Rowany Golf Club in Port Erin looks set to close, but the commissioners have offered a new deal – including vastly reduced rent - hoping to give a golf club a future there.
The club will hold an emergency general meeting on December 18, at which the resolution is to wind up the company.
Club captain Martin Young said: ‘We have been suffering a loss in the last few years, that has been met by reserves, that cannot continue indefinitely.
‘The real catalyst was the lease (with the local authority) was up for renewal in April 2016, it’s a seven-year full repairing lease, which is quite considerable, we did not have the confidence to renew that … we are not profitable, the business is owned by the members, in the last three years we have suffered from a considerable fall in members and that has had an impact on reserves.’
‘Falling membership is‘a general thing about golf, it’s widespread in the Isle of Man and the UK,’ he said. ‘It’s quite costly to get into (golf) and you need time to commit to it and the recession has had a big impact in the last three years.’
The club has worked on reviving interest, he added.
‘We tried very hard to attract new members, juniors, having special offers, we made fees easy to pay, and they were slightly reduced but still we lost members. We have spoken to members that left, some went to other clubs, a lot said work or family commitments meant they cannot play. As people leave you do not get an influx.’
He added: ‘The income from green fees is not a fraction of what we get from subscriptions, a drop in members has had a massive impact on the finances.’
In a three-year period, the club lost a third of its members and half of its cash. In October 2011 there were 481 members and a cash balance of £151,000.
By October 2014 that had fallen to 328 members and a cash balance of £73,500.
Rowany is one of nine golf courses in the island, too many for the number of golfers to be sustainable said Mr Young.
‘Yes there are too many golf courses [in the island]. I do not know the exact figures, but there are about 2,000 [players] it was 3,000 four or five years ago.
‘Two thousand does not make nine courses viable.’
The news means redundancy for the the club’s four employees (two green staff, a general manager and bar steward).
‘It was very unpleasant to make them redundant just before Christmas,’ he said.
Commissioners’ vice chairman Steve George said the board have discussed ‘a number of plans and incentives’ with the club and ‘dialogue is still ongoing’.
Commissioners’ chairman Ged Power, who runs Isle of Man Golf Tours, declared an interest and took no part in discussions about the golf club.
The authority has offered to reduce the rent from £16,000 to £3,000 a year, break the lease from April 2015 and enter a new seven-year lease with a break option (and three months’ notice); the club can retain a smaller area of the club house (rates, currently £6,000 a year, will be reassessed pro rata); the club can also retain the under lease of a field rented out to a third party.
Mr Young said: ‘Even if there was magic wand and it was given to us for free, we are in a business that is losing money. We are running out of cash. There is not a solution for a better deal they have offered us.’
If no agreement is reached with the current club, the authority would then ask for expressions of interest.
Mr George added: ‘Port Erin Commissioners remain committed to retaining a golf course within Port Erin and will provide every assistance to any organisation who wishes to do so.’
The news has already prompted fears the land will be redeveloped as housing.
But the commissioners’ office confirmed the land – which has been a golf course for 119 years and covers 150 acres – is zoned for recreational use and green space and rezoning is a lengthy process involving proof its current designation is redundant.