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I find their move to terminate over 500 members interesting.
It’s how a 501c7 has to work. There are strict requirements around asessment fees, which are a binding part of the membership agreement so if you don’t pay them you are terminated.
I wonder how they plan to replace the 500 members they terminated.
Of course, they didn’t terminate anyone – 500 members choose to leave rather than pay the assessment to keep the club afloat. How will the club replace those members? The first step is to stabilize finances and pay off/pay down debt. And this assessment goes a long way toward doing that. You can’t recruit members to a club that doesn’t exist, and without this assessment, it would have ceased.
The is is how private social clubs operate. Membership fees and special assessments are *not* optional. The organization relies on the funds to operate and members are *required* under the organizational by-laws to pay assessments.
If you do not want to pay the fees, then you can voluntary quit the club.
It’s a good move.
Remove the bottom tier members and collect slightly more from those who can afford to belong.
It’s not a public pool
In reply to the reader with the moniker “.”
I agree raising $1,500 from 1,000+ members is a good start, but it does NOT “go a long way” to addressing their finances. These new funds are earmarked to pay down just $750,000 of the $1,850,000 total debt, leaving $1,100,000. They’d need another $1,100 from this same group to clear the debt.
My guess is there is a lot of deferred maintenance that needs to be addressed, maybe another $500,000-$1,000,000, so another $1,000 per family for that. (Total of $3,500 if you’re keeping track.)
The balance of the new funding is going to shore up operating shortfalls just to keep the doors open. They need to fix the model to address the ongoing systemic operating losses too, by higher dues on top of the special assessments.
Randy S. – The $750k debt had a balloon payment due, so it was urgent to retire that via assessment. The remainder is newer and can continue to be paid off over time while the club stabilizes.
Great news!
The current BOD is making great progress towards club stabilization and correcting errors of the past leadership. These decisions are not easy but are unfortunately necessary for the future.
No members were terminated, rather per their contracts they elected not to remain members as each family made the informed decision that works for them at this time. They are welcome to return just as any new members from the community are welcome at the Rivi.
All members and potential members must realize that the club is member owned, and requires a level of commitment beyond a YMCA or Planet Fitness. Members commit and sign a termed contract. It takes time, talent and treasure to reap the benefits for our families to socialize, swim, play tennis, improve fitness and make lifelong memories and friendships.
I look forward to seeing you at the Rivi this summer!
Chris, my guess is the BOD knew about this mess all along and they have just as much blame on their hands as the past leadership. They must have been getting monthly or quarterly financials, they must have signed off on all the debt borrowing, and they controlled the continued employment of “past leadership”. Before ponying up the initial $1,500, I would have demanded a detailed plan to get out from underneath the total debt burden, and a sustainable annual budget as I noted above. Also, a study of the remaining useful life of fixed assets to ascertain the amount of deferred maintenance is critical.
Surprised at the positive $ response. Great to see this noteworthy part of city history continue in troubling and changing times. As a little guy in the 50’s, my member neighbors often invited me as a guest with their son. Great times. Learned to swim at Riviera.Hope it continues for another 90 years.
Hope for continued success for the ” Rivi” as a former Meridian Kessler resident.
Yeah, I don’t see this place making it.
They’ll be fine.
They got rid of the bottom tier members, bad GM, and got a new board.
JJ, “bottom-tier members” is a bit harsh. Plus, how is it their fault the leadership and BOD completely failed to the point it is on the brink of insolvency? They are not out of the woods yet with this first $750,000 loan paydown.
The club lost 550 members, or 35% of their membership. Monetize that impact on a forward-looking basis and determine how many new members will be required to make up that shortfall. Then compare it to the average membership increase over the past 5 years. They have a real uphill battle.
Randy – I agree it is harsh but if you cannot afford occasional assessments at a club then go join the Y :/
“Bottom tier” members. sounds like those are the smartest of the bunch! Why invest your hard earned money in a sinking ship? There is absolutely NO way I would join after this very public middle finger.
Keep the average household rate $250/mo instead of $99/mo. Its an affordable private club for families. People want some exclusivity. Rivi should cost much more than a YMCA but much less than Meridan Hills CC.
I agree.
This is no different than being in an HOA community, when they say jump, you say how high when it comes to special assessments and fees. The difference being if the member does not want to participate they have the option to leave versus the HOA where you have no choice in the matter.
*former “bottom tier” member here – we held onto our Rivi membership mostly out of nostalgia and used it quite infrequently. Our children are now young adults as well. If our children were grade school/HS and still using it, we would have opted in. As a 4th generation Rivi family, two things can be true. We have wonderful memories but held onto our membership akin to a streaming subscription set for auto renew. We decided to opt out. Rivi’s issues were long coming (think 20-30 yrs) and the Club transparency long overdue. We root for its long term success.
I’m happy for them but that is a big facility for 1000 members. It certainly will have a more “exclusive” feel. But like a cloudy pool, they shocked it back into clarity and now they have to find the right balance to keep it clear. This is primarily a family facility, not a country club with golf and fine dining. Being able to market themselves and attract new families will be critical or many will drop off, just as RS noted, as their kids grow older and move on.