Eric Affeldt was interviewed for the July 16 segment titled “Could investing in golf clubs swing your portfolio to big profits?” Affeldt highlighted the club industry’s emphasis on facility reinvestment and appealing to a broad range of consumers.
ClubCorp CEO Eric Affeldt was featured on the Fox Business television show “After the Bell” on July 16.
The segment, titled “Could investing in golf clubs swing your portfolio to big profits?” includes an interview with Affeldt, in which he noted that the company’s emphasis over the past seven years has been to invest capital to bring in a wide range of consumers—not just golfers, but members seeking fitness amenities, recreation, entertaining and dining.
The 57-year-old company went public in September 2013 and its stock has risen 24% since then.
When asked about the golf course “shake out” as a result of the economic downturn, Affeldt responded that the clubs that have and are doing the best are multi-faceted and multi-generational.
A benefit of not banking entirely on golf, Affeldt notes, is that a club is not entirely weather-dependent. “If you get a bad weekend, you’ve wiped out your month’s worth of potential profitability,” Affeldt said.
“With our model, almost 48% of revenue comes from dues, which are highly visible and recurring,” Affeldt said, adding that private clubs aren’t just for the “uber wealthy.”
“Our average joining fee for a private club is less than $5,000 and average monthly dues are in the neighborhood of $400. This is what we call the ‘mass affluent,’ those who have disposable income and are looking for ways to enhance their lives and their families’ lives,” Affeldt said.
View the interview below:
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