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$15m rescue for battling Manly League Club

Discussion in 'Rugby League Forum' started by Guest, Jun 28, 2008.

  1. Guest

    Guest Guest

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    THE saviours of Manly Sea Eagles Scott Penn and Max Delmege are again coming to the rescue with a cool $15 million to save Manly League Club.

    The Sea Eagles Corporation, owned by the two families, are proposing to buy the major share in the club's title holdings in an attempt to clear the Brookvale landmark's debts.

    The $15 million cash injection will be used to clear $10 million in debts, buy a 2000 sq m property next to the club and finance a major renovation.

    Board members have approved the proposal and the Pittwater Rd club's 20,000 members will vote on the takeover next month.

    Mr Penn said the company was keen to align both the football club and the league club.

    "From our perspective it just makes sense," he said. "This move will further cement the relationship between the team and the club."

    Manly League Club chairman Bob Reilly said the board was delighted the club would continue to trade and prosper in a new, modern club house well into the future.

    "This proposal enables us to have an exciting immediate future, where others are simply marking time and hoping things will get better," he said.

    The club's financial woes stem from its attempt to support the Eagles in 1999 when, after 42 years of renting the clubhouse from the pre-privatised Eagles, the club bought the property.

    The interest accrued on the debt has placed increasing strain on the club's trading position. The new arrangement will offer the club a long-term lease at an agreed rental on a clubhouse on the existing site and the car park.
     
  2. deadlyeagle

    deadlyeagle Member

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    This should strengthen our financial issues with both the leagues club and the Manly club now becoming one, on top of the fact that the leagues club will no longer have any debt (which is a hard achievement for any business) enables us to achieve a greater revenue stream.

    I have been really impressed with our management of late with acquisitions of:

    *sunshine coast which in the long they are planning on investing in a leagues club up north which is avoided of the poker taxes & great capital growth opportunities in the booming South East Queensland region.

    *This acquistion up north provides a pool of youngsters of quality league players in the future.

    *Purchase of the Fairfax Eagles in the USA giving us overseas exposure and opportunities.

    *Purchase of the majority shareholding in the Manly Leagues Club.

    Whats next???
     
  3. Dan

    Dan Administrator Staff Member Administrator 2016 Tipping Competitor

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    They signed a Hervey Bay kid this week as well for Toyota cup!

    They should start a club up in hervey Bay :)
     
  4. Darren

    Darren Well-Known Member

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    dan, do u know the kids name??
     
  5. SilentBob

    SilentBob Well-Known Member

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  6. Matabele

    Matabele Well-Known Member

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    Another donation to charity by the Penn/Delmege connection.  Hard to think that the Leagues Club is the most promising business venture they could consider.
     
  7. Utility Player

    Utility Player Well-Known Member

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    We should put a statue of max and the penns up at the entrance to the revamped brookie they have done more than any player to ensure our survival.
     
  8. Matabele

    Matabele Well-Known Member

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    It is pleasant to snigger at clubs like the Dragons and Eels in big trouble because they are reliant on a Leagues Club that is losing money hand over fist!
     
  9. Ryan

    Ryan Well-Known Member

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    I'd say they would get a good % of the profits going forward Mata. If there is no debt, and this has been done with retained profits, dividends or other assets (probably fixed), it would be a massive win all round. You consider Interest on 10 million @ say the BBSY rate plus margin of around 2.00% (lets say 10%) that's a cool million per annum the club will be saving. Say the investors get $250k per annum each going forward (no expiry - only death nulify's), they have secured their retirement as well.

    The club could then provide 10 times what they currently do to the Eagles themselves, and they TOO are then catered to.

    I know all the above is pretty out there...but I guess what I'm saying in short, is that The Penns / Delmege wouldn't be coming out of this as people providing to charity. They will come out off this better than when they went in....and good on them for doing such.
     
  10. Chip and Chase

    Chip and Chase True Supporter Staff Member Administrator Premium Member 2016 Tipping Competitor

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    I'd assume that they'd be recouping their investment with some commercial development of the site ?
     
  11. deadlyeagle

    deadlyeagle Member

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    Max is a property developers and he is doing what he does best which is investing in property.

    When you think that 9 years ago the land was purchased from the league club for 10 Million and we are purchasing buying it for 15 which is a 555k/year capital growth. Smart purchase in my opinion.
     
  12. ManlyBacker

    ManlyBacker Winging it Staff Member

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    Yep, it is definitely about land. That said, the club is in a real financial hole thanks to the changes to smaking laws and the pokie taxes. Firstly, I agree that workers are entitled to a safe environment which is what the smoking legislation does but nothing hides the fact that smoking and gambling go together and every club has suffered. Secondly, I am in general supportive of the pokie taxes as the percentage put back to the community from clubs like ours was pathetic, but it hurts despite some of the postponement of payments recently announced. Outside of the land there is very little upside for the white knights.
     
  13. Matabele

    Matabele Well-Known Member

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    Ryan - I'm talking about opportunity cost.  Though they are wealthy they still have limited capital and I'm pretty sure they would have other, more lucrative places to invest should they choose.

    So while they will probably make a return there is a level of altruism because it is not what they could get from simply picking the best possible investment.
     
  14. Ryan

    Ryan Well-Known Member

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    Ryan - I'm talking about opportunity cost.  Though they are wealthy they still have limited capital and I'm pretty sure they would have other, more lucrative places to invest should they choose.

    So while they will probably make a return there is a level of altruism because it is not what they could get from simply picking the best possible investment.


    [/quote]

    You definitely could be right.
    But what "rent" would they get per metre in that commercial freehold as upposed to say an investor at Panthers? They are acquiring prime commercially zoned real estate, in an area where it is not in abundance (well - up for grabs anyways).

    Either way, I'm as happy as larry. I don't know if you all remember what I said eons ago (or suggested)? I always thought that selling the club off, and merging the membership with The Diggers would have been commercially sound.

    The Diggers is the kind of outlook we want non Northern Beaches people experiencing. Say a Wests Tigers fan comes to our game currently - watches the game at that atrociously unkept ground, then goes back to delapotated Brookie Leagues. They'd probably be thinking, "lets get back to Campbelltown - God's country".

    The upgrade of the oval + the upgrade of the club is SO what we need to make us once again be perceived as the Silvertails.
     
  15. Matabele

    Matabele Well-Known Member

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    Dwindling clientelle for a Leagues Club on the Northern Beaches I would say. 
     
  16. byso

    byso Well-Known Member

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    Well done to the duo.

    What happens in the future when they aren't interested in proping the club up?
     
  17. Matabele

    Matabele Well-Known Member

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    I would say the current strategy of establishing a positive cash stream is intended to place the club in a situation where it is not "propped up". 
     
  18. Ryan

    Ryan Well-Known Member

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    That's what I was thinking too Mata.
     

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