20 Golf Inc. Summer 2014
Billy Casper Golf
Billy Casper Golf moved from No. 4 to No.
2 on the list this year, thanks to a frenetic
pace of growth. The biggest jump came in
October, when it took over Kitson & Partners
and merged that company’s 13 properties
into its portfolio. The largest operator of U.S.
courses also added plenty of smaller deals. It
has become the go-to manager for municipal
courses, recently securing contracts with
Midland, Mich.; Prescott, Ariz; and Tamarac,
The Big Five
1.Troon Golf 207 Scottsdale, Ariz.
Dana Garmany, Chairman and CEO
2.Billy Casper Golf 157.5 Vienna, Va.
Peter Hill, CEO and Chairman
3.Pacific Golf Management (Japan) 157 Tokyo, Japan
Arihiro Kanda, Chairman
4.Accordia Golf Co. Ltd (Japan) 154.1 Tokyo, Japan
Ryusuke Kamata, President and CEO
5.ClubCorp 140 Dallas
Eric Affeldt, President, CEO and Director
ClubCorp has been a hot commodity
since it went public in September 2013,
earning kudos from Barron’s and other
stock watchers. The largest owner
and operator of private clubs has seen
its stock price jump 30 percent since
Fueling the excitement are strong
financials and an aggressive acquisition
strategy. It has acquired 13 courses in
the past three years, including TPC
Michigan, in Dearborn, Mich., and
TPC Piper Glen, in Charlotte, N.C., in
April. It purchased the two courses —
TPC Michigan has hosted the Ford
Senior Players Championship for 16
years, and TPC Piper Glen hosted two
past championship events. ClubCorp is
hopeful both courses will secure future
tournaments. ClubCorp will use the
courses to help push membership sales
nationwide by offering reciprocal play.
“We enjoyed the highest level of
membership sales than any time in
recent years,” said Eric Affeldt, president,
CEO and director.
ClubCorp generated $627.3 million
from its golf operations in 2013, up
5. 6 percent for same-store revenue.
While memberships were up less than 1
percent, it increased dues by 6. 7 percent.
Food and beverage was also up 6. 8
percent. The company reported similar
growth in the first quarter of 2014, with
memberships up 1 percent.
While same-store growth is modest,
it is moving in the right direction and
the company’s acquisitions are helping it
grow further, analysts say.
ClubCorp feels the opportunity for
additional acquisitions is very good,
given that many private clubs continue
“The opportunity for acquisitions is
Accordia Golf Co. Ltd (Japan)
greater than in the past,” Affeldt told
Barron’s in May. “We will continue to
make deals, likely at an accelerated pace.”
It raised $252 million in its initial
public offering, giving Affeldt a line of
credit close to $140 million to purchase
and renovate clubs.
Accordia Golf Co. announced a new growth plan in March designed
to help slash the company’s debt. It hopes to sell 90 of its 133 golf
properties to a publicly traded real estate investment fund for $1.09
billion. It will then initiate an initial public offering to fund the deal,
and abandon it if it fails to reach the $1.09 billion.
Accordia still needs approvals and expects everything to be
completed in August. If successful, it will wipe out its debt and still
manage the 90 golf courses.
The nation’s golf clubs “are expected to see a gradual decline in
players as the country deals with an aging population,” notes Japan
Property Central, which believes Accordia is “attempting to reduce its
exposure by selling off its assets.”
If the price is correct, Accordia’s courses are being valued at
roughly $12 million each.
Courses & Facilities