Golf courses confront depression

Suffered financial crisis, people give up someexpects to reopen the course this week as part
expensive sports in order to save money.golf isof a push to sell homes again.
one of these sports.Then,hundreds of coursesThe owners of Palm Desert Country Club in Palm
have shut down, and once-exclusive country clubsDesert managed to secure an operating loan in
have slashed fees or let in the public. Often linkedthe last few weeks that has allowed them to
to housing tracts, the greens and fairways havestart reseeding and watering, said Larry Kosmont,
slumped along with real estate.one of the owners. He plans to reopen the main
course Dec. 4.
The Coachella Valley has more than 100 courses,"It's a very tough economy for golf courses,"
and many of them, especially private clubs in newKosmont said, "but we persevered."
subdivisions, have struggled as the housing crashTo boost business, many private clubs are
drove away potential golfers. Homes near golfoffering no-interest loans to help the
courses sell for a premium, so developers oftenless-well-heeled buy memberships, and public
were willing to subsidize a money-losing golfcourses are rolling out the equivalent of blue-plate
business as long as they were making profits onspecials, including cheaper rates for off hours and
home sales.discounts on lessons and merchandise.
"A lot of courses were being built to increase lotSome think heavy discounting is a mistake.
values for homes," said attorney Steven Lurie, a"The trend of downward rates in the golf industry
partner of Thompson at the Los Angeles law firmhas been the real cause for many courses failing,"
of Greenberg Glusker. "No one was payingsaid Mark Tansey, president of Palm
attention to the economics of golf coursesDesert-based Sunrise Golf Inc., the company that
themselves."will run Escena for its owners. "Too many
About 30% of the courses that opened in theinexperienced operators are using price as a blunt
1990s were connected with residentialinstrument to generate activity."
developments, said Jim Kass, director of researchNot that golfers are protesting.
for the Florida-based National Golf Foundation. ThisDwain Richardson, a hospital food director with an
year, 70% of new golf courses were part of the18 handicap, enjoys the "twilight" specials at the
few projects coming out the end of theTahquitz Creek Golf Resort in Palm Springs. By
development pipeline.starting midafternoon he can usually play 13 or 14
In spite of all the financial setbacks experiencedholes before it gets too dark to see. He pays only
by operators, however, golf courses themselves$29 and gets the use of a golf cart plus two free
have a knack for enduring, even if it's under newdrinks at the bar.
ownership.Low prices keep golfers like him coming out, he
The Jack Nicklaus-designed Escena Golf Club insaid, which could cement new habits.
Palm Springs, which opened in 2005 as part of a"I would play every other day if I could,"
housing development, closed two years ago whenRichardson said. "I can see why people get
one of the home-builder owners ran into financialaddicted.
problems. A new owner took over the debt and