Dear Members,

 

As the newly appointed CEO of The Wisley, I am committed to transparent management and effective communication regarding the club’s operations and finances.

Over my first 6 months, I have had the pleasure of meeting over 150 members and I have found that The Wisley is operationally strong, supported by a dedicated team, and experiencing strong membership demand. Recent enhancements, including the Garden renovation, driveway realignment, putting green, and the Marlin Room, have been positively received by members.

I am very confident we can further build on this strong position by introducing a funding formula that is clear and necessary to protect the core interests of the club for the next period. For more information on the strategy to deliver The Wisley Vision and a preliminary timeline of projects, please click here.

There are 2 key areas that need addressing:

1. Final Garden Collection: As we approach year-end, and in line with the Chairman’s communications to members in November 2022 and April 2024, we anticipate a cash balance shortfall of approximately £1.2 million related to this project. This deficit in the Garden Project funding is primarily due to significant inflationary pressures experienced post-pandemic (see breakdown*). The Board and I believe it is essential to address this shortfall before making any further decisions regarding future capital expenditure on projects.
2. Capital Investment Clarity: It is also important that we consistently sustain our facilities at the high standard expected by The Wisley members. This includes annual sustaining capital expenditure as well as the essential long-term projects. I have added a dedicated line to the annual dues to ensure that we are clear that sustaining our facilities each and every year is important and will be done to ensure our core facilities are in line with The Wisley Vision. In addition, capital expenditure for the long-term projects, particularly the replacement of the maintenance facility building, will require careful financial planning and shareholder approval.

 

Near-term priorities:

• Annual Dues Breakdown: Annual Dues are a shareholder contribution, supporting both the club operations and the capital investments that uphold the club’s quality and reputation. To enhance transparency, the Board and I want to provide a clear outline of the Annual Dues. This now distinguishes between core “Net Operational Costs” to provide the member experience and “Sustaining Capital Expenditure” to provide clarity on what we will spend each year to maintain our existing facilities. Going forward, contributions to “Enhancement Projects” and “Essential Long-Term Capital Projects” may be added as separate lines as and when agreed. We need to maintain an annual Contingency level consistent with our recent experience – especially related to flooding. This is now a separate line as below.
• 2025 Projects: We will pause on new projects to consolidate and stabilise our financial position. During 2025, a revised, fully detailed, long-term plan, including funding for essential assets like the maintenance facility, will be developed and shared with members. There is much detail to finalise before options can be put forward to members and it is expected any new projects approved by members will not start until at least 2026.

 

Annual Dues will finance ongoing and future projects crucial to fulfil The Wisley Vision to be “the most desirable and progressive private member golf club in the UK,” covering core assets like our golf courses, practice facilities, Clubhouse refurbishments and necessary course equipment replacements.

 

The F&B levy will remain unchanged at £1,000 for the 2025 season. Letters from the club will be sent to all members on December 1^st 2024, re collection of Annual Dues for 2025.

As the club looks forward to the next phase, this revised strategy and funding plan aims to ensure that the experience for members is maintained and improved by the funding of essential projects as well as giving the club a robust financial foundation from which to operate. The club will benefit from operating under this structure going forward and I do hope that members will find the new presentation style of the finances more informative. We will come back with further information to members ahead of the next AGM. In the meantime, I am happy to talk through both my strategy and the financials in more detail with anyone who wishes.

 

Kind regards,

David Shepherd
CEO, The Wisley

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*Additional Information

Maintenance Facility
Our golf maintenance facility is overdue for replacement, as it no longer meets the club’s operational needs. This project, currently in its early planning stages, will represent a substantial investment likely to exceed the cost of the Garden renovation. Detailed plans and planning have yet to be finalised.

The Board and management will present a project proposal for a member vote at the 2025 AGM. If shareholders approve the plan, then funding could begin immediately (summer 2025), combining annual member contributions and long-term borrowing. This approach will distribute costs between current and future members in a funding plan to be finalised.

Contingency
In 2024, we allocated £130k as a contingency flood fund via working surplus. The Board deems it prudent to increase the contingency to a running annual level of £300k. We believe this level of contingency appropriate considering recent improvements to our flood insurance, covering significant events above a £100k excess.

Garden Project Shortfall
To stabilise our financial base, the remaining Garden Project balance will be collected over the next two years at an annual rate of £857 per member, totalling £1.2 million. This plan ensures the club will be debt-free by January 2026. This annual collection represents an increase of £500 over the previous amount collected. We encourage playing members who rent a share to consider sharing this cost with their shareholder.

Summary of Garden Project Costs:

• • Final Cost: £4.57 million
  • Collected to date: £2.8 million (2022)
  • Approved enhancements funded by joining fees £150k
  • Retired through operating surplus: £150k (2023) + £250k (2024)
  • Outstanding: £1.2 million

Joining Fee & Enhancements
Joining fees continue to be collected and ringfenced for enhancement projects (not repairing assets or subsidising operating costs) and it is important that progression of the essential long-term projects do not stop the club continuing to develop. Due to the fact that we continue to enhance our facilities we now have a waiting list and a joining fee and continuing to enhance our facilities will help ensure this remains the case.

As joining fees should be considered “not guaranteed” and the essential long-term projects such as the maintenance facility is deemed essential, using joining fees to fund this was not considered appropriate.

At the end of 2024, all collected joining fees will have funded the approved projects and associated professional fees (cottages, putting green etc) and the only current commitment is the final phase of the putting green (flood drainage channel) which is scheduled for completion in February.

The other projects previously considered (Shortgame Area, Driving Range, Performance Centre, Pro Shop / Bag Store, Project Iconic course improvements) will continue to be evaluated, planned and will progress when the funds are available with members feedback continually sought regarding the priorities and demand for these enhancements.