Members of Newmachar GC have been left reeling after discovering that the Aberdeenshire club is facing up to the “worst case” scenario of being £1.3 MILLION in debt by the end of the year.
The club has suffered significant trading losses compounded by a spectacular over-spend on driving range upgrades. Work that had been expected to cost £400,000 ended up amounting to more than £620,000.
The problems facing the club, which opened in 1990, were spelled out at a special general meeting last month, where bosses pledged to do all they can to address them.
“After taking time to assess things since being appointed chairman at the start of October, it has become clear the issues we are facing are much bigger and more diverse than was initially thought,” said committee chairman Gordon Angus.
“However, the good thing is that we now have a clear picture and can work on a way forward.”
He added that is “hopeful” that the club’s finances can be brought back to order “through a combination of increases in our revenue, primarily in the corporate area, and appropriate cost base initiatives”.
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“We are still in discussions with the bank, and have already had some positive conversations with them, as well as suppliers, who have been supportive of our situation,” said Angus.
“What we need to do now is get the club back to a cash positive position, and together we are working towards achieving that.”
bunkered.co.uk understands that the club’s previous director of golf resigned just months ago before the full extent of the cash woes emerged, and it is believed that a member stumped up a five-figure sum to pay staff’s wages.
It is also our understanding that a proposal to get every one of the club’s reported 1,200 membership to pay a £200 levy to ease the financial position was roundly rejected. Instead, it is expected that the membership fees will increase by 5% next year.
Situated on the outskirts of Aberdeen, just a ten-minute drive from the city’s airport, Newmachar is home to two courses – Hawkshill and Swailend – designed by the acclaimed golf course architect Dave Thomas.
BBC golf commentator Peter Alliss once declared that the Hawkshill was “destined to become one of the top five inland courses in Britain”.