The Tournament Players Club of Myrtle Beach in Murrells Inlet is undergoing the second ownership change in its five-year existence.
In a deal expected to close in July, the TPC of Myrtle Beach is one of five courses in the TPC network being sold by the PGA Tour to Medallion Golf Inc., which is quickly becoming a national player in the high-end resort and daily fee course market.
"It's pending," said Vernon Kelly, president of PGA Tour Golf Course Properties Inc., a course ownership and management arm of the PGA Tour. "It's a very involved deal. There are still issues to be addressed, but many have been addressed. It looks positive, it's just going to take a couple months to finalize."
Despite the pending sale, the Tom Fazio and Lanny Wadkins design in Murrells Inlet will remain in the nearly 30-course TPC network, and few changes are expected at the course. A licensing agreement for use of the TPC brand is designed to hold Medallion to the tour's high standard of operation and marketing.
"Clearly if it were just a sale of assets, it would be an easy deal to complete," Kelly said. "We want to make sure it's a good deal for our company and a seamless transition. They'll operate to the same standards and use all the same employees. Otherwise we would not go through with the deal."
In addition to the TPC of Myrtle Beach, the deal also includes the TPC at Eagle Trace and TPC at Heron Bay - both in Coral Springs, Fla. - TPC of Tampa Bay and TPC of Virginia Beach.
Though terms of the deal weren't disclosed, Golfweek has reported it could be worth as much as $40 million.
The TPC of Myrtle Beach opened in February 1999 as a joint venture between PGA Tour Properties and marketing cooperative Myrtle Beach Golf Holiday. But because the course was competing for rounds with Golf Holiday member courses, Golf Holiday sold its 50 percent interest, estimated to be between $3 million and $5 million, to the tour in October 2000.
As a daily-fee course, however, the layout no longer fits into the tour's future plans. PGA Tour vice president of communications Bob Combs said 90 percent of the tour's remaining TPC's are private and/or host an event on either the PGA Tour, Nationwide Tour or Champions Tour.
The TPC of Myrtle Beach has struggled to turn a profit in its first five years, and lost the Senior Tour Championship in 2000 after just one year, due largely to a lack of sponsorship.
"We're focusing more on private membership base facilities, particularly those that were built to host PGA Tour events," Combs said. "Four of the five [sold courses] are daily fee that weren't quite as good a fit for our long-term plans. We're very excited about Medallion's plans for them and how they do fit into their long-term strategy."
The sale was initiated by Medallion. "We weren't looking to sell anything," Kelly said. "We were approached by Medallion. We had never sold anything, and our first reaction was, 'We're not interested.'"
Medallion is a recently created affiliate of Meadowbrook Golf, a golf course management, maintenance and supply company that has about 35 courses. Medallion and Meadowbrook have the same ownership group, and Ron Jackson is the chief executive officer and president of both companies.
Medallion's portfolio is currently comprised of former Meadowbrook-run courses ChampionsGate Golf Resort in Orlando, Fla., Silverstone Golf Club in Las Vegas and Tattersall Golf Club in West Chester, Pa., and the recently acquired Heritage Golf Club in Atlanta. The company is in discussions to add a few other upscale facilities.
"We're looking at locating and identifying the best properties with a little bit of cache and heritage that we can take to the next level," Medallion vice president of marketing and development Michael P. Kelly said. "We're not trying to grow to 200 or 300 properties. Size and quantity isn't as important as quality, but it's our intention over the next three years to significantly grow the company."
The TPCs will be among Medallion's most prominent holdings. "We understand and appreciate the TPC brand," Michael Kelly said. "It's the No. 1 brand in golf. Hopefully we'll be able to improve upon it, and take the best of both companies."
Medallion may have purchased the TPC of Myrtle Beach at an opportune time. The course has benefited from the overall significant rise in rounds this year on the Grand Strand, and recently began a Prince Creek residents-only membership for $5,000, and a $10,000 membership that includes all TPCs.
"They feel very strong about their marketing efforts being the thing to push us over the hump," TPC of Myrtle Beach general manager and director of golf Rick Shoemaker said. "Their goal is through their marketing effort to grow the business. They're not coming in to cut corners."
Source: The Myrtle Beach Sun-News