A gift of the 21st century. The Real Club Puerta de Hierro, located on 234.5 hectares of public land, is an anachronistic oasis in the heart of Madrid. The association, which has 15,649 members, including the Duchess of Alba, has not allowed the entry of new members since 1987, the year in which Pedro Morenés, the current Defense Minister, joined, and enjoys luxurious facilities on land owned by of National Heritage of the State, which has been operating without having to go to any type of public contest for a century.
The club, limited to the nobility and personalities with illustrious surnames, is a heritage from 1912, when Alfonso XIII, grandfather of the current King of Spain, Juan Carlos I, decided to create a club in the image and likeness of English county clubs so that Spanish VIPs could play Polo.
At the time the first lease was signed (it was with the Madrid Polo Club society for 74 years), the land was the private property of Alfonso XIII, so he could dispose of it however he wanted. Now, the lands are part of National Heritage, an organization that reports to the Presidency of the Government and is in charge of managing public assets, which belong to all Spaniards.
Thus, since 1912 there have been rental contracts between the Real Club de la Puerta de Hierro and Patrimonio Nacional (formerly Royal Patrimonio de la Corona). The renewal of the contract is carried out without calling any type of public tender, so that no company or association has the possibility of managing these public assets. The last agreement, after its corresponding negotiation, was signed on May 25, 2011 and its expiration is scheduled for December 31, 2040.
The annual income does not include VAT or IBI and, in addition to the rent, the association undertakes, by contract, to carry out all the necessary maintenance works and new plants for the correct functioning of the company, which will be in the name of Heritage. The decision that all the club’s properties and facilities would form part of the State was made in 1994.
Despite the fact that the land and facilities are owned by Patrimonio, the select preserve, which is currently chaired by Luis Álvarez de las Asturias Bohórquez, only opens its doors to its 15,649 members and to the royal family, members of the Government, ambassadors and some senior officials of Heritage.
300,000 euros and the black ball
The exclusivity of the club reaches such an extent that it has not admitted new members for 26 years and, according to the 2013 price list to which this newspaper has had access, the entry of new members is “suspended”. Thus, although, as members of the club explained to this newspaper, entry is neither prohibited nor closed to anyone, the truth is that becoming part of this select association is quite a challenge. The first filter is economic: the entry fee is 300,000 euros per member; the second, and more difficult, the black ball.
This is the most feared filter by anyone who has applied, since if a member of the club’s board draws the black ball, that is, rejects an application, the future member is left out. As already mentioned, the last to achieve this was Pedro Morenés in 1987 and he became president of the company between 2006 and 2011.
A presidency that was not without controversy due to the rules of etiquette and conduct that he tried to impose and the rise in prices. And it is that, according to the list of fees, playing golf or riding a horse is not within the reach of anyone, much less since the presidency of Morenés. In addition to the entrance fee (the consorts pay 58,913 euros to be part of the reserve), now each member must pay a fee of 284.4 euros per quarter (1,137 euros per year) compared to the 197 euros that were paid in 2006 each three months. This rate only gives access to the facilities, so if you want to enjoy one of the two golf courses of 6,375 meters and 6,504 meters, respectively, you have to pay an annual fee of 672.5 euros, which in 2006 was barely enough. the 345 euros.
Although it does not admit members, it does allow them to bring guests. Of course, each one pays 76 euros to enter on a Saturday and they are not allowed to access the dining rooms.
healthy accounts
This rise in prices has been noted in the club’s income statement. In 2011, the latest accounts available, the company earned 444,900 euros, 96% more than in 2010. Revenues barely increased by 0.24% to 14.48 million euros, the consumption of merchandise and provisions for impairment of asset value halved.
The benefit registered by the association is not distributed among the members of the club, which in number, that is, without counting spouses or children, barely reaches 9,620 members. According to the statutes of the company, the entirety is destined to increase the balance of the Social Fund.