Timberlake sells golf course for $15.5 M loss(merged)

[martinbns]

Meant to add, why sell at a massive loss.

Timberlake spends a fortune, mostly because he loves to play, makes it "eco-friendly" which translates to wildly expensive to maintain, can't generate anywhere near enough cash to make it break even so is looking at spending his other income to the tune of $1mm a year for the rest of his life to support a Golf course in a town he doesn't even live in.

Can't make it "un-eco-friendly', would be very bad for his image. Wow, someones offers me anything to take over the cash pig...gone.

[alange_underpar]

[quote name='PZero' timestamp='1415512700' post='10418797']
[quote name='DixieMafia' timestamp='1415477962' post='10416543']
[quote name='PZero' timestamp='1415470206' post='10416171']
There must be more to it. The land alone would be worth much more than that.
[/quote]


Not so sure…have you ever been there? Its in the hood.. You only hope your not the last tee time on the sheet and finish after dark.
[/quote]

I saw that it was in Memphis, so....
[/quote]

I would have never guessed it was in a "bad" area of town. It looks like a gorgeous piece of land out in the countryside.

[NWmudde]

it does sound cheap, there is s$#ithole course near me here for sale for almost that price and it is a pure $#itbox compared to Timberlakes

Maybe he had some unknown gambling debt or debts to the new owners? hmmmm???

[Medic]

Was surprised that once JT finished making it so nice that he didn't try to draw a tour event. Even a Web.com event or LPGA would bring attention to the course that might lead to more play. Nothing like a full weekend of national advertising highlighting all of the wonderful features of a course to draw some more visitors.

[CircleC29]

[quote name='alange_underpar' timestamp='1415545887' post='10419715']
[quote name='PZero' timestamp='1415512700' post='10418797']
[quote name='DixieMafia' timestamp='1415477962' post='10416543']
[quote name='PZero' timestamp='1415470206' post='10416171']
There must be more to it. The land alone would be worth much more than that.
[/quote]


Not so sure…have you ever been there? Its in the hood.. You only hope your not the last tee time on the sheet and finish after dark.
[/quote]

I saw that it was in Memphis, so....
[/quote]

I would have never guessed it was in a "bad" area of town. It looks like a gorgeous piece of land out in the countryside.
[/quote]

[attachment=2491323:badgolfcourse.jpg]

[irvtrain]

[quote name='Medic' timestamp='1415567808' post='10420833']
Was surprised that once JT finished making it so nice that he didn't try to draw a tour event. Even a Web.com event or LPGA would bring attention to the course that might lead to more play. Nothing like a full weekend of national advertising highlighting all of the wonderful features of a course to draw some more visitors.
[/quote]

He went a little too big. He had the USGA out there to try and get a US Open there. He definitely should have lured the Web.com or LPGA out there.

[larrybud]

[quote name='dudewheresmypar' timestamp='1415469849' post='10416151']
The guy is worth like 200 mil, he'll get over it. Still a spectacular loss of course.
[/quote]

I don't think I would want to lose 8% of my net worth on one deal!

[MarkCPA]

If anyone posts that Mirimichi is "in the hood", you've just proved you have never been on the property or anywhere around it. And that, in part, is why Mirmichi has failed to date. The course sits midway between Memphis and Millington miles off of a divided highway linking the two. There's nothing around it to do, see, or eat. Streamsong gets away with its "in the middle of nowhere" status because it has 36 phenomenal holes designed by celebrated and award winning designers with deluxe accomodations a mile from the course coupled with fine dining and a day spa. Mirimichi is nothing like it. Timberlake's group charged rates that grossly priced it out of the Memphis daily fee market thinking it could be a destination spot. That never, ever had a chance given nothing else followed it in terms of reasonable accomdations or something besides the snack bar hotdog short of a drive back into Memphis.

You'll hear cows mooing before anything else during a round at Mirimichi. And if you do hear a gunshot, it's because of the county's gun range south of the course.

I hope the new owners can make a go of it. They've already cut rates to stimulate some play.

[Awal]

[quote name='martinbns' timestamp='1415544986' post='10419669']


He has been involved in advising owners and prospective buyers a few times, his take, $7mm to build with $2mm equity, inside of 10 years bankrupt, second owner buys it out of receivership for $3mm with 1mm equity, 5-7 years bankrupt again third owner finally buys it for a low enough price that the business will cashflow when he buys it for $1mm with 50% equity.

A golf course without related real estate development is almost always a complete cash sucker. Can't be sold for anywhere near the value of the vacant land, maybe 10 cents on the dollar.

I love golf, but it's one of the worst business' in north america.
[/quote]

Not dissimilar from the rule of thumb in the hotel industry: third owner makes money.

That's true for a lot of businesses that have big fixed costs on startup. A lot of private groups are now picking up some of the big, bankrupt ethanol plants all over the country for cents on the dollar, and it's finally become a business that's profitable.

[dudewheresmypar]

[quote name='larrybud' timestamp='1415640922' post='10424371']
[quote name='dudewheresmypar' timestamp='1415469849' post='10416151']
The guy is worth like 200 mil, he'll get over it. Still a spectacular loss of course.
[/quote]

I don't think I would want to lose 8% of my net worth on one deal!
[/quote]

Obviously. But you'd get over it. And like other said there may be more to the story.

[teeitlow]

[quote name='larrybud' timestamp='1415640922' post='10424371']
[quote name='dudewheresmypar' timestamp='1415469849' post='10416151']
The guy is worth like 200 mil, he'll get over it. Still a spectacular loss of course.
[/quote]

I don't think I would want to lose 8% of my net worth on one deal!





Exactly, this guy was a millionaire a loong time ago, no way he took a 15mil loss.

[/quote]

Exactly, this guy was a millionaire a loong time ago, no way he took a 15mil loss.

Way more to that deal.

I agree with the poster above... probably made a deal with a company that he holds interest in, so he can work on another cd and/or music video...of which I'll never listen to and/or watch.
-D

[duffman123]

I read a story recently about him selling his golf course for so much! My hosue costs more then that! What do golf courses normally sell for, anyone know?

[ERN2428]

You can buy a golf course for a song and a dance these days... He took a massive loss on this one.

[rbhan12]

There's a thread in the courses forum, check that out.

[Hutchi15]

Seems pretty cheap to me but I am no expert!

[Shambles]

Depends on what they did to the land before declaring it a golf course. However, even if the course was a small one, I would be inclined to buy it for the land alone.



Shambles

[dpgolf]

[quote name='duffman123' timestamp='1415837274' post='10437695']
I read a story recently about him selling his golf course for so much! My hosue costs more then that! What do golf courses normally sell for, anyone know?
[/quote]

Obv brag about your house being $500+

[rbhan12]

Any more news about this?

[MarkCPA]

What exactly is a hosue and why is it so expensive?

[liamandskylar]

[quote name='cxx' timestamp='1415454771' post='10415247']
Here:
[url="http://sports.yahoo.com/blogs/golf-devil-ball-golf/justin-timberlake-sold-tenn--golf-course-for--15-million-loss-212640035.html"]http://sports.yahoo....-212640035.html[/url]

I don't think this is the end of golf. This kind of thing happens all the time, where someone with a dream buys a failing golf course, invests a bunch of money, and eventually has to bail out moving the property to the new dreamer. Sold for 500k. Timberlake's dream was a bit on the grandiose side.
[/quote]
Tax writeoff

[NAM2212]

[quote name='MarkCPA' timestamp='1415646164' post='10424783']
If anyone posts that Mirimichi is "in the hood", you've just proved you have never been on the property or anywhere around it. And that, in part, is why Mirmichi has failed to date. The course sits midway between Memphis and Millington miles off of a divided highway linking the two. There's nothing around it to do, see, or eat. Streamsong gets away with its "in the middle of nowhere" status because it has 36 phenomenal holes designed by celebrated and award winning designers with deluxe accomodations a mile from the course coupled with fine dining and a day spa. Mirimichi is nothing like it. Timberlake's group charged rates that grossly priced it out of the Memphis daily fee market thinking it could be a destination spot. That never, ever had a chance given nothing else followed it in terms of reasonable accomdations or something besides the snack bar hotdog short of a drive back into Memphis.

You'll hear cows mooing before anything else during a round at Mirimichi. And if you do hear a gunshot, it's because of the county's gun range south of the course.

I hope the new owners can make a go of it. They've already cut rates to stimulate some play.
[/quote]

HAHA!! I thought the same thing when I read that it is in the hood. I know they just leased a whole new fleet of golf carts so I guess they are putting some money into it. I thought it was well worth the $80 fee to play the course. It is a very difficult track from the tips.

[DownTownLB]

JT "seems" to be amongst the smartest and most talented of his generation. Anyone can make a mistake......but I seriously doubt he took THAT big of a hosing. Far more to this story......IMHO.

[Golfnuck]

Up here in Vancouver $500,000 will maybe buy you a 500 sq ft condo on the lower levels without a view.

$3.5M will buy you a tear down with a 50 x 100 ft lot.

$100,000 payment is the initiation fee that will get you onto an 8 year waitlist at a private golf club. Mind you it is one of the most exclusive in Vancouver.

But spending $15M on a golf course and selling it for $500k tops all of the above.

[Imp]

Timberlake is a business. Sure, he sold it at a loss, but he can deduct the loss from his taxes, yes?

"It's just business."

--kC

[cxx]

A loss is a loss even if you get a write off and chaps a rich guys a** more than most.

[Matt97GT]

i wouldn't be surprised if there is some kind of revenue stream back for "consulting" or some kind of kick back.

the world of corporate finance is never plain as day.