News: League Club has $1.3M for Sea Eagles

[Guest]

Totally confusing.  Dire straights one year, flush the next.  What's to believe?  And does the footy team benefit?

Only $650k was from normal trading activities which is in line with last years result.

 

[vidmar]

Vid, has the Board ratified Bob's proposal that the LC grant be converted to equity shares?

Just double checked MB and yes, the Sea Eagles board agreed at the last board meeting with the aspect of equity for funds provided by the Leagues Club

 

[Chip and Chase]

So rather buying down the shareholding of the private owners they are issuing more shares and diluting the value of existing shares and shareholding percentage of the private owners that way ?? I'm no business guru so I have no idea what the pros and cons of that arrangement are, perhaps someone can enlighten me. The one con I can see is that it immediately weakens the FC shareholding as they don't seem to be able to inject equity at a pace to keep up with the dilution caused by issuing new shares to the LC. It would be nice if the FC and LC joined forces and used their combined membership base to buy back the "Sea Eagles", however I'm guessing a vast majority of LC members don't give a rats about the footy side and would rather any profit went back in the leagues club itself by way of improved facilities.

 

[Fluffy]

There would certainly be plenty that think that way C&C and its a fair thought but im sure the majority are fans of teh Sea eagles and would like a bit of both to happen and hopefully that is how things go.

 

[The Wheel]

My understanding is that Max/Scott have purchased 80% ofd the available shares and the other 20% is available to be purchased (originally the football club was the intended buyer).  The football club has purchased a handful of these over the last few years - my guess would be between 2% to 5%.

Therefore the other shares can be purchased without diluting the the equity of existing owners.  Having said that companies raise capital in this manner all the time so it is not unprecedented in the business world.

Happy to be corrected

 

[vidmar]

Certainly any additional share capital that is raised and purchased will dilute the percentage holding of the existing equity partners especially the Football Club who until recently were the minority shareholders.

(Need I state the obvious about how supporters can help address that balance...?)

That said, the Leagues Club has contributed close to $30 million to the playing and admin side of the club over the last 16 years and as such I'm comfortable that they have the best interests of the club and its supporters at heart.

Interestingly, there are a number of board members of the Football Club that also hold seats on the board of the leagues club plus now club patron Kerry Sibraa who has stepped down from the FC board to join the Leagues Club and including of course Bob Reilly who is Chairman of both boards so again it would be fair to say that the FC members interests would be well represented and promoted by the increased Leagues Club involvment?

 

[ManlyBacker]

Thanks Vid. I was pretty sure there would be a dilution as everything I have shows that the FC holds just under 17%, and the balance to 100% by Penn and Delmege.

It should mean that the LC joins the list of co-owners.

 

[Matabele]

The good news is that the LC may be able to contribute where one of the owners hasn't always managed to contribute to losses according to their equity share.

 

[vidmar]

The good news is that the LC may be able to contribute where one of the owners hasn't always managed to contribute to losses according to their equity share.

Good stuff Matabele...You'll of course be doing your bit to help the club get in the black by signing up for an out of town Sea Eagles membership?

http://www.manlyseaeagles.com.au/membership-type-basic.asp

I know the tyranny of distance may conspire against you but if you are able to get to the first home game against the Sharks you may be able to get the boys in to see the new revamped sponsors area and changing rooms that are currently under development (I'm sure Kerry will be happy to give you a guided tour - but don't be too effusive in your thanks to him for his efforts in playing a major part in getting the funding for it as he is quite a humble sort of gentleman?)

The first home game will also see a Football Club function pre-game which will also include a past players reunion - more details to follow but if the function prior to the Titans game last season is an indication we'll have some of our legends attending plus the Eagles Angels.

Entry will be free to FC members but even if you can't make it Mata remember that you must keep your FC membership current to avoid losing voting rights?

As well as your membership fees allowing the FC to purchase more shares and contribute financially to the Sea Eagles it will also allow you the importance of having a say in the future and direction of our great club

You can get your membership form from here:-

http://www.manlyleagues.com.au/assets/documents/football%20club%20application.pdf

Cheers
Vidmar

 

[DSM5]

How come Matas is offered the free guided tour?  He isn't even a member. Are some members more considered than others? 

 

[vidmar]

Cmon DSM5..You have been  here and know  how it works on this site?

Don't go to a game,Watch on TV & don't be a member of either the Sea  Eagles or the Football Club - Be hypertical of players, management & those who go to a game  which of course means you know better......

 

[Matabele]

How come Matas is offered the free guided tour?  He isn't even a member.

  Really?  I was last time I checked.