Turbulence (then calm sailing, then turbulence) thread.

[sydmariner]

Good luck to him. Why anyone, especially a Leeds United supporter, is concerned about losing a large chunk of money when owning a football club is rather strange. Every one knows that running a football club is a loss making investment. If he didn't know the risks when he took the club on then he really was stitched up good and proper by Peter Turnbull.
Anyways, if the owner changes I want someone who actually understands the nuances of football; someone street smart enough to sew up a Bernie Ibini before Arnie has found his next gig; someone who could spot the McGlinchey spark and put out the fire before it took hold. Someone who can read the football signs early and make proactive decisions.
I am also puzzled where the club will play the NSO game if Foxtel gets its way; if not Brookie. surely there is a stadium on the Central Coast that can do the job?

we shouldn't even be playing @ NSO or brookie in the 1st place

 

[BrisRecky]

I would think that since SBS has the rights to show the game..they would have a say in where its gonna be played....NSO aint tv freindly and Brookie has a lousy pitch ...I reckon SBS might say Gosford or nothing

 

[sydmariner]

I would think that since SBS has the rights to show the game..they would have a say in where its gonna be played....NSO aint tv freindly and Brookie has a lousy pitch ...I reckon SBS might say Gosford or nothing

 

[dibo]

If you don't have something to add to the discussion, you don't *have* to post.

 

[Atomic]

It's like banging your head against a brick wall dibo.

 

[kevrenor]

"Charlesworth estimates he has invested some $15m in the club and the Centre of Excellence since taking sole control in the week before last year’s grand final."

Where the hell has that sort of money gone?

It can't have been mainly into the club, with player salaries covered and other staff at skeleton levels. But what is there at the COE to show for it either? Curious.

 

[rbakersmith]

"Charlesworth estimates he has invested some $15m in the club and the Centre of Excellence since taking sole control in the week before last year’s grand final."

Where the hell has that sort of money gone?

It can't have been mainly into the club, with player salaries covered and other staff at skeleton levels. But what is there at the COE to show for it either? Curious.

This article from March 2013 might shed some light:

Builder North Constructions walked off the site in December after the developers failed to pay about $500,000 in debts.

The Weekend Australian can also reveal the Mariners FC Developments has missed a deadline earlier this month to pay $3m to the Wyong RSL Club to finalise the purchase of a parcel of land on which part of the project is to be developed.

Facing financial distress, the Wyong RSL in 2008 sold Club Tuggerah, a club and 14ha of land adjacent to the existing Mariners' grounds.

The sale price was $7.5m with $4.5m payable at the time and the remaining $3m due earlier this month.

Company searches show Mariners FC Developments owes $6.25m to Adelaide-based Angas Securities, a shadow-bank debenture issuer that raises money from ordinary investors.

Records show all of the assets of Mariners FC Developments are mortgaged to Angas.

 

[dibo]

Paying down debt would be the main thing I suspect. Operating losses for the football club probably wouldn't be more than $2m.

But here's a thing (all numbers below are for the sake of argument only - I've got exactly zero inside knowledge here):

Let's assume that at the point he bought in, he knew the club had debts of $7m. At the point he bought in, the fact that the club had debt would not have been a secret. He'd have done (or had the opportunity to do) his due diligence.

From what I understand, he picked up the lot for 'free', but essentially picked up ownership of the debt along with the assets. Practically speaking that means future debts too - for the COE, there was going to be more money borrowed before it turns a buck.

So MC takes ownership of the debts of the football club and clears those, and pours another (let's be generous) $2 million in. He might drop a total of $9 million cash. Off to the side, he drops another $6 million into the COE.

Problem is, the COE keeps sucking money in and the payoff seems ever more distant, while the football club is tied to it. He tries to split the two (corporately at least) but his finances are tied to both. There's only so much capital he's willing to pour in, he's not able to fund the whole lot of *both* projects.

So he seeks alternative investors to either share the load or buy him out.

He might have a chance at investors to buy the football club - if it's now free of debt and has near prospects of turning a buck and growing, he's a strong chance of getting his money back and more.

The COE is the issue - he's got to get someone to believe that it's going to turn a buck. Ever. It's probably going to take a pretty big whack of cash to get the project finished, and it's going to take someone big enough that they're willing to gamble that they're going to make it back...

 

[bilo]

Paying down debt would be the main thing I suspect. Operating losses for the football club probably wouldn't be more than $2m.

But here's a thing (all numbers below are for the sake of argument only - I've got exactly zero inside knowledge here):

Let's assume that at the point he bought in, he knew the club had debts of $7m. At the point he bought in, the fact that the club had debt would not have been a secret. He'd have done (or had the opportunity to do) his due diligence.

From what I understand, he picked up the lot for 'free', but essentially picked up ownership of the debt along with the assets. Practically speaking that means future debts too - for the COE, there was going to be more money borrowed before it turns a buck.

So MC takes ownership of the debts of the football club and clears those, and pours another (let's be generous) $2 million in. He might drop a total of $9 million cash. Off to the side, he drops another $6 million into the COE.

Problem is, the COE keeps sucking money in and the payoff seems ever more distant, while the football club is tied to it. He tries to split the two (corporately at least) but his finances are tied to both. There's only so much capital he's willing to pour in, he's not able to fund the whole lot of *both* projects.

So he seeks alternative investors to either share the load or buy him out.

He might have a chance at investors to buy the football club - if it's now free of debt and has near prospects of turning a buck and growing, he's a strong chance of getting his money back and more.

The COE is the issue - he's got to get someone to believe that it's going to turn a buck. Ever. It's probably going to take a pretty big whack of cash to get the project finished, and it's going to take someone big enough that they're willing to gamble that they're going to make it back...

Right on the money Dibo. The COE is a great idea in concept but was done way too early on the FC's life. It will turn a profit one day but the owner better have very deep pockets in the meantime.

 

[midfielder]

Just brought a ticket in power ball .. when I win no more issues

 

[pjennings]

Right on the money Dibo. The COE is a great idea in concept but was done way too early on the FC's life. It will turn a profit one day but the owner better have very deep pockets in the meantime.

I think it was the right time in terms of the Leagues' development just unlucky with the GFC. In years to come when the salary cap is higher or gone we will need alterative revenue streams. That was the point of the COE. Unfortunately our benefactor was a property developer that was heavily hit with the GFC. If the GFC hadn't have it, Turnbull would probably still be Chairman and we probably wouldn't be talking about this now.

 

[Roy Law]

Apparently there is a rumour that the Mariners can't train at 'Bluetongue' until they pay the rent

 

[Follower]

N

Apparently there is a rumour that the Mariners can't train at 'Bluetongue' until they pay the rent

Not just training. Unless they pay the bill they can't play there either I am told.

 

[VicMariner]

WTF!! A new drama?

Well, at least this club isn't boring.

 

[dibo]

Its a f**king soap opera. Let's move to Palm Beach and be Home and Away FC. Alf Stewart for gaffer.

 

[sydmariner]

Its a f**king soap opera. Let's move to Palm Beach and be Home and Away FC. Alf Stewart for gaffer.

flamin' yes

 

[nearlyyellow]

Apparently there is a rumour ...

These are the pertinent words, methinks

 

[midfielder]

Sell weeMac pays rent

 

[Big Al]

You beauty just got a result in the Weemac crap to move onto a new topic.

The old don't pay the bills because i'm trying to sell trick is it? Let the new owners sort out the shit

 

[rbakersmith]

*sigh*

Central Coast Mariners face lockout over outstanding debts and ground fees

Central Coast Mariners' use of their home ground may be in jeopardy just six weeks out from the start of the season because of outstanding bills of about $300,000 for unpaid loans and venue rental fees.

The Mariners' opening day derby against Newcastle Jets on October 11 could be under threat as it is understood the A-League club has been warned by the venue's owner, Gosford City Council, that the gates will not be opened until all debts have been repaid, some of which were accumulated under previous administrations.

The club owes the council about $100,000 in unpaid stadium rental fees and is negotiating another sum of about $200,000. The outstanding rental fees were accumulated over the course of last season and, while the club has agreed to a payment plan to clear the debt by October 30, senior officials have been warned they may be denied the right to hire the venue until the debts are repaid. The Mariners purchased the scoreboard with financial assistance from the council in 2008 but are still yet to repay the full amount believed to be close to $200,000.

Mariners chief executive Bruce Stalder said the club is confident of repaying the full amount before the start of the season and is working closely with Gosford City Council to find a solution. "The club was helped by the council in getting the screen together," Stalder said. "We haven't concluded our side of paying it back or worked out how we want to use it in the future. We have to finish this and resolve the matter."

The Mariners are also set to hand over the licence of their youth academy to the local football association following a disagreement over how the program was run from a technical standard and $38,332 of mostly registration fees owed to Football NSW. Central Coast Football applied for the licence of the Central Coast Mariners Youth Academy, which plays in the NSW Premier League 2, and reached an agreement with the club to repay the Mariners' outstanding bills.

CCF chairman Darren Sprod said: "We signed a heads of agreement with Central Coast Mariners to run our program this year and we've now cancelled the agreement. We're about to sign an agreement to repay the debts outstanding and we're taking back the program.

"We are really supportive of [new Mariners coach] Phil Moss and the team. Our angle is to develop youth on the central coast and we tried a model this year and it didn't work. We hope to work in conjunction with the Mariners looking forward." The two parties had disagreements over funding provisions including a $175,000 pledge withheld by Central Coast Football. Stalder admitted there were some errors in the management of the program that occurred during the transition of leadership at the club and says the matter will be resolved soon.

"We as a club certainly made some mistakes with the delivery of that program," Stalder said. "We've had nothing but a sincere attempt to resolve the issues but it wasn't in time. To say the model doesn't work is a fairly large jump. It's endorsed by the FFA (Football Federation Australia) and it's certainly a strong model ... We'll have a very good resolution."

http://www.smh.com.au/sport/soccer/...ng-debts-and-ground-fees-20140823-107pg1.html