WENTWORTH MEMBERS REACT TO LATEST CHANGES TO CLUB STRUCTURE

Wentworth Club in Surrey has announced changes to its membership structure that will come into effect from April 1 next year.

Officials at the exclusive Virginia Water-based venue have been embroiled in lengthy discussions with representatives of the club’s membership committee for the last three months, following reports of all members being asked to pay a one-off joining fee of £100,000, while the annual subscription was to be increased from £8,000 to £15,000.

However, following protracted negotiations, the club has announced a number of changes to its initial proposals, although the headline figures remain the same, and the number of overall members at the club looks set to be heavily culled.

The £100,000 fee for full membership that was first announced last year is being retained, although those current members wishing to rejoin will be asked to pay an up front sum of £20,000 before June 30, 2016, with the remaining £80,000 to be paid before the end of 2019. If, at any point, the member decides they no longer wish to join the club, the £20,000 payment will be refunded.

In order to placate its loyal section of longstanding older members, the club has said that all those aged over 75 on April 1 2017 who have been members for more than 20 years, will not have to pay the £100,000 fee, and will be offered a ‘preferential’ annual subscription for life.

All other existing members will be entitled to apply for individual membership of the golf club and/or tennis and health club, with a ‘preferential subscription offer’, the details of which have not been released. The annual subscriptions for all memberships will be fixed for the 2017 and 2018, and then rise in line with the retail price index for the next three years up to 2022.

Wentworth’s membership across all categories currently stands at around 4,000, but only 888 full memberships are being offered by the clubs new owners. Although described as ‘debentures’, the memberships come with no shareholdings in the club.

Tennis & Health Club members are among the group most adversely effected by the new deal. Although they will initially enjoy a 50% discount on the new annual subscription for the first five years, after that time Tennis & Health Club members will have to upgrade to full membership if they want to continue to have access to all the club’s facilities.

Wentworth chief executive Stephen Gibson

Stephen Gibson, chief executive of Wentworth Club said: “I am pleased to be announcing these new membership offers and enhancements. A great deal of time has been well spent discussing with members, residents, numerous elected committees and other interested groups, the new vision and plans for the future of the club. I believe that these changes we are announcing clearly show our commitment to our existing members and local residents, who are an integral part of the club’s past and our future. All of the improvements we have planned as part of our new membership structure will ensure a club of exceptional quality, which sets unparalleled standards on and off the course, while – very importantly – being centred around families and local residents.”

The Wentworth Residents Association has reacted with anger at the latest proposals. Commenting on behalf of the WRA, Vice Chairman John Pyle, said: “We are astounded that the club appears to continue to reject the very basic and reasonable concerns from residents with regards to the proposed new so-called ‘debenture’ scheme and we entirely reject the minor alterations offered as nothing more than continuing to tinker around the edges. The new owner, Reignwood, is simply not listening to its neighbours who are being entirely alienated from the club.

“Whilst they may offer a ‘concession’ for the debenture by changing payment to non-refundable installments, existing members will still be committed to paying the very high ‘debenture’ price over a period of a few years.  The ‘debenture’ will continue to offer no equity, no interest, and therefore amounts to nothing more than an unsecured loan. It is like having to pay an exorbitant joining fee to the club. Moreover, by continuing to call this scheme a ‘debenture’, it is an insult to proper debenture clubs, which offer fair schemes with ownership rights attached.

“In addition, we also understand that the club may now be planning to issue 888 debentures under this scheme. While ‘eight’ may well be a lucky number in China, it is clearly unlucky for Wentworth members, as well as the wider golfing community, who are set to lose a great golfing institution under this proposal. We continue to reject any scheme which will throw out current members indiscriminately and restricts space for very few to return.

Pyle added: “It is clear that the club does not have the support of its current 4,000 members, given that less than 10% of golf members and around 1% of the Tennis & Health members are expected to take up the new scheme, and we therefore urge the club to listen to its resident members and offer a solution that can work for all. We certainly do not wish to continue to pursue legal avenues. We want a cooperative relationship with the club, but the Wentworth community must not be ruined by a new and hostile owner.”

Nick Marsh, a partner at Quinn Emanuel, which is providing legal advice to the WRA, said: “The club’s new owners intend, in pursuit of their own commercial interests, to impose fundamental changes to the club and its membership structure. The effect of these changes would be to exclude the majority of Wentworth’s community from facilities which they have enjoyed for many years. The residents will not allow the club to damage the Wentworth Estate or to ride roughshod over the residents’ longstanding property and other legal rights.”

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