Country clubs hit a rough patch.

Many clubs are hurt by new tax laws, recession, changes in public values

These are rough times for Los Angeles County's once-flourishing private country clubs.

To be sure, there are still many corporate tycoons or otherwise rich people who spend time on the clubs' fairways and in the clubhouses. But new tax laws, the recession and a general backlash against ostentatiousness and exclusivity have hurt the local country clubs, many of which have been catering to L.A.'s elite since the early 1900s.

Another factor in the clubs' decline is the white-hot competition for L.A.'s leisure-time dollars. In other words, there are a lot more leisure-time activities on which Angelenos can spend their money than in the past, when country club membership was de rigueur for L.A. empire builders.

Now, even "old-money" moguls are just as likely to belong to Sports Club/LA or the Los Angeles Athletic Club, two of L.A.'s premiere health clubs, as they are country clubs.

What has happened at the private country clubs is that more members than ever are dropping out and membership waiting lists are shrinking. Members are not going to the clubs as often, which mean there is less money being spent in the facilities' restaurants, bars and pro shops. In the meantime, expenses keep rising.

Because these clubs are private facilities owned by their equity-holding members, obtaining exact figures on their finances is difficult. Officers of most clubs steadfastly refuse to discuss their operations.

"We're private and want to remain that way," is a typical response from most country club officers and general managers.

General managers who are willing to talk about the state of their business concede, however, that L.A. country clubs are indeed struggling.

Leisure industry analysts who follow the business, and a national trade group, also agree.

"Country clubs are hurting right now," says John Beck, general manager of the Wilshire Country Club in Los Angeles. "I don't think there is any doubt we're going to lose members because of the changes in the tax law. But the bigger factor for us and other clubs has been the recession. Most people may not believe it but, you know, people who belong to our club are working people too. And (they) have been just as affected by the economy as everybody else."

On Jan. 1, new tax laws went into effect that eliminated deductions on club membership dues. In addition, the deduction on business meal expenses was reduced from 80 percent to 50 percent, and many of those business meals were being eaten at private clubhouse dining rooms.

"We think that what people don't understand about these new rules is that they hurt the working people more than rich people," argues Kathi Driggs, vice president of the Club Managers Association of America, a national trade group based in Alexandria, Va. "What's going to happen is working people are going to lose their jobs in clubs because of these changes."

The downturn in club business has apparently already cost some workers their jobs.

Steve Hockett, general manager of the Oakmont Country Club in Glendale, says that facility has cut its full-time workforce about 10 percent in recent months because of the downturn in business. The club currently has about 100 employees.

"Where we've really been hurt is in our food and beverage sales because people, when they do come here, just aren't spending as much as they used to," he says.

In Los Angeles, there are basically six so-called prestige country clubs that have traditionally attracted the high and mighty, and rich and famous. They can cost $75,000 to join, plus monthly dues of $400 to $500, in addition to meals and bar tabs. In short, membership is not an inexpensive proposition - but in the past that did not prevent the waiting lists from getting as long as 300 or 400 people.

One manager, who did not want to be identified, said right now there is no waiting list to become a member of his club, which is one of L.A.'s six prestige facilities. Another country club official said his club used to have a waiting list of about 50, but now it is down to 10.

In addition to the Wilshire, the prestige clubs are Bel Air, Brentwood, Riviera, Hillcrest and the oldest in the area, the Los Angeles Country Club in Century City, which opened in 1897.

Go to any of these clubs on any given day, and it's likely to look almost deserted. The parking lots are rarely even moderately full, and the golf courses, which occupy hundreds of acres of prime real estate, look empty.

Most clubs, under their bylaws, are not allowed to have more than 1,000 members. Some have only a few hundred, which is putting a strain on the clubs' finances.

"All the clubs are in a bind because we can't raise our memberships," says Beck of the Wilshire club. "We could change our bylaws to include more members, but then you have to remember that that would change the character of the place. And most of the clubs don't have the facilities to support large memberships anyway."

In the past, country clubs were largely thought of as the sole province of white, cigar-smoking men. Several lawsuits around the country and a lot of negative publicity have changed that somewhat. Today, the clubs are open to anyone who can afford to join, say local club managers. In addition to money, other basic requisites for club membership include being sponsored by at least one current member, and filling out an extensive application form.

To expand their appeal and attract new members, some clubs have tried to lure families rather than just individuals. So they have added family-oriented amenities like swimming pools, gyms and tennis courts. But the primary appeal of the clubs has always been golf, and most of the clubs in Los Angeles County don't have the room for much expansion.

Yet another challenge facing L.A.'s recession-plagued private clubs has been the sheer growth of the leisure-time industry.

"We have to compete with a lot of different activities now," says Beck. "There are yacht clubs and ski clubs and health clubs and cable television and all sorts of things that just weren't available years ago."

There is also the question of whether after the free-spending 1980s, country club membership has lost some of its appeal in the 1990s, a decade that so far has been one of belt tightening and political correctness.

Analysts who follow the leisure industry say changed attitudes have, to a degree, hurt the country club business.

But, says Driggs of the managers' association, plenty of people are still interested in becoming members.

"There is something about the golf clubs that you can't measure and that is the appeal of a place to go where you can really feel at home and have a good time doing something you really like. There is always going to be room for places like that," she says.