Is St George Illawarra Still A Joint Venture Club

[muzby]

I'm picking Arrrresoles ....................

Get some Combantrin, man...

 

[st penguin]

I don't understand why Doust has not asked him to provide TPA funds. Same goes ro WIN before they become an owner. All along we have at least two big companies who follow the Dragons but no one approaches them to help us keep up with the Broncos, Rorters and Storm in the player recruitment market.

Does anyone believe Johnstone will have the courage to ask player manages to negotiate like the do for the above clubs.

Well, WIN already heavily sponsor the Dragons through ground naming rights.

Not sure what benefit there is to this guy Smith for entering into a TPA.

The three teams above - roosters, broncos, storm have high profile players who are very marketable. Slater, Thaiday, etc

You need to be someone who plays at the highest level and is also a very good communicator. Someone like JDB might very well start attracting more TPAs if he continues to improve.

 

[Bests Golden Boots]

Well, WIN already heavily sponsor the Dragons through ground naming rights.

Not sure what benefit there is to this guy Smith for entering into a TPA.

The three teams above - roosters, broncos, storm have high profile players who are very marketable. Slater, Thaiday, etc

You need to be someone who plays at the highest level and is also a very good communicator. Someone like JDB might very well start attracting more TPAs if he continues to improve.

Only one ground at the moment.

But I think TPAs May be coming to an end, the current crisis at the Sharks centres on a TPA and there’s talk of the NRL making the clubs announce who’s on what TPA. they are trying the make the whole process more transparent as all the recent cap dramas have centre on unpaid TPAs.

The rules are clubs are not allowed to guarantee TPA payments to players, but the fact is they do.

 

[to_ddeath]

I'm filthy. Absolute grubs. No end to what they are capable of.

 

[Saints Forever]

“The mystery bidder who missed out on part-ownership of St George Illawarra can finally be revealed amid claims he offered $5 million more than Bruce Gordon’s WIN Corporation“

I think that’s pretty plain. “Part ownership” and “$5 million more”

Actually must disagree

The point you are missing is that Illawarra was selling the 50% for its own salvation.

If Smith paid Illawarra $15M, NRL would have received its $5.8M and Illawarra would have received $9.2M with no obligation to pay any further money to the JV.

If Smith offered $10M to Illawarra and offered to provide another $5M to the JV capital fund St.George may have been obliged to match the $5M.

So Illawarra spurned the opportunity to get more money to avoid a defacto St.George takeover of the JV.

 

[muzby]

.

If Smith offered $10M to Illawarra and offered to provide another $5M to the JV capital fund St.George may have been obliged to match the $5M.

So Illawarra spurned the opportunity to get more money to avoid a defacto St.George takeover of the JV.

Actually a very, very good point..

Part of the conditions that WIN had was matching funding dollar for dollar win St George..

Had this new group offered more, but wanted St George to match it, it would not have been able to (check the leagues clubs finances.. very lean..)

Which could have resulted in a complete buy out of the st George side of things and complete private ownership to Illawarra..

Now THEN people would have something to bitch about..

 

[ouryears]

Illawarra Hawks won a NBL title, Wollongong Wolves won a couple of NSL titles, Wayne Gardner was motorcycle world champion, plenty of swimmers, Iron men champions, Australian cricketers etc just off the top of my head.

Mate I am talking about a 60-100 year history of winning, not one or two odd titles.
Geeze, even Cronulla has snagged ONE.

 

[Bests Golden Boots]

Actually a very, very good point..

Part of the conditions that WIN had was matching funding dollar for dollar win St George..

Had this new group offered more, but wanted St George to match it, it would not have been able to (check the leagues clubs finances.. very lean..)

Which could have resulted in a complete buy out of the st George side of things and complete private ownership to Illawarra..

Now THEN people would have something to bitch about..

It's been widely reported that St George had the finances to repay the NRL and buy out the Illawarra share, but the NRL did not want it that way, they wanted it to stay a JV and keep an Illawarra presence in the NRL.

St George has for the last two years had cash reserves of $12 million.

 

[Bests Golden Boots]

Actually must disagree

The point you are missing is that Illawarra was selling the 50% for its own salvation.

If Smith paid Illawarra $15M, NRL would have received its $5.8M and Illawarra would have received $9.2M with no obligation to pay any further money to the JV.

If Smith offered $10M to Illawarra and offered to provide another $5M to the JV capital fund St.George may have been obliged to match the $5M.

So Illawarra spurned the opportunity to get more money to avoid a defacto St.George takeover of the JV.

Not really missing the point, Illawarra have always had an obligation to jointly fund the JV, they just haven't done it for years due to lack of funds, hence the loan from the NRL.
Any money payable from the shares of the JV are payable to the JV.
St George wouldn't have to match anything, they have already paid their share over the last years.
The "matching funding" part of the deal, if that's what it says cause no ones seen the full details yet, refers to ongoing future funding.

 

[muzby]

St George has for the last two years had cash reserves of $12 million.

That’s great.

But if the contribution is $5m per year, what happens in 2022?

 

[Saints Forever]

Not really missing the point, Illawarra have always had an obligation to jointly fund the JV, they just haven't done it for years due to lack of funds, hence the loan from the NRL.
Any money payable from the shares of the JV are payable to the JV.
St George wouldn't have to match anything, they have already paid their share over the last years.
The "matching funding" part of the deal, if that's what it says cause no ones seen the full details yet, refers to ongoing future funding.

Wish you were right, but unfortunately your analysis is wrong.

Illawarra sold its interest in the JV, the JV derived no benefit other than replacing Illawarra with a party who can supposedly pay its way in WIN, and Illawarra making up its funding arrears.

 

[Bests Golden Boots]

That’s great.

But if the contribution is $5m per year, what happens in 2022?

The balance sheets are online, just look them up.
Have they stopped trading during that time?

 

[muzby]

The balance sheets are online, just look them up.
Have they stopped trading during that time?

Ok, Dollarmites time.

A proposed funding of $5m per year would far exceed the income of the club, which means they would need to dip into the cash reserves each year just to meet the commitment.

What happens when there are no more coins in the piggybank?

 

[possm]

Actually must disagree

The point you are missing is that Illawarra was selling the 50% for its own salvation.

If Smith paid Illawarra $15M, NRL would have received its $5.8M and Illawarra would have received $9.2M with no obligation to pay any further money to the JV.

If Smith offered $10M to Illawarra and offered to provide another $5M to the JV capital fund St.George may have been obliged to match the $5M.

So Illawarra spurned the opportunity to get more money to avoid a defacto St.George takeover of the JV.

The two missing figures are:
1. How much did Illawarra Stealers owe WIN?
2. What was the reason for the 6m loan from the NRL?

 

[Bests Golden Boots]

Wish you were right, but unfortunately your analysis is wrong.

Illawarra sold its interest in the JV, the JV derived no benefit other than replacing Illawarra with a party who can supposedly pay its way in WIN, and Illawarra making up its funding arrears.

No your right, I am looking at this wrong.
Illawarra sold thier shares to WIN for a reported 10 million.
Of which 6 million goes to the NRL.
The rest goes to Illawarra to pay off sundry debts, some of which MAY be outstanding money owed to the JV.
Any that's left is for the Illawarra Rugby League Club.

If the price paid was actually $15 million, that's $5 million more the Illawarra Rugby League Club would have retained to spend on junior football in the Illawarra.

Someone got ripped off, it wasn't St George or the JV though.

 

[Bests Golden Boots]

Ok, Dollarmites time.

A proposed funding of $5m per year would far exceed the income of the club, which means they would need to dip into the cash reserves each year just to meet the commitment.

What happens when there are no more coins in the piggybank?

You realise how registered club have to operate right?
They are not allowed, by law, to keep mass amounts of cash reserves.
All profits have to, by law, be used to improve services and facilities for the members of said club.
They are allowed to retain certain profits as an emergency contingency fund, hence the reason the $12 million hasn't changed in 2 years.

 

[st penguin]

No your right, I am looking at this wrong.

FMD - you don’t see that sentence very often around here!

I also misssed this obvious point - and so did the smh now I think about it.

 

[muzby]

You realise how registered club have to operate right?
They are not allowed, by law, to keep mass amounts of cash reserves.
All profits have to, by law, be used to improve services and facilities for the members of said club.
They are allowed to retain certain profits as an emergency contingency fund, hence the reason the $12 million hasn't changed in 2 years.

You seem to not understand the concept of cashflow.

The club isn’t making enough cash to cover anything above $3m per year, should the matched contribution amount require it to.

So, for every $1 that they can’t provide though the proceeds of operating the club, it comes out of the cash reserve..

And of course once that cash reserve dries up..........

 

[Bests Golden Boots]

You seem to not understand the concept of cashflow.

The club isn’t making enough cash to cover anything above $3m per year, should the matched contribution amount require it to.

So, for every $1 that they can’t provide though the proceeds of operating the club, it comes out of the cash reserve..

And of course once that cash reserve dries up..........

And you don’t seem to understand how registered clubs are legally required to operate.

I noticed you didn’t quote me on Illawarra getting ripped to the tune of $5 million dollars?

 

[Saintsified]

We merged for juniors ? Lol Tell that joke to the Roosters. In the modern world of sport you don't need juniors you need money, Jack Bird is a good example.