Yellowstone Club World

The rags to riches story of Tim Blixseth is the invert of the development of his ultra-luxury destination club, Yellowstone Club World. Yellowstone Club World looked to expand on the centralized concept of Yellowstone Club that Blixseth had create and evolve it to a boundless portfolio of luxury vacation properties around the world.

Blixseth, the model of a self made man, not once, but twice, went bankrupt and worked to regain his fortune. His entrepreneurial spirit began around 13 when he bought three donkeys for $75. A week later, he was selling the donkeys as "pack mules" for $75 each.

Blixseth went on to work in the timber trade and married Edra Crocker. Continuing to have success in logging, Blixseth had the misfortune of signing government contracts guaranteeing to cut and sell timber regardless of their price. Timber prices soon dropped 90% and the young family was forced to file for bankruptcy, claiming $15.4 million in debt and only $4,400 in assets.

As the case was resolved, Blixseth continued to make shrewd business deals and was again a multimillionaire and retired by 40. Living in Lake Tahoe and bored, on a whim Blixseth relented to a real estate broker to tour land in southwestern Montana. Land that would eventually help him acquire the Yellowstone Club.

Blixseth and two other partners invested about $10 million for 140,000 acres of land. Due to his experience in the timber industry, Blixseth originally had planned to log the area, but the outcry from environmentalists and potential lawsuits forced Blixseth to reevaluate his plans. Working with Phil Lader, President Clinton's Deputy Chief of Staff, Blixseth engaged in a series of land swaps with the government that effectively traded the land Blixseth had just invested in for the land that Yellowstone Club would soon occupy.

The 13,600 acre community, just 20 miles to the north of Yellowstone National Park, was originally planned to be a vacation property for the Blixseth family, but as well-heeled friends wanted in, Blixseth created the "neighborhood of millionaires." Featuring its own private golf course and 75 ski runs, the Yellowstone Club launched in 1997. Members paid a minimum of $250,000 to join and purchased homes between $5 million and $35 million to join the exclusive club. Limited to 864 properties, the exclusivity soon drew attention from a laundry list of prospective members. Vice President Dan Quayle, Congressman Jack Kemp, Bill Gates, Annika Sorenstam, and a dance card of Fortune 100 CEOs all joined the intimate community.

In 2005, Blixseth obtained a bank loan from Credit Suisse of $375 million, using the club's assets as collateral. Much of the loan went to create Yellowstone Club World, an ultra-luxury destination club that would maintain the exclusive appeal of Yellowstone Club, but include a global portfolio of world-class properties rather than one centralized location. The club purchased a $28 million 14th century chateau, the $40 million Mexican resort El Tamarindo, a private island in the Caribbean for $28 million, and a 265 acre lot in St. Andrews, Scotland for $40 million.

Between those four properties, the club's portfolio averaged nearly $35 million each, over five times more expensive than their next closest competitor, Solstice Collection whose $6.5 million average was often out of reach to most destination club prospects.

Complicating matters, Tim and Edra were caught in a very public divorce and subsequent legal dispute over the ownership of Yellowstone Club and Yellowstone Club World. In December of 2007, the club ceased new sales and by September of 2008, the destination club had ceased operations.

By January of 2009, Yellowstone Club World was forced into involuntary Chapter 7 bankruptcy and only counted a handful of members. Three members all sought their $1.5 million membership deposit returned and the assets of Yellowstone Club World and Yellowstone Club were blurred during subsequent bankruptcy filings that continue to be explored today.

MEMBERSHIP PLANS

Described as an international version of the Yellowstone Club, a Montana based ski and golf community, Yellowstone Club World would bring a similar philosophy to the design of their exclusive destination club.

"From majestic European Estates to private tropical islands, endless beaches, luxurious desert spas, private ski mountains, and renowned golf resorts, Yellowstone Club World is a collection of awe-inspiring properties in the world's most coveted settings," the club wrote. "It is the only destination club in the world where the destinations themselves, whether an island, a mountain, or private swath of a country - are reserved for the exclusive pleasure of its members. Yellowstone Club World draws its heritage from Yellowstone Club in Montana - a place where families gather to enjoy the world's only private ski and golf community. It is the worldwide extension of an unprecedented idea, first made real in Montana, and now available to 150 ultra-discriminating members."

Comparing the club's intial property search to an "Easter egg hunt," club founder Tim Blixseth would scour the globe looking for properties to "wow" members. Included in the club's portfolio would be a private Caribbean island, a French castle, and a resort in Mexico. Paying as much as $40 million per property, Blixseth would obtain a $375 million loan from Credit Suisse with the Yellowstone Club used as collateral.

Members would pay $3 million to join with prices increasing to $10 million once the club grew. For the early adopters and current members of the Yellowstone Club, memberships were available for $1.5 million.

Like other destination clubs, members would pay annual dues to access the club's amenities. Members would pay between $37,500 and $75,000 per year in addition to a per night cost of approximately $300.

Unfortunately, several obstacles slowed the club's growth. Tim and his wife Edra would file for divorce, causing the future and ownership of the club to be unknown, real estate values dropped, and ultimately, the Credit Suisse loan was defaulted on.

In early 2009, three members and another individual forced Yellowstone Club World into involuntary bankruptcy, seeking over $4.5 million in membership deposits.

"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues," said John Amsden, the lawyer representing the four creditors. "They anticipate that their interests to those properties will be respected."

At the heart of the matter was control of the ownership of the Yellowstone Club World residences and if they were being used as part of the Yellowstone Club bankruptcy.

"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," Amsden would also say. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."

MEMBERSHIP PRICING

The invitation only Yellowstone Club World would launch as the most elite level destination club in the world.

An outgrowth of the Yellowstone Club, an exclusive golf and ski community in Montana known for having their own caviar bar in the clubhouse, marble statues, an authentic zebra skin couch, and protection by former Secret Service agents, Yellowstone Club World would bring the same extravagant lifestyle to their destination club design.

Properties available to members would include a 14th century castle, a private island, and a private golf club amongst others. Averaging over $30 million each, club founder Tim Blixseth would take out a loan with Credit Suisse for $375 million, using the assets of Yellowstone Club as collateral.

According to the club, memberships would be available for between $3 million and $10 million, but current Yellowstone Club members would be able to purchase at a reduced price.

Late in 2007, Yellowstone Club World ceased new membership sales and by 2008 had ceased operations. As the $375 million Credit Suisse loan went unpaid and a public bankruptcy between Tim and Edra Blixseth blurred the lines between Yellowstone Club and Yellowstone Club World and the ownership of the combined assets, four creditors of Yellowstone Club World forced the club into involuntary Chapter 7 bankruptcy early in 2009.

"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said John Amsden, a lawyer representing the creditors, three of which who were claiming $1.5 each for membership deposits paid to join the club. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."

Solstice Collection, the leader in the ultra-luxury destination club industry, would also file for bankruptcy in 2009, leaving a void at the top of the sector.

ANNUAL DUES

One of the most elite level clubs in the history of the destination club sector, Yellowstone Club World spiraled out of the Yellowstone Club, a private ski and golf community in Montana.

Crafted by Tim and Edra Blixseth, Yellowstone Club World members would have anytime access to the club's collection of luxury vacation residences spanning the globe. Amongst the club's properties were a private golf club in St. Andrews, a French castle less than an hour from Paris, and a private island in the Caribbean. Properties would be required to have a "wow" factor according to Blixseth, who went on a world-wide search to find the club's initial real estate assets.

Paying as much as $40 million for some of the club's destinations, Blixseth would obtain a $375 million loan from Credit Suisse, using the Yellowstone Club as collateral.

As the club's property portfolio began to take shape, details regarding the club would emerge. Limited to just 150 members, the invitation only destination club would charge between $3 million and $10 million to join, but Yellowstone Club members would be able to upgrade at a discounted rate.

Like the high membership costs, the annual dues of the club would follow a similar structure. Members would pay between $37,500 and $75,000 per year to access the club's amenities.

The young club would face numerous hardships, including the divorce of Tim and Edra Blixseth, declining real estate values, and anemic sales, all leading to Blixseth defaulting on the Credit Suisse loan.

By early 2009, Yellowstone Club World filed for involuntary Chapter 7 bankruptcy with only a small group of members.

PROPERTIES

Spending as much as $40 million each on some of their residences, Yellowstone Club World would enter the destination club industry as one of the most exclusive, and expensive, clubs in history.

Crafted by Tim Blixseth, the founder of the Yellowstone Club, a Montana ski and golf community, Yellowstone Club World's property acquistions was compared to an "Easter egg hunt." Requiring a "wow factor" when purchasing properties, Blixseth turned down a castle in the British Channel Islands because it "turned out to be a dump" and land in Cabo San Lucas because it was "getting too Newport Beach."

The properties that Blixseth and the club did settle on were some of the most extravagant residences in the history of the sector, including:

• St. Andrews
• French Castle Château de Farcheville
• Mexico Resort El Tamarindo
• Private Caribbean Island
• Fly Fishing Lake in Cody, Wyoming

To obtain these properties, some of which were in excess of $40 million, Blixseth obtained a loan from Credit Suisse for $375 million, using they Yellowstone Club as collateral.

Shortly thereafter, a divorce of Tim and Edra Blixseth would complicate the growth of the invitation only destination club and Yellowstone Club World would cease their sales and marketing efforts in 2007. In 2008, the club would cease operations.

As part of the divorce, the international properties were split with Edra receiving the golf resort in Scotland and the French castle. Tim would take the Mexican estate and the private Caribbean island.

Unsure of how the Yellowstone Club World properties were being handled and who owned the club's assets, four creditors would force the club into an involuntary Chapter 7 bankruptcy filing in early 2009.

"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said John Amsden, a lawyer representing the four creditors, three of which were seeking $1.5 million each for membership deposits paid to join the club. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."

"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues. They anticipate that their interests to those properties will be respected," Amsden would also state.

Averaging nearly $35 million each, the property collection of Yellowstone Club World dwarfed that of The Solstice Collection, the leader in the destination club industry's ultra-luxury category.

USAGE

Launched as the most extravagant luxury destination club in history, Yellowstone Club World would give their limited 150 members anytime access to a collection of world renowned properties around the globe.

Founder Tim Blixseth had created the Yellowstone Club late in the 90s as a "neighborhood of millionaires" where Bill Gates, Dan Quayle, and other notable figures could golf and ski outside of the public eye. The community would even go so far as hiring former Secret Service agents to protect club members' privacy.

Hugely successful, Blixseth would envision a global expansion for the Montana community and underwent a lengthy process to find the club's signature properties. Likening the search to an "Easter egg hunt," Blixseth would acquire some of the most expensive properties in the history of the destination club industry. Paying as much as $40 million each, Yellowstone Club World would include a golf club near the storied St. Andrews, a Mexican resort, and a private Island in the Caribbean.

To purchase these properties, Blixseth would obtain a loan from Credit Suisse for $375 million, using the Yellowstone Club as collateral.

Current members of the Yellowstone Club would receive a 50% discount on their membership if they wished to upgrade, but new members would pay $3 million to join the exclusive club with prices climbing to $10 million as the club approached their 150 member goal.

Members would have unlimited annual access to the club's properties, paying a per night cost of roughly $300. Unlike other destination clubs who typically purchase single family homes, the properties within the Yellowstone Club World collection could house multiple members at once, allowing for superb availability options.

Unfortunately, the grandiose club never reached any of their lofty goals and had one of the most difficult times that any destination club had. Not only were Tim and his wife Edra going through a public divorce with the ownership of Yellowstone Club World and the Yellowstone Club unknown. In addition, legal issues began to mount against the Yellowstone Club and real estate prices began to decline, all leading to the club being unable to repay the Credit Suisse loan.

With the ownership of the Yellowstone Club World properties in doubt, four creditors would force the club into involuntary Chapter 7 bankruptcy.

"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said John Amsden, a lawyer representing the creditors. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."

"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues. They anticipate that their interests to those properties will be respected," Amsden would go on to say.

The unlimited travel option was a popular membership structure during Yellowstone Club World's time in the destination club industry with leading players like Private Escapes and The LUSSO Collection operating under similar models.

HOLIDAY ACCESS

Unlike other destination clubs who traditionally provide members with access to single family homes, capable of only housing one member at a time, Yellowstone Club World took a different approach to their property acquisitions.

Some of the properties available to Yellowstone Club World members included a French castle, a private island, and a Mexican resort community, all capable of housing multiple members at one time.

The genesis of Yellowstone Club World begins with the Yellowstone Club, a fiercely private Montana ski and golf community protected by former Secret Service agents created by Tim and Edra Blixseth. With a membership list that included Bill Gates, Dan Quayle, and other notable figures, the Yellowstone Club would be described as the "neighborhood of millionaires" where public figures could relax outside of the public eye.

Bringing this same philosophy to Yellowstone Club World, multiple members would be able to access club residences simultaneously, alleviating one of the problems with more traditional destination club models.

Unfortunately, to acquire these lavish residences, Tim Blixseth would obtain a loan from Credit Suisse for $375 million, using the Yellowstone Club as collateral.

Countless obstacles faced the young club, including the divorce of Tim and Edra, a fight regarding ownership of both Yellowstone Club World and the Yellowstone Club, legal issues, slow sales, and declining real estate values, all leading to the final nail in the coffin when the Credit Suisse loan was defaulted on.

In early 2009, Yellowstone Club World filed for involuntary Chapter 7 bankruptcy as four creditors sought $4.65 million from the club.

"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," John Amsden said, lawyer for the four creditors. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."

Three of the four creditors were seeking $1.5 million each for membership deposits paid to join the club.

Other destination clubs have tried similar concepts where multiple members could access club residences at once, most notably Everlands who took a conservation approach to their destination club.

MEMBERS

Created as the most expensive destination club ever, Yellowstone Club World was a spinoff of the private golf and ski community in Montana, the Yellowstone Club.

Envisioned to include a select 150 members, Yellowstone Club World would charge between $3 million and $10 million to join, joining clubs like Legendary Retreats and Solstice Collection to crack the $1 million threshold.

Members would have exclusive access to a global collection of multi-million dollar properties, including a 14th century castle, a private island in the Caribbean, and a private golf club near St. Andrews. To acquire these properties, Tim Blixseth, the club's founder, obtained a $375 million loan from Credit Suisse, using the assets of Yellowstone Club as collateral.

The lofty sales goals the club had planned never materialized and Yellowstone Club World would only be able to acquire a small group of members.

The Credit Suisse loan went unpaid, leading to the bankruptcy of Yellowstone Club and Yellowstone Club World would follow with their involuntary Chapter 7 bankruptcy filing early in 2009.

Three creditors claiming $1.5 million in refunds each led the filing and as the lines blurred between the Yellowstone Club and Yellowstone Club World, the creditors sought who owned the assets of Yellowstone Club World.

Like many other new destination clubs, Yellowstone Club World offered their inaugural members significant discounts on their memberships. While joining a new destination club does have distinct financial advantages in the forms of lower membership costs and annual dues, it does come at a cost. As evidenced by the Yellowstone Club World bankruptcy, these deposits may not be as secure as more established clubs in the sector.

RESIGNATION

The global version of the Yellowstone Club, a Montana based ski and golf community that included politicians, celebrities, and executives, Yellowstone Club World would enter the destination club industry as the most expensive club ever created.

Paying over $40 million for some of the club's residences, founder Tim Blixseth would scour the globe looking for properties to "wow" members. Included in the club's property portfolio would be French castle less than an hour from Paris, a private golf club near the famed St. Andrews, a Mexican resort community, and even a private island in the Caribbean.

To purchase these properties, Blixseth would obtain a loan from Credit Suisse for $375 million, using the original Yellowstone Club as collateral.

Limited to just 150 members, Yellowstone Club World would disclose their invitation only approach, reserving membership for only the most elite globetrotters. New members would pay between $3 million and $10 million to join and existing Yellowstone Club members would receive their memberships for $1.5 million.

If a member elected to resign their membership, they could do so and receive 100% of their original deposit returned to them. While not publicly disclosed, like many other destination clubs, these members would likely have to be put on a resignation waiting list where they would wait for a sufficient number of new members to join the club for their membership to be redeemed.

As the club began to move forward, countless problems arose. Not only were Tim and his wife Edra working through a public bankruptcy that divided the assets of the exclusive destination club but legal issues began to weigh on the Yellowstone Club. Adding in poor sales for Yellowstone Club World and any chance of the young club succeeding evaporated.

Unable to repay the Credit Suisse loan, the assets of Yellowstone Club and Yellowstone Club World would further blur and Yellowstone Club World would be forced to file for Chapter 7 bankruptcy early in 2009 as members sought to find out who controlled the club's assets and to receive their initial membership deposits refunded to them.

EXECUTIVES

An outcrop of the Yellowstone Club, an ultra-exclusive golf and ski community in Montana, Yellowstone Club World was created by Tim and Edra Blixseth.

The new destination club would be more extravagant than any of their competitors with multi-million dollar residences all over the world. Comparing the acquisition of these prime properties to an Easter egg hunt, Tim Blixseth and the club would create one of the most stunning portfolios in the sector, including:

• El Tamarindo, a $40 million Mexican resort
• A 14th century French chateau for $28 million
• A private island in the Caribbean for $28 million
• A 265 acre lot in St. Andrews for $40 million

By the end of 2008, Yellowstone Club World had ceased operations with only a handful of members who had upgraded from the original Yellowstone Club. By early 2009, the club had been forced to file for involuntary bankruptcy.

One of the factors that contributed to the downfall of Yellowstone Club World was the divorce of Tim and Edra Blixseth, leaving the ownership of the club unknown during critical months as the club planned their growth.

Tim Blixseth
Co-Founder

Edra Blixseth
Co-Founder

Dieter Huckestein
Chief Executive Officer

NOTES FROM THE CLUB

Created by billionaire Tim Blixseth, Yellowstone Club World would be the global expansion of the Yellowstone Club, a Montana ski and golf community with members including Bill Gates, Dan Quayle, and Annika Sorenstam amongst others.

While the Yellowstone Club would be known for its privacy and extravagant amenities, including 75 ski runs, caviar bar, and former Secret Service security, Yellowstone Club World would be known for its truly remarkable residences.

Included in the club's property portfolio was a golf retreat in Scotland, a private island in the Caribbean, and a French castle resting on over 1,000 acres, complete with a moat. Valued at up to $40 million each, Blixseth would obtain a loan for $375 million from Credit Suisse, using Yellowstone Club as collateral.

Limited to just 150 members, Yellowstone Club World would charge upwards of $10 million to join with Yellowstone Club members receiving discounts if they wished to join the exclusive destination club.

Yellowstone Club World claimed that they grew to roughly two dozen members following their launch, but the combination of a public bankruptcy between Tim and Edra Blixseth, drastic drops in real estate values, and legal issues would cripple both Yellowstone Club and Yellowstone Club World.

In late 2007, Yellowstone Club World would cease their sales and marketing efforts and by 2008 the club had ceased operations.

As the Yellowstone Club was used as collateral in the Credit Suisse loan, the assets purchased by Blixseth for Yellowstone Club World became entangled in bankruptcy filings. In early 2009, Yellowstone Club World filed for involuntary Chapter 7 bankruptcy as four creditors sought to find out who controlled the assets of the destination club.

"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said John Amsden, a lawyer representing the four creditors. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."

PARTNERSHIPS

Just 20 miles north of Yellowstone National Park, the Yellowstone Club launched in 1997 with its own golf course and ski runs reserved for 864 of the world's most elite, including notable members like Bill Gates, Dan Quayle, and Annika Sorenstam. Protected by former Secret Service agents, the Yellowstone Club would be a place for the world's most public figures to relax without flashbulbs and reporters documenting their every move. Introduced as a companion to the Yellowstone Club, Yellowstone Club World would essentially be the global expansion of that vision.

Prior to the launch of Yellowstone Club World, founder Tim Blixseth set out on a globe trotting mission to find the signature properties for the invitation only destination club

When the club did launch, it would showcase the most fabulous properties the sector had seen, including a French castle, a Mexican resort, private island, and golf community in Scotland amongst others. Paying up to $40 million for each, Blixseth would obtain a loan from Credit Suisse of $375 million with Yellowstone Club used as collateral.

Shortly after the club's foundation was established, it was broken down as Tim and his wife Edra filed for bankruptcy and legal complications began to hamper the Yellowstone Club. In addition, property values began their sharp decline and the sales the club had envisioned never emerged. Late in 2007, Yellowstone Club World had already ceased their sales and marketing efforts and the future of the club appeared in doubt.

When the Credit Suisse loan came due, both the Yellowstone Club and Yellowstone Club World would be affected, compounded by the Blixseth divorce.

In early 2009, Yellowstone Club World would file for involuntary Chapter 7 bankruptcy as four creditors sought $4.65 million from the club and to decipher who controlled the club's assets.

"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues," continued Amsden. "They anticipate that their interests to those properties will be respected."

During their brief time in the destination club industry, Yellowstone Club World did not publish any partnerships outside of their ties to the Yellowstone Club.

PRESS RELEASES

An offshoot of the Yellowstone Club, a Montana based private ski and golf community, Yellowstone Club World looked to would offer the same level of luxury for their global destination club. Members would have access to a property portfolio that included a private island, a Mexican resort, and a 14th century French chateau.

Created by billionaire Tim Blixseth, current members of the Yellowstone Club would receive discounted pricing on Yellowstone Club World memberships and the club would only accept new members if invited by current members.

Planning to limit the club to just 150 well heeled members, Blixseth set off to acquire the club's portfolio of ultra-luxury properties and took out a $375 million loan with Credit Suisse and the ball was put into motion that would lead to the bankruptcies of both the Yellowstone Club and Yellowstone Club World.

Tim and his long time wife filed for divorce, battling over ownership of the clubs. The economy began to tank. Real estate values dropped. Virtually no one elected to upgrade to join the destination club offering.

In 2008, the club would cease operations and begin to "feverishly" look to sell the properties. Unable to make any progress, the young destination club would file for Chapter 7 bankruptcy in early 2009.

Yellowstone Club World Introduces Magnificently Restored 14th Century Chateau
Date: June 26, 2006
Yellowstone Club World introduces a one-of-a-kind french castle on a 1,125 acre estate, Chateau de Farcheville, to their collection of luxury vacation properties via a special medieval party, complete with knights and falconry.

Yellowstone Club World Closes on Landmark Purchase in St. Andrews, Fife, Scotland
Date: June 26, 2006
Yellowstone Club World, one of the world's most exclusive destination clubs, has purchased approximately 265 acres in St. Andrews, Fife, Scotland. The site will feature a main stone clubhouse and lodge and championship golf course.

Yellowstone Club World President, Dieter Huckestein, Honored With Lifetime Achievement Award
Date: March 31, 2006
Less than a month after taking over as President and CEO of Yellowstone Club World, Dieter Huckestein has been honored by The American Academy of Hospitality Sciences for his 35 years of experience in the lodging and hospitality industry.

Dieter Huckestein Appointed President & CEO, Yellowstone Club World March 8, 2006