Manly on course to self-destruct as leagues club plan falls apart

[gong_eagle]

Manly on course to self-destruct as leagues club plan falls apart
By Brent Read
February 05, 2009
EXACTLY four months after winning the premiership, Manly is threatening to implode amid internal ructions and the collapse of a proposal by joint owners Max Delmege and Scott Penn to re-develop the ailing Manly Leagues Club.
The leagues club proposal, valued at $15 million and ratified by members last July, was hailed as the final step in the Sea Eagles' return to profitability.
However, The Australian can reveal the deal is now off the table and the Penn family is ready to step in with a counter-proposal.
Sources revealed Delmege could also go it alone, creating the prospect of the football club co-owners butting heads over the future of the leagues club. Penn declined to comment. However, leagues club chief executive Peter Spray confirmed the Penn-Delmege proposal would not go ahead and the leagues club board was considering its options.
"There's nothing on the table at the moment," Spray said.
Asked what led to the collapse of the joint venture, Spray said: "It's a lot to do with the ability to raise finances in the current climate. The banks have changed their rules. The original proposal was built around financing a fair portion of the purchase."
Penn and Delmege, who have injected millions of their own money into keeping Manly afloat, each own 41.5 per cent of the football club.
The proposal to purchase the leagues club as a partnership was viewed as a further illustration of their commitment to the club.
It was also expected to end the football club's reliance on its owners for money. Even though the Sea Eagles won their seventh premiership late last year, the club still traded at a loss and required an injection of cash from Penn and Delmege.
The leagues club proposal now has the potential to drive a wedge between the club's most influential powerbrokers. Without the financial input of Penn and Delmege, Manly's place in the NRL would be in serious jeopardy. While the families have been happy to prop up the club with their own money, Penn conceded it couldn't go on forever.
"We have been running it as a responsible business for very much the last three or four years because we have to," Penn said.
"But with private owners there's a limit. We're now back to as close to break-even as we have ever been and that's where we want to stay."
That's why the leagues club re-development was considered so important. Without leagues club support, the financial stress is amplified on the owners.
Tensions at board level are understood to be at breaking point, in part over the collapse of the leagues club joint venture.
"If we can get these things wrapped up we're in for an exciting five years-plus ahead," Penn said. "We have our model right, we have the right people, we're ready to play."
Chief executive Grant Mayer, who has presided over the club's transformation from battler to premier, has been caught in the crosshairs. Mayer's future has been the subject of ongoing speculation amid reports his relationship with Delmege has soured.
Delmege, who was unavailable for comment, has publicly backed Mayer yet the rumours persist. Penn stressed the chief executive had his full support and would like to see Mayer's contract extended beyond this year. "He's been instrumental in getting us to where we are and we want him to be part of the future," Penn said.
The backroom bickering comes as coach Des Hasler prepares to take his side to England to play in the World Club Challenge against Super League champion Leeds on March 1.
http://www.foxsports.com.au/story/0,8659,25010161-23214,00.html

 

[The Colonel]

The joys of private ownership...... but pretty much every NSW club faces the same uncertain future.

 

[gong_eagle]

Showdown for control of Manly Sea EaglesBrent Read | February 06, 2009

Article from:* The Australian

http://www.theaustralian.news.com.au/story/0,25197,25013988-2722,00.html

MANLY co-owner Max Delmege spoke of peace and goodwill yesterday, but it appears the Sea Eagles could be headed for a boardroom showdown over control of the football club.As revealed in The Australian yesterday, the relationship between Delmege and co-owner Scott Penn has been strained by the collapse of a joint proposal to redevelop the embattled Manly Leagues Club.While Delmege stressed there was no tension emanating from his side of the partnership, the issue is likely to come to a head before players and officials depart for the World Club Challenge in England on Sunday week.Asked whether the collapse of the joint venture had affected his relationship with Penn, Delmege said: "Not really, no. It hasn't for me anyway."We're both commercial people. We look at everything in commercial terms."But the angst at ownership level will be inflamed should Penn and Delmege press ahead with rival bids to redevelop the leagues club at Brookvale.The Penn family is expected to make a formal proposal in coming days while Delmege indicated he would present a bid if he were asked to do so by the board of the leagues club.Interestingly, Delmege is a director of the leagues club but has removed himself from decisions regarding its future. However, since the collapse of the joint proposal with Penn, he said he had encouraged leagues club directors to take a deep breath and consider their options.The leagues club, which has a significant debt, is considered the final piece of the puzzle in terms of Manly's revival. Should it be able to produce a revenue stream for the football club, the Sea Eagles' financial outlook would be assured.Delmege's call for patience is unlikely to please the Penns, given they are ready to step into the breach."A few things happened," Delmege said of the collapse of his joint proposal with the Penns."I have suggested to them (leagues club directors) that they should settle it down, don't have blinkers on, look out into the wide, wide world and see what is out there."Or, in fact, restructure and modernise and retract the areas they need, and lease the areas they don't need, and retain all the premises."I think it's something they need to think hard and fast about. As a director, I have to look after their interests as well as the interests of the members."It's no big deal. If we can get more money from outside the Penn and the Delmege group, that's what we have to do."Leagues club chief executive Peter Spray confirmed Delmege had encouraged his fellow directors to sit back and consider their options."He's a colourful character Max, but he's in an awkward position because he is a board member and people have a perception when he's involved that it's not on the up and up," Spray said.The unease at boardroom level is eerily similar to ructions involving the former administration nearly six years ago. The sale of football club land to Delmege was at the centre of that wrangle and eventually split the club in two.The latest spat has the potential to disrupt the start of the Sea Eagles' premiership defence, given the club has several players coming off contract this year, including captain Matt Orford, and internationals Michael Robertson and David Williams.Negotiations are also ongoing with coach Des Hasler over an extension to his deal, which expires at the end of 2010.The instability, which has extended to Delmege's relationship with Manly chief executive Grant Mayer, has the potential to hinder those talks.However, Delmege yesterday reiterated his support for Mayer and said he was astounded by the constant speculation over the chief executive's future."You have to say the past chief executives of Manly, and obviously the present, have all done a wonderful job," Delmege said.

 

[swoop]

League club fracture

• news
  • Local News

05 Feb 09 @ 05:52pm by Jason Avedissian

Max Delmege one of the co-owners


SEA Eagles co-owners Max Delmege and Scott Penn will make individual proposals to revamp Manly League Club.
The pair’s original $15million joint proposal ratified by members in July last year has been withdrawn.
The world-wide financial crisis has been blamed for the collapse of the joint proposal.
Mr Delmege, a director of the league’s club, yesterday confirmed his company, Delmege Commercial, would present a ``varied’’ proposal to the board.
``Absolutely,’’ he said. ``We’ll have a proposal in front of the board within seven days.’’
Mr Penn also pledged to present a package within a week, revealing he would match the original $15million.
``It’s very much in line with the previous (proposal),’’ he said.
``We are hopeful we can find a solution but it looks like we’ll be doing it on our own. Ultimately, we want to do what’s in the best interest of everyone.’’
League’s club general manager Peter Spray said the club must push on beyond the setback.
``There’s been a lot of hopes and expectations that haven’t come to fruition,’’ he said. ``The world has changed and there’s a lot of uncertainty floating around.
``I hope we can resolve it to get a good agreement for the members.’’
All parties refuted the break-up of the partnership would have dire consequences on both the league’s club and the football club.
``We still have a united club,’’ Mr Delmege said. ``We are all trying to help out the league’s club.’’
In July last year, members approved the $15m proposal to finance a major renovation, clear debts and buy a 2000sqm property next to the club. Despite winning their seventh premiership last year, the Sea Eagles traded at a loss with Penn and Delmege continuing to pump cash in.





http://manly-daily.whereilive.com.au/news/story/league-club-fracture/