News Just In, Days Away From Being Sold To the Gordon Family

[Bests Golden Boots]

Am I the only one who can't understand why the Dragons brand hasn't been tested for sale in the Chinese market? There are more Billionaires in China than anywhere else in the world and the word and emblem Dragon applies to countless Chinese restaurants - not to mention Dragon boat racing, poker machines and God knows what else. Rugby (admittedly not Rugby League) is played by the Chinese army but this is a market just crying out for expansion. Why aren't we thinking big and getting the sort of financial backing that normally goes to Man United, Chelsea, Arsenal etc in the EPL?

Didn’t John Ribot once promise ET he wouldn’t be able to walk the streets of Beijing without being mobbed by fans?

 

[dragonssamy61]

Are you for sale too?

You can't afford me

 

[Carlton]

Something seems odd with Mr Gordons sudden recent reversal to buy into the dragons. Correct me if wrong?

1. Bruce Gordon once on Dragons board but left.
His son remained on board.
2 . Whilst the Entrepreneural Gordon's are on the board, the dragons tally up a huge debt of 6 million.
3. The Gordon's who own Win Corp pull out of buying 50% Illawarra share.
4. One month on, the Gordon's & not their company wincorp are about to by 50% Illawarra share.
WHAT THE ! I hope his passionate love for Steelers does not cause divisions.
Seems to me this 50% buyout is somewhat of a conflict of interest for the real benefit of the club. Time will tell.

You're right, the turn of events does not seem logical. Until the whole process to date and the proposed terms and conditions are known it doesn't feel right.

 

[Saints Forever]

Here is an idea.

Form a property syndicate to buy the leagues club site to make it a contemporary commercial/residential mecca, leasing back 2 floors to the club for rental of $1 per year thus providing significant football club and community facilities including restaurants, team training facilities, gym facilities for the public.

This then gives the JV a financial incentive to promote Kogarah Oval as a sporting venue.

Not sure that the ground needs to be much bigger. Yes update various facilities including toilets, eateries etc

If the Leagues Club were state of the art, Kogarah Oval would be a more attractive footy venue.

 

[Gareth67]

Here is an idea.

Form a property syndicate to buy the leagues club site to make it a contemporary commercial/residential mecca, leasing back 2 floors to the club for rental of $1 per year thus providing significant football club and community facilities including restaurants, team training facilities, gym facilities for the public.

This then gives the JV a financial incentive to promote Kogarah Oval as a sporting venue.

Not sure that the ground needs to be much bigger. Yes update various facilities including toilets, eateries etc

If the Leagues Club were state of the art, Kogarah Oval would be a more attractive footy venue.

Saints Forever , I like your idea I believe that it has plenty of merit .

 

[Sheridan Stand]

I support change provided the structure and governance are rock solid. Too many failures in the past - Newcastle, Manly etc

The fans deserve to understand the deal as we are the primary revenue and we are the successful anchor to the future - key customer of any major market leading sporting team anywhere in the world is the fan. We have a huge fan base that can ensure success and the fans will always support the club if we are treated properly and with respect.

Let’s hope we get great change and not change for the wrong reasons.

Devil is always in the detail. Transparency to fans would be a new and welcome concept.

Give us the details.

 

[Saintsified]

Didn’t John Ribot once promise ET he wouldn’t be able to walk the streets of Beijing without being mobbed by fans?

Well I have watched NRL matches on TV in Brunei and Qatar (I admit I was shocked when channel surfing) so technically it is global.

 

[Carlton]

Here is an idea.

Form a property syndicate to buy the leagues club site to make it a contemporary commercial/residential mecca, leasing back 2 floors to the club for rental of $1 per year thus providing significant football club and community facilities including restaurants, team training facilities, gym facilities for the public.

This then gives the JV a financial incentive to promote Kogarah Oval as a sporting venue.

Not sure that the ground needs to be much bigger. Yes update various facilities including toilets, eateries etc

If the Leagues Club were state of the art, Kogarah Oval would be a more attractive footy venue.

You are 100% right in that the club has a strong balance sheet that has not been used to deliver value and an ongoing income stream.

The board need to stop looking for saviors and use what is at their disposal already.

 

[TruSaint]

Here is an idea.

Form a property syndicate to buy the leagues club site to make it a contemporary commercial/residential mecca, leasing back 2 floors to the club for rental of $1 per year thus providing significant football club and community facilities including restaurants, team training facilities, gym facilities for the public.

This then gives the JV a financial incentive to promote Kogarah Oval as a sporting venue.

Not sure that the ground needs to be much bigger. Yes update various facilities including toilets, eateries etc

If the Leagues Club were state of the art, Kogarah Oval would be a more attractive footy venue.

The bold part may be an issue. Im no lawyer but such a rental agreement would not appear to be " arms length ". The leagues and football club are separate entities, so I would "guess' any rental terms would have to meet market forces. I may be wrong, but I feel it would look very suspect on balance sheets .

 

[Saints Forever]

Hi TruSaint

The way it would work is the developer purchases the leagues club land for example for $100M
Part consideration for the sale is the developer builds 2 floors of club and necessary facilities for an agreed value plus the balance in cash. In other words the Leagues Club would own 2 floors of fitted out space in a strata title development. It may also retain a multilevel car park.The alternative is instead of owning the 2 floors they could be leased long term at a peppercorn rent. This is a common practice in property development JV's. There is more than one way to skin a cat.

The Leagues club leases part of the space to private operators who run restaurants, function centre, gym and any other commercial facility that generates a sizable income. Leagues club would lease training facilities to the JV at an agreed rate.

Leagues Club would retain Liquor sales and gambling profits plus rental would make leagues club very profitable.

Cash surplus could be invested to make Leagues Club bullet proof.

Saints Forever
BA LLB
Law Society Accredited Property Law Specialist

 

[dragonssamy61]

Hi TruSaint

The way it would work is the developer purchases the leagues club land for example for $100M
Part consideration for the sale is the developer builds 2 floors of club and necessary facilities for an agreed value plus the balance in cash. In other words the Leagues Club would own 2 floors of fitted out space in a strata title development. It may also retain a multilevel car park.The alternative is instead of owning the 2 floors they could be leased long term at a peppercorn rent. This is a common practice in property development JV's. There is more than one way to skin a cat.

The Leagues club leases part of the space to private operators who run restaurants, function centre, gym and any other commercial facility that generates a sizable income. Leagues club would lease training facilities to the JV at an agreed rate.

Leagues Club would retain Liquor sales and gambling profits plus rental would make leagues club very profitable.

Cash surplus could be invested to make Leagues Club bullet proof.

Saints Forever
BA LLB
Law Society Accredited Property Law Specialist

Saints Forever
I see you know you job eell.
Now let's get you on the board so this brilliant business idea is not waisted.

 

[Frank Facer]

Hi TruSaint

The way it would work is the developer purchases the leagues club land for example for $100M
Part consideration for the sale is the developer builds 2 floors of club and necessary facilities for an agreed value plus the balance in cash. In other words the Leagues Club would own 2 floors of fitted out space in a strata title development. It may also retain a multilevel car park.The alternative is instead of owning the 2 floors they could be leased long term at a peppercorn rent. This is a common practice in property development JV's. There is more than one way to skin a cat.

The Leagues club leases part of the space to private operators who run restaurants, function centre, gym and any other commercial facility that generates a sizable income. Leagues club would lease training facilities to the JV at an agreed rate.

Leagues Club would retain Liquor sales and gambling profits plus rental would make leagues club very profitable.

Cash surplus could be invested to make Leagues Club bullet proof.

Saints Forever
BA LLB
Law Society Accredited Property Law Specialist

If they were going to do something like you are suggesting, then I would suggest that our club is the developer and take all of the proceeds for themselves. There is no need to involve a 3rd party developer. That is what I would do anyway.

 

[possm]

If they were going to do something like you are suggesting, then I would suggest that our club is the developer and take all of the proceeds for themselves. There is no need to involve a 3rd party developer. That is what I would do anyway.

I see all of the 10m reported investment from the Gordon family being spent on the 6m debt to the NRL and the rest on things Illawarra.

 

[Frank Facer]

I see all of the 10m reported investment from the Gordon family being spent on the 6m debt to the NRL and the rest on things Illawarra.

Do you know who are Illawarra? Who owns the Illawarra half?

 

[Saints Forever]

If they were going to do something like you are suggesting, then I would suggest that our club is the developer and take all of the proceeds for themselves. There is no need to involve a 3rd party developer. That is what I would do anyway.

Understand where you are coming from FF

Problem is I would be surprised if anyone on the current board has the expertise to undertake the role of Developer.

The Board would need to lobby council to allow a significant increase in building height limit and floor space ratio to maximise the value of the land. They need to find a first class town planner and architect to determine the maximum yield possible so that they don't undersell the asset.

Construction cost would be huge and well outside the financial capability of the club to carry during the construction phase.

But with the right people on board they could set up the club financially for the next 100 years.

 

[Frank Facer]

Understand where you are coming from FF

Problem is I would be surprised if anyone on the current board has the expertise to undertake the role of Developer.

The Board would need to lobby council to allow a significant increase in building height limit and floor space ratio to maximise the value of the land. They need to find a first class town planner and architect to determine the maximum yield possible so that they don't undersell the asset.

Construction cost would be huge and well outside the financial capability of the club to carry during the construction phase.

But with the right people on board they could set up the club financially for the next 100 years.

I am sure they could find a town planner and architect. I am also pretty sure that they would be able to get a loan to cover construction costs.

I would be looking at more than 2 floors for the leagues club. I would also be looking at including a motel on site. That would be good for people attending games, it is also very close to the airport. I would also be looking at including a multi level under ground car park.

 

[Carlton]

I see all of the 10m reported investment from the Gordon family being spent on the 6m debt to the NRL and the rest on things Illawarra.

The rest will probably be the repayment of the loan that Illawarra has with WIN/Gordon.

 

[Carlton]

I am sure they could find a town planner and architect. I am also pretty sure that they would be able to get a loan to cover construction costs.

I would be looking at more than 2 floors for the leagues club. I would also be looking at including a motel on site. That would be good for people attending games, it is also very close to the airport. I would also be looking at including a multi level under ground car park.

There are a number of ways the deal could be structured, the thing that is important is that the board do their jobs and professionally look at how to leverage the assets in the balance sheet to secure the future of the club.

In my opinion its irresponsible that a board would allow the club to be in such a poor position financially and not use its strengths to the best advantage.

 

[BennyV]

I am sure they could find a town planner and architect. I am also pretty sure that they would be able to get a loan to cover construction costs.

I would be looking at more than 2 floors for the leagues club. I would also be looking at including a motel on site. That would be good for people attending games, it is also very close to the airport. I would also be looking at including a multi level under ground car park.

There's cost/benefit to be considered. Obtaining a construction/development loan is no small feat, employing a decent project team (i.e. More than just a town planner and architect) to carry out the works over a number of years is also a big investment, and I'm not sure the additional dollar benefit would balance the debt and repayments. Further, I've got no faith in our ability to get this done for the best value.

Under the SF model (and I hope that @Saints Forever trademarks the idea!) we gain the significant cash injection selling to a developer up front, we gain the ongoing revenue from running of the club and the overall attraction of the club increases. The number of floors dedicated to the leagues club is a minor issue.

 

[MilanDragon]

There's cost/benefit to be considered. Obtaining a construction/development loan is no small feat, employing a decent project team (i.e. More than just a town planner and architect) to carry out the works over a number of years is also a big investment, and I'm not sure the additional dollar benefit would balance the debt and repayments. Further, I've got no faith in our ability to get this done for the best value.

Under the SF model (and I hope that @Saints Forever trademarks the idea!) we gain the significant cash injection selling to a developer up front, we gain the ongoing revenue from running of the club and the overall attraction of the club increases. The number of floors dedicated to the leagues club is a minor issue.

Very good post. I think Saints forever has come up with a great idea. And it’s easy to get excited by it.

But when the reality sets in we would have to remember it’d take the best part of a decade to come to fruition.

For those that say the club should do it, considering we are in the red to the tune of 6 million and being propped up, who’s going to give us100mil to play with?

What you do is go down the third party avenue, their benefit lies in the value of property and they will charge rent to all those proposed businesses. As a club we could proposition it by saying we’re bringing the customers through so give us a discount.

I just don’t know if in this country and in all honesty as a club we have a big enough fan/support base to make it a viable venture.

If the club could own a stadium and create an ‘experience’ there with restaurants/entertainment/accomodation etc that would be overall more viable. But once again the costs vs what we in Australia spend on that stuff is my concern.

The reality is people travel from all over the world and when they’re in Europe or US they will do a stadium tour of their favourite team/s - no one travels to Australia to do that. The rugby league brands marketability is there yet.