Steelers owe St George $8.29 million

[Southernsaint]

From Jubilee Ave: http://dragons.rleague.com/news/index.php?id=15299

Steelers owe St George $8.29 million
Thu Apr 01, 4:50pm (NSW)
Source: R2K Website
When the St George Illawarra Dragons don the jersey of the Illawarra Steelers in round 6 at Wollongong, the Dragons will be commemorating a Club that has a hefty financial debt with the St George Leagues Club.

The Illawarra District RLFC, a 50% stakeholder in the St.George- Illawarra joint venture, officially owes the St.George Leagues Club 8.29 million dollars. The Illawarra Steelers, who were reportedly bankrupt at the end of the 1998 NRL season, will be struggling for their immediate survival when the NSW Government's new poker machine tax is introduced on September 1.

The information regarding Illawarra's sizeable debt is contained in the full financial report of the St.George Leagues Club Ltd, for the financial year ending 31 October 2003. The concise financial statements that were issued to members only reveal that the Steelers borrowed an additional 2.85 million dollars from St.George in the 2003 financial year.

The issue was brought to light at the 49th Annual General Meeting of the St.George Leagues Club. Following a series of questions, St.George General Manager Danny Robinson confirmed that St.George have a registered, secure mortgage over the Steelers Club, an asset which is valued at approximately 16 million dollars. If Illawarra are unable to meet their financial commitments in the future, St.George
could sell or take full possession of the Steelers' Club.

It was also revealed that due to the structure of the loan, Illawarra is only paying $57,000 in interest payments rather than $454,300 that could be charged. Due to the precarious state of Illawarra's finances, interest of 5.48% is being charged on just 1.04 million of the 8.29 million dollars. The non-interest bearing component of the
loan could net St.George an additional $397,300 per annum if the same interest rate was applied to this component. Nonetheless, Mr Robinson remarked that Illawarra would be unable to meet its financial commitments if interest was applied to the full amount of the loan.

Robinson stated that there is a program in place for the full amount of the loan to become interest bearing, and that he would outline the specific details at a later date. In addition, Robinson declared that he would provide additional information on the date that the loan needs to be paid back by and what amount Illawarra has financially contributed to the St.George-Illawarra joint venture since its
formation.

From the statements made at the AGM, it appears that the St.George Leagues Club have lent the 8.29 million to Illawarra to strengthen the position of the Steelers' licensed club which was in dire need of development. Despite this, Illawarra have reportedly used some of the loan from St.George towards funding the costs of being a
partner in the Dragons' joint venture. Through the improvements to the Steelers' club, which have been made possible as a result of the concessional loan, Illawarra hope that "one day" they may be in a position to equal St.George's annual contribution to the joint venture. Current estimates suggest that St.George is
funding at least 85% of the contributions that the 2 Clubs make towards the merged entity.

****

I just hope our Illawarra friends remember all this when they're celebrating Stanley The Steeler day in a few weeks time.

Cheers,
Ben S.

 

[Dean Moriarty]

LOL @ the unity. :lol:

 

[Southernsaint]

You thought there was ever unity??

Cheers,
Ben S.

 

[Anonymous]

Yeah we got this today from R2K. (btw Sthsaint, you should really put LU's main page on your favourites ;-) ).

Fact is, its no secret. It harps back to those silly arguments about how St George wouldnt survive without Illawarra. :roll:

I remember having this conversation numerous times over the last few years and that the Steelers owed the JV more than $7 million. After hours and days of debate, the antagonists (always other clubs supporters) still doubted it.

Quite clearly, the opposite is closer to the truth but in reality, both sides compliment each other with resources and juniors being the contributing factors.

Moffo and Legend, you there? ;-)

 

[Ribs]

This is indeed disappointing news. When I first heard of this Illawarra jumper wearing day, I wasnt sure whether to support it or not, as I figured if we beat Penrith wearing that jumper, at Wollongong, and Barrett actually played well and showed pride in the jumper, that we would cop sh*t for it.

So we would beat the defending premiers and still cop sh*t, which is truly a joke.

I dont want the merger to break apart even though Im a third generataion Saints man, as the support and juniors are important to our future.

But if we have one word of sh*t from the Illawarra contingent should we win, Ill change my tune. I just think they are playing with fire.

 

[S2H]

So are you saying that Illawarra should just provide juniors and have no pride in its history?

Why are they playing with fire recognising that half the joint venture is Illawarra?

 

[Roosterphin]

All the Steelers have to do is charge St George FC more for poaching all their juniors?

 

[Ribs]

Half?

Tell me what half. Certainly not financial.

This is what I meant by playing with fire, it has the potential to reignite this debate.

Like I said, I have noproblems with it, but if the Illawarra 'half' start piping up should we play well and win, Ill have the sh*ts, plain and simple.

 

[Anonymous]

All the Steelers have to do is charge St George FC more for poaching all their juniors?

Typical ignorant troll. You'd be be finding some pool of mud to wallow in no matter which side of the argument was posted. You shouldnt even call yourself a rugby league supporter.

 

[Ribs]

Gday roosterphin, trolling again I see.

The humourless, pathetic, planks on your teams forum boring you again are they?

 

[Roosterphin]

Cmon Willow look at the thread that was written...saying illawarra dont deserve half.

Well if you guys keep playing the "money" line saying Illawarra dont deserve half then why cant Steeler fans retaliate with the fact...yes the FACT...that they provide the majority of players.

 

[Ribs]

That "money" line cant be ignored though can it. We dont have crooks like Politis and Packer backing us so we need to watch our finances.

You can have a team without juniors, for example the Runners Up that you follow, but you cant have a team without money...........

 

[Roosterphin]

That "money" line cant be ignored though can it. We dont have crooks like Politis and Packer backing us so we need to watch our finances.

You can have a team without juniors, for example the Runners Up that you follow, but you cant have a team without money...........

Well apparently every team bar the Roosters uses all their own juniors and has no money...from what ive read

 

[Anonymous]

Cmon Willow look at the thread that was written...saying illawarra dont deserve half.
Well if you guys keep playing the "money" line saying Illawarra dont deserve half then why cant Steeler fans retaliate with the fact...yes the FACT...that they provide the majority of players.

Show me where I said Illawarra don't deserve whatever it is you're talking about. :?:
Show me anywhere in the article where the author says the Illawarra doesnt contribute to the game's juniors. :?:
Please expand on your knowledge of junior development in both the St George and the Illawarra districts... in less than 1000 words. :?:

 

[Follow Me Up To Carlton]

So St George Leagues holds all the aces but unfortunately the rat bags in charge aren't interested in St George.

What we need to do is establish our own voting block with the aim of eventually taking over the Leagues Club and installing a fan dictatorship. Our first act would naturally be to go calling in some of those debts…

 

[Jimbo]

I thought the most interesting line in the article was this one...

officially owes the St.George Leagues Club 8.29 million dollars

So the debt is between the Steelers and St George Leagues Club, not St George Illawarra Ltd (the footy club). So if the Steelers go under, that's one hell of a bad debt to write off. Unlike Manly who were able to walk away from the Northern Eagles' debts, this would come directly off St George's bottom line.

No wonder you guys are pissed...

 

[Follow Me Up To Carlton]

Keep trying Jimbo.

St.George General Manager Danny Robinson confirmed that St.George have a registered, secure mortgage over the Steelers Club, an asset which is valued at approximately 16 million dollars. If Illawarra are unable to meet their financial commitments in the future, St.George could sell or take full possession of the Steelers' Club.

Honestly, do you ever tire of being wrong?

 

[Anonymous]

Jimbo, which school did you go to? I'm interested in issuing a community warning.

 

[Jimbo]

Not at all. It doesn't happen often enough.

So in this instance, your club has planned ahead. Good for them

 

[Collateral]

Not at all. It doesn't happen often enough.

There you go again. Maybe you should change your name to Wrong instead of Jimbo :?: