In a recent article in the Dallas Morning News, it was reported that the Home of the Byron Nelson missed a payment in October on their $175 million loan to mortgage holder CW Capital. The Los Angeles-based Bentley Forbes, owners of the Four Seasons, reports they do not have the funds "to continue to support the operations of the property," according to a recent report from Standard & Poor’s, which has downgraded the debt.
What is the most interesting part of this report is General Manager Michael Newcombe told The Morning News that the 400-acre resort would remain open with "business as usual" and that the Four Seasons has a management contract to run the hotel for the next 40 years, which isn’t tied to a particular owner.
This all is not good news for golf or for the Byron Nelson which has become a major draw for the PGA fundraising for charity. The News report did report that CW Capital had been cool to the Bentley Forbes plan to pump additional funds "in the range of $10 million" into the exclusive resort.
Seveal things could happen when a business defaults on a loan this size. The solutions are many that range from nothing being done to selling the Four Seasons to clear the loan. Not many of these solutions or outcomes will change the fact that the economy has got these high end facilities in a strangle hold.
The question still remains, since golf is featured at many of these facilities will golf be able to survive at the level of quality it is played at today if more icons of the professional tour venues like the Four Seasons start to pull up lame? I fear, as probably you, the answer will be No.
Let me know what you feel will happen in this situation.
