Rancho Murieta Club's bankruptcy plans are on hold because the club doesn't have a current buyer. Photo by Gail Bullen

RANCHO MURIETA, CA (MPG) - Although hopes were high in July for a prospective buyer for Rancho Murieta Country Club, the deal has now fallen through, along with the club’s plans to file for bankruptcy.

Currently, there is no buyer, but the club is operating financially in the black and can continue as long as nothing catastrophic occurs

This was the essence of an update that Board President Eric Dutton emailed to members on Oct. 4 and shared with the River Valley Times during an interview on Oct. 7. Dutton has also been serving as the club’s interim part-time general manager since December 2023.

“We are paying all of our bills. We’ve got money in the bank. The staff is working extremely hard and doing an absolutely phenomenal job,” Dutton said.

The report regarding the absence of a buyer came from Gregory Dyer, the CEO of Rancho Murieta Properties (RMP), which owns the two golf courses. Board members discussed his report in detail at their Oct. 3 meeting.

“With this updated information, the BOD is considering our options and how best to continue operating in the most effective and efficient way to maintain, and or, improve your member experience,” Dutton wrote in his update.

“There is no definitive timeline, and things are constantly changing. I am aware that there are numerous rumors floating about daily and rest assured that I will provide updates when there is legitimate information to disseminate.”
Dutton also said that RMP, the club and a prospective golf club broker held a phone conference on Oct. 4.

“We, the Club, will continue to facilitate anything that gets us to the sale of the property, inclusive of the original goal of including a pool and a community center,” Dutton wrote.

In an earlier update on July 1, Dutton had informed the membership that RMP met with the board on June 27 to “inform the BOD on the status of a sale agreement, so the club could move forward with our bankruptcy application.”

When asked about the current status of the bankruptcy, Dutton said that the club couldn’t file under the current circumstances and explained the requirements for doing so.

“So the conditions are that we are in a place where we can’t afford to keep running the business and there is a buyer in place who wants to buy the business,” he explained. “In this case, we could file for bankruptcy, default on the lease, and somebody else could come in and buy the place from RMP to keep it going.”

Dutton also mentioned in the July 1 update that RMP had contracted with Troon, a large golf management company, to conduct a comprehensive assessment of the club’s facilities, grounds and operations in preparation for the transition to RMP.

When asked if that assessment had been completed, Dutton reported that Troon representatives had reviewed the financials, operations and facilities. However, he does not believe the report has been finalized. Although the club requested a courtesy copy, it may not be entitled to one since they did not pay for the assessment.

The board might not see the assessment until the club is sold, which Dutton said was acceptable.

“It’s all about the end game, finding the buyer and keeping the club up and running forever,” he said.

Dutton first informed the membership that the board was considering bankruptcy as a potential solution to the club’s severe financial situation in a Dec. 1 email. Following this, the board held a town hall meeting on Dec. 12 to present three options for keeping the club operational and to explain why filing for bankruptcy was seen as the most viable choice. The tense meeting attracted about 300 attendees.

An electronic vote on the options was conducted between Dec. 18 and 22, where the membership overwhelmingly authorized the board to initiate bankruptcy proceedings.

Dutton reported that the club’s financial condition has improved since December. Although the 2024 fiscal budget projected a $56,000 deficit by August, “Our actual year to date was $193,700 to the good,” Dutton said. “Those are real world numbers.”

He credited the staff for this achievement.

“I wouldn’t be down there on a part-time basis (as the interim general manager) if the staff and department heads weren’t as good as they are,” he said.

In his October email, Dutton also mentioned that he intended to inform the general managers of the Rancho Murieta Association and the Rancho Murieta Community Services District about the club’s situation and upcoming discussions. When asked if he sought financial assistance from the other two entities, Dutton replied that he had not.

He explained that his goal was to keep them updated since meetings involving the general managers and board presidents of the three entities had not occurred for some time. He also pointed out that the district has a small financial interest in the club due to an outstanding loan balance, which the club is regularly paying off.

Dutton concluded his October email by emphasizing the interconnectedness of the club, RMA and the district.

“As a result of the past 10 months of effort, it is obvious that RMP is a fourth, and very important, component in the equation,” he wrote.