newman said:
Leagues club mergers between us and the Tradies and the Bizzos could not be agreed to. Spider might be able to shed more light on why this didnt work out.
from readings and reports 'my opinion' (and i stres i have no inner information) as to why it didnt gel was due to -
* the CEO of tradies did foresee great value in aquiring not only the leagues club, but the gaming entitlements
* in aquiring the gaming entitlements, legislation stipulates if you move them to another venue you have to forfeit one in three unless the venue is within a definitive distance - his venues are all within this distance therefore no forfeiture of one in three
* further to that he doesnt have to apply to increase his gaming entitlements, it comes with the amalgamation
* though i believe after the mandatory time proceeding amalgamation, he would have knocked the leagues club down and promoted his other clubs
* there is strong inuendo that the Bizzos (next to Caringbah Tradies) is in serious strife, and most believe it is only a matter of time before the Tradies acquire this club. That be the case the two clubs share a common wall - no brainer as to what occurs then
* the CEO had this long term vision in his mind, but his board could not see the the short term viability when weighted against current and non-current libilities that would be absorbed as a result of amalgamating with sharks leagues club
* in most part the Tradies were preapring to commence their own extensions which is reported to be in the same vacinity of the sharks leagues club current debt - doubling the debt would have required massive due digiligence and the overall picture had the cons outweigh the pros
* there would be more costs involved with amalgamating, especially when there are two clubs already in a group - you have systems integration, upgrade and istallation - massive costs to do this, plus many other small hidden costs to similarise all venues
* finally, i believe amalgamating was a large stroke to his ego, he openly commented for years he was just waiting in the wings
* obvioulsy there would have been more to the due diligence, but this seemingly was the surface issues
as mentioned, only my opinion and i have not had discussions with anyone from either camp directly on that matter, but i believe his mode of thought would have been based along those lines