Sharks cap superthread - latest: NRL clears Flanagan to assistant coach from 2020

[AJB1102]

But not on bailouts

Sharks bail themselves out though. I could be wrong but I don't recall them going cap in hand to the NRL.

 

[txta2]

Who gives a fk about the past anyway they are stable for now ,unlike Tigers and Manly.

 

[Vee]

Sharks bail themselves out though. I could be wrong but I don't recall them going cap in hand to the NRL.

I remember them going flowers in hand Geoffrey Edelsten's squeeze in the 80s.

 

[Perth Red]

Pretty sure they have only received $19million ($10mil Stage 1, $9mil Stage 2 so far).

Pretty sure it is
$10mill signing of contract for stage1
Sales of stage 1 ?
$5million showing in 2018 accounts presumably from stage 2 sales and the latest $9mill for stage 3.

Can’t find the second stage 1 amount but pretty sure it was paid around 2015?

 

[taipan]

IMO the completion of the development housing/retail and new clubhouse was the net financial end game.The intervening instalments were to keep the club afloat ,repaying debt as best(unknowing of course about peptide fines and salary cap fines in the interim. and dumb management).

The finality was debts repaid ,any profits due on units including those above the retail (money in the Bank),rental income est at $1m pa, and a new Leagues club.

The amendment now is instead of the club ,securing a higher and unknown profit figure and the housing market price fluctuation risk, long term rental income and the funding for a new club, and debt still floating around til completion they get:
No debt immediately, the $18m over supposedly 12 years (replacing the long term rent),a new Leagues club.
Basically sacrificing many more years of rental income, and future profits on housing (which may or may not take a huge financial hit anyway) with capital gains adjustments and higher taxes.

No doubt the developer is in a better position to make more than prior ,but the Sharks at least til a decision is made on expansion,have secured themselves a far stronger financial position than otherwise they could ever have achieved by being in a very vulnerable position ( debt) that currently exists for relocation.

Any decision on expansion will have to be made not in 2022, but at end 2020/ early 2021 latest.Giving any new clubs a couple of years lead in.I suggest the NRL will be making decision end next year-and that "ain't" too far away.Hence Shark's urgent decision to do what they did.Do or die.

 

[yadamisha]

Pretty sure it is
$10mill signing of contract for stage1
Sales of stage 1 ?
$5million showing in 2018 accounts presumably from stage 2 sales and the latest $9mill for stage 3.

Can’t find the second stage 1 amount but pretty sure it was paid around 2015?

The first 10 mil was stage 1 - paid up front covering the first X amount of units (can't remember but something like 260 ish) so they could pay off the bank. There was nothing else for stage 1. Stage 2 money starting hitting bank account of the Sharks accounts in 2018 when stage 2 settled, including the latest payments which nearly covers all existing debt, including personal loans as per the financials and AGM last year. Stage 3 (9mil yet to be paid) is coming as part of the $40 mill which has been brought forward so not have to wait for stage 3 settlements which are still 18 months away. Essentially 31 mill is to cover the expected sales from stage 5 units and proceed from stage 4 which is commercial and will be used for the new leagues club and future fund to provide ongoing income. Stage 3 payment will cover the fine and expected loss in 2019 and leave cash in the bank moving forward.

 

[Frank Discussion]

figures

• Due to the staged timing of the first residential stages, total revenue from the residential component paid to the Sharks totals approximately $36 million instead of the $25 million initially forecast under the original schedule.

• This is separate to the additional $21.2 million, to be paid to the Sharks for consideration of the land and air space value for the lot on which the retail component will be developed.

• Of this, $12.2 million will be set aside and specifically used for the club’s new interior refurbishment.

• Estimated total return to the Sharks as a result of the development of the residential component:

Stage 1 - Upfront Payment: $10,000,000

Stage 1 - Profit distribution: $485,000

Stage 2 - Profit distribution: $7,410,000

Stage 3 - Profit distribution (forward advanced): $18,000,000

Total amount payable to Sharks for residential component: $35,895,000

Land and air space value (stage 4): $21.2 million

Total value of Sharks involvement in the development: $57,095,000

• The estimated end value of the revitalised Sharks Leagues Club is $5.15 million


Source: members email.
ANY FURTHER QUESTIONS?

 

[Go Bunnies]

figures

• Due to the staged timing of the first residential stages, total revenue from the residential component paid to the Sharks totals approximately $36 million instead of the $25 million initially forecast under the original schedule.

• This is separate to the additional $21.2 million, to be paid to the Sharks for consideration of the land and air space value for the lot on which the retail component will be developed.

• Of this, $12.2 million will be set aside and specifically used for the club’s new interior refurbishment.

• Estimated total return to the Sharks as a result of the development of the residential component:

Stage 1 - Upfront Payment: $10,000,000

Stage 1 - Profit distribution: $485,000

Stage 2 - Profit distribution: $7,410,000

Stage 3 - Profit distribution (forward advanced): $18,000,000

Total amount payable to Sharks for residential component: $35,895,000

Land and air space value (stage 4): $21.2 million

Total value of Sharks involvement in the development: $57,095,000

• The estimated end value of the revitalised Sharks Leagues Club is $5.15 million


Source: members email.
ANY FURTHER QUESTIONS?

What I believe is the main issue is that the developer has to sell the Stage 4 Units to have the money to give to Sharks.
There seems to not be a lot of confidence about that the units will sell in the current Sydney market.
So where does the money come from to pay the Sharks?

 

[Perth Red]

What I believe is the main issue is that the developer has to sell the Stage 4 Units to have the money to give to Sharks.
There seems to not be a lot of confidence about that the units will sell in the current Sydney market.
So where does the money come from to pay the Sharks?

I thought it was unconditional and had been agreed to be paid regardless of performance of sales? Is that stage 4 payment not up front?

$9mill paying off debt
$12.2mill for leagues club refurb
$18million in an investment portfolio with sharks only able to access annual returns.

 

[Go Bunnies]

I thought it was unconditional and had been agreed to be paid regardless of performance of sales? Is that stage 4 payment not up front?

$9mill paying off debt
$12.2mill for leagues club refurb
$18million in an investment portfolio with sharks only able to access annual returns.

Not sure if the payment is up front. Hopefully for Sharks it is. The retail was supposed to commence 2 years ago and now it supposedly won’t commence until units are sold. Doesn’t sound to me like the developer is flush with funds.

 

[Perth Red]

They said they were paying the debt off immediately and that the leagues refurb mo Ye was being placed into an account for that purpose only which makes it sound like the stage 4 money has been paid?

 

[2012....Sharks Year]

They said they were paying the debt off immediately and that the leagues refurb mo Ye was being placed into an account for that purpose only which makes it sound like the stage 4 money has been paid?

The beauty of the new agreement is that the Sharks are no longer dependant on the sales of the units or retail to receive the agreed settlement. Yes....it cost us a premium to take this option but at the end of the day it is the developers that are taking all the risk from here on.

 

[Frank Discussion]

The Sharks have realised $57 million over the 8 years of the development partnership.

Considering the original development was valued in total at $200million this is a tremendous outcome.

How do you feel Perth Red?

 

[Generalzod]

The Sharks have realised $57 million over the 8 years of the development partnership.

Considering the original development was valued in total at $200million this is a tremendous outcome.

How do you feel Perth Red?

He feels like a Tooheys

 

[Perth Red]

The Sharks have realised $57 million over the 8 years of the development partnership.

Considering the original development was valued in total at $200million this is a tremendous outcome.

How do you feel Perth Red?

Happy for you. Now get yournspending and behaviour under control and you won’t be one of the reasons nrl feels it can’t expand.

 

[Generalzod]

Happy for you. Now get yournspending and behaviour under control and you won’t be one of the reasons nrl feels it can’t expand.

You haven't been the same since the premiership win, and now this geez what are you going to complain about now????

 

[taipan]

Not sure if the payment is up front. Hopefully for Sharks it is. The retail was supposed to commence 2 years ago and now it supposedly won’t commence until units are sold. Doesn’t sound to me like the developer is flush with funds.

The $18m balance is to be paid end of April 2019
$21.2m to pay for the land consideration and air space for the retail and units one retail .
$9m to clean up all debts up to emend of this year.
The remaining $12.2m held in escrow account to be used in the League club refurbishment in 2021
Seems to be up front to me.
The developer will do alright with what he gets.

 

[AJB1102]

Not sure if the payment is up front. Hopefully for Sharks it is. The retail was supposed to commence 2 years ago and now it supposedly won’t commence until units are sold. Doesn’t sound to me like the developer is flush with funds.

They've cashed in early to avoid themselves of that risk. I believe the buzz word is "de-risk".

 

[siv]

I guess it comes down to how fast are the Sharks soending the money

FCs are now operating at $25-30 mil budgets or $15-20 mil after NRL Grants which really goes towards paying players anyway

So $57 @ $20 mil per year doesnt last long

Also isnt there a one time debt they are clearing plus those NRL fines

 

[Generalzod]

Well as long as they invested properly there here to stay as well of the money they will get from the retail Woolworths and Aldi have already indicated there interest things are looking up..