Jim McLaughlinDivision President, TCS

Greg LeisherVice President, Business Development Florida

Ricardo CatarinoVice President, Operations Florida

Troon Representatives

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Troon Corporate Office – Scottsdale, AZ

Tonight

• Introduce Troon & share our

Professional Management Approach

• Key Differences to ClubCorp

• TCS Report Assumptions

• Benefits of a Partnership with Troon/

Shared Vision Potential

• Q and A

Troon Background• Private company founded in 1990 – Troon North Golf Club, Scottsdale, AZ

• 1995 – Formed company model for hospitality management and support, growing to current infrastructure of 275 + corporate support staff

• Customized approach with more than 510 courses in 45 states and 30 countries, including 110 + private clubs, 40+ of which are member owned

• Troon Privé is the largest third party manager of private clubs in the world

About Us4

Troon World

Not Just About Golf

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• 900+ Room Keys at 15+ Lodging Locations

• 875+ Tennis & Pickleball Courts

• 450+ Food & Beverage Operations

• 95+ Pools & Aquatic Centers

• 80+ Fitness Centers

• 15+ Spas

• 8+ HOA/POA

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Key Model Differences

ClubCorp

• Owner/Operator

• Serves ClubCorp

• Advisory Governance Model – Club Plan

• Executes ClubCorp Vision

• Unilateral Decisions

• Cannot be fired

• Capital Funding

Troon

• 3rd Party Turnkey Solution

• Serves the Board

• Collaborative Governance Model – Club By-laws

• Executes Shared Vision

• No Unilateral decisions

• Can be fired

• No Capital Funding

• Club Operations

• Best Practices

• Sales & Marketing

• Food & Beverage

• Procurement

• Finance & Accounting

• Human Resources

• Risk Management

• Executive Recruitment

• Design/Development

• Information Technology

Areas of Expertise & Core Competencies

Turnkey Solution Provider10

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Value Added for Membership

Jim Bellington

Senior Vice President

Development Services

Julia Kelly

Director

Membership Marketing

Jay McGrath

Exec. Vice President

Corporate Counsel

Pete Wong

Vice President

Human Resources

John Bartilomo

Vice President

Food & Beverage

Gary Spivey

Regional Controller

& HOA

Jeff Spangler

Senior Vice President

Science & Agronomy

Rick Gepilano

Vice President

Information TechnologyCharlene Gallob

Vice President

Procurement

Justin Herr

Director

Membership Sales

Superintendent Controller

Assistant Golf

Professionals

Guest Services

Assistant

Superintendent

Mechanic

Irrigation Tech

Operators

Laborers

Head Golf

Professional

Executive

Chef

Kristen Goulet

Director

Retail

Ricardo Catarino

VP

Operations

Food &

BeverageMembership

Director

Wait Staff

General Manager

Club Board of Directors

Catering &

Special Events

Organizational Accountability12

Grounds &

Landscaping

Cooks

SecurityFitness/Tennis

TBD

Regional Fitness &

Aquatics

Collaborative Club Governance13

Balanced Scorecard

GOAL #1 – Optimize Organizational Structure

GOAL #2 – Leverage The Club’s Direct Competitive Advantage

GOAL #3 – Delight & Retain Our Members

GOAL #4 – Develop & Retain Our Associates

GOAL #5 – Strategically Grow Our Business

GOAL #6 – Hit The Numbers

Proven Approach with Annual Plan14

Agreement Overview

Annual Base Management Fee: Percentage based off of annual

gross revenues (3.5% - 4%)

Incentive: Based on Balanced Scorecard – capped at 30% of BMF

Term: 5 fiscal years

Renewals: Automatic 2 years renewals, at Board’s discretion

Termination Provisions: After 2 years

• Performance

• Without Cause

General Contract Terms

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Parkland Sports Club

TCS Report -Scenario 2 Assumptions• No agreement with Golf Club owner on shared

access/costs

• No major change in services/hours other than F and B shift back to a la carte versus all banqueting

• Staff 100% on Sports Club

• No lisc fee

• Identified Immediate Deferred Capex/ROM

• Increased Annual Capex/Reserve

• Added Debt Assessment - Interest and Principal

• Management company in place but not necessarily Troon

TCS Report -Scenario 2 AssumptionsProposed dues for year 1 are $439.60 monthly. This is comprised of two amounts:

• Shared Expenses - Members will be required to pay their share of net operating expenses and a capital reserve contribution, equaling $259.54 and $48.60, respectively, or $308.14 per month.

• Debt Assessment - Each member would be assessed their portion of the Loan repayment. Cost per Homeowner -$131.46 per month

Can Troon do Better?

• Can WE do better is the question?

Shared Vision Potential - Favorable

• Scenario 2(a) – Access Agreement with Golf Club Owner

• Scenario 1 – HOA own Golf Club and Sports Club

• Both scenarios would reduce Sports Club Shared Expense

• For every $100K in improvement - $9.49 less per month in shared expenses per home

Shared Vision Potential - Favorable• Troon Buying Power – Insurance, Benefits, Procurement

• Change in Leadership

• HOA efficiencies – admin fees, accounting

• Improved Programming and Services – Spa, F and B

• Non Resident Sports Memberships

• Capex - Member Needs – Steam Rooms

Potential - Range2019 2020 Scenario 2 Scenario 2a

Shared Expenses $193.00 $196.00 $259.54 $205.18

Shared Cap Ex $27.00 $27.00 $48.60 $48.60

Total Shared $220.00 $223.00 $308.14 $253.78

Licensing Fee $136.00 $136.00 $0.00 $0.00

Debt Assessment $0.00 $0.00 $131.46 $131.46

7% Sales Tax $24.94 $25.13 $0.00 $0.00

Total Dues $380.94 $384.13 $439.60 $385.24

Potential - Unfavorable

• Sports Club Deferred Capex Costs - Immediate

• Sports Club Capital Reserve Study- Long Term

• Golf Club Capex

• Board goes in different direction – adding costly amenities/services

TCS/Troon Next Steps

• Golf Club Proforma Scenarios for Golf Club Committee

• Assist Foundation Board

• Golf Club Site Access early January with Toll Notice

• Draft Transition Timeline – Due Diligence Period

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ABC Club Draft Transition Timeline

Press Release sent

announcing new

relationship

(as needed)

Member

correspondence &

FAQ created and

distributed/Town Hall

Member Survey

conducted

requesting

feedback

Member Survey

results

compiled and

communicated,

benchmarked

against other

Troon clubs

30 day review

outlining key

accomplishment

s & deliverables

60 day review

outlining key

accomplishments

& deliverables

90 day review

outlining key

accomplishment

s & deliverables

Multiple

Employee

Transition

meetings

executed

(English,

Spanish,

Other) Plus

Leadership

Training for

Senior Team

Payroll and Benefits

Timing Planned and

Finalized

Employee

Survey

*Troon

Department

Site Visits &

Audit

Underway

Employee

Survey results

compiled and

communicated,

benchmarked

against other

Troon clubs

*Department Audits to include the following: Retail, Sales & Marketing, Operations, Human Resources,

Agronomy, Food and Beverage, IT, Accounting

Short term &

Long term

plans in place

and underway

with Board

approval

*Key: Operations Surveys Communications

Progress Review Human Resources Benefits

Initial Contract Signed

Board meeting to

establish goals and

finalize Transition Plan

Est. 14 – 21 Days prior to Contract

Start Date

Troon Corp. internal

Transition meeting

Benefits Analysis

Contract Start Date

Troon BD VP, Ops VP

& Dir. of Transitions to

be onsite on contract

start date

New GM or Interim

GM On -Site

0-7 Days 0-14 Days 0-30 Days 0-45 Days++0 -21 Days

Board Retreat

to discuss

audits, surveys

and transition

details

Stub Budget

creation

(as needed)

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Troon BD VP, Ops VP

& Dir. of Transitions to

communicate with key

onsite personnel

GM Candidates

Presented to

Committee

Q and A

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