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Wests Tigers' landmark deal could become NRL boardroom blueprint

madunit

Super Moderator
Staff member
Messages
62,358
Matchball, the loan from the NRL has to be repaid. The 2 years I imagine is the time estimated before profits are realised.

To me, immediate benefits include

employment during and after construction
an increase in new units in a fashionable area close to the city
better retail facilities Coles, Woolworths and other stores may be interested
Balmain club back in business
Rental income and club profits

From what I've read, Balmain Club doesn't own anything at all at the site of the Rozelle development, developers own that. Balmain have nothing but a 15 year lease on the building that they will use which they have to pay rent for, so as I understand, the only money they get will be club takings, less site rent.

I will admit, that I am only going off limited information and I would be more than happy to be corrected and learn more.

My concern is that, based on the above, if it is true, that the club will need to be built and operating, and have made enough to:
A: Repay the ARLC
B: Have enough to fund Balmain's share of the merger

within 2 years.

Trust me, I want to be happy, and I do believe that the boardroom restructuring is absolutely brilliant.

But I can't help but think that Balmain now faces its most epic of challenges to satisfy this agreement.

I sure as hell hope they do get some money from retail and residential properties in the development, because it will definitely make Balmain's club close to the most profitable ones in Australia.

For me though, everything hinges on the development, and it has to be up and running before the 2 years expires, and based on its progress thus far, I'm sorry, but I'm not filled with hope, which I'm sure you can understand.
 

macnaz

Moderator
Staff member
Messages
8,359
I think youre dreaming

Why would Balmain give away a club and property failing to make money only to gain paying rent on another club and property they will not own and still risk not making money if there wasnt more to the deal such as rent returns on units or free rent for the club etc Im just asking the question because I think R2's scenario sounds realistic.
 
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innsaneink

Referee
Messages
29,362
Why would Balmain give away a club and property failing to make money only to gain paying rent on another club and property they will not own and still risk not making money if there wasnt more to the deal such as rent returns on units or free rent for the club etc Im just asking the question because I think R2's scenario sounds realistic.
To clear debt....when youre in debt you dont hold a lot of sway.

Given the limited info we all have on this...we can only go on what little weve read, or make up "scenarios"
 

Ron's_Mate

Bench
Messages
4,055
The way I see it, the NRL seem comfortable with the deal, and Smith is a cluey banker. He'd know more about the various scenarios than anyone on this forum and if he thinks it's going to work then I'm not going to tear my hair out about it. Back to supporting the football team for me.
 

Matchball

Bench
Messages
2,971
I think the mayor of Leichhardt would have more insight than most into the issues surrounding the site.
He has access to plans and the community and wouldn't openly slander or defame the development in a open letter if he didn't have the facts.

Whatever happens, Benny is a scumbag and no way will we be able to have the project pass this stage, break ground and finish in a two year period.

Only Harry can save the Tigers.
 

Matchball

Bench
Messages
2,971
Also. I think that Rozelle Village locking us into unusually high interest rate loans and admin is just sinking us further into the abyss.

That's how we relinquished the site to these vultures in the first place. We needed their bailout and we trusted a Tiger to do it.
 
Messages
3,320
Last i heard and please correct me if I am wrong but wasn't the proposed development going before Land and enviroment court for a final ruling ?
 

Matchball

Bench
Messages
2,971
Last i heard and please correct me if I am wrong but wasn't the proposed development going before Land and enviroment court for a final ruling ?

Mayor addresses that. 12 storey or less would be approved tomorrow and the council already rezoned to give them that 12. Greed.
The developers want 20+ stories which is against the zoning law.

Hence why Obeid was lobbied to get the deal through illegally.
 

super_coach

First Grade
Messages
5,061
As Richard Clapton sang its "Goodby Tiger" They have no chance of getting the approval in its present form or shape and reading the Mayors comments they gain nothing from the deal any way. As for the next two years, they have two non voting board members, so they need the support of the three non aligned board members to get their ideas up and running. On the other hand the Wests board members only need the support of one of the other board members.

The Balmain Tigers are going to die a slow death, although I think the WestsTigers will get stronger and stronger over the next five years both on the field and off the field. Really the only thing that can save the Balmain Tigers is a Russian Billionaire!!!!!!!!!!
 

magpie4ever

First Grade
Messages
9,992
That is the idea anyway. Remove any reliance on old money and ideas through smart business practice

Oh and Wests Ashfield is not and never will be Wests Football club. They are a business who is concerned with the bottom line and not petty gripes

Never said it was, but one half of the joint venture will not continue to provide grants (Wests Ashfield) to the Wests Tigers; if the other side goes belly up.

The Wests Tigers will somehow need to establish a business plan without the financial support of the Leagues clubs and that will be difficult in the current business envirnoment. They will probably need to find between 2-4 million extra.

I'm not having a go at Balmain, in fact, I feel sorry for the club for being conned into such a outrageous deal.
 
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magpie4ever

First Grade
Messages
9,992
Its funny that you speak for the club and fans when many magpies fans won't agree with this sentiment.
Not even the weather man is as deluded as you.

See my post above, why am I deluded? Do you believe Wests Ashfield will continue to support the Wests Tigers when Balmain Leagues is not.

As a poster said: it is a business with a bottom line
 

super_coach

First Grade
Messages
5,061
I fail to see how Balmain can generate any income to service their debt and contribute to the joint venture. Even if they got the go ahead for Rozelle,it would be a few years before a club would be up and running and at present all they have is their two sudo clubs at Flemmington and Five Dock. Also lets face it most clubs are really struggling,their are exceptions like Wests Ashfield and Canterbury Leagues, but most others are really just hanging in by a thread.
 

macnaz

Moderator
Staff member
Messages
8,359
Keep an eye out for weekly Balmain sausage sizzles at the Bunnings fund raiser tents ;)
 

innsaneink

Referee
Messages
29,362
Never said it was, but one half of the joint venture will not continue to provide grants (Wests Ashfield) to the Wests Tigers; if the other side goes belly up.

The Wests Tigers will somehow need to establish a business plan without the financial support of the Leagues clubs and that will be difficult in the current business envirnoment. They will probably need to find between 2-4 million extra.

I'm not having a go at Balmain, in fact, I feel sorry for the club for being conned into such a outrageous deal.
Privatisation.
 

innsaneink

Referee
Messages
29,362
Stephen Cartwright, one of the state's best connected business leaders, revealed he had already discussed with NRL boss David Smith about how he could serve Wests Tigers as the league prepares to appoint three independent directors to the club's board.
Cartwright is the chief executive of the NSW Business Chamber, and in his position he has access to 15,000 businesses throughout the state.
On Friday, he attended the launch of the chamber's sports business consultancy service - which will be run in conjunction with the Horton Ella Group and Australian Business Solutions Group.
As he sat on a table flanked by the likes of 1960 Olympic Games gold medallist Herb Elliott, NSW Rugby League boss David Trodden and Western Sydney Wanderers chairman Lyall Gorman, rumours were flying that he would be one of the NRL's three appointments.
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Cartwright, whose grandfather Patrick Tyler, a Balmain wharfie who played some first grade matches for the Tigers in the 1920s, admitted he had spoken to Smith but insisted it was to simply offer his support in any capacity to Wests Tigers.
''I've said to Dave Smith from the NRL, and to some of the people from the Tigers, that whatever I can do to help them be successful I will do and if that included being a part of their governance structure, I would love to do it,'' Cartwright said. ''But, equally, if I could do anything else for the club I would do it. I'm just a passionate fan, so, whatever they need, I am there.''
Cartwright said he could provide unique business acumen to the board and also offer suggestions as to how the club could replicate his efforts to significantly boost the chamber's membership numbers to help the Tigers.
''My understanding of how the business world works and how it can interface with sport, I think that's where the NRL clubs need to do more work,'' he said.
''You look at the Wests Tigers, they have this fantastic catchment area in western Sydney and how do we get that increased relationship with the corporate world but, also, how do we do what I've done at the chamber - and that is triple the membership numbers? You look at the AFL clubs, their member numbers are way bigger than the NRL clubs. How do we do that?''
Cartwright said it was essential Wests Tigers be put ahead of anything else at a club that was formed when NSW Rugby League foundation teams Balmain and Western Suburbs merged to form the franchise in 1999 but were often seen to be at loggerheads over issues.
''I said to someone the other day that I have a 16-year-old son who had never heard of the Wests Magpies or the Balmain Tigers, he has only heard of the Wests Tigers,'' Cartwright said.
''I think after a given period of time, you have to accept that is the club now. It is something that has to be done and I think the change in governance structure will do that.''
 

innsaneink

Referee
Messages
29,362
Never said there was....but privatisation has proven to be succesful.

How does loving the club change things though, Im curious.
 

Hello, I'm The Doctor

First Grade
Messages
9,124
Yeah, don't expect the Western Suburbs Rugby League Club (Ashfield) to keep providing a grant to the Wests Tigers football club if Balmain RL club goes belly up, without having the naming rights of the NRL side.

The Wests Tigers and the NRL will need to have a business plan that doesn't include a Wests league club grant.

I dont believe the ARLC would be upset by this.

They would have full control over the club (through independent directors). No more factions, no more worrying about the Leagues clubs income; the one and only consideration with be what will benifit the football club and their fans most.

Sure, they may move away from Leichhart and Campbeltown into one of the bigger/better stadiums or lobby for a boutique stadium i a new spot, but whose can actually argue that would be a bad thing. The only thing that keeps the Tigers on these derelict fields is factions not wanting to lose the internal fight.

I honestly believe the best thing that could happen for the Tigers is these two factions leaving.
 

magpie4ever

First Grade
Messages
9,992
Never said there was....but privatisation has proven to be succesful.

How does loving the club change things though, Im curious.

Examples please: Souths have made very small profits over the last year or two; and I doubt Rusty and Holmes a Court have got their original outlay back . Brisbane are similar - supported by a group called the "thoroughbreds". Melbourne and NQ have lived off News Corp monies.
 
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