At Some Golf Clubs, Cost Is a Definite Handicap

The price of membership in golf clubs is appreciating even faster than Orange County real estate.

Membership at Mesa Verde Country Club now costs $60,000, compared to $40,000 a year ago. Over the same time, the cost of membership at Yorba Linda Country Club has more than doubled to about $37,000 from $16,000. And at El Niguel Country Club in Laguna Niguel, the price of membership has soared to $72,000 from $35,000 over the last 18 months.

At Big Canyon Country Club in Newport Beach, a membership most recently sold for about $145,000, according to members who asked not to be identified because the club has a policy against discussing costs. Some of the memberships are held by people who bought them for $7,500 when the club opened in 1971.

Club memberships are “a great investment,” said Sharon Polster, general manager at El Niguel. “Better than real estate.”

At some clubs like Big Canyon, El Niguel and Yorba Linda, the members are allowed to sell their memberships for whatever the market will bear, while at other facilities like Mesa Verde, the club determines the selling price.

Just how much of the profit is pocketed by the seller depends on each club’s policy. Some memberships entitle a golfer only to use of the facilities and cannot be resold. All clubs claim some percentage of the sales price, starting at 20%.

Doug Lober, general manager of Mesa Verde, warns would-be speculators against buying club memberships for investment purposes.

“If we had an idea someone applying to be a member was in it to make money, he wouldn’t be accepted,” Lober said.

Besides the initiation fees, golf club members are obliged to pay hefty monthly dues. “If someone is going to pay dues of $350 to $300 a month, he has got to be pretty serious about the game,” Lober said.