Mariners Centre of Excellence is GO!

[dibo]

cool!

 

[Bex]

Ah, sorry everyone I'm very slack. I downloaded the day after the meeting at Club Tuggerah a couple of weeks ago. Should have posted it; not sure what was going on there. ?

 

[Bex]

Yay, my avatar is back.

 

[pjennings]

interestingly it values the construction cost at $18.5 million, perhaps we shouldnt expect any big name signings for a fair while  ;D

The construction is due to complete in mid 2011. So 18.5 million over 2 years. I don't know how they are funding it - but if they can lower costs and develop other income streams through this development as well as hopefully develop some gems it will certainly make life easier after the initial cost has been absorbed.

 

[Bex]

The land value, furnishings, fridges, pool tables, etc wouldn't be included in the construction cost. Still, $23.5 million buys a LOT of that sort of stuff. Haven't looked that closely at the DA, but perhaps they're staging the work. For example, it may not include upgrade of the existings club as well as the stuff I mentioned above.

 

[dibo]

interestingly it values the construction cost at $18.5 million, perhaps we shouldnt expect any big name signings for a fair while  ;D

The construction is due to complete in mid 2011. So 18.5 million over 2 years. I don't know how they are funding it - but if they can lower costs and develop other income streams through this development as well as hopefully develop some gems it will certainly make life easier after the initial cost has been absorbed.

finance, finance, finance.

you borrow to fund these things and spread the cost over a number of years. we won't be lunching the entire cashflow for the next two years on the one project. we'll still be paying it off when it's boosting our incomes.

it creates a negative cashflow in the first few years, but a positive cashflow later. if the sum of all cashflows (appropriately discounted) is positive, then you have a positive Net Present Value, as uptheguts mentioned before in the other thread.

he doubts it can go positive, i'm just not sure. it's probably a good marquee project though - it shines a good light and may generate business in itself (which is hard to measure in cashflow terms...).

 

[FFC Mariner]

I would expect the funding is some sort of revolving loan facility, secured by Club Tuggs assets and quite possibly the repayments are deferred during the contruction phase (well capitalised anyway).

When fully drawn, $18.5 mil at even a ruinous 8 or 9% will cost $30k a week (or thereabouts), and with the depreciation etc of the constructed buildings, tax will not be an issue for a very long time - covering the $30k might be though unless there is some land to be sold/developed to eventually repay the facility?

PT/LG/McCabe are not idiots and this is their core business too - I wouldnt be too worried

 

[nikko]

just remember not to include depreciation in the NPV calcuation. Also sunk costs should not be included hahaha

 

[dibo]

indeedy.

 

[Bex]

I know the club were pushing quite hard for local businesses to help finance the work through drastically reduced prices in return for advertising and the like. I guess that would mean corporate box and signage type stuff. It was interesting to note that the Greater Building Society have been involved in these announcements so I wonder if theres any deal there with the funding.

Also, I seem to recall a comment about funding input from Sheffield United, but just can't pick when I heard it or what was said. Does anyone remember that or is it just wishful thinking on my behalf?

 

[midfielder]

Plan E ... assuming everything else fails ... great Tax dodge for SU and others involved.. and could be used to launder overseas money ... so it will be a goer no matter what...

 

[FFC Mariner]

Using licensed clubs and sports teams for money laundering?

Whatever will they copy from the NRL next?

 

[dibo]

money only needs laundering if it comes from illegitimate sources. the national crime commission and the federal police tend to be onto those things pretty quick, so i don't think there's going to be any money laundering going on.

 

[midfielder]

money only needs laundering if it comes from illegitimate sources. the national crime commission and the federal police tend to be onto those things pretty quick, so i don't think there's going to be any money laundering going on.

My comments were tongue in cheek ... I assumed you realised that.... however the NCC did not have much success with stopping the laundering at a certain Western Sydney club .. who played in light Blue and had a big football as you entered their ground .... BTW selling services for money earned from illegal sources is not wrong even if in effect you are laundering it for the criminal ... every club in Australia does now BTW.... you still have much to learn young Jedi 

 

[FFC Mariner]

The Roulette machine at CCLC will accept up to $5k in credits, feed that in over an hour or so, press the button for a ticket, go to cash desk and redeem in nice clean laundered money

Not too hard really

 

[Jesus]

The Roulette machine at CCLC will accept up to $5k in credits, feed that in over an hour or so, press the button for a ticket, go to cash desk and redeem in nice clean laundered money

Not too hard really

Easier to go to he casino, where they actually petetioned the govt, because they were going to make it harder to launder, but the casino feared going broke in that case,

Buy your chips, play a few hands, echange back for clean cash and presto

 

[midfielder]

That club I spoke of played in light Blue with the giant football as you entered the ground .. well they had these guys coming in from overseas with massive amounts of foreign currency ... they would sit around a huge card table and play poker ... each hand the house go a take of the pot ... when the players had had enough they cashed in their chips for Australia Bank Cheques ... banked the money were they pleased ... still happens today maybe not as much at the same club... just like buying and selling rare coins and stamps ... you loose a little bit on the buying and selling ... but very easy way to get clean money..

 

[midfielder]

Like ... about time ... but SBS have finally acknowledged the COE..

http://player.sbs.com.au/twg#/twg_08/ALeague/A-LeagueNews/playlist/Mariners-centre-of-excel/

 

[FFC Mariner]

Note the Sheff Utd logo on the pitch at the start of the vid..............

 

[Marquee]

Word from a Club Tuggerah Insider is that their are two stages to the development. The first is the plans we have seen and second is in 2-3 years after completion, when more pitches will be built.