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A Scottish golf club is in a fight for survival amid escalating financial concerns caused, in part, by a legal battle with its own members.
Prestwick St Cuthbert, located only a mile from Prestwick Golf Club, the birthplace of the Open Championship, has written to its membership outlining its precarious position.
First reported by the Scottish Sun, the Ayrshire club – founded in 1899 – is facing a cash shortage of £60,000 between January and March caused by an anticipated increase in members failing to materialise, a larger-than-forecast deficit in its catering contribution, and unexpected legal costs.
The club was challenged by members in the Court of Session after it reportedly tried to impose subscription fees on individuals who were previously exempt, amongst them up to 60 life members who it claimed paid up to five times the annual membership dues to become a member of the club for the rest of their lives.
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It is understood the club is preparing to enter into mediation with the affected members “in an attempt to find some common ground”.
The impact of the club’s financial position was laid bare to members by vice-captain Ian Logan.
In a statement seen by bunkered.co.uk, Mr Logan wrote: “I think everyone should be aware that the club has a serious financial issue to contend with. I have only just started to work on the inside of the club and am really concerned about our future.
“At the start of the year the budget allowed for an increase in members, which did not come to fruition (we are net 40 full paying members under budget) and we have a much larger deficit in our catering side than we expected.
“At this stage we are projecting a cash shortage of £60,000 between January and March when subscriptions are due.”
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Adding that the legal challenge brought by members has had “a hugely negative impact on the club” and has “seriously impacted its finances and the day to day running of the club”, Mr Logan added: “We are currently about to start the process of refunding those life members who have requested a refund.
“The council are looking for ways to fill this shortfall including banks loans or bank overdrafts, however, banks appear to be less keen to assist golf clubs these days and that itself is a clear indicator of the difficult times golf clubs are facing.
“We are exploring other avenues of cash support but it’s proving difficult and the council will keep you updated as things progress.
“Please do not underestimate the seriousness of the club’s financial situation. We are sitting on a knife edge and we all need to pull together.
“This used to be a club that was united and friendly, we are losing that. Divisions have become evident and that is not good for the club. We need to get back to how we used to be.”
The statement concluded: “There are many golf clubs all over the country that are under real pressure. Many will not survive. Please don’t let that happen to St Cuthbert.”
bunkered.co.uk has contacted Prestwick St Cuthbert Golf Club for comment.
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