Answer: The majority ownership interest in Troon is privately held by Leonard Green Partners (LGP). While LGP is interested in a return on their investment, the success of their ownership of Troon is predicated on recurring revenue, which is achieved by the renewal of Troon’s management contracts. The profit of any individual club does not drive Troon’s value, rather the ability for Troon to deliver on each client’s specific needs, and doing so in a manner that compels clients to renew the contract after the initial or current term.
Answer: Ownership of the club does not change when Troon Privé is engaged to provide third- party management services. The Board as elected by membership continues to retain control of the club.
Answer: Troon Privé, the private club division of Troon, currently manages 50+ member-owned private clubs. Within that specific segment of Troon’s portfolio, Troon has a 96% renewal rate of those contracts when a natural expiration took place, and manages more member-owned clubs than all other management companies combined.
Answer: Simply put, the clubs who partner with Troon Privé do so because they realize that by leveraging a proven management platform, their club is a better version of themselves. In most cases, the club is transitioning from a stand-alone self management model with a GM, to Troon’s model which provides unparalleled support to the GM and the onsite leadership team enabling them to more effectively achieve the goals as directed by their Board or Owner. In a phrase, Troon’s partners believe they have found a more sustainable way to manage the club.
Answer: No. Driving member satisfaction is paramount at every club that Troon Privé partners with. Most clubs desire to have Troon Privé maximize the member experience in a fiscally responsible manner by utilizing their proven professional management approach.
Answer: Troon receives a base management fee that is “fixed” for the term. For the entire initial term, the base management fee is fixed at that pre-determined amount with incentives for Troon established and mutually agreed upon with the client.
Answer: The specific value proposition varies based on the club’s needs. However, in almost every engagement, the client benefits from the following:
The Club business is not getting any easier for self-managed, volunteer Boards. The trends with member-owned private clubs over the past 10 years is evidence that an increasing number of member-owned boards are dissatisfied with the status quo and looking to the professional management operating model to secure a sustainable future of the club.
Decisions are based on what’s best for the membership and the club – not what’s best for Troon Privé, any individual board member, or any special interest group. As a professional operator we understand that and do not make unilateral decisions on behalf of the club.
Professional management does not mean giving up control of the club or your fiduciary responsibilities, as a Board Member. Troon Privé works within the Club Governance model, same as a self-managed GM would. Troon Privé, the onsite GM, and department heads, serve the Board and the membership.
The management partner model, versus a self-operating model, provides the GM and senior team with a support network. Instead of relying on just their own experience, the GM is able to leverage the resources of local, regional, and national experts. In many self-managed clubs, the GM seeks out additional support be it with an operational consulting firm or the USGA in agronomy, Troon provides the same or higher level of support included within the management fee.
With access to subject-matter-experts in all disciplines, the Board can act and execute on multiple fronts at the same time. Using the resources of Troon Privé typically results in process efficiency, increased reporting accuracy, and access to in-house expertise that would otherwise require outside consulting.
Troon Privé has the ability to tap both internal and external resources to recruit high quality talent to fill the Club’s critical leadership positions. These talent acquisition services are included within the management fee, saving partners significant search, recruitment, and placement costs.
Clubs who partner with Troon Privé benefit from ensuring that the appropriate processes and procedures are implemented in the back-of-house operations. Each club also has greater visibility into trends in member programming (golf, dining, social, etc.) and can adapt them as desired to fill unmet needs at their club.
In most cases, the majority of management fee costs are covered annually through operating efficiencies, leveraging buying power and membership retention/growth. This is tracked annually and shared with the Board so they always know the quantitative value being delivered.
Partnering with Troon Privé, allows clubs to opt-in to reciprocating with a network of facilities that would otherwise be unavailable to the membership. This adds value to the top category of membership and drives retention in the dues line. It is also an attractive sales piece for prospective new members. Each club can set access restrictions due to seasonality so as to not disrupt member play.
Answer: Troon Privé does not promote outside play for the perceived benefit of Troon, any other Troon-managed facility, or outside stakeholder. There is a reciprocal program available only to clubs managed by Troon Privé but participation by any club only happens with approval by the Board or Ownership.