Wisconsin private club sells for $1.425 million

A local group, that includes Tony Romo’s father and the course’s PGA pro, acquired Meadowbrook Country Club in Racine, Wisc. for $1.425 million.

The formerly member-owned club was placed in receivership in November, as it was drowning in $3.2 million in debt and a loss of members. The receiver shut down the course to stem financial losses. Despite a last minute bidding war, the price was still less than one times gross revenue, said Chris Charnas who brokered the deal.

“There is a lot more foreclosure action at this time,” Charnas said. “The golf business is not getting any better, especially for private clubs who are really hurting across the board.”

Charnas is principal at Links Capital Advisors, which he founded in 2008. He was previously Director at Cushman & Wakefield’s Golf Group which he started in September 2000. 

Most of the sale price will go to Johnson Bank, which was owed $1.9 million. Less than $100,000 will go to other creditors, mainly to pay taxes, special assessments and utility bills. Former members of the 83-year-old club will likely get no money from the sale. The new owners plan to operate the course as a private facility, and not develop it into housing as some had feared. The sale was handled through a court, and the bid started at $1.2 million.

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