If the courses are worth $100 mil plus(equity), and the price for the DEAL is $1.1 billion US, is the difference the BLUE SKY and Deposits of AGC 'members'? Somebody correct my math. In any event let's hope the maintenance of the golf courses improve!!!
I don't consider reading this board as a waist of time vs. amuzement, how people who think they know what they are talking about.........really don't. I guess thats what makes the world go around and why we make money and the rest just talk about it. Long term sentiment about this stock....who cares? And the ones that do............get a life.
AG has been "culling" the unprofitable courses for 18 months, now, either through the withdrawal from leases or the outright sales of courses.
This is why in the latest 10-Q, their operating profits soared and their "cash on hand" lifted to over $62 million.
Read the news release, carefully, and such articles as in the LA Times, this morning.
GS is simply making a good land and operating deal.
GS will want to continue to get rid of non-performing course (but they also want to add courses to the inventory ...if the buying price is right). To wit, GS has purchased 9 courses in the last two years from the Japanese.
GS will keep four operating divisions for the time: Troon, AG, NGP, and the nine Japanese operations....all running separately, for the time being.
GS WILL honor the legal position of AG as to the "Deposits".....and as everyone knows, this is not a issue without dispute...on both sides.
The good news is: GS will want to establish themselves as a quality operator, on many levels. This means that....where there are deposit properly owed, they will be paid.
What is a buck going to be worth in thirty years? That's when AG (were it to still exist)is supposed to return members deposits. In my particular situation, AG is trying to pull out of their lease and keep the deposit. The owner of the course thinks it should be transfered to him. The withdrawl date keeps being moved back, I think because of lawyers bickering over this issue. If it were a slam dunk that AG was entitled to the deposit, I think they woulod be gone.
A recent post indicated that AG was pulling out of a number of leases across the country. Could anyone elaborate on this if they know of other courses they are breaking leases with. With my course, they are using the excuse of drought, but if they are doing it elsewhere, it will be obvious that it is just related to the buyout. GS probably told them to cull the unprofitable courses.
Actually, THIS, most of the AGC contracts stated "unconditional return of deposit" after a specified time frame. However, the contract also said that the membership agreements could be sold. Question is whether the buyer will honor the agreement. I doubt it. This was Price's plan all along...free money, screw the "members," all from Mr. "I support women in golf."