ClubCorp’s record first-quarter results caught the attention of Jim Cramer, host of the popular CNN show, and prompted him to do a segment on the investment potential of “Playgrounds for the Wealthier” that included an interview with the management firm’s CEO.
The record first-quarter results posted by ClubCorp (http://clubandresortbusiness.com/2015/04/30/clubcorp-reports-record-first-quarter-results/) caught the attention of Jim Cramer, host of CNN’s popular “Mad Money,” and prompted Cramer to do a segment on his May 18 show on the investment potential of “Playgrounds for the Wealthier” that included an interview with ClubCorp CEO Eric Affeldt.
In his six-minute appearance on the show (see the full video below), Affeldt made many of the same points he covered in C&RB‘s interview with him that was published last fall (http://clubandresortbusiness.com/2014/10/07/membership-business/): ClubCorp is focused on being in the membership business, with 46% of its total revenues now coming from dues, and on “creating space where family and friends can do a lot of things, including golf.”
Asked by Cramer if ClubCorp is concerned about existing members objecting to having new members drawn to their clubs by the improvements and marketing efforts made by the management firm, Affeldt replied, “There’s a fine line between exclusivity and loneliness.” He also noted that in many cases existing members benefit from reduced dues, because ClubCorp has a strict no-assessment policy and frequently eliminates the capital assessment component of existing dues structures.
During the interview, before-and-after photos of two ClubCorp properties—City Club Los Angeles and The Country Club of the South in Johns Creek, Ga.—were shown to help illustrate how the management firm is “reinventing” club properties.
Here is the full video of Affeldt’s appearance with Cramer:
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