Balmain Leagues Club worth more than $70m

[Abraham]

I must admit I to thought it was high but I spent a few minutes doing some research and found that some new units nearby (51 Lillyfield Rd, Rozelle) are selling for between $995K and $1.3m. The last proposal that the club put forward (and was knocked back on grounds of disruption to traffic and bus routes and not height) was for 247 units - https://majorprojects.affinitylive.com/public/510699e898eb8704fc7c8091c0f4714d/Appendix%20K_%20Recommended%20Instrument%20of%20Refusal.pdf.

They would probably need less units to satisfy the traffic issues but in general terms based on the above, it is probably not that unrealistic.

Looking at the Lillyfield rd apartments (boutique apartments with parking)., they are substantially different than what you would expect a developer to knock up on the Tigers site.

I don't know, like I said I'm not a developer, I just think it's a crazy amount to expect for that specific site, knowing the locals will cause problems for just about any developer who becomes interested.

Hopefully it's a quick sale and the club can lock something in, which as Yoss noted, may allow them to obtain some finance in the interim.

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[alexaki]

I don't quite understand…Balmain sold the site for $1 to RV in return to RV clearing a $23m debt and a right to run the new club at the RV site. How is it Balmain still owes RV $12 m.?...

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[Abraham]

@alexaki…. Pretty sure it's because RV loaned Balmain money to finance the two smaller leagues clubs they now operate.

That's now blown out to $11m as I don't believe balmain has been making all the repayments.

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[alexaki]

@alexaki…. Pretty sure it's because RV loaned Balmain money to finance the two smaller leagues clubs they now operate.

That's now blown out to $11m as I don't believe balmain has been making all the repayments.

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Thanks Abraham… So if we kept the club our debts would be $34 m we'd be running the 2 smaller clubs, we'd be selling the original club for ~$70m and have $36m left over.. Instead we owe heaps and have nothing...

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[Satan_Allah_Jesus]

Balmain Leagues Club and Balmain District Rugby League Club these days are totally seperate organisations.

Balmain Leagues Club does not have any ownership of Wests Tigers.

Balmain District Rugby League football Club owns 50% of Wests Tigers.

Balmain District Rugby League football Club needs to generate Millions of dollars to stay as part owners of Wests Tigers. They owe the NRL $4 Million dollars and if they can pay that, they then need to supply Wests Tigers at least $1million a year every year there on.

That will not happen as Balmain Football club are in debt. They will lose their share in Wests Tigers. No one is lined up to help them financially and they have no source of income.

The other 50% of Wests Tigers is Owned by Wests Ashfield on behalf of the Western Suburbs Magpies.

Balmain Leagues Club leases two premises. One at Flemington Markets and the other at Five Dock Bowling Club. Both locations struggle to make ends meet and are barely making enough money to keep their head above water. Yossarian stated the Markets Club makes a profit of $1m a year. This is very incorrect. That club is barely trading well enough to keep its doors open.

If it made a profit of $1m a year the Balmain Leagues club would be showing their end of year financial reports instead of hiding them like they have the last two years.

Balmain Leagues Club will never be in a position of recovery. They are gone.

Balmain District Rugby League Football club is in huge debt. They have no way what so ever of making money and meeting their ownership obligations of the Wests Tigers.

Dont live in hope because there is no hope.

Wests Tigers will survive and thrive under a different ownership model and structure. Already things have been put into place to support the new structure.

Balmain SG Ball and Matts are in no danger of folding or being taken over, they will be funded 100% by Wests Tigers, Wests Ashfield Leagues and Ryde Eastwood Leagues.

 

[weststigers]

So, Balmain needs $2 Million to pay back the NRL.

Is there any fundraising going on?

20,000 supporters x $100 = $2,000,000 - I'm sure a few corporate backers will get in on the gig too?

 

[tigerbenji]

20,000 Supporters wont throw the Money in.

 

[alexaki]

20,000 Supporters wont throw the Money in.

More likely scenario…..5,000 x $400....maybe.....

 

[gallagher]

Would the site be of interest to Wests Asfield to develop?

 

[weststigers]

20,000 Supporters wont throw the Money in.

More likely scenario…..5,000 x $400....maybe.....

The point being…has anyone started a campaign to raise funds? Where can we donate? It seems the club are sitting on their hands.

Surely they can get media exposure for a crowdfunding campaign?

 

[Sabre]

Unfortunately, in the medium and long term, the problem isn't just paying the $2 Mil.
There also needs to be a sustainable source of income.

 

[hobbo]

It's a shame they can't find an Asian investor , they're buying up everything else !

 

[weststigers]

Unfortunately, in the medium and long term, the problem isn't just paying the $2 Mil.
There also needs to be a sustainable source of income.

Yeah, you're right. It would be a band-aid solution.

Hoping "The Boff" might buy them out…

 

[innsaneink]

who?

 

[hobbo]

Triguboff .

 

[weststigers]

who?

There was "The Hoff"…now there's "The Boff"

Good pickup hobbo

 

[Sabre]

Another update today

**PRESS RELEASE
March 12, 2015**
>
Tigers welcome Mayor Porteous’ pledge to make return to Rozelle a ‘top priority’ but words need actions
The Balmain Leagues Club is encouraged by Leichhardt Mayor Rochelle’s public pledge to make the return of the Tigers to their historic home a “top priority”.
>
However, Cr Porteous needs to match her words with actions by ensuring the zoning applied to the site by Leichhardt Council in 2008 is maintained.
>
The Balmain Leagues Club directors will seek a meeting with the mayor to discuss the site.
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The directors have made it abundantly clear that Cr Porteous’ proposed floor-to-space ratio of 1.5 to 1 would make it unfeasible for a commercially-viable Tigers clubhouse to operate.
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This is because, amongst other reasons, the club spent almost $8 million on the advice of Council to purchase surrounding properties to facilitate a masterplan and zoning satisfactory to the council.
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The club can only feasibly operate if its new home is of significant scale to not only retire that debt but also to ensure a lease agreement it carefully negotiated with the site’s owner, Rozelle Village, can be exercised.
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That zoning has been endorsed by the Planning Assessment Commission (PAC). There is no need for Leichhardt Council to spend rate payers’ money “to carry out modelling for the site and offer options for its development”.
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The Tigers have been seeking to redevelop its historic home for more than 10 years. No more studies are needed.
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Cr Porteous’ claim that “the proposed mix use zoning of 1.5:1 is more than capable of sustaining a club of that size (3,035 sq m)”, fails to take account of the required commercial and residential scale required for a viable development.
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A financial situation that has been caused in most part by obstacles being placed in the way of the development by both Leichhardt Council and the previous Labor State Government, which forced the club to leave Rozelle to make way for a Metro station that was never built.
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The Club’s directors cannot keep operating with so much uncertainty hanging over the club.
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Uncertainty that could be removed if Cr Porteous simply accepted the advice of the PAC that the provisions of the current zoning provided “an appropriate framework for the future redevelopment of the site”.