TIGERS Rozelle Development

Balmain Tigers and Western Suburbs Magpies Junior Development Discussion
gallagher
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Re: TIGERS Rozelle Development

Post by gallagher » Sat 10 Feb, 2018 6:08 pm

Yossarian wrote:
Sat 10 Feb, 2018 5:58 pm
gallagher wrote:
Sat 10 Feb, 2018 5:30 pm
How well was Balmain Leagues trading beore it closed? I thought they were struggling and that was blamed on location. If that's the case, what shill be different this time?
Take away the various grants and it was profitable even with a fairly lousy layout. A new club with a decent layout and surrounded by magnet attractions like a supermarket and they should do fine.
That's heartening that they were profitable. Hopefully it all works out. A strong Balmain can only help the JV.


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Post by Needaname » Sat 10 Feb, 2018 6:16 pm

No one particular, but the basis of it is the club might get re established as a West’s Tigers club. Since then and the media realise things may have changed. Or it may be that the face of the club remains as Balmain Tigers as you said the whole point of this is to bring Balmain home but the actual operations of the club and profits may be shared by West’s Ashfield.
After all West’s Ashfield do financially support all the Balmain juniors so it wouldn’t be too far from being a possibility.

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Post by Patts » Sun 11 Feb, 2018 6:14 am

I assume there would be many forum members that are members of Balmain Leagues Club, meaning they should be getting sent annual reports. A quick review of the latest report would reveal the size of today’s liabilities. (Interestingly I couldn’t find a copy of their annual report online. I can see every other other club I searched for; I think legally, community clubs have to make these records public).
Several years ago Balmain sold some of their poker machine licenses to pay down some debt, I don’t know if this has been common practice over the years.

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Geo.
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Post by Geo. » Sun 11 Feb, 2018 6:54 am

Patts wrote:
Sun 11 Feb, 2018 6:14 am
I assume there would be many forum members that are members of Balmain Leagues Club, meaning they should be getting sent annual reports. A quick review of the latest report would reveal the size of today’s liabilities. (Interestingly I couldn’t find a copy of their annual report online. I can see every other other club I searched for; I think legally, community clubs have to make these records public).
Several years ago Balmain sold some of their poker machine licenses to pay down some debt, I don’t know if this has been common practice over the years.
http://www.tigers.org.au/index.php/abou ... overnance/

2015 Report..
Ivan's Laws

1. You are either on the Bus or you are off..
2. The Star of the Team is the Team
3. Be the player your teammates want to play with..
Tiger Watto wrote:
Fri 03 Nov, 2017 8:07 am
Geo nailed it...

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diedpretty
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Post by diedpretty » Sun 11 Feb, 2018 8:18 am

Yossarian wrote:
Sat 10 Feb, 2018 6:06 pm
Patts wrote:
Sat 10 Feb, 2018 5:11 pm
I seriously hope for Balmain (and consequently the Wests Tigers) that a development can go ahead and they finally get back to Rozelle. Balmain are only a minority shareholder these days but it's definitely better to have a minority partner that can contribute.
My fear for Balmain though is, reportedly, their debts run into the tens of millions it may not be possible to trade out of the hole that is swallowing them. If Balmain know bankruptcy is enivitable, and the Wests Tigers is their only future; than the best move maybe to hand the space over to Wests Ashfield/Wests Tigers to develop a new leagues club on the premises.
They're trading now. If they can get up and trading it should be fine. I don't know what the debt is but I'd doubt it's tens of millions.

Their report shows a debt still to Rozelle of $10 million and they owe Wests Ashfield $6 million. Someone on here said they would be gifted the club ( haven't seen anything to suggest thats true ) but i would assume the debt to Rozelle developments will still stand.


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Post by Patts » Sun 11 Feb, 2018 9:10 am

The last statement I could find (mid 2017) the Balmain Leagues Club had debts a little over $10M (vast majority to the previous Rozelle developer). From what I can make out, in the case of Balmain the football club is the parent company to the leagues club (where as for Western Suburbs it's essentially the other way around).

There was no mention of a debt to the NRL or the Wests Magpies Group but I'm guessing that's because the football club carries the liability for that debt. It was well reported Balmain owed $5.4M to the NRL and the Wests Magpies Group paid back that loan when Balmain couldn't. Obviously in the process Balmain sold half their stake to the Magpies but that still left them with an immediate debt of $2.7M to retain their remaining 25% in the Wests Tigers. That loan would easily be more than $2.7M because of interest and I'm sure Balmain were also needing to borrow for future contributions (to the Wests Tigers). The new loan is either with the NRL, a financial institution or directly with The Wests Magpies Group. I don't think it's directly to the Magpies but I think they have gone guarantor for loan (I'm guessing if Balmain default the Magpies will pay the debt and assume ownership of the remaining 25%).

As for the announcement last week that Balmain would be "gifted" space for a leagues club; I took this to mean they would get the space rent free. But "gifted" could also mean rent cheaper than the market rate.

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Post by Russell » Sun 11 Feb, 2018 9:19 am

Patts wrote:
Sun 11 Feb, 2018 9:10 am
The last statement I could find (mid 2017) the Balmain Leagues Club had debts a little over $10M (vast majority to the previous Rozelle developer). From what I can make out, in the case of Balmain the football club is the parent company to the leagues club (where as for Western Suburbs it's essentially the other way around).

There was no mention of a debt to the NRL or the Wests Magpies Group but I'm guessing that's because the football club carries the liability for that debt. It was well reported Balmain owed $5.4M to the NRL and the Wests Magpies Group paid back that loan when Balmain couldn't. Obviously in the process Balmain sold half their stake to the Magpies but that still left them with an immediate debt of $2.7M to retain their remaining 25% in the Wests Tigers. That new loan is either with the NRL, a financial institution or directly with The Wests Magpies Group. I don't think it's directly to the Magpies but I think they have gone guarantor for loan (I'm guessing if Balmain default the Magpies will pay the debt and assume ownership of the remaining 25%).

As for the announcement last week that Balmain would be "gifted" space for a leagues club; I took this to mean they would get the space rent free. But "gifted" could also mean rent cheaper than the market rate.
Maybe it could mean they get the space back that they sold for $1.00 to the previous developer in the biggest rort in League history.

As far as I am aware the Balmain Football Club is not responsible for any debts incurred by the Balmain Leagues Club.
However they do owe the Joint Venture for their share as it becomes due. They lost voting rights on the board and 25% of their ownership to pay back money due. Wests will let them buy this back if they ever become financial again.

Help! - am I incorrect in this scenario????

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