Former PGA Tour Sponsor is Foreclosing on Current PGA Tour Course
by Ryan Ballengee on Jan 14, 2010 12:30 PM EST
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PrintEarlier in the week, the Century Club - presenters of the San Diego Open - announced that there would be no courtesy cars for the event this year. Provided that announcement, it is indicative that a last-minute title sponsor will not be found. Courtesy cars can be a big expense for a tournament, and it is clear that the Torrey Pines event will need to slash costs to keep the loss at a minimum or hold on to maximum profit for charitable donations.
That's a sound financial practice by an organization keeping its eye on what is important about their tournament. The folks behind the Byron Nelson Invitational, though, now face presenting a tournament at a resort course that is in foreclosure.
Yesterday, the Four Seasons Resort and Club Dallas at Las Colinas was part of a foreclosure filing in Dallas.
Former PGA Tour sponsor US Bank actually owns the note on the property and they filed the foreclosure papers. According to the Dallas Morning News, they're seeking repayment on a $183 million loan and will force the sale of the property on February 2nd - well before the Nelson is played.
This is one of the biggest foreclosure filings in Texas in two decades, according to the paper.
Maybe the magic plan that Steve Stricker and Jerry Kelly concocted to save the Milwaukee event that US Bank sponsored was to get the debtors at Four Seasons to pay their bills!
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Courtesy cars WOULD be a big expense at these events if the tournaments had to pay for them. Until this year, courtesy cars were provided under a contract with the Tour. Now that the contract is up – tournaments have to decide for themselves what they want to do. Hard to blame them for telling the players that they need to spend a couple hundred bucks to get back and forth to the course and save the $30,000 or so for other expenses.
"this ball will fit in that fairway"
That’s absolutely right – since that courtesy car deal died (thanks, global recession), the tournament had no choice.
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by Ryan Ballengee on Jan 14, 2010 12:39 PM EST up reply actions
You're assuming
US Bank is the holder of the promissory note. In today’s world of foreclosures and mortgages being sold and traded like baseball cards, it is a big assumption. Many homeowners are fighting foreclosure by challenging the foreclosure suit brought against them. That the people who brought the suit aren’t the owner of the mortgage any more. You know something? SOme homeowners are winning.
They’re the ones seeking the repayment, so they own the note, right?
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by Ryan Ballengee on Jan 14, 2010 1:02 PM EST up reply actions
Ryan,
those fighting the foreclosure are asking to see the ORIGIONAL NOTE, which in many cases can’t even be found, because the mortgages were bundled and sold so many times…this is part of the core of the financial melt down…everyone with a hand in the pie to make a buck…STUB
There are probably a variety of notes on this property, thinker. Usually, a deal like this feature senior debt, whose owner has priority in payment. I would guess that is US Bank. Often, there is also owner equity, other gap financing, and equity ownership that is later down in the debt food chain.
Find me! Email: ryan@thegolfnewsnet.com, Twitter: http://twitter.com/waggleroomryan, or Facebook: http://facebook.com/waggleroom.
by Ryan Ballengee on Jan 14, 2010 1:26 PM EST up reply actions
Ryan,
right, I’ve seen where multiple people are all in the deal for various reasons, and from various positions…This was also true when former Pres. Bush was President of the Texas Rangers ball club…He was managing partner, but there were a ton of others in the mix…STUB
So, Four Seasons was probably trying to work out a payment plan with all the debt holders but maybe US Bank didn’t like the pace.
Find me! Email: ryan@thegolfnewsnet.com, Twitter: http://twitter.com/waggleroomryan, or Facebook: http://facebook.com/waggleroom.
by Ryan Ballengee on Jan 14, 2010 4:39 PM EST up reply actions
Rumor, and I mean rumor
has it that there may be a change of where the Nelson gets played, depending upon who buys the Four Seasons at Auction…Just remember, ya heard the rumor here first…STUB
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