Is Joining a Private Golf Club Worth It?

Joining a private golf club is a commitment and one that you want to feel good about.  If you find yourself thinking about a private club membership, there are many things to consider.  Additionally, a membership at a private club is not for everyone.  Take the time to do your research to make sure you can enjoy the experience to the fullest.

With that said, let’s explore the question, “is joining a private golf club worth it?”

Costs to Consider When Joining a Private Club:

Initiation Fees: Nearly all private clubs have them; it is the initial cost to gain access to the club.  Such fees will vary over time based on economic factors of the club (e.g. capacity rate, operating income, cash flow, etc.).  You may pay a $5,000 initiation fee while five years later a new member may get in at a bargain for just $1,500.  Luckily, there will likely be financing plans to pay off an initiation fee over time and various types of discounts (e.g. age, non-resident, family) to entice new members.

Monthly Dues: After you pay the initiation fee, then there will be a minimum monthly payment in order to ensure that the club has a consistent monthly cash flow to cover operating expenses (and hopefully turn a profit).  Monthly dues will vary from one club to another so it is important to inquire as to the exact charges so that the new monthly bill will fit within your budget.

Minimums: A minimum monthly spend on food or in the golf shop, for example, may also be required of each member.  Sometimes these minimums will supplement monthly dues but the “use it or lose it” approach with minimums ensures that the club is generating consistent revenue on a monthly basis.

Future Assessments: Assessments are a quick way to generate crucial funds to cover projects or emergencies.  Every club handles assessments differently, but it would be a wise to inquire about short and long-term projects and the club’s plan to pay for those projects.  Perhaps you are joining a club because they have plans for a new clubhouse; if so, you may want to make plans for a future assessment as well.  The last thing you want to do is to join a private club that maxes out your budget on initiation free and monthly dues only to find out you owe even more due to an assessment.

Club Debt: Whether it’s a line of credit or a big loan, any private golf club may have debt.  It will be worth looking into how the debt was accumulated and how the club plans to pay it off (see Future Assessments above).  By becoming a member, not only do you get to partake in the club’s assets, but you also become partially responsible for the club’s liabilities (that is, if the club is member owned).

Separation Policy: Eventually there may come a time for you to leave the private golf club, but doing so may present some challenges.  At some clubs, you just stop paying your dues and you are done.  For others, you may not be able to officially leave until a new member is found to replace you.  Make sure to check out the separation policy when you sign up so that there are no big surprises later.  In some cases, you could get your initiation fee back.  Lucky you!

Miscellaneous Costs: The costs below may show up on a monthly invoice or they may require you to reach for your wallet while enjoying your club membership.  Regardless, they do require payment and should be considered when evaluating club membership:

• Tipping of employees: Some clubs may have tips/gratuity included in their service fees; but it is customary to tip caddies, forecaddies, outside service staff, wait staff, and golf instructors.
• Lesson Fees: The golf is free, but the golf lessons are not.
• Locker Room: There may be a fee for annual locker rental.
• Bag Room Storage: Some clubs may have a small bag room; therefore, they may have a fee to store a limited number of golf clubs at the course.
• Holiday Gifts: There may be a fee for holiday gifts.  No, not for you.  But each member would contribute to a pool of money for year-end gifts for the club staff.
• Practice Range: Some clubs may include it in the membership fee, others may add a charge as someone has to pick up all those balls.
• Hole-in-One Insurance: Another small fee that some clubs add-on.  Every club does it differently but a good example is that each member is charged $20 annually for Hole-in-One insurance.  If you record a Hole-in-One, everyone in the club gets a free drink courtesy of you, but you don’t have to pay for every drink because of the insurance.
• Pool: Some clubs sell specific pool membership for people only wanting to use the pool (the same goes for tennis or social memberships), so this may be an additional fee if you join the club and want to use the pool, in addition to playing golf.
• Mandatory Caddie or Cart Fees: Many private clubs have caddie programs and it is required to take a caddie for each round.  If you choose not to take a caddie, you may be required to take a cart—whether you want to or not.
• Food: Food is another revenue source that is not part of your membership dues, therefore, food and how often you plan to eat at the club shall be considered.
• Tournaments: A private club will offer a competitive tournament program, but there is a fee to play in each tournament.

There can be many hidden fees when joining a private club, so plan a visit and request to see a list of monthly and annual fees that are charged to the members.

Additional Factors to Consider When Joining a Private Club:

Equity vs Non-Equity vs For Profit: An Equity club is where you own a fractional share of ownership rights and might be able to sell those rights upon resignation, sometimes at a higher value.  Non-equity clubs are like renting an apartment meaning you don’t own, but can belong.  For-profit clubs are typically owned and operated by a management firm, or owned by a single or few owners.  For-profit clubs are operated as a private club, but also have an interest in providing a profit for its owners.  Each type of club operates differently, and this will have an effect on the club members.

The Process to Gain Club Membership: Some clubs may simply require you to write a check for the initiation fee and agree to follow the club rules; others may require you to have a current member(s) recommend you as a new member.  If the latter is the case, this process may take some time and should be considered if you need to “network your way into a club,” in order to even be considered as a new member.

Distance from your home: If you enjoy driving your car as much as your golf ball, you shouldn’t have to worry about this.  But for those who prefer to keep most of their driving on the golf course, consider the distance you must travel in order to play.

Number of Members & Rounds Played: Typically, private clubs have a maximum number of members they will allow at a given time to be a part of the club, but they don’t restrict the number of rounds that members can play.  If course access is paramount to your decision about joining a private club, this is critical information to know.

Junior Program: If you have a family, you will want to consider any activities for junior golfers.  Private clubs provide excellent instruction and have outstanding Junior Programs.  Keep in mind that there may be restrictions for juniors (e.g. juniors cannot play before 10 a.m. on Saturday) as well.

Club Rules: Ask about the club rules. For example, some private clubs prohibit members from wearing their hats inside the clubhouse.  And some private clubs prohibit members from wearing their hats backward anywhere on the property.  Additional rules about mobile phone use and dress codes are good to know as well, before you join.

Guest Policies: If you join a club, you are going to want to show it off.  But how many guests can you bring at a time?  And how often can you bring guests?  Check out the guest policies before joining to avoid the awkwardness of sending your three best friends home when they can’t play your course on Saturday morning.

Hosting Outside Events: If you want to play golf every day of the week, consider asking how often the club hosts outside events.  Some clubs may host zero outside events, some may host a handful annually, and some may host up to two events per week.  Whenever there is an outside event, there is a good chance that the golf course will not be available to the membership—preventing you from playing golf every single day.

Club Politics: When people are put together in a group there is always a likelihood that they may not always agree with one another.  Although club governance will lead the club and make major decisions, personal agendas will still exist. 

Benefits of Joining a Private Club

Since we’ve covered some of the costs to be aware of when joining a private club, let’s also look at the benefits:

Course Access and Play: With a limited number of members at a private club, course access, availability of tee times, and pace of play are all benefits to joining.  Keep in mind that some private clubs don’t even take tee times—instead, they operate on a first come, first serve basis which may be appealing if you are a spontaneous golfer.

Exclusivity: If you like to congregate with those of similar economic status for both personal and professional purposes, joining a private club will assist in that endeavor.  Many people join private clubs for personal reasons while some join strictly for business reasons (networking, entertaining clients, tax write-offs, etc.).  Regardless, a private club has restricted access and will provide exclusivity to its members.

Club Amenities: Private clubs continue to offer their members different amenities to compliment the golf course. Such amenities provide value to being a member but normally come with a cost (and have been noted above). When considering joining a private club, inquire about amenities, which may include: swimming pool, tennis, basketball, sailing, pickle ball, bocce ball, bird watching, ice skating, sledding, high-quality food, and superior service.

There are many things to consider when joining a private club and determining whether or not it is worth it.  The best thing you can do is to try it out: request a tour, play the course, network with existing members, attend functions at the club, and play in a few Guest Days.  The more familiar you are with the club, the more comfortable you’ll be when the time comes to join it.

Cover Photo via Flickr