The club that was formed by bringing together two distinct Cleveland-area properties through a landmark merger a decade ago is now owned by businessman Monte Ahuja, who also owns Barrington Golf Club in Aurora, Ohio. As one condition of the purchase, Ahuja agreed to retain both properties as golf courses for at least ten years.
Cleveland, Ohio businessman and philanthropist Monte Ahuja, CEO of Transtar Industries Inc., recently purchased the Mayfield Sand Ridge Club, a private country club which includes two golf courses, Mayfield in Cleveland and Sand Ridge in Chardon, Ohio from the members, Crain’s Cleveland Business reported, and he also pledged to make “significant investments” in each course and clubhouse facilities. A new membership drive has begun that waives the initiation fee and offers a 20% discount on dues.
Terms for the Sand Ridge course purchase were not disclosed, but Ahuja paid $3.6 million for the Mayfield Country Club property, and the two courses and clubhouses had previously been appraised at more than $10 million, Crain’s Cleveland Business reported.
The two previously independent clubs were merged through a landmark arrangement in 2006 (http://clubandresortbusiness.com/2009/03/merger-on-mayfield/).
As one condition of the purchase, Crain’s Cleveland Business reported, Ahuja agreed to retain the properties as golf courses for at least 10 years, thus eliminating the short-term possibility that the new owner, who also owns Barrington Golf Club in Aurora, Ohio, could shutter the courses for development, although he has given no indication of wanting to do so.
In addition to the purchase price for the Mayfield Sand Ridge Club properties, Ahuja said he plans to make “significant investments” in both courses, Crain’s Cleveland Business reported.
“It’s not that I have a plan for after that,” Ahuja said. “I’m looking at building up the golf courses so they will be the talk of the town. I’m not a real estate developer. I have no interest in real estate. I’m not in golf to make money. No one would be in golf to make money; I have ample other opportunities for that.
“At the same time, I want to manage the courses like a business, using the best of products in the most efficient way,” Ahuja added. “But it’s more a passion than a business.”
Ryan Marrie, President of the just-disbanded board of Mayfield Sand Ridge, told Crain’s Cleveland Business that the 10-year commitment to retain play at both courses was not difficult to obtain.
“Initially, he said five years. We said 10,” Marrie recalled in an interview. “And he answered, ‘No problem.’ ”
Familiar factors pushed the nonprofit club to seek a buyer, Crain’s Cleveland Business reported.Marrie said the club has been losing members, dropping to about 475 now from a peak of more than 600 in 2010. The club operated on a break-even basis, Marrie said.
“The only way to increase retention and attract new members is to invest in the property,” Marrie said. “Like every private club, we have a debt. We did not think an assessment to fund improvements would go over well.”
The club had talked to two private club operators and was close to a deal with an investor in 2017 when the talks broke down, Crain’s Cleveland Business reported.”That was known around town and led to [Ahuja] reaching out to us,” Marrie said.
The oversaturation of golf courses on Cleveland’s East Side and declining golf participation created the club’s woes, Marrie added, and its Board sought to avoid going through a long-term, acrimonious process to resolve the issues that have stricken other golf clubs.
Apart from the monetary issues, Marrie told Crain’s Cleveland Business that Ahuja “was the ideal buyer. He’s part of the community. He’s committed to his legacy. He loves golf and likes to provide opportunities to play. I saw it as a win-win for the club, the members, the staff [which totals about 200 in the summer, Crain’s Cleveland Business reported] and the long-term outlook for the club.”
Members also agreed. Marrie said the club’s membership held two webinars to discuss the potential sale with members in February and March, because many were wintering in Florida, and Ahuja spoke at an April 24 meeting. At a meeting on April 27 for a vote, with many members voting by proxy, 98% of the members approved the deal, Marrie said.
In terms of planned improvements, neither Ahuja nor Marrie would discuss the budget for the work with Crain’s Cleveland Business. Ahuja said the plan is to continue to improve the courses and spend “millions” on updates to the clubhouses, including provisions to attract more banquet and wedding business.
“It’s not a technically complicated business,” Ahuja said. “It’s a simple business if you do the right things.”
Mayfield Sand Ridge already has a membership drive on that will continue through June, Marrie said. It includes, for a full membership, waiving the $5,000 initiation fee and a 20% discount on $900 monthly dues.
After that, Ahuja said he hopes the attraction of the product will provide growth, Crain’s Cleveland Business reported. The club will remain private, he said. Ahuja said he is looking at forming a central management platform for all three clubs, incorporating his staff from Barrington.
Members at Mayfield Sand Ridge can play at both courses, and Ahuja said he is looking at offering a chance for members to play at all three courses as an incentive, because from his perspective, the courses are the attraction.
The full report from Crain’s Cleveland Business can be found at http://www.crainscleveland.com/article/20180603/news/163671/ahuja-acquires-two-sand-ridge-courses
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