The future of the East London Golf Club remains uncertain as a bitter dispute over rental fees drags on, with Buffalo City Metro (BCM) demanding almost R100,000 a month for the city-owned facility.
Caught in a deadlock, the council on Friday approved a six-month lease extension, keeping the course open until February 28 2026 while talks continue.
But whether it is a lifeline or merely stalling while negotiations go around in circles is not yet clear.
For the past 50 years, the club has operated under a nominal lease agreement, paying just R4 a year for the 142ha Bunkers Hill course.
That arrangement lapses on August 31.
BCM has now tabled a new valuation of R97,630 a month — more than R1.1m a year — a figure the club insists is unsustainable.
Its own valuation pegs a fair monthly rental at closer to R35,500.
The steep increase has alarmed golfers, business leaders and residents, who fear the historic club may not survive.
An earlier proposal by the metro would have seen annual increases of 12.5%, with rental costs ballooning to more than R1m a month within two decades.
Insiders warned that the hikes would shut the club’s doors within three years.
The SA Golf Association also raised concerns, noting that year-on-year escalations of 2% were standard across the country.
In addition to the high rent, previous drafts of the lease demanded the club hand over 40% of profits, 50% of naming and advertising revenue, provide free access to competitions for the mayor and guests, and maintain the course at its own cost.
Maintenance alone can range between R500,000 and R750,000 annually, depending on course rating.
Tabling his report on Friday, BCM city manager Mxolisi Yawa acknowledged the wide gap between the valuations and urged council to allow more time for negotiations.
“Due to differences on the valuation obtained by BCM and the valuation conducted by the East London Golf Club’s service provider, further investigations need to be pursued prior to the matter being resubmitted to council,” he wrote.
The six-month extension was approved unanimously, subject to public participation and no valid objections when advertised.
The impasse has split political opinion. DA councillor Sue Bentley said BCM’s valuation unfairly included the value of club buildings which had been developed and maintained entirely at the club’s expense.
“Income earned is largely used to ensure the maintenance of buildings and the golf course,” Bentley said.
“The East London Golf Club is an enormous asset to the metro’s sports tourism and must be valued accordingly.
“A realistic valuation would keep it accessible while sustaining a world-class venue for national and international competitions.”
The EFF took the opposite stance.
Councillor Mziyanda Hlekiso argued that long leases at prime facilities should not be renewed automatically.
“There are a lot of black businesspeople in the city who can run these facilities. As the EFF, we want new black people to be given the chance to take over,” he said.
If the club shuts down, the city would lose not only a sporting asset, but also a key driver of sports tourism
Border Kei Chamber of Business CEO Lizelle Maurice called for urgent resolution, warning of major financial and tourism losses if the club was forced to close.
“If the club shuts down, the city would lose not only a sporting asset, but also a key driver of sports tourism,” she said.
Club president Robert Moodie declined to comment while negotiations continue.
“We feel it is too soon to make any public report on the progress of the lease as we are awaiting a final offer for further review,” he said.
A former club president, chartered accountant Don McLean, said the escalation rate should align with the Consumer Price Index, as anything higher would make it impossible for the club to secure bank financing for upgrades or operations.
This is not the first time the golf club’s lease has sparked controversy.
In 2024, proposals for nearly R100,000 in monthly rent and steep escalations triggered a public outcry.
Golfers and local businesspeople warned such demands would cripple the club, which has hosted international tournaments and brought global attention to East London.
At the time, the SA Golf Association emphasised that sustainable rental agreements were essential to keeping clubs operational and competitive.
The metro says it is investigating the competing valuations and will reopen talks with the club in the coming months.
Any final lease terms will need to be approved by the council following public participation.
For now, the six-month reprieve has given the East London Golf Club breathing room — but the prospect of paying 2,500 times more in rent than it has for the past half-century continues to hang over its future.
Daily Dispatch
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