Looks like Q is being creative without endangering their existing club. This is expected. Not sure what UE members were expecting, but seeing there is no more cash, unless you get the homes for free, money needs to come in one way or the other. Q home inventory is probably about adequate, no more underutilization FYI (unlike at Lusso time). So no cheap deal.
Let's define "creative"...
If you mean sending out an offer that UE claims was not authorized (okay, that part we all knowing is BS), then that is one thing.
But there is nothing "creative" about charging over market price dues, in addition to a one time "fee" which is equivalent to about the dues. So an average member has an "in" price of about $50k, first year.
I agree that more homes are necessary, and the offer I received contemplates adding some 10 homes in my club level. They claim their "mystery" investor has agreed to the acceleration of some $20MM of the $210MM remaining "available" funds. Presumably that would go towards adding assets, which one suspect would be carved out someone from the existing Cap Source loan. Or, maybe not. But you have to imagine that CS would do something here, as they have yet to foreclose or exercise their rights under the expiration of the forbearance agreement.
Needless to say, while I don't think most members expect anything to be free anymore, I do think we have to look at the economics.
What if 500, or even 700 members internally gave $50k....huge debt reduction, if that were the place it would all go. Our confidence in senior management is gone, their ability to make good decisions is lacking and more importantly, they tell us nothing - communication sucks, at best. So, no -- nobody will give Jim T a dime and the "vote" demonstrated that.
The fallacy in the whole process is that UE is selling the company. There is no "selling" of it if we members have to pay the purchase price.
Odder, the redemption offer that Q offered makes no more sense than the one that JT offered to everyone who joined UR at the TH demise. How can anyone promise an outrageous return on a member deposit they have never received? It's like we're just passing our member bonds from one company to another - first TH, AK, then UR, then UE -- and on to Q? It's pretty evident that no one can, wants to, will, or will even be able to pay these liabilities. So quit saying you will as an inducement. It's all BS, smoke and mirrors, and totally unsustainable. We may be dumb for having done something a little crazy more than once, but I'd like to think that most are fairly sophisticated and able to do the math.
This time I think we're all just moving on....and I think we should. There is no reason members should accept ANY of the BS deals on the table, or that will come. Not initially. If we take our time and evaluate all options, yes we may lose some travel for a bit -- most already are. But, we might be able to create something better than what we are being presented with. And, we may even get the lenders involved to loosen up a little.
Maybe not...
