WHERE'S THE $35 MILLION?

[Bearfax]

I'm always wary of Paul Kent's articles but his glowing item in today's Telegripe about Toovey, raised some serious questions that others may be more in the know about.

The most important issue concerned the sale of the Manly Leagues Club to Chinese investors for reportedly $35 million in 2015. Now according to Kent, the Penn family bought the football team for $7.5 million but that also included the Manly Leagues Club. Now the Penn's allege that they have spent on average $1-1.5 million annually on the football club, but the question is where did the $35 million go. I assume some probably went to pay debts, some to investors. But that leaves a lot of money unaccounted for. Did the Penns get the rest, in which case as Kent alleges, are they in fact in profit from their venture into Manly's League Club.

My fear is that I know of shady business people who buy what seems a generally successful business commodity, and then sack all the staff, sell off the assets and the property and end up with a tidy profit at the detriment to those who have an ongoing interest in the business.

Now I'm not accusing the Penns of such behaviour, but I am concerned regarding what happened to the sizable funds that resulted from the sale of the Manly Club. Toovey's comments in interview seem to imply activities within the club not in the interest of the football team, Brookvale Oval and the Sea Eagles future on the Northern Beaches.

So what can those in the know tell me. I guess Hasler's decision will tell us something

 

[Shoe1]

Can we add it to the cap?

 

[Harvies elbow]

A good question only they can answer but I'm sure interest would be shown by tax and other departments.
Apparently it didn't go on furniture...

 

[lurker]

I'm always wary of Paul Kent's articles but his glowing item in today's Telegripe about Toovey, raised some serious questions that others may be more in the know about.

The most important issue concerned the sale of the Manly Leagues Club to Chinese investors for reportedly $35 million in 2015. Now according to Kent, the Penn family bought the football team for $7.5 million but that also included the Manly Leagues Club. Now the Penn's allege that they have spent on average $1-1.5 million annually on the football club, but the question is where did the $35 million go. I assume some probably went to pay debts, some to investors. But that leaves a lot of money unaccounted for. Did the Penns get the rest, in which case as Kent alleges, are they in fact in profit from their venture into Manly's League Club.

My fear is that I know of shady business people who buy what seems a generally successful business commodity, and then sack all the staff, sell off the assets and the property and end up with a tidy profit at the detriment to those who have an ongoing interest in the business.

Now I'm not accusing the Penns of such behaviour, but I am concerned regarding what happened to the sizable funds that resulted from the sale of the Manly Club. Toovey's comments in interview seem to imply activities within the club not in the interest of the football team, Brookvale Oval and the Sea Eagles future on the Northern Beaches.

So what can those in the know tell me. I guess Hasler's decision will tell us something

I’d be careful taking any of the stuff in Kent’s articles as fact. I understood they paid for the club and the land the leagues club is on was bought for 7.5mil. You can find that in the leagues club financial reports. Considering they’re two separate entities (the leagues and the license) the transactions would be separate

 

[HappilyManly]

This is an old story.

The Leagues Club Members voted to sell to Penn at 7.5million instead of sourcing developers to sell to.

Penn then held full ownership and was free to do with the asset as he wanted

 

[Class of 96]

This was covered in some other thread fairly extensively. From the figures I saw there the profit was in the vicinity of $17M, although the figures on this post suggest north of that. It does seem that money was pocketed and not invested back into the club. I’ve got no problem with smart people turning a profit, but I do take offence at the constant whining that they are propping the club up out of their own pockets.

 

[lurker]

I'm always wary of Paul Kent's articles but his glowing item in today's Telegripe about Toovey, raised some serious questions that others may be more in the know about.

The most important issue concerned the sale of the Manly Leagues Club to Chinese investors for reportedly $35 million in 2015. Now according to Kent, the Penn family bought the football team for $7.5 million but that also included the Manly Leagues Club. Now the Penn's allege that they have spent on average $1-1.5 million annually on the football club, but the question is where did the $35 million go. I assume some probably went to pay debts, some to investors. But that leaves a lot of money unaccounted for. Did the Penns get the rest, in which case as Kent alleges, are they in fact in profit from their venture into Manly's League Club.

My fear is that I know of shady business people who buy what seems a generally successful business commodity, and then sack all the staff, sell off the assets and the property and end up with a tidy profit at the detriment to those who have an ongoing interest in the business.

Now I'm not accusing the Penns of such behaviour, but I am concerned regarding what happened to the sizable funds that resulted from the sale of the Manly Club. Toovey's comments in interview seem to imply activities within the club not in the interest of the football team, Brookvale Oval and the Sea Eagles future on the Northern Beaches.

So what can those in the know tell me. I guess Hasler's decision will tell us something

They also bought out the other share holders. So along the way they’ve tipped in cash to acquire the rest, their intital holding and whatever ongoing costs there are (I’m just presenting facts not an argument). To be honest though without cash the club wouldn’t exist. I don’t have it and I don’t really care where it comes from. I also don’t care if they turn a profit so long as we win games. I’m grateful someone is willing to put cash in because footy clubs are a risk. I think it doesn’t really help us as fans constantly speculating about cash and expense when we don’t have any hard facts

Hopefully we’re on the way to turning the winning part around

 

[double hoops]

Where ever it is. It needs to be used to generate income for the club. Not for Penn.

 

[The Wheel]

It should be noted that the Leagues Club lease (expires next year) is about to be extended for 3.5 years.

It won’t be out on their arse as suggested by Kunt- another example of poor research/fact checking by a DT journo

 

[Frogz]

Media clutching at straws now, as they have ALL been made look like f#ckwits by their reporting of the coaching merry go round, only to be know where near the truth. They are dopes and now will try and cover their mess ups. Unfortunately they would of achieved their clicks for the week and thats all that matters to them, not the truth.

 

[Loobs]

**** this guy for making a smart deal. Who does he think he is..?

 

[The Wheel]

Not sure why everyone is hot under the collar ontbe Penns in this.

You should be directing the questions to the Leagues Club board of the time (under the then Chairman Bob Reilly) - they sold the farm for a few grains of rice.

 

[ricardo]

If he bought it for 7.5m and sold for 35m then the government has some serious coin in taxes to spend on our stadium. Every cloud ...

 

[Peter C]

This is an old story.

The Leagues Club Members voted to sell to Penn at 7.5million instead of sourcing developers to sell to.

Penn then held full ownership and was free to do with the asset as he wanted

That's right, they sold the Leagues Club very cheaply when you look back on it today, however at the time the bank was knocking at the door and it was just after the GFC so there would not have been many buyers around, if the bank forced the sale, I would say it may have sold for even less.

 

[Peter C]

If he bought it for 7.5m and sold for 35m then the government has some serious coin in taxes to spend on our stadium. Every cloud ...

Good luck with that one!

 

[HappilyManly]

Not sure why everyone is hot under the collar ontbe Penns in this.

You should be directing the questions to the Leagues Club board of the time (under the then Chairman Bob Reilly) - they sold the farm for a few grains of rice.

And ZtC was on the LC Board

 

[Peter C]

Not sure why everyone is hot under the collar ontbe Penns in this.

You should be directing the questions to the Leagues Club board of the time (under the then Chairman Bob Reilly) - they sold the farm for a few grains of rice.

I think the bank was knocking on the door, they probably had no choice but to sell.

 

[Peter C]

They also bought out the other share holders. So along the way they’ve tipped in cash to acquire the rest, their intital holding and whatever ongoing costs there are (I’m just presenting facts not an argument). To be honest though without cash the club wouldn’t exist. I don’t have it and I don’t really care where it comes from. I also don’t care if they turn a profit so long as we win games. I’m grateful someone is willing to put cash in because footy clubs are a risk. I think it doesn’t really help us as fans constantly speculating about cash and expense when we don’t have any hard facts

Hopefully we’re on the way to turning the winning part around

Well said

 

[The Wheel]

And ZtC was on the LC Board

In most companies/boards given his family connections to the buyers he would have been compelled to abstain from the vote and/or any board discussions.

The chair person would have to take accountability for that if it did not happen.

 

[Bearfax]

Seems I've stirred a hornets nest. As for the figures I'm only relying on Kent's comments, but then this followed an interview between James Willis of Half Time with Toovey who is a chartered accountant, was closely associated with Manly Leagues so I was assuming the info may have come from him. Surely he would know the financial affairs and his comments about being 'relocated and sold' are worrying. Unfortunately I know nothing about what happened to the money. I'm just trying to add one and one together, and two just doesn't seem to be part of the equation