To Good to Be True - Family Golf Centers, Inc

One cannot discuss the nineties and the golf rangetime. Some of us were able to grow our
industry without talking about Family Golf Centers,businesses to new levels with the help of Family
Inc. In the roaring nineties, a company popped upGolf. All of us did our best to get near the
out of nowhere went public and set out todecision makers for the company. What many of
become the largest operator and owner ofus saw very early on was a complete lack of
"family entertainment facilities in North America.focus on the operation of facilities. There was this
The company was known as Family Golf Centers,positive always-optimistic public image of the
Inc. and was traded under the symbol "FGCI." Atcompany and then there was a totally
its peak, Family Golf owned or operated moredisorganized, always frantic, and never quite
than one hundred and fifty facilities. Its portfolioachieving objectives operational side of the
included golf ranges, ranges with domes, procompany. An example of this frenetic operation
shops, food service, miniature golf and battingwas the construction of an outdoor range and
cages. Additionally, they owned or operateddome facility in western upstate New York. The
several golf courses and more than thirty skatingdome facility had a projected opening date, the
rinks.project manager was promised a ridiculous bonus
Family Golf built quite a few facilities from scratchfor getting the facility open on time and on
but acquired most of their properties by buyingbudget. To save time and money he forced the
out existing owners and operators. There typicalartificial turf installers to place the turf on an
deal was to offer the owner a substantial amountill-prepared base with no drainage. The result was
of cash, even more in stock in FGCI and allow thethat the dome opened on time, FGCI got its
owner to take back an exorbitant lease on thepress release and the manager got his bonus.
property. Many range owners succumbed toThat spring the artificial turf was swimming in
these alluring offers. The effect on the industrydrainage because of unprepared base. Lost
was to drive up pricing for anyone else trying torevenue, expensive repairs and no one held
get into the business. Publicly Family Golf'saccountable.
projections for revenue artificially inflatedAt the end of the greatest golf decade in history
expectations of anyone getting into the industry.all that remained of Family Golf Centers, Inc. were
For us folks in the golf range equipment businessbroken down facilities, class-action lawsuits, a
we all sought to grasp that brass ring of gainingbankruptcy sale of proportions never seen in the
exclusive supplier status from Family Golf. Manygolf industry and thousands of people whole lost
of us were able to do quite a bit of business withmoney. Multimillion-dollar facilities sold for less than
the company and even get paid most of thefifty thousand dollars.