Golf Debentures: What Are They and Should You Have One?

In financial terms, a bond is defined as a long-term financial commitment that is often used by large corporations and governments as a means of raising funds. Debentures are also often called stocks or bonds and are similar to bonds in that the party issuing the debenture or bond actually owes the party receiving a debt. Debentures differ from bonds in that they are not secured by any specific asset, whereas a bond might be secured by an item of higher financial interest in terms of the security offered in exchange for the debt.

When it comes to larger companies, debentures can be issued to raise funds for the purchase of new premises or to undertake any major work, particularly in the cases of sports and the arts where debentures have been used very successfully to Contribute to acquisitions of construction of sports venues. Wimbledon Tennis Club, for example, introduced debentures in the 1920s in order to purchase the current famous venue at SW18 and currently operate a structure that involves debentures every 5 years. A more recent example would be the huge venue that is the new Wembley Stadium which was not built without the help of debenture sales.

Bond holders are then entitled to benefits such as the availability of the best Center Court seats during the bond period and a number of large popular venues for concerts, football and tennis matches offer bonds.

Debentures are generally transferable and the owner has all rights to sell the debenture at a profit, for this reason you would see debentures for popular places sell for large amounts of money. The advantages, of course, are that the debentures are not pledged against assets and therefore do not impose any additional burden on the issuer’s assets, but instead offer privileges or rights to the owner.

In terms of golf debentures, they are essentially shares in the golf course that are available for anyone to purchase and offer owners specific privileges and rights over the golf course as far as prices and actual play against the players. not bearers of obligations. For example, cheaper or even free green fees may be offered for a certain period or duration of the obligation and golf clubs are often found to offer obligations and the holders are known as members.

It is therefore not surprising that golf bonds are also a popular method of raising funds among developers of residential complexes located around golf resorts. Polaris World, for example, reputedly the largest residential tourism developer in Europe, is currently building a series of residential complexes in the Murcia area of ​​south-eastern Spain, and introduced golf obligations in November 2007. There are currently a number of resorts under Collectively, the total number of 9 golf courses being designed by the world famous Jack Nicklaus and his company Nicklaus Design, will be known as Nicklaus Golf Trail and the golf obligations will entitle the holder to preferential rates. on green fees for the first two years of the 25-year obligation, as well as discount rates.

However, golf debentures are not cheap and, when they go on the resale market, can cost upwards of EUR40,000, as seen in the case of another popular development in the region, La Manga Club, which is also famous for other sports facilities and activities. If he’s a keen golfer and lives in a residential complex where he has endless opportunities to play golf, then a golf obligation may be just what he needs.