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

[Rexxy]

it would look like Hurstville, Kogarah or Allawah?

With lots of chiky-chonks, with a bit of luck.

Or if you are unlucky, white South Africans or Russian Jews.

 

[The Popper]

football aside. 700 units on that block is outrageous. It will be the Waterloo of the South. You'll be flying in and seeing washing on the line of balconies - like Hong Kong. Not very Shire-like, at all.
Surely it would be better to manage expectation and say that it's going ahead, but not at any cost to the aesthetic that props up everyone's home price.
You'd have to think property prices in Woolaware and North Caringbah would fall 5-7% if 700 units were crammed between them and the water.

They showed artists projections on how it would look. It didn't look too bad. I believe it's the developers intentions to make the place as attractive as possible.

 

[taipan]

that will be indicative of the deal

figures thrown about are roughly around the $1m mark extra to each club - that may have changed since early discussions not to mention the deal hasnt been done as yet

that said, that is not enough money gauging current trade losses - let alone servicing current and non-current debts

fingers crossed the NRL gets top dollar so clubs get more of the pie


trade performance is in a flat-spin, an alarming one at that

dont forget we are looking at figures from almost a year ago and the next lot to be prepared may be even worse

a business can factor and forecast to its hearts content - the facts are in the accounts, and the facts are diabolical

from outside lookng in it views like the bank has taken two tricks and is sitting on the right bower - its how long the hand in between takes to play

Have to clarify a couple of my points ,after attending last night:
The current debt is $10.5m.The bank who are the real flies in the ointment expect the debt to balloon out to $13.5m by mid next year.
That is why they want the $10m from the developers as soon as 3A is agreed,within 90 days and believe the debt balance $3.5m is sustainable .
The question was asked how the hell the club can get refurbished,with no money.The response was once the debt is reduced to $3.5m with 3A approval,the club has the security to cover that debt and secure funding from other sources(certainly not st George) to fund the club refurbishment.And the St George security on their debt is covered.
Once the 3A is approve the UCV of the land jumps to over $20m.

The $10m the developers throw at the Bank for debt reduction, is not subject to any interest charge by the developer.Why? Because as an offset they get the full profits of the first 314 units,which they have to market,and pay interest monies on their own funding,and it may take a couple of year to sell the first 314.

The meeting last night mentioned annual losses,the dire sitution the club was in,and the Bank whilst understanding,wants quick reduction of the debt.I did not see punches pulled.

You are correct the Bank holds all the aces,that is hardly a scopp and the reason for the special meeting last night, up till the 3A decision and the RL TV contract decision.
Businesses with loans of that magnitude make forecasts,it is a Bank requirement.The Bank realises without the development forecasts are like the paper you use on your rear end.
I notice Peter Gow avery successful businessman ,was there again last night.He is pro the project as he stated last time,so sees this as the only way out.

 

[Frailty]

So once we reduce the debt, we will take out another loan (to create more debt just to a different lender) to refurbish the club....

 

[newman]

That sounds crazy.

 

[taipan]

football aside. 700 units on that block is outrageous. It will be the Waterloo of the South. You'll be flying in and seeing washing on the line of balconies - like Hong Kong. Not very Shire-like, at all.

Surely it would be better to manage expectation and say that it's going ahead, but not at any cost to the aesthetic that props up everyone's home price.

You'd have to think property prices in Woolaware and North Caringbah would fall 5-7% if 700 units were crammed between them and the water.

That was a question posed last night,as to the height and the numbers.The open space to building data was spelt out,and if the developers are required to reduce the numbers (meaning the height),they are in a position due to their safe ratios to do so.
The guy stated there is a miriad of configurations they can come up with on the units.They are not the Meriton box types.
And I am sure no one is interested in water views .
Having factories nearby has not diminished the value of the areas
homes.In fact having a retail area with facilites such as medical facilites and supermarkets may in fact enhance.
Some of the monstrosity units that have been built at Cronulla,such as Northeys has not diminshed values in Nth cCronulla one iota.
Have a look at the units in the middle of Caringbah near the railway.

Have a look at nearby a pertol station near the mangroves a gymnasium ditto,a toyota factory and numerous others.the precedent has been set.

 

[taipan]

So once we reduce the debt, we will take out another loan (to create more debt just to a different lender) to refurbish the club....

The difference is both debts are well and truly covered by the UCV value of the land around I understand $20m but cutrrently standing at $8.5m,provide the development gets the go ahead..
The club ATM is hardly user friendly.Sometimes you have to spend money to create money.They sure as hell ATM can't get it with trading.They would have a debt of $3.5m with st george and ??? with another lender.
The retail development will dovetail in with the club.The bottom two floors of the club will form part of the retail development.The upper two floors the club itself,with a huge outdoor entertainment eating area,with water views.

 

[coolumsharkie]

That was a question posed last night,as to the height and the numbers.The open space to building data was spelt out,and if the developers are required to reduce the numbers (meaning the height),they are in a position due to their safe ratios to do so.
The guy stated there is a miriad of configurations they can come up with on the units.They are not the Meriton box types.
And I am sure no one is interested in water views .
Having factories nearby has not diminished the value of the areas
homes.In fact having a retail area with facilites such as medical facilites and supermarkets may in fact enhance.
Some of the monstrosity units that have been built at Cronulla,such as Northeys has not diminshed values in Nth cCronulla one iota.
Have a look at the units in the middle of Caringbah near the railway.

Have a look at nearby a pertol station near the mangroves a gymnasium ditto,a toyota factory and numerous others.the precedent has been set.

100% correct, I've put forward this argument before to which I recieved zero response from the last troll that just wanted to stir up shit. Half these f'wits don't even know whats actually already in the surrounding area's to the development.

 

[Russell Crowe's Band]

heres hoping

in any case

merkins better get to the game monday if you live in the shire. sure the teamhas been going like busteds. sure the coach is questionable at best..sure gallen will likely be out suspended.

But for f**ks sake..this is the pointy end of the stick here. get to the game. show your support. buy 2 beers.....maybe 3.

you dont wanna lose the team.

 

[spider]

The current debt is $10.5m.The bank who are the real flies in the ointment expect the debt to balloon out to $13.5m by mid next year.

one would think it will balloon based on recent revenue, possibly to a point where they may not get it all back

they want there money which is long over due = fly in the oitment...

The question was asked how the hell the club can get refurbished,with no money.The response was once the debt is reduced to $3.5m with 3A approval,the club has the security to cover that debt and secure funding from other sources(certainly not st George) to fund the club refurbishment.

another lender would not be so naive to not implement strict convenants in lieu of recent public financial history

one of the onerous conditions in the report is that the club is now forced to sell all entitlements not being exercised - ol' mate up the road just keeps rubbing his hands together so much so, now he offers free yum cha to patrons after 11pm

if you compare annual reports from 5 years ago, there was a $30m net gaming revenue pool between tradies and sharks. the break-up was tradies $16m and sharks $14m. recent 12 months trade now show tradies - excess of $20m and sharks $9m

annual reports show the clubs net revenue drops around 10% per year while ol' mate increases, as is the club industry. majority of the industry has recovered post july 07 and continue to experience growth

the revenue stream that seemingly is about 80 - 90% of total revenue should be prioritised

I notice Peter Gow avery successful businessman ,was there again last night.He is pro the project as he stated last time,so sees this as the only way out.

i agree on this being the only way out and it has to happen, but i cant see any current positives that provide light at tunnels end - we still have another trading year on these accounts - have we fallen further behind the debt repayments in this 12 months - is this the reason the bank are saying the debt will blow out to $13.5m?

watching the team get dusted by the cellar dwellars (with such statistics) reflecting on people through the gate makes it hard to see robin hood riding up and over peachey hill sometime soon

 

[newman]

This is seriously the most important issue facing our club since SL, and perhaps ever. I cant believe there hasnt been any discussion since 10am.

 

[Vin Fizz]

Cashflow: We dont have it. The players are glum for reasons we all suspect but don't know for sure. The fans are stunned. I for one am trying to process the information Newie. I just cant' think of anything sensible to add right now. Go The Sharkies!!! I can't/wont follow another team.

 

[Bastard Squad]

This is seriously the most important issue facing our club since SL, and perhaps ever. I cant believe there hasnt been any discussion since 10am.

Probably because its out of our hands, its up to the Club, the Government, the Council and the developers, and hopefully not George Capsis.

 

[blacktip-reefy]

The other thing that is a real possibility Newman is somebody buying the debt The NRl for instance could easily absorb that debt as loan.
You raised the point some time ago that our real enemy is the Shire & therefore the central Coast Bears.
The shire is lost becaue of out stadium postion. WE ARE Bolivia & there is no changing that without changin location. WE will eventually be engulfed by stinking stains. At best we will be a local novelty niche. that is not good enough. The Bears are an option for the NRL. Will they buy out the load to keep us afloat or will they cut us a drift & let natural attrition allow the Bears emerge to take our place.
The bears have no hope of entry unless a Sydney team folds.

 

[Ads]

I am not fully down on this so correct me if I am wrong. The consortium will get the first 300 or so units in return for the 10m upfront. What if the number of units is downgraded from the 5-700 planned? We wont end up with that much from the property side of things as was planned.

I am all for this 10m upfront plan if its the only option though.

 

[Windy70]

I am struggling to absorb all this info. I'm truley scared for the club at the moment.

Is there any time frame on when we will know 100% if we live or die?

I can't stand the waiting and worrying. Getting more grey hair every friggen day.

 

[newman]

314 units ads. If the plan is downgraded, we have to live with that.

Reef; we will not be moving. Not to Sutho, not to the Central Coast. Damos mandate, platform and commitment is keeping the Sharks in the Shire and that is Woolooware. Also, who would buy our debt if we cannot service it? No way anyone is that silly.

 

[Ads]

314 units ads. If the plan is downgraded, we have to live with that.

Yeah i guess we will. Though I doubt they would drop the number of units by too much so we should still get a good slice of money even if there is a drop. Assuming everything happens according to the latest plan we really need to make sure we take advantage of all this and build for the future accordingly.

God I hope this comes off, cant fathom the thought of the sharks not being in the shire, or worse not being around at all.

 

[newman]

Though I doubt they would drop the number of units by too much so we should still get a good slice of money even if there is a drop

What makes you say that?

 

[blacktip-reefy]

314 units ads. If the plan is downgraded, we have to live with that.

Reef; we will not be moving. Not to Sutho, not to the Central Coast. Damos mandate, platform and commitment is keeping the Sharks in the Shire and that is Woolooware.

I know that. That doesn't make it right though.

Also, who would buy our debt if we cannot service it? No way anyone is that silly.

Well the NRL could. Its not a handout. Ofcourse that would only happen if the Development was a good chance. There will be no white knight. However there could be a consortium of white knights, including the developers.

Lets get down to nitty gritty. 13 mil is nothing. There are houses worth more in Sydney. Many houses. I know of a company that lost much more than that having a crack at a development in Byron Bay & lost the lot. & they stood to gain much less.
The money the developers havecoffed up so far is way less than the absolute minium I would have expected for such a potentially rewarding outcome.