Thursday, December 23, 2010

Loch Lomond Members Buyout Near Completion

Not quite your standard membership takeover I'd suggest but then again not exactly your normal golf club. Minimum Equity stakes of £20,000 the BAA Chairman to front the club with a who's who of corporate names on the club committee, sorry on the board of the Off Shore Limited Liability Company.

According to financial reports, "Loch Lomond Golf Club in Scotland, whose members include Prince Andrew and Sir Sean Connery, is close to being bought out of administration by its 800 members. The members will buy the golf club, including the freehold to Dundonald Links, for £35.1m, including a £10m loan from Bank of Scotland Corporate, now part of Lloyds Banking Group.

To fund the purchase, members have been asked to contribute varying amounts of cash, with a minimum of £20,000, for an equity stake in a new company, Loch Lomond Members Golf Club Limited, a limited liability company incorporated in the Cayman Islands, that will own the club. The sale is due to complete by 31 December."

I know nothing about off shore limited liability companies running golf clubs in Scotland but I guess that they will not be collecting this year's members sub by monthly direct debit!

Do please let us know if your local golf club has considered off shore limited liability status as the solution to dwindling membership revenues... and we're not sure that Brodick Golf Club counts as off shore.

1 comment:

Anonymous said...

£20,000 to stay a member? Dont forget these members had to pay £60,000 each to retain their membership just a few years ago. Also worth noting that the original joining fee was £3000 and that was in the late 1990s.