As individual golf and country clubs nationwide struggle to attract and maintain members, it appears the future of the club model may well rely on management companies.
ClubCorp is one of those kinds of companies. Founded in Texas 1957, ClubCorp was acquired by KSL Capital Partners in 2006 for their more than 150 golf and country clubs, as well as business, sports and alumni clubs. They now own or operate 102 golf and country clubs in 23 states and Washington, D.C., which accounted for 77 percent of the company's 2012 operating revenues.
Now, they're will to take their business from behind the country-club gates and onto Wall Street.
ClubCorp announced Tuesday it has filed confidentially with the Securities and Exchange Commission (SEC) in a draft Form S-1 that could lead to an initial public offering (IPO) of common stock. The offering would include from of KSL Capital Partners' stock in ClubCorp, though the total number of shares and their price at offering has yet to be determined.
The proceeds from the IPO would help pay off some debt and be used for other general purposes.
ClubCorp has over 145,000 total memberships, retaining some 80 percent of them year over year, using amenities like reciprocity with other ClubCorp facilities as a selling point to keep members paying dues, which accounts for 44 percent of their revenue.