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Is now the time for Clubs to restructure?

The full or partial shutdown of Club facilities and services may be an opportune time to consider restructuring, repositioning or enhancing the membership program before the Club reopens fully. Consideration may be given to:

  • Mandatory membership or community membership,
  • Membership categories, privileges and services,
  • Membership joining fee refundability,
  • Membership transfer options, and
  • Family privileges, including vertical family and extended family options.

In cases where a COVID-19 shutdown has caused significant financial distress or exacerbated prior financial distress to the Club, Club owners and boards may consider whether Chapter 11 bankruptcy is appropriate to restructure the Club, including restructuring membership or liabilities or agreements.

Clubs that do not want to make major changes to the membership program may still want to amend rules and policies to at least give members comfort regarding the safety of using the Club facilities.

Although the COVID-19 facilities shutdowns have resulted in tremendous challenges for clubs, they may provide an opportunity for clubs to restructure membership programs to meet the needs and desires of club members and prospective club members in a post-COVID 19 world.