Goldman Tees Off in Japan

By Sean Gregory

With the Japanese economy in an upswing, Goldman Sachs is teeing off. In May the investment bank launched Accordia Golf Co., a subsidiary that has become Japan's biggest golf-course operator by acquiring more than 60 clubs. About half are operating; the rest should emerge from bankruptcy early next year. During Japan's late-1980s bubble, schacho (CEOs) flooded the links, paying up to $1 million for a membership. Today a membership costs about $22,500. In the past three years nearly 200 of Japan's 2,400 golf courses have declared bankruptcy, according to Teikoku Databank, a credit-research agency. "Goldman is buying these distressed properties at a great discount," says Joel Gomberg, an analyst at William Blair & Co. "There's great value potential here; it's a savvy move." Among Accordia's tactics to lure people to the game--which many Japanese have played within strict guidelines--loosening dress codes and letting players drive golf carts on the grass.