WHo's going to the pre AGM damage control meeting on Monday?

[Frenzy.]

NOTICE is hereby given that a Members’ Information Meeting of Cronulla-Sutherland Leagues Club Ltd ABN 54 000 202 826 (‘the Club’ or ‘Sharks’) will be held at 6:30pm on Monday 8 August 2011 at the premises of the Club at 461 Captain Cook Drive, Cronulla regarding a proposed Ordinary Resolution pursuant to section 41J of the Registered Clubs Act 1976 (NSW) (Ordinary Resolution), which is to be put to the Annual General Meeting (AGM) to be held at 7:00pm on Tuesday,
23 August 2011 (separate notice of which will be given).

_________________________________________________________________

REGISTERED CLUBS ACT 1976 - SECT 41J

Disposal by registered club of real property
41J Disposal by registered club of real property

(1) In this section:
"core property" of a registered club means any real property owned or occupied by the club that comprises:
(a) the defined premises of the club, or
(b) any facility provided by the club for the use of its members and their guests, or
(c) any other property declared, by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, to be core property of the club,

but does not include any property referred to in paragraphs (a)-(c) that is declared, by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, not to be core property of the club.
"dispose" of property means to sell, lease or licence the property or to otherwise deal with the property in such manner as may be prescribed by the regulations.
"non-core property" of a registered club means any real property owned or occupied by the club that is not core property.

(2) The annual report of a registered club must specify the core property and non-core property of the club as at the end of the financial year to which the report relates.

(3) A registered club must not dispose of any core property of the club unless:
(a) the property has been valued by a registered valuer within the meaning of the Valuers Act 2003 , and
(b) the disposal has been approved at a general meeting of the ordinary members of the club at which a majority of the votes cast supported the approval, and
(c) any sale is by way of public auction or open tender conducted by an independent real estate agent or auctioneer.
(4) The regulations may create exceptions to this section.

So, what's the club's core property and what is Elmer proposing the Club sells off?

 

[Russell Crowe's Band]

id say theyre selling the land to the developer and we will make interest out of magic beans.

its all coming to a thrilling conclusion

 

[Feej]

Too little too late methinks.

 

[roboshark]

Fmd. Sell the land. Make some dosh and be dead in 2 yrs

Meanwhile the developer make more millions

 

[Russell Crowe's Band]

so...

who goes first in the fan FA draft of 2012.

all the sharks die hard will be up for grabs.

id say quigs is a top 2 pick.

ive attracted interest from the broncos and the storm.

redback wont be drafted

 

[roboshark]

I have interest from the adelaide rams

 

[Feej]

Quigs would be the number one draft pick for sure.

 

[Feej]

I'll most likely be drafted for the "next club most likely to die" knowing my luck.

 

[spider]

lol

the very meeting that is 10 months past the accounts closure point

same meeting last year they spruiked aggressive forecasts when they would have been at the mid point of the fiscal year

therefore they must have taken a nasty downturn financially in the last 180 days as opposed to not being transparent at the time of the AGM 2010

the facts are in the accounts, and there is only one cold hard point - if the development is not given the ok by council / govt, its closed doors for the club.

even then its a break even situation for the club who will rely on a leagues club for finance that is now floating in the red....

the scarey thing is that as bad as those financial reports are, they are a year ago. they have traded almost another year since then and getting 4000 to a game is not going to improve things.

there is no stability, there is greater loss than year previous (put aside the impairment and write off) - the palce is going backwward

 

[Frenzy.]

I'm speculating here but this looks to me like they are going to ask members to vote yes to selling off the core assets.

 

[Russell Crowe's Band]

from the docco

As outlined previously, the parties have agreed to execute with St George Bank an agreement which, amongst other things, makes
provision for an advance of $10million by Bluestone Capital to the Club 90 days after Part 3A approval is obtained, with that sum being
applied by the Club toward repayment of a significant portion of the Club’s existing debt to St George Bank.
In return for Bluestone Capital agreeing to make the upfront payment to the Club, it is proposed that Bluestone Capital will receive 100%
of revenues from the sale of the first 314 apartments developed within the Residential component.
Thereafter, the Club will receive 10% of the gross realisations from the sale of individual residential apartments within the
development.
The parties have also agreed that if the Club is able to secure funding from an alternative source by 31 December 2011 so as to
refinance the loan to St George Bank and eliminate the need for Bluestone Capital to make all or part of the $10million payment
to St George Bank, then the agreement between the parties will revert to an arrangement whereby the Club receives 10% of gross
realisations from either all or a prorated number of apartments within the project.
• Sharks will be responsible for the cost of fitout of the new 3,000m2 Club facility.

in short

theyre giving us 10 mil up front in exchange for 100 percent of the first 314 residental dwelligs

after that we get 10 percent of sale.

The Club and Bluestone Capital have also agreed upon the manner in which the retail component will be developed. In this regard, it is
proposed to enter into an ‘open book’ development agreement to cover the development of the retail component of the project.
The key terms of the development agreement are as follows:
• all costs relating to the development, subdivision and construction of the retail component will be borne by Bluestone Capital
as a development cost and the Club has no exposure to any development costs;
• the value of the retail land upon receipt of Part 3A approval will be incorporated into the current feasibility analysis for the
project at an agreed value;
• the retail land will attract interest at the same rate Bluestone Capital obtains from its financier for the project. Interest will
accrue from the date of practical completion of the retail component until such time as the retail component is sold, such
interest to be capitalised;
::6::
• the completed retail component will be sold, most likely at a date being 3-5 years after the centre is completed. Upon sale
the Club will receive its land value and accrued interest and its share of profit;
• Sharks will receive 20% of the profit from the development of the retail component;
• should Bluestone Capital achieve a profit that exceeds a 25% return on cost, the Club will be entitled to an additional 10%
of those profits above 25% return on cost

basically


in short hand terms...we are selling it to them but retaining a small percentage of sales and crap.

5.3 Club and Leisure Component
At the time of the February 2011 General Meeting, the Club and Bluestone Capital were not in a position to reach an agreement as to
how the existing 8,500m2 Club building could be developed, although it was recognised that the existing building represented a further
opportunity for the Club to work with Bluestone Capital to improve the Club’s functionality and profitability. The parties agreed to
explore ways to include this area into the Development Agreement, and have now reached agreement as to how this should occur.
It is now proposed to construct a new 3,000m2 Club on the auditorium level of the existing Club building, extending out to a new terraced
area, and incorporating the floor level immediately above the auditorium (where the existing King Wan restaurant is located).
The balance of the space within the existing Club building will be incorporated into the retail and leisure component of the development.
In terms of the commercial terms between the Club and Bluestone Capital, like the retail component, it is proposed to enter into an
‘open book’ development agreement to cover the development of this component of the project.
The key terms of the development agreement are as follows:
• all costs relating to the development, subdivision and construction of the Club and leisure component (excluding the cost
of the fitout of the new Club) will be borne by Bluestone Capital as a development cost and the Club has no exposure to any
development costs’
• the value of the surplus Club space upon receipt of Part 3A approval will be incorporated into the current feasibility analysis
for the project at an agreed value;
• the surplus Club space will attract interest at the same rate Bluestone Capital obtains from its financier for the project.
Interest will accrue from the date of practical completion until such time as the relevant portions of the surplus Club space
are sold, such interest to be capitalised;
• the completed retail component will be sold, most likely at a date being 3-5years after the centre is completed. Upon sale
the Club will receive its land value and accrued interest and its share of profit;
• Sharks will receive 35% of the profit from the development of the Club and leisure component;
• should Bluestone Capital achieve a profit that exceeds a 25% return on cost, the Club will be entitled to an additional 10%
of those profits above 25% return on cost;
• Sharks will be responsible for the cost of fitout of the new 3,000m2 Club facility.

dunno what that means,

we get 35 percent of the development profit of the club?

 

[Ronnie Dobbs]

Thats all very dire.

What will you guys vote for?

 

[redback]

It looks like they have already started selling off some of the tables and chairs in the Leagues Club. Where were they all?

 

[The Popper]

I'm voting for the proposal to go ahead. What other option do we have????

 

[Weaponhead]

From the info in RCBs post it appears that there are problems managing the debt and there is a need to give concessions to Bluestone to get an up front injection of $10m to retire it, or signigifcantly reduce it.

Assuming the development has 500 apartments, we would now get 10% of 186 apartments. Assuming an average sale price of $500k then the club makes around $9.3m.

Assuming the club does not need the $10m up front and kept the 10% share of 500 apartments then the figure is $25m.

So, in order to get the up front payment the club would forgo approx. $5.7m ($19.3m total v $25m total)

Note, all of this excludes additional income from retail rent, increased club patronage etc.

As Popper says, we have little choice but to try to get the best deal possible. As it stands the club is limping along until it can get the development up and running and get some income generated. The $10m injection brings the debt under much more control but we lose out in the longer term income potential.

 

[Ausguy]

seems there wasnt as much 'info' at the information nights as first thought.

im not impressed to be honest....

what happens if only 400 units gets approved? we get 10% of 86 units?

86 units at 400k/10 = 3.4M... what happened to the 25M???

 

[bluey]

seems there wasnt as much 'info' at the information nights as first thought.

im not impressed to be honest....

what happens if only 400 units gets approved? we get 10% of 86 units?

86 units at 400k/10 = 3.4M... what happened to the 25M???

If tha happens they better start looking at relocation because it will all be over.

 

[Russell Crowe's Band]

they wanna build 700 homes.

i doubt that will happen. but say they built 500...

we also get a taste of the back end sale of the retail part and what not.

its not what we wanted. but it is what it is given the business performance of the club the last 2 years.

 

[Ronnie Dobbs]

Looks like you'll have to roll the dice. There's no other option.

 

[Russell Crowe's Band]

its the hail mary into the endzone with no time on the clock.
however this will be seen as a good thing by the voting block. so the people in charge will likely stay on.

which..is...

banana hamock