A north-east golf club has been left in a “challenging” financial position after its driving range was upgraded at a “significant” cost.
Members of Newmachar Golf Club were told the facility faced financial difficulties at a special general meeting this week.
It emerged there had been trading losses and bosses had paid for an upgrade at the site which went over budget.
The club spent £620,000 upgrading its driving range – £220,000 more than expected.
The club is now in discussions with the bank in a bid to alleviate its financial troubles.
In a letter to members, the committee apologised for its mistakes and informed golfers there would be a 5% increase in fees for next year.
It stated: “We had a meeting last year where it was agreed the driving range would be upgraded at a significant cost, which we asked you, the members, to contribute to.
“However, it has come to light that the project was over budget to the tune of around £220,000.
“It has also been established the club had not achieved its funding target from members. This leaves us in a challenging financial position, but it is one we are in the process of addressing, and one we are confident we can overcome.
“Like many organisations, we are operating in a difficult financial climate and have experienced trading losses.”
The letter said it was suggested at the special general meeting on Monday that a £200 levy was introduced for each member, although the committee stressed this would not be put in place.
It also stated that the club had been using its bank overdraft facility and was still due creditors money.
It added: “We have made mistakes and we apologise for those. However, we are confident the moves we have made and are continuing to make will resolve the current situation.”
The facility features two golf courses, the Hawkshill which opened in 1990, and the Swailend which was built seven years later.
It has hosted a number of high-end golf tournaments, including the EuroPro Tour event last month with the Newmachar Challenge, screened on Sky Sports this week.
One member, who has been with the club for more than a decade and asked not to be named, said: “One question I have is why it took so long for something to be sent out to members.
“I think the club has looked into the levy further and realised that they wouldn’t be able to do it.
“The amount of members they would have lost by doing it would have spelled the death knell for the club.”
A club spokesman said: “Due to unforeseen circumstances, the overall cost of the driving range project was higher than anticipated. The driving range that members helped fund has been operational since May and has already proved profitable.”