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Fued back on ?

Discussion in 'Rugby League Forum' started by Berkeley_Eagle, Apr 18, 2009.

  1. Berkeley_Eagle

    Berkeley_Eagle Current Status: 24/7 Manly Fan

    +2,125 /14
    posted this 3hrs ago and still hasnt been published,

    The Penns and the sword

    April 18, 2009

    A deal to save Manly Leagues Club from the bank has pitted the club's saviours against each other, and may come at a very high price, writes Roy Masters.

    A letter from Manly Leagues Club's banker will be tabled at a meeting of members on Tuesday night, potentially signing the death warrant for one of rugby league's most successful teams, according to forces lined up against the likely new owners, the Penn family.
    The uneasy relationship between the co-owners of the Manly NRL team, the Delmege and Penn families, is set to erupt when about 100 leagues club members vote on a motion to effectively sell Penn the Pittwater Road leagues club site and the adjacent car park for $15 million.
    If the sale proceeds, the Sea Eagles will inevitably disappear and the a 13,000-square-metre site will be demolished to create prime real estate, says developer Phil Franks, who has joined forces with Max Delmege following the settlement of an action Franks had against the club. The Penn family insists the sale would be a first step in a grand plan to redevelop the club and reconfigure Brookvale Oval, making it a showpiece stadium with revenue streams that would secure the long-term future of the club.
    Manly members will be asked to vote on two proposals, which are a cut-price version of the original $15m development plan put forward by Penn and Delmege before their split last November.
    "The bank has made it very clear this is the only deal which can save the club," said a spokesman for the Penn family with reference to a $10m debt owed to National Australia Bank by the leagues club.
    But Delmege countered: "What really is happening is that something is being put to members that's being forced on the club by the bankers. The Penns have obviously been talking to the bank and told them they can settle and give them their money back."
    The Penn family has proposed to buy the club and site for $7.5m and take a five-year option to purchase the adjacent car park for a further $7.5m. What is not in dispute is that the Penn offer is less than that which members approved in July when they were presented with the Penn-Delmege deal.
    "The market has changed significantly since then," the Penn spokesman said. But Delmege, in a phone call to Manly Leagues Club secretary manager Peter Spray, has protested that the Penn deal short-changes members.
    Delmege told the Herald: "The leagues club owes the bank 65 per cent of the value of the property, which is above the norm for a loan in this market. Ultimately, I say to the bank, 'Don't put pressure on the club and force a deal on us'.

    "Let us refinance in the ordinary fashion. Maybe the bank don't like Manly. They're on the jumper of South Sydney, anyway." Tuesday's agenda proposes that the club leases back the premises from Penn for an annual rental of $540,000, increasing by 4 per cent a year, plus a rental of $300,000 a year for the car park, also increasing by 4 per cent a year, should he take up the option to buy it.
    Furthermore, Penn will loan the club $3.5m, secured by a mortgage over the car park, repayable over five years at 8.5 per cent. Of the $7.5m purchase price for the leagues club, Penn will initially advance $5.6m, which, combined with the $3.5m loan, will allow the club to settle the bank's $10m debt.
    Penn will also provide a loan to the maximum of $2.1m for refurbishment of the club's licensed premises.
    Delmege said: "The leagues club can retain all existing property at a cost of $600,000 a year in interest. If this deal goes through, the club will be paying $1.1m in rentals and they end up with no property.
    "I'm not against the Penns buying the leagues club premises, but not the land and the car park. If we can retain this land, we can eventually build a club for the future. But we are being asked to outlay an extra $600,000 a year from day one and have no assets and no capital growth."
    Franks argues the 8000-square-metre car park could be worth $25m in 2014, and its value could even treble when combined with the 5000-square-metre leagues club site, although a July valuation prices them at $15.225m.
    Franks said: "That total land package is worth twice as much without the club being there. A million people would give $10m for a five-year option on the car park and even be willing to pay 10 per cent deposit."
    But, according to the Penn family, no one else has.
    "Anyone can come forward and make an offer, but no one has," the spokesman said. "Are we going to let it all sit there for another five years?"
    But past loyalties and alliances - not financial sense - will determine the outcome of Tuesday night's meeting, at which 75 per cent of members must approve the Penn motion for it to succeed.
    The Sea Eagles have been riven with factions for nearly 20 years, ruled by a board of directors playing musical chairs. It is D-day for a club at which 60 years of existence could be decided by fewer than 60 members. The Penn family believes the leagues club sale is a first step in a "master plan" to redevelop Brookvale Oval, with local and state money already guaranteed and federal funding anticipated, all leading to a united, football-savvy board running an NRL team that would remain forever in the district.
    The Delmege-Franks faction claim this vision is a mirage that can be scythed through at a financial night of the long knives. Franks, who presented a cheque for $1m for Manly's reinstatement to the NRL after the dissolution of the Northern Eagles in 2002, has already unleashed a verbal sword.
    "I'm fuming - it's the end of the club because of self-interest," Franks said - although the agenda papers clearly state one of the directors of Penn Sport P/L is the brother of the wife of current Manly director Peter Peters.
    "My message to the Manly board is that they will be exposed at the end of the day. My challenge to the Manly board is to cross the floor and do the right thing or pay the penalty."
    It remains to be seen if the Penn is mightier than Tuesday's sword.
  2. swoop

    swoop Well-Known Member 2017 Tipping Competitor

    +1,543 /26
    It's got me a bit worried. Why was the Delmege/Penn joint package knocked back?

    Both put forward convincing arguments so maybe we need more detail before the Penn deal gets approved. We can sell the leagues club but keep the land and carpark.

    Are Delmege and Franks right or is Penn the way to go? Clear as mud.
  3. SeaEagleRock8

    SeaEagleRock8 Sea Eagle Lach Staff Member Premium Member 2017 Tipping Competitor

    +10,547 /214
    I doubt this article means the public slanging match is back on. That was the problem, much more that the 'fued', ie the fact there are disagreements at board and owner level.
    Probably just an excuse for Masters to write that our future is in doubt.
    If Franks and Delmege are saying the land will be worth heaps and the Penns might just sell it off and kill the club...well that is always the risk with private ownership! But then why don't they offer some proposal?  The leagues club debt seems rather large so something probably has to happen.
    (I'm not member of the leagues club as I live out of town)
  4. swoop

    swoop Well-Known Member 2017 Tipping Competitor

    +1,543 /26
    In the current climate I don't think Delmege has the $$$ right now to make a counter offer.
  5. ManlyBacker

    ManlyBacker Winging it Staff Member

    +972 /7
    This article is full of factual errors. The sale of the Leagues Club premises and land comes under the members of the Leagues club and not the Football club as indicated by Masters. The approval for the sale last July was by 90% of the 20,000 members. The "Sea Eagles will inevitably disappear" is completely false as it is nothing to do with the Sea Eagles board or the holding of the NRL license.

    swoop, the deal from last July was not knocked back, it was approved by the members but the joint agreement between Delmege and Penn was not able to proceed due to either a falling out between the two or more likely the inability of both parties to raise funds in the current climate to proceed together in a joint venture.
  6. Ron E. Gibbs

    Ron E. Gibbs Well-Known Member

    +2,336 /21
    It's Roy Masters. I doubt he even knows just what he's trying to say these days. They must still pay him by the word . . .
  7. bhot

    bhot Active Member

    +4 /0
    Yes it was Roy Masters. I read the first paragraph then turned the page after I realised it was him. Still bitter and twisted after all these years, and only offering wishful thinking in his article. He's just using his media presence to try and dismantle Manly. It's his life objective to drag Manly through the dirt at every opportunity.

    I no longer read his articles. Strangely, many of them seem to be about Manly's problems!
  8. eagle_predator

    eagle_predator Active Member

    +0 /0
    I am concerned with all of this.

    1. Is Delmege broke ?

    2nd. I hope the Penn family don't have plans to move the Eagles to Gosford ?

    3rd. Does the Penn family want to pull down the leagues club and build units there or something ff's if so wtf ?
  9. Fluffy

    Fluffy Well-Known Member

    +5,617 /203
    I have concerns with the numbers in the article, dont know if they are true but 4% per annum could mean that with compound interest it ends up getting out of control, i would be much more comfortable with a CPI increase. 8.5% sounds high as well considering the cash rate is so low right now.

    I doubt they are only paying 600K per year on the 10 million but renting for 840K with no capital increase sounds high as well
  10. Cameron

    Cameron Cambo

    +669 /35
    1) I doubt he is broke but the GFC would be hurting the Real Estate sector and the comerical sector especially.
    2)absoulety not dont for one minute listen to the scare campagin that was being trotted out in the media. Scott Penn is a lifelong manly fan and nephew of manly legend Peter Peters there is no way in the world scott wants to move us away from manly.
    3) There had been plans in place even before scott penn and max's offer to redevlop the leagues club and rebuild on other land near the exisiting site.

    The block the club is currently on is in prime posistion and would be worth millions as would any dwelling that is built on it
  11. The Wheel

    The Wheel Well-Known Member

    +2,756 /88
    Cliffy - wonder where Bob & the committee stands on this??

    I would have thought they would be pushing it hard, also the Penn/Delmege deal that was approved last year fell through I believe  becuase Max allegedly couldn't raise his 50% share of the purchase.
  12. Cameron

    Cameron Cambo

    +669 /35
    not sure wheel
    i do know however he has done alot of hard work turning the leagues clubs P & L around since he became chairman of the club
  13. Rex

    Rex Well-Known Member

    +2,376 /60

    Beat you in posting this one BE ... it was only minutes old when I saved it as a new article, sometime before 1am I think.  If there's long delays before posted News items are published then it sort of defeats the purpose, doesn't it Dan? You obviously need to sleep so is there some other way of ensuring these articles get published promptly apart from bypassing your system Dan?
  14. Dan

    Dan Kim Jong Dan Staff Member Administrator 2016 Tipping Competitor 2017 Tipping Competitor

    +7,735 /120
    Fair go mate. I have been busy all day and didnt have the chance to get to the computer
  15. eagle_predator

    eagle_predator Active Member

    +0 /0
    Cliffy cheers mate.

    It's good to know we are not going anywhere so whats the go with our club does Penn hope to rebuild it bigger and better ? if that's the case I'm all for it as long as us the fans don't have to wait for 4 -5 yrs before we see or have a new club.

    Maybe they can build villa style units or something above or near the club the extra money from rent can go towards the team /club etc.

    As for Roy Masters i can't stand the guy full stop.
  16. Rex

    Rex Well-Known Member

    +2,376 /60
    Mate, not making myself clear.

    Absolutely not intended in any way, shape or form as a criticism of your devotion Dan.  Just querying whether there is a better way that doesn't require you to be so wedded to the keyboard. Don't know how you do it actually.  Sometimes more delegation is the answer.  Sometimes a rethink of procedures.  Sometimes ... well, who knows what creative answers there might be?

    There is a problem at times with delays in publishing posted News articles to the forum, and simply working harder and longer is rarely the best answer.

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