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Manly to be listed

Discussion in 'Rugby League Forum' started by Kiwi Eagle, Aug 17, 2008.

  1. Kiwi Eagle

    Kiwi Eagle Moderator Staff Member 2017 Tipping Competitor

    +3,894 /65
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    Adrian Proszenko | August 17, 2008

    MANLY fans will soon have an opportunity to own a piece of their team following plans to list the club on the stock exchange.
    When co-owner Max Delmege first took control of the club he promised its fans they would one day get it back. Now, the multimillionaire businessman is ready to make good on his word with plans to list the Sea Eagles "within two to three years".
    "Manly belongs to the people, even though we are holding it in escrow at the moment," Delmege told The Sun-Herald. "The good part is that, at the end of the day, you can give it all back to the people.
    "That's what the Broncos have done by publicly listing - you can buy shares in your club. That's the way I would like to see it go.
    "When you become profitable, have a few other assets and list, all the members can have their shares back. I think that's important because the supporters would love to be part of it.
    "When we took over Manly we were suffering pretty dramatic losses - now we're just about line-balling.
    "I'd like to think in two or three years we'll have a structure which will work for all parties.
    "That would be a wonderful completion to it, wouldn't it?"
    Delmege, who has tipped more than $12 million into the Sea Eagles and has also bought the Leagues Club, believes more NRL clubs should look at privatisation.
    The property magnate believes both owners and investors stand to make financial gains in the long term. He predicted owners could expect a profit within three to four years, with the ventures capable of being "extremely profitable" in 10.
    "As a long-term investment, if we go down the shareholder route, I believe it could be quite profitable for the shareholders. If people thought you had the acumen to make this enterprise profitable, they'd buy whether they were supporters or not, but I'd think [Manly] supporters would be the first to buy in. "It would be like any publicly listed company. There would be a board of directors, but if the shareholders didn't like them they would throw them out."
    Despite concerns about the game's administrative structure and the on-and off-field challenges facing the NRL, Delmege believed there are opportunities for rugby league to move forward and to cement itself as Australia's dominant football code.
    The fanatical Manly fan outlined some of the initiatives he believed would improve the game, including:
    Lobbying the NRL to establish a rugby league-specific radio station; Expanding the competition to include more teams, starting with the Central Coast and Sunshine Coast; Encouraging teams and potential club owners to consider privatisation; Finding commercial uses for grounds, such as Brookvale Oval, outside of NRL games; Increasing the value of the next TV deal, then increase the salary cap; Increase merchandising sales/sponsorship through retail ventures; Running leagues clubs "more commercially" with such moves as converting auditoriums to office space.

    Delmege predicted other multimillionaires would be prepared to back NRL clubs if they were approached in the appropriate manner, pointing to the success of that model for overseas clubs and sports.
    "In general terms, most clubs would think it's the way to go," he said. "It's an option there, readily available.
    "Once all the rugby league clubs begin to privatise, that stigma will go away. I see a big, big future for rugby league.
    "You're going in because you love your club and want to see it run a bit better than it is now, but also there should be this thought at the back of your mind that with the right ingredients and the right mix, it can be profitable.
    "I got out of it more than I could have hoped for. For me, it's not a monetary thing."
    Since becoming an owner, Delmege has become involved in only one football matter - the retention of Michael Monaghan when Sea Eagles officials were attempting to offload him in 2005. However, he said that was likely to be a one-off and that owners should generally step back and let football officials get on with the job of running the club.
    It's a different approach to that of South Sydney, whose co-owners Russell Crowe and Peter Holmes a Court were mentioned in the papers more often than the players during their first year at the helm.
    "Initially, [Souths] hasn't been that successful [post privatisation] because there's been a fair bit of controversy, but it's settled down now," Delmege observed.
    "You as a person on a board or throwing some money in, have to realise you're not a footballer or coach. You don't know who is a good or bad player. Leave that to the people who have those talents ... Do your bit [off the field]."
  2. ManlyBacker

    ManlyBacker Winging it Staff Member

    +972 /7
    Great stuff. I can't see it ever being something to anchor the portfolio with, or even get dividends from, but I'm up for some shares.
  3. Berkeley_Eagle

    Berkeley_Eagle Current Status: 24/7 Manly Fan

    +2,125 /14
    Great stuff
  4. Matabele

    Matabele Well-Known Member

    +516 /14
    A Premiership is a good dividend.
  5. Jethro

    Jethro This space is for rent Staff Member Premium Member 2017 Tipping Competitor

    +2,307 /13
    Agreed. It would be all the incentive you'd need.
  6. missing_something

    missing_something Active Member

    +0 /0
    Lucky the shares arnt being listed today.

    They'd be going down quicker than a 50 cent whore on 95% off tuesdays.
  7. DSM5

    DSM5 Well-Known Member

    +516 /0
    I'd buy some, stuff them up Orford's arssse and set fire to them.
  8. Duff

    Duff Well-Known Member

    +638 /12
    It's a dangerous route to take.
    If too many non-supporters get amongst it, votes could start going the way of maximising profits, even if that means destroying the club as we know it.

    Relocation (even if just to Homebush) would be something that could look good to a bean-counter, to give one example.

    I don't mind the public being able to buy shares but who has a vote has to be controlled. This isn't a faceless, soulless corporation like most listed organisations.
  9. vidmar

    vidmar Well-Known Member 2017 Tipping Competitor

    +278 /0
    It would be interesting to see what the preference vote the Football Club (members) would mean in a situation like this.
    The members voted to sell to messrs Delmege and Penn but a float is a different thing as Duff says...Effectively around 2000 football club members control aspects such as ground location, club name, colours etc.
    As a private investor (taking a devils advocate point of view) I'd be reluctant to have any final say governed by a small (relatively) group of people who may well be guided by the heart rather than from a financial perspective?
  10. Cletus

    Cletus Active Member

    +11 /0
    I think it's a great idea, we could call an extraordinary general meeting to sack Orfords arse. There's no way they'd make any money so no-one is going to invest for financial reasons. The Green Bay Packers are owned by shareholders, every time they want some more cash they issue more shares.


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