Las Sendas is going private because the demographics and population of the surrounding communities, including Las Sendas, Red Mountain, and Mountain Bridge, will support a private club.
Las Sendas has a completely different business plan from the traditional private golf club. First and most importantly, we are debt free and will continue to stay that way! We are presently a semi-privatefacility, which will transition into a private golf club. Our operational revenue is generated from public play and will only reduce once we sell memberships, which will have offsetting revenue. In addition, our food and beverage facilities drive additional profitable revenue and will remain open to the public. Las Sendas does not require memberships to be profitable, operational income exceeds our operational expenses. We are selling memberships because a private golf club is desired by these communities!
The reason many clubs are reverting from “private” to “semi-private” is a result of the present economy, reduced memberships and significant debt carried by the golf clubs themselves. Clubs with large mortgages cannot service their debt because their cash flow does not support their financial demands. As a result, private clubs are faced with cutting operational costs, reducing fees and offering public play in times unused by their members.