One of the north’s most prestigious golf clubs has asked each of its members for a £1,000 ‘loan’ to raise enough money to avoid possible administration.

And Balmoral Golf Club, in south Belfast, is also considering flogging its clubhouse and greenkeeper’s sheds and has even reduced the course to nine holes as it continues to pay off a debt of more than a million pounds sterling on which he pays tens of thousands of pounds in interest a year. .

The club, founded in 1914 and best known for its association with Fred Daly, the first Irishman to win the Open in 1947, wrote to its 450 members last month to lay bare its precarious financial situation.

The letter also offered three tough options to its members (they already pay an annual fee of around £1,400):

• First option – Immediate appointment of an administrator;
• Second option: members each lend the club £1,000 to cover the immediate cash flow deficit; Or
• Third Option – Immediately sell approximately 25 acres of land to a third party developer.

In correspondence with members, which was seen by the Irish News, the club admitted that it was burdened by “very high levels of debt from legacy projects”, and that the obligation to repay this debt has hindered his ability to invest in the course and its facilities.

He said increases in the Bank of England’s base rate over the past three years have significantly changed the debt burden and pushed Balmoral into a deficit position in 2023.

“Our inability to understand the seriousness of the situation in time led to a loss of confidence from our bankers, who made the decision to sell our loan to AB Carval in 2023,” said the letter, signed by Balmoral. club council.

“However, we have made progress in discussions in recent weeks and we expect that they will be prepared to accept less than face value for the £1m debt we owe.

“While seeking to negotiate on our historic debt position, the board has sought to ensure that core business operations become profitable again so that any remaining debt can be managed/repaid and provide some surplus to reinvest in courses and facilities.

“The main areas of focus have been to retain and even increase membership numbers, generate income from our bars and catering facilities, increase income from visiting clubs and societies and enhance third party revenues from advertising and other sources.”

But the letter says that, despite its strenuous efforts, the improvement in the bar’s income post-Covid has been “negligible”, while there has also been a “significant decline” in membership, which has had an impact material on our income and the capacity of the club. to continue negotiating.

The three scenarios proposed to members carry a number of caveats and uncertainties.

The £1,000 loan option could, he says, “provide a credible plan to turn around the business with a realistic prospect of success”, but would include an option to sell the existing clubhouse, greenkeeper sheds and adjoining land to a third-party developer in return for a new, smaller clubhouse near the 18th green, new sheds on excess land at the 13th hole and £600,000 in cash.

The option to sell the land would contribute to a recapitalization of the balance sheet, but could ultimately see Balmoral become a 15-hole, 12-hole, or even nine-hole course.

The club – which has for many years rejected lucrative offers to vacate its 85-acre park between Finaghy and Balmoral, most recently in 2020 – is currently studying its members’ response.

In September it emerged that Dublin-based Merrion Property Group, which purchased a 149-acre estate in Drumbo in 2020 as part of a bid to relocate Balmoral Golf Club, had now put the site on the market .

Merrion, which is owned by property developer Michael Roden, even commissioned former Ryder Cup captain Paul McGinley to design a new championship course as part of efforts to convince Balmoral members to leave their course.