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PRIVATE CLUBS Four Major Categories:  Country Club  City Club  City Athletic Club  Yacht Club.

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Presentation on theme: "PRIVATE CLUBS Four Major Categories:  Country Club  City Club  City Athletic Club  Yacht Club."— Presentation transcript:

1 PRIVATE CLUBS Four Major Categories:  Country Club  City Club  City Athletic Club  Yacht Club

2 Country Club Usually refers to a club in the suburbs with:  Clubhouse  Golf Course(s)  Tennis courts  Swimming pool(s)  Other recreational activities  Recent 5 year trend ….. To have a fitness and health center

3 City Club Is typically a dining club located in the city:  May be in a free-standing building by itself or in an office building, etc.  Main dining room, meeting rooms, lounge, and maybe a ball room.  Very formal service and upscale menus for business entertainment.

4 City Athletic Club Is the same as a city club, but with athletic amenities such as:  Tennis courts (indoor and outdoor)  Swimming pool  Fitness/athletic area including weights & aerobic equipment  Racquetball, squash, basketball, etc.  Workout/aerobic class area  Locker rooms with full amenities

5 Yacht Club Same as country or city-athletic club, but with marine activities and usually no golf.  Located on body of water  Powerboat or sailboat docking  Marina services

6 What is the purpose of a private club? It is a specific place where one may associate with one’s peers or those with similar interests: athletic, social, industrial, intellectual, etc. It is a selected group of people who gather in a specified place for social and recreational needs that are provided through professional management.

7 Why do people join private clubs? Networking for business contacts Social status Fine dining Athletic facilities

8 Two underlying reasons always exist: To be recognized To have fun

9 Characteristics of a Private Club Club has an established, stable clientele:  Deal with the same customers day after day, week after week, year after year.  Fixed clientele requires that menus be changed more frequently than restaurants, and there are a variety of holiday celebrations.  Inventory in the pro shop must be turned over regularly.

10 Privilege of using club facilities is obtained through payment of dues.  Therefore, food must be outstanding or better than fine dining restaurants for city clubs and be priced competitively or lower than 4 star restaurant quality.  The F&B operation is subsidized in part by the dues.  Expectations at a 4 star restaurant include: table cloths, linen napkins, special china, fresh flowers, better than average service, immaculate grounds, and a unique menu. Characteristics of a Private Club

11 A Club Manager is expected to know a variety of things in club management:  F&B operations for fine dining  Cost controls  Membership relationship  Board of Directors politics  Golf course agronomy and operations  Tennis programming and maintenance  Swimming pool safety and sanitation Characteristics of a Private Club

12 Club Ownership Types Member owned (equity)  The members own the assets, they have rights to the club’s equity, like shareholders.  Governed by a board of directors (typically 10 to 12), but some are as low as 4 and as large as 50 directors.  A membership has one vote on issues that are mandated by the club’s bylaws.

13 Member owned (equity) - cont.  Depending on the state’s legal climate for ownership in a business, some clubs issue a bond to members and those with bonds can vote or redeem it for a set value.  Most of the old established clubs are of this format.  In order to maintain a club’s tax exemption, the IRS measures whether a club is a true private club by seeing if it allows non-members to use the facility by paying an admission fee. Club Ownership Types

14 Proprietary (for profit)  Owned by an individual, partnership or corporation.  Members have no equity interest or actual control over its operation.  Developer built clubs and CCA clubs are examples of this type.  These clubs pay income tax and don’t have abatements or lower rates on local taxes such as property tax.  Some developer clubs revert to member owned when a certain number of homes are sold (e.g. 75%) Club Ownership Types

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