Bentleigh Club Merger

[DemonSG 1]

I can not believe the MFC is considering merging with the Bentleigh Club. After finally clearing the $5 million debt, they are now proposing to take on Bentleigh Clubs $1.8 million bank debt, the Clubs EGM's entitements $1.2 million

and an obligation to pay all existing trade creditors. In the proposed merger MFC takes responsability for Bentleigh Clubs employees and their accrued entitlements. MFC also obtains an old building badly in need of renovations, an ageing membership and declining business and turnover.

All this at a time when the club should be concentrating on consolidating our core business, bloody football! Buggered if I want any part of the failed Bentleigh Club.

Edited May 2, 2011 by DemonSG

[Radar Detector 1,347]

I can not believe the MFC is considering merging with the Bentleigh Club. After finally clearing the $5 million debt, they are now proposing to take on Bentleigh Clubs $1.8 million bank debt, the Clubs EGM's entitements $1.2 million

and an obligation to pay all existing trade creditors. In the proposed merger MFC takes responsability for Bentleigh Clubs employees and their accrued entitlements. MFC also obtains an old building badly in need of renovations, an ageing membership and declining business and turnover.

All this at a time when the club should be concentrating on consolidating our core business, bloody football! Buggered if I want any part of the failed Bentleigh Club.

Where is the info on this?

[DemonSG 1]

Where is the info on this?

Letter today from Bentleigh Club to all members re merger at special AGM on 23 May

[DirtyDees DDC 187]

We are planning a merger because the MFC has by far the fewest assets of any club in Victoria.

I believe we have about $4m in tangible assets. The next lowest figure is approx $14m.

[Striker475 696]

Depends on how servicable the debt is, etc. I agree with the asset buildup though, club def needs it

[ickey_11 145]

I can not believe the MFC is considering merging with the Bentleigh Club. After finally clearing the $5 million debt, they are now proposing to take on Bentleigh Clubs $1.8 million bank debt, the Clubs EGM's entitements $1.2 million

and an obligation to pay all existing trade creditors. In the proposed merger MFC takes responsability for Bentleigh Clubs employees and their accrued entitlements. MFC also obtains an old building badly in need of renovations, an ageing membership and declining business and turnover.

All this at a time when the club should be concentrating on consolidating our core business, bloody football! Buggered if I want any part of the failed Bentleigh Club.

DemonSG, the land the club is on is worth much much more than $3M. The issue is planning laws mean that they have to keep the land a club unless they relocate the club. The Bentleigh club is not a going concern but if the long term plan is to relocate the club to a higher profile (but smaller and cheaper) location and get more use of the club facilities including the gaming machines then this could be a good solution for the Bentleigh and Melbourne Football clubs. The problem with this idea will be with the independent federal politician that is trying to pass a federal law restricting poker machines.

Edited May 2, 2011 by ickey_11

[demon3165 2,805]

I can not believe the MFC is considering merging with the Bentleigh Club. After finally clearing the $5 million debt, they are now proposing to take on Bentleigh Clubs $1.8 million bank debt, the Clubs EGM's entitements $1.2 million

and an obligation to pay all existing trade creditors. In the proposed merger MFC takes responsability for Bentleigh Clubs employees and their accrued entitlements. MFC also obtains an old building badly in need of renovations, an ageing membership and declining business and turnover.

All this at a time when the club should be concentrating on consolidating our core business, bloody football! Buggered if I want any part of the failed Bentleigh Club.

Have you really read the merger papers? if so read again slowly you might just understand what it's all about.

[daisycutter 29,743]

DemonSG, the land the club is on is worth much much more than $3M. The issue is planning laws mean that they have to keep the land a club unless they relocate the club. The Bentleigh club is not a going concern but if the long term plan is to relocate the club to a higher profile (but smaller and cheaper) location and get more use of the club facilities including the gaming machines then this could be a good solution for the Bentleigh and Melbourne Football clubs. The problem with this idea will be with the independent federal politician that is trying to pass a federal law restricting poker machines.

yes I've heard that and more

what worries me though is that it is a risky strategy and could blow up in their faces

[dee-luded 2,959]

yes I've heard that and more

what worries me though is that it is a risky strategy and could blow up in their faces

Agreed Daisy, time is of the essence in todays upheavel cycles. This should be done speedily, or Not at all!

[Sir Why You Little 37,134]

Land Prices in Bentleigh are going up...The land alone will be worth bucketloads in 10 years time.

If the club Promote the premises as a place for we supporters to go to, then it just might turn over some $$$

I have never received any incentive mail to go to Bentleigh, organize Demon Nights Parma Pots etc.

But the bottom line is Bentleigh is a very good place for land value, my best mate lives off east boundry road, and houses have gone through the roof, Bentleigh is now classed as inner city living!!!!

It is a good asset to start with.

[Spaghetti 264]

How does the OP propose we build income generating assets (or even just assets) without going into debt?

[Supermercado 2,802]

Not that I care one way or the other but how come the football club members don't get a vote on this?

Does this fall under the same clause of the constitution etc.. that meant the club didn't have to go to a vote on the Hawthorn merger if they didn't want to?

[DemonSG 1]

My point is, having wiped out $5 million debt, do we do this without any form of consultation or business plan presented to the MFC members? Or do we buy broken businesses like collingwood did with their pubs to build equity and risk losing millions, thus placing the club back where we were before Jimmy.

Think carefully before casting your vote. I, for one, say NO, CONSOLIDATION FIRST\

[Sir Why You Little 37,134]

My point is, having wiped out $5 million debt, do we do this without any form of consultation or business plan presented to the MFC members? Or do we buy broken businesses like collingwood did with their pubs to build equity and risk losing millions, thus placing the club back where we were before Jimmy.

Think carefully before casting your vote. I, for one, say NO, CONSOLIDATION FIRST\

Hopefully it is being talked about at length tonight.

Edited May 2, 2011 by why you little

[jackaub 1,402]

Hopefully it is being talked about at length tonight.

I was at the Bentleigh Club only recently. Waht a disgrace. Bad enviorement Staff who dont care. Basically it doesnt look like a business. maybe just let it fold.

its a dog and i wouldnt put 2 cents into it

Come on melbourne either make a business case to all memebrs or do something else

[Rhino Richards 1,467]

My point is, having wiped out $5 million debt, do we do this without any form of consultation or business plan presented to the MFC members? Or do we buy broken businesses like collingwood did with their pubs to build equity and risk losing millions, thus placing the club back where we were before Jimmy.

Think carefully before casting your vote. I, for one, say NO, CONSOLIDATION FIRST\

A good grasp of the facts of the proposal would go a long way here rather than cherry pick to suit your opinion.

[IWAP 170]

My point is, having wiped out $5 million debt, do we do this without any form of consultation or business plan presented to the MFC members? Or do we buy broken businesses like collingwood did with their pubs to build equity and risk losing millions, thus placing the club back where we were before Jimmy.

Think carefully before casting your vote. I, for one, say NO, CONSOLIDATION FIRST\

The full proposal with lots of lovely graphs and figures for you has been available to members since July 2010. Maybe its just me, but i've received several documents from both MFC and TBC in the mail, not to mention a few emails from TBC regarding the matter. Its just a shame that it has taken this long to go to a vote.

Merger discussion paper

I'll guarantee thats more than Collingwood members got.

On that note, i don't really see the comparison. Collingwood spent 14.5 million to buy their pubs. We are getting ours for free (but we need to take into account the debt, which seems quite managable given the value of TBC). The median house value for Bentleigh this year is $880,000 - but that doesn't take into account that Bentleigh is a big suburb, and TBC would be in the most expensive part, being close to the border of East Brighton. The median value in this area would be considerably higher than the areas bordering Moorabin.

The size of the property means we would still be making money on the deal, even if we had to sell up after 5 years.

The cost / benefit of this deal seems pretty good to me. Nothing in business is ever 100% guaranteed. Who would have thought the big brother house incident from years ago would end up biting us in the bum.

Edited May 3, 2011 by IWAP

[diesel 420]

Looking at the land on which the Bentleigh Club is located would have to think it is worth well in excess of $10 mill? That more than covers the liabilities.

The key to not incurring further losses is to get the joint relocated and running profitably as soon as possible. I would look at sepnding as little money as possible on the existing facility and concentrate on finding a new site.

Edited May 3, 2011 by diesel

[GoodTimesGrimes 14]

A $9 million asset costing us only $3 million in debt, its a no brainer, and this is an asset which will only appreciate, great news for the club and its what they have probably been planning all along since they got involved with the Bentleigh Club, I am a Bentleigh Club member and MFC member, and I will be voting for the proposal

[Sir Why You Little 37,134]

A $9 million asset costing us only $3 million in debt, its a no brainer, and this is an asset which will only appreciate, great news for the club and its what they have probably been planning all along since they got involved with the Bentleigh Club, I am a Bentleigh Club member and MFC member, and I will be voting for the proposal

It is worth keeping at least in the immediate future purely for the Land Value, which will keep increasing...but let us all work out a way to get the Bentleigh club working as a venue that supporters want to use regularly.

The Few times i have been in there, apart from the room upstairs with the Game on the Big Screen, you can seriously count the number of patrons in there on 10 fingers.

If we are going to own it, let's get some solid use out of it. (After an M.C.G. game, i would happily go down there if i knew the Game was to be replayed. With a few Beers watching the Game on the Box with Commentary is completely different to being in the crowd.)

That is just one example of some patronage.

How many people use it during the week apart from those who live next door???

[Guest watts04]

this is a positive

cant believe people look so narrowly at this option.....

im votin positive and thank god we dont carry any large debt when these great options come about

[Tricky 341]

It is worth keeping at least in the immediate future purely for the Land Value, which will keep increasing...but let us all work out a way to get the Bentleigh club working as a venue that supporters want to use regularly.

The Few times i have been in there, apart from the room upstairs with the Game on the Big Screen, you can seriously count the number of patrons in there on 10 fingers.

If we are going to own it, let's get some solid use out of it. (After an M.C.G. game, i would happily go down there if i knew the Game was to be replayed. With a few Beers watching the Game on the Box with Commentary is completely different to being in the crowd.)

That is just one example of some patronage.

How many people use it during the week apart from those who live next door???

Lets face it, the location is great for residential purposes, but it plain sucks for a club.

As Diesel said, IF it is to go ahead, the focus should be on finding the new site, relocating and getting the new venue profitable (perhaps with some of the initiatives you mention)

The key problem here is the location: (from the discussion paper)

Gaming machines are presently under-utilised – The

Bentleigh Club holds 10% of the GME‟s in the Glen Eira

Local Government Area (“LGA”), however only generate

4% of the gaming revenue.

• This under-utilisation has a flow on effect to Food &

Beverage income.

• The Rosstown Hotel and the Boundary Taverner are

venues that have greater revenue share compared with

the number of machines they hold – they are both

located on intersections of major roads surrounded by

other retail businesses, enabling generation of greater

casual patronage.

• Conversely, venues that are also under-utilised, such as

Alma Sports Club, South Oakleigh Sports Club and

Caulfield RSL, are also located in residential areas with no

surrounding retail trade.

• Location appears to be the key factor in this venue‟s

performance – this view is supported by CMS

[Sir Why You Little 37,134]

Lets face it, the location is great for residential purposes, but it plain sucks for a club.

As Diesel said, IF it is to go ahead, the focus should be on finding the new site, relocating and getting the new venue profitable (perhaps with some of the initiatives you mention)

The key problem here is the location: (from the discussion paper)

Gaming machines are presently under-utilised – The

Bentleigh Club holds 10% of the GME‟s in the Glen Eira

Local Government Area (“LGA”), however only generate

4% of the gaming revenue.

• This under-utilisation has a flow on effect to Food &

Beverage income.

• The Rosstown Hotel and the Boundary Taverner are

venues that have greater revenue share compared with

the number of machines they hold – they are both

located on intersections of major roads surrounded by

other retail businesses, enabling generation of greater

casual patronage.

• Conversely, venues that are also under-utilised, such as

Alma Sports Club, South Oakleigh Sports Club and

Caulfield RSL, are also located in residential areas with no

surrounding retail trade.

• Location appears to be the key factor in this venue‟s

performance – this view is supported by CMS

Thanks for that, so it does appear at this stage we are buying TBC purely for the land value.

I am happy with that as long as the feelers are out for better.

[IWAP 170]

Thanks for that, so it does appear at this stage we are buying TBC purely for the land value.

I am happy with that as long as the feelers are out for better.

I think its more the justification for convincing TBC members to agree to relocate to a better spot

[Sir Why You Little 37,134]

I think its more the justification for convincing TBC members to agree to relocate to a better spot

Whilst making a healthy profit on the land....