a "share" in a company that runs a club on land leased from another owner. The "rent" is 600K a year or thereabouts by the way and it swallows all the member subs in one gulp.
The company who lease and run the club owe the bank a sum of money, which was borrowed to renovate the clubhouse, that would make your eyes water.

Golfgraffix

I wouldnt be so hasty, I have a share in a course that I no longer pay subs in but i still have the share (its a preference share). There was no obligation to keep paying each year to play.

The club rent it our for me, but it is still mine to do what I wish with.

scubapro

rafared wrote: »

Those type of shares are more or less worthless. I have a couple of mates who paid large sums for a "share" in a company that runs a club on land leased from another owner. The "rent" is 600K a year or thereabouts by the way and it swallows all the member subs in one gulp.
The company who lease and run the club owe the bank a sum of money, which was borrowed to renovate the clubhouse, that would make your eyes water.

De ja vu

IanPoulter

Golfgraffix wrote: »

I wouldnt be so hasty, I have a share in a course that I no longer pay subs in but i still have the share (its a preference share). There was no obligation to keep paying each year to play.

The club rent it our for me, but it is still mine to do what I wish with.

Is that Roganstown? My understanding of the situation there was that if the club (company) couldn't find a renter for it they would deduct the annual sub from the price paid so that it would become worthless over time.

Golfgraffix

IanPoulter wrote: »

Is that Roganstown? My understanding of the situation there was that if the club (company) couldn't find a renter for it they would deduct the annual sub from the price paid so that it would become worthless over time.

I had heard that too but I gave it to our company solicitor to look at and there was no contractual basis for that to happen

shamco

Kevinmarkham wrote: »

Honestly, I'd give it up. If you're not getting the full value of your annual sub at the moment, then you're compounding the situation. It could easily be another 10 years before your share is worth anything (and not the 10k you paid), by which time you'll have spent a further €15,000 on annual subs (assuming that the current sub stays fixed), versus an estimated €2,000 to keep your handicap.

It depends on what you think will happen with your golf in the future and how good your friends are at the current club. If all you want to do is hold onto a GUI handicap so you can play at other courses when the opportunity arises, then move on.

Put it this way: that 10K share money is down the pan - so don't let it dictate your decisions.

Totally agree I spent too long in South County throwing good money after bad to protect a share that ended up being worthless