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

[possm]

Never Knew A Non Owner of an entity had the right to knock back a sale on behalf of the owners of the entity. Communist bastards these NRL farks

On a side note, I dont think Gordon are as rich as they say anyway.

I'm sure the NRL just wanted to be paid the outstanding loan in cash and up front.

I myself feel more comfortable now mainly because under the Gordon's I doubt that much would change at our Club as a whole. I also doubt that the next offer will not separate it's share purchase to just the Illawarra portion of the joint venture.

I hope that an offer for 100% ownership valued at between 20m - 30m will be made by a suitable entity that wants to re-shape management, use the dollars wisely and also drive our Club to on-field and off-field stability and success over the long term. I hope such a deal gives the new applicant ownership of both football clubs and leagues clubs. In the right hands, I am sure that if this could happen, our might Dragons will again be the envy of the rugby league world again.

 

[Carlton]

I'm sure the NRL just wanted to be paid the outstanding loan in cash and up front.

I myself feel more comfortable now mainly because under the Gordon's I doubt that much would change at our Club as a whole. I also doubt that the next offer will not separate it's share purchase to just the Illawarra portion of the joint venture.

I hope that an offer for 100% ownership valued at between 20m - 30m will be made by a suitable entity that wants to re-shape management, use the dollars wisely and also drive our Club to on-field and off-field stability and success over the long term. I hope such a deal gives the new applicant ownership of both football clubs and leagues clubs. In the right hands, I am sure that if this could happen, our might Dragons will again be the envy of the rugby league world again.

Possm the real net assets value of St George and Illawarra is something over $43 million (this is after allowing for the loans), this would have to be the absolute minimum the club should be sold for.

Here's a different approach, sell the Illawarra building (value over $11 million), use this and the half million in cash Illawarra has to repay the NRL loan and then use the balance to repay the WIN/Gordon loan. It should be possible given the strong St George balance sheet to commercially borrow a couple of million to repay the rest of the WIN/Gordon loan.

To maintain a leagues club presence in Wollonging form an alliance with one of the successful leagues clubs down there such as Collegians etc. This would not produce income but it is risk free and requires no operational management.

 

[dragonssamy61]

Possm the real net assets value of St George and Illawarra is something over $43 million (this is after allowing for the loans), this would have to be the absolute minimum the club should be sold for.

Here's a different approach, sell the Illawarra building (value over $11 million), use this and the half million in cash Illawarra has to repay the NRL loan and then use the balance to repay the WIN/Gordon loan. It should be possible given the strong St George balance sheet to commercially borrow a couple of million to repay the rest of the WIN/Gordon loan.

To maintain a leagues club presence in Wollonging form an alliance with one of the successful leagues clubs down there such as Collegians etc. This would not produce income but it is risk free and requires no operational management.

Carlton.
I wish you were in control at least you make sense.

 

[Carlton]

Carlton.
I wish you were in control at least you make sense.

I dont have access to enough information to know if this would actually be possible. One of the issues I imagine would be the Illawarra old boys would not agree. If it could be done it fixes a short term issue. Longer term, I would then be looking at the St George land and buildings and trying to unlock the value in a way that would provide a secure future for the club (just like the sharks have done).

 

[dragonssamy61]

I dont have access to enough information to know if this would actually be possible. One of the issues I imagine would be the Illawarra old boys would not agree. If it could be done it fixes a short term issue. Longer term, I would then be looking at the St George land and buildings and trying to unlock the value in a way that would provide a secure future for the club (just like the sharks have done).

Carlton
The clubs main problem is the old boys on both ends of the joint venture.
There is a huge push to have mcdonald as next ceo.
We need a independent business man who has a love for the club but will run it like a business.

 

[possm]

Possm the real net assets value of St George and Illawarra is something over $43 million (this is after allowing for the loans), this would have to be the absolute minimum the club should be sold for.

Here's a different approach, sell the Illawarra building (value over $11 million), use this and the half million in cash Illawarra has to repay the NRL loan and then use the balance to repay the WIN/Gordon loan. It should be possible given the strong St George balance sheet to commercially borrow a couple of million to repay the rest of the WIN/Gordon loan.

To maintain a leagues club presence in Wollonging form an alliance with one of the successful leagues clubs down there such as Collegians etc. This would not produce income but it is risk free and requires no operational management.

I like this idea however, clauses in a sales contract could include the rule that the 40m remains in the club's name along with the current assests and liabilities. So from their the NRL, WIN and Gordon loans can be settled leaving the Club 30m better off with no debt.

 

[Old Timer]

NRL issues the licence for Clubs to participate in the competition.

Its unusual for Licensor's(NRL) to lend money to Licensee's(Clubs) in the first place.

NRL is most unlikely to accept a transfer of our club licence or control of the Licence without being paid its debt.

If Gordon want's NRL support for his acquisition he has to put a commercially realistic proposal forward.

That means paying the $6M as a lump sum or paying it by instalments over a short period of time (1-2 years)

NRL is not a bank, they don't lend money for a living. They run a 'national" footy competition.

In a normal commercial arrangement they would sell up our licence to the highest bidder if the JV cannot meet its payment terms.

The JV needs strong financial backing.

Any new partner must pay out the NRL debt in one lump sum.

If they can't or won't do that, they should not be considered by Doust as JV partner material.

It is that simple.

Mr Doust, if you are not a hand puppet of the Gordon family please do your job and seek out as many credible/viable JV partners as are available on the open market.

Extremely sensible post explaining things well & simply even for the most ardent BOD / Doust supporters.
The thing is will we ever know how many EOI's there were / are in the pipeline?

 

[possm]

Extremely sensible post explaining things well & simply even for the most ardent BOD / Doust supporters.
The thing is will we ever know how many EOI's there were / are in the pipeline?

Where is the Sheik when you need him?

 

[Carlton]

Carlton
The clubs main problem is the old boys on both ends of the joint venture.
There is a huge push to have mcdonald as next ceo.
We need a independent business man who has a love for the club but will run it like a business.

I couldn't agree more, I have said before that the next CEO needs to come from outside and not be connected with the board. This is important from a perception perspective, its not enough that the new CEO is impartial the stakeholders must perceive they are impartial.

Samy, It must get frustrating being close to this and seeing the decisions made for self interest.

 

[Gareth67]

Where is the Sheik when you need him?

Latest news is that he is over Manly way - at least that was what was reported in the paper . I think we he has gone Possum , our board could only see one avenue on which the club was to go - the WiN or Gordon way , whatever they are basically the same .

 

[possm]

Latest news is that he is over Manly way - at least that was what was reported in the paper . I think we he has gone Possum , our board could only see one avenue on which the club was to go - the WiN or Gordon way , whatever they are basically the same .

Well now that both of those options have led to nothing, it's time to offer 100% share not 50%. I mean what business person or entity in their right mind would want to partner with our management team?

 

[dragonssamy61]

I couldn't agree more, I have said before that the next CEO needs to come from outside and not be connected with the board. This is important from a perception perspective, its not enough that the new CEO is impartial the stakeholders must perceive they are impartial.

Samy, It must get frustrating being close to this and seeing the decisions made for self interest.

Carlton.
I can see the football side of it heading in the right direction (as in the nrl team, recruiting and hpu ect).
But I can see the club being run by people who are only interested in looking after there own interests ,and if it was any other type of business they would gave been sacked long ago.
Gordon to me is not the answer at all.
For many reasons.
There is no forward thinking at all.
Doust is going but there are other forces that need to go to.

 

[dragonssamy61]

Latest news is that he is over Manly way - at least that was what was reported in the paper . I think we he has gone Possum , our board could only see one avenue on which the club was to go - the WiN or Gordon way , whatever they are basically the same .

Gareth he was never here at all.
If he was they would the old boys would have closed ranks on him

 

[ouryears]

NRL issues the licence for Clubs to participate in the competition.

Its unusual for Licensor's(NRL) to lend money to Licensee's(Clubs) in the first place.

NRL is most unlikely to accept a transfer of our club licence or control of the Licence without being paid its debt.

If Gordon want's NRL support for his acquisition he has to put a commercially realistic proposal forward.

That means paying the $6M as a lump sum or paying it by instalments over a short period of time (1-2 years)

NRL is not a bank, they don't lend money for a living. They run a 'national" footy competition.

In a normal commercial arrangement they would sell up our licence to the highest bidder if the JV cannot meet its payment terms.

The JV needs strong financial backing.

Any new partner must pay out the NRL debt in one lump sum.

If they can't or won't do that, they should not be considered by Doust as JV partner material.

It is that simple.

Mr Doust, if you are not a hand puppet of the Gordon family please do your job and seek out as many credible/viable JV partners as are available on the open market.

But if we expect it to be run as a professional business, no new business owner ever ever pays out the debts of the old owners.

They pay goodwill plus stock, fixtures and fittings, and for any freehold property if that is part of the deal.

Why should a new owner pay for old debts, never happens in business.

 

[ouryears]

Well now that both of those options have led to nothing, it's time to offer 100% share not 50%. I mean what business person or entity in their right mind would want to partner with our management team?

Possum, the deal has been scuttled by the NRL, not by Gordon, so if Gordon was happy to proceed and work with the Dragons management team, its the NRL who aren't happy with the deal.

It might not be the money, it could be the Dragon's name, jersey design, grounds....who knows.

 

[possm]

Carlton.
I can see the football side of it heading in the right direction (as in the nrl team, recruiting and hpu ect).
But I can see the club being run by people who are only interested in looking after there own interests ,and if it was any other type of business they would gave been sacked long ago.
Gordon to me is not the answer at all.
For many reasons.
There is no forward thinking at all.
Doust is going but there are other forces that need to go to.

Just an excuse for Millward to get a job for the boys. Mary was not up to both parts of his original job and so they created another well paid job for old boy Millward. All the rest is BS.

 

[Carlton]

Carlton.
I can see the football side of it heading in the right direction (as in the nrl team, recruiting and hpu ect).
But I can see the club being run by people who are only interested in looking after there own interests ,and if it was any other type of business they would gave been sacked long ago.
Gordon to me is not the answer at all.
For many reason.
There is no forward thinking at all.

I'm looking at things from a lot further away than you but this is exactly how it seems to an outsider. I also don't believe Gordon is the answer and as you say its not just one thing that causes me concern.

St George have a brilliant history, strong balance sheet, great under utilised home ground, large geographically spread supporter base, instantly recognisable brand, is in a great position to dominate southern sydney and south coast, strong junior nursery.

But we have a management and board that cannot seem to leverage any of this. Instead they move away from the brand, dont use one of (if not) the best suburban grounds, allow the financial position of the club to sink while they have under leveraged assets, treat their fan base with contempt (the easiest thing is to loose a fan and the hardest is to get them back), do not seem to really value the history (see the way Changa was treated), allowed the Sharks to survive when they should have reclaimed the whole territory south of sydney as theirs and until recently did not value their juniors.

 

[possm]

I'm looking at things from a lot further away than you but this is exactly how it seems to an outsider. I also don't believe Gordon is the answer and as you say its not just one thing that causes me concern.

St George have a brilliant history, strong balance sheet, great under utilised home ground, large geographically spread supporter base, instantly recognisable brand, is in a great position to dominate southern sydney and south coast, strong junior nursery.

But we have a management and board that cannot seem to leverage any of this. Instead they move away from the brand, dont use one of (if not) the best suburban grounds, allow the financial position of the club to sink while they have under leveraged assets, treat their fan base with contempt (the easiest thing is to loose a fan and the hardest is to get them back), do not seem to really value the history (see the way Changa was treated), allowed the Sharks to survive when they should have reclaimed the whole territory south of sydney as theirs and until recently did not value their juniors.

But I was told that our 'old boy' Chairman of the Board is a great businessman, so why can't he see this and educate the other members of the board.

 

[Saints Forever]

But if we expect it to be run as a professional business, no new business owner ever ever pays out the debts of the old owners.

They pay goodwill plus stock, fixtures and fittings, and for any freehold property if that is part of the deal.

Why should a new owner pay for old debts, never happens in business.

The answer is, he does not pay out the debts per se, He pays the price for one half of the JV to Illawarra, who directs the buyer on settlement to pay out the Illawarra debt. The Buyer contracts to receive one half of the JV free of debt. It would be a condition imposed by the Buyer.

The transaction requires NRL consent, hence they too will insist that their loan is repaid in full.

 

[Gareth67]

Gareth he was never here at all.
If he was they would the old boys would have closed ranks on him

Yes I realised that Sammy , as I mentioned some time back the fella came straight out of - the " Tales of 1001 Arabian Nights " or something to that effect .