Melbourne to sell the Bentleigh Club

[Mickey 4,684]

Just received a member's email from Gary Pert saying the club is beginning the process of selling the Bentleigh Club.

 

'I am writing to inform you of the club’s decision to commence the process of selling the Bentleigh Club. This is a significant decision for Melbourne Football Club and one which has been made following an exhaustive evaluation process over the past 12 months.

 

Having explored all options it was clear that the best outcome for Melbourne’s long-term financial viability was to sell the Bentleigh Club. The proceeds of the sale will allow the club to establish a future fund, which will secure the long-term future of Melbourne and replace the income currently generated by gaming.

 

Financially, we are in the strongest position we have ever been in our long history as a club and this is a crucial step in solidifying this financial security, without the need for support from gaming related venues.

 

The decisions to sell the Leighoak in 2018, and now Bentleigh Club, have been based on securing the best long-term financial outcomes for the club, but it is also pleasing that this has completely removed the club’s reliance on gaming related income.

 

Melbourne’s association with the Bentleigh Club commenced in 1996, with the club officially acquiring the Bentleigh Club in 2011 when the venue was operating at a loss and experiencing a growing debt obligation.  

 

As part of the agreement to take over operations, we agreed to repay the Bentleigh Club’s then debt of 3 million dollars and committed to investing in the operations of the venue to return the club to profitability, while maintaining Bentleigh Club member entitlements. We agreed to operate the venue until at least August 2022. Any sale of the venue will be settled after this date, to ensure we fulfill this commitment, and the Bentleigh Club will remain operational until that time.

 

It is important we acknowledge the past Melbourne Boards and Administrators who worked tirelessly to return the Bentleigh Club to profitability.

 

A special mention must be made of the Jim Stynes and Don McLardy led Boards who had the foresight to secure the Bentleigh Club back in 2011. Without their vision we certainly would not be in the position we are in today, with the opportunity to sell the venue and ultimately set the club up for the future.

 

While the sale of the venue is the right decision for Melbourne, we understand it will be a disappointing outcome for current members of the Bentleigh Club.

 

We are committed to providing these members with alternative arrangements at similar venues should they wish to do so.

 

We will continue to keep you up to date throughout the course of the process and will let you know when a sale is achieved.

 

I would like to take this opportunity to once again thank you for your support and commitment to the Dees. Whilst our non-football related investments have contributed to our strong financial position, we could not be where we are without the ongoing support and loyalty of our members and supporters.

Go Dees!'

[Diamond_Jim 12,592]

We knew it was coming.

The future fund concept is a good idea.

 

[Travis Boots 157]

Looks to be approx 14 full sized blocks. 20m give or take

[BDA 22,755]

The proceeds will help fund our new home base. If we ever get a new home base.

[Canplay 634]

Good time to sell.  Take around $20m into manage funds and try and grow by 7% p.a over the next 10 years while pocketing dividend income.  The right move.

[Demons1858 1,760]

25 minutes ago, Canplay said:

Good time to sell.  Take around $20m into manage funds and try and grow by 7% p.a over the next 10 years while pocketing dividend income.  The right move.

Not sure that's what will be done with it entirely ... think it's more about funding the new home base and ground resizing ... will eventually generate ca$h in the form of naming rights and social events etc ...

Anyone know how much the pies get per annum for the Holden Centre

Edited June 28, 2021 by Demons1858

[praha 11,240]

Surely aligns with plans on a home base. Something must be in the pipeline.

[RalphiusMaximus 6,054]

Great move.  Not only in dropping a large chunk of cash into the club for the "future fund," but getting rid of the gambling revenue.  Being pokie-free is a good look for the club. 

[Dingo 1,062]

1 hour ago, Travis Boots said:

Looks to be approx 14 full sized blocks. 20m give or take

I say 10 blocks.I had a look earlier in the year when annual report valued it as $ 23 m. Might be over the top . I used to live in Bentleigh for about 28 years.

 

[daisycutter 29,616]

2 minutes ago, Dingo said:

I say 10 blocks.I had a look earlier in the year when annual report valued it as $ 23 m. Might be over the top . I used to live in Bentleigh for about 28 years.

 

well i'll toss in for 12 blocks. if you look over the road at yawla st it lines up exactly with 6 block frontages

now of course it all depends how one defines a block. Is it the traditional 700m2 block or the latest trendy 300m2 if you're lucky block

i also have no idea what size those current blocks on yawla st are

any other takers?

[Bitter but optimistic 22,241]

27 minutes ago, daisycutter said:

well i'll toss in for 12 blocks. if you look over the road at yawla st it lines up exactly with 6 block frontages

now of course it all depends how one defines a block. Is it the traditional 700m2 block or the latest trendy 300m2 if you're lucky block

i also have no idea what size those current blocks on yawla st are

any other takers?

Perhaps you could sell the trillion dollar estate in Borewood dc and move in.

Plenty of bluerinsers in Bentleigh I'd reckon.

[daisycutter 29,616]

10 minutes ago, Bitter but optimistic said:

Perhaps you could sell the trillion dollar estate in Borewood dc and move in.

Plenty of bluerinsers in Bentleigh I'd reckon.

no hurry yet, uncle. there has lately been a large influx of oriental bluerinsers in burwood which is proving a delightful and rewarding challenge.

i'm sure you can appreciate my reluctance to move on at this time

[Jaded No More 68,965]

A good time to sell as well given the utter insanity of the housing market in Melbourne. They will more than likely sell it to a big developer who will build a tonne of townhouses. Absolutely no chance anyone is getting 700sqm land sizes in Bentleigh anymore. 
My husband works with volume high end custom builders and even they rarely do knock down rebuilds on full blocks of lands anymore (talking inner suburbs). Maybe one in 20 maintain their original block size. The rest subdivide and build 2 on a block. Sometimes 3. And their building costs start at $1mil. So you’re not exactly dealing with paupers. 
 

Edited June 28, 2021 by Jaded

[daisycutter 29,616]

1 hour ago, daisycutter said:

well i'll toss in for 12 blocks. if you look over the road at yawla st it lines up exactly with 6 block frontages

now of course it all depends how one defines a block. Is it the traditional 700m2 block or the latest trendy 300m2 if you're lucky block

i also have no idea what size those current blocks on yawla st are

any other takers?

i take back the 12 and now make it 14,  as travis said

google maps shows 12 block equivalent plus 2 adjacent normal size blocks

but when you look at the satellite picture those 2 blocks are now part of the bentleigh club car park

[Mincho Mania 530]

shame the club can't do the re development themselves, then we're talking big bucks

[Travis Boots 157]

3 hours ago, Jaded said:

A good time to sell as well given the utter insanity of the housing market in Melbourne. They will more than likely sell it to a big developer who will build a tonne of townhouses. Absolutely no chance anyone is getting 700sqm land sizes in Bentleigh anymore. 
My husband works with volume high end custom builders and even they rarely do knock down rebuilds on full blocks of lands anymore (talking inner suburbs). Maybe one in 20 maintain their original block size. The rest subdivide and build 2 on a block. Sometimes 3. And their building costs start at $1mil. So you’re not exactly dealing with paupers. 
 

I dont believe we’re married?

Yes, these would likely end up being side by sides. Council might really put its foot down on each one having a double garage given the impact 24-28 new townhouses would have in the surrounding streets which would make things interesting. 
 

id hate to think what the contribution levies  and all other service costs would be for that many. Glen Eira prob isnt too bad, ive heard some eye opening costs in Whitehorse etc and that was for 3 on a block (over 30k just for water contibution levy ?)

[Adam The God 30,271]

4 hours ago, Jaded said:

A good time to sell as well given the utter insanity of the housing market in Melbourne. They will more than likely sell it to a big developer who will build a tonne of townhouses. Absolutely no chance anyone is getting 700sqm land sizes in Bentleigh anymore. 
My husband works with volume high end custom builders and even they rarely do knock down rebuilds on full blocks of lands anymore (talking inner suburbs). Maybe one in 20 maintain their original block size. The rest subdivide and build 2 on a block. Sometimes 3. And their building costs start at $1mil. So you’re not exactly dealing with paupers. 
 

More like it'll be bought by ALH Group. They seem to own every pub in the land these days, which is good, because their menu is a classic and I find myself at one of their pubs at least once or twice a week.

[Wrecker46 2,986]

A female president and no gaming revenue strikes a chord with a very left leaning state Government who ultimately decide our home base fate.

Kate is extremely competent I'm not suggesting she is president on anything other than merit but optics are important for state Government funding.

[Uncle Fester 2,848]

Can I have 5% for being long suffering?

[durango 2,008]

The big selling point is this area is a catchment for McKinnon Secondary College which is one of the elite State School. 

[Adam The God 30,271]

1 hour ago, durango said:

The big selling point is this area is a catchment for McKinnon Secondary College which is one of the elite State School. 

As an East Bentleigh boy, not sure the Bentleigh Club is in the McKinnon zone. It's more likely to be in the Bentleigh Secondary College zone.

[Sydee 4,446]

14 hours ago, Mickey said:

Having explored all options it was clear that the best outcome for Melbourne’s long-term financial viability was to sell the Bentleigh Club. The proceeds of the sale will allow the club to establish a future fund, which will secure the long-term future of Melbourne and replace the income currently generated by gaming.

 

Financially, we are in the strongest position we have ever been in our long history as a club and this is a crucial step in solidifying this financial security, without the need for support from gaming related venues.

 

The decisions to sell the Leighoak in 2018, and now Bentleigh Club, have been based on securing the best long-term financial outcomes for the club, but it is also pleasing that this has completely removed the club’s reliance on gaming related income.

Seems we didn't like the gaming side of this - not sure who actually drafted the letter but those 3 paragraphs could easily be converted to one - about as efficient as our forward 50 entries atm ?

Credit to them for keeping the communication going though 

[tincan 167]

14 hours ago, Mickey said:

As part of the agreement to take over operations, we agreed to repay the Bentleigh Club’s then debt of 3 million dollars and committed to investing in the operations of the venue to return the club to profitability, while maintaining Bentleigh Club member entitlements. We agreed to operate the venue until at least August 2022. 

Does anyone else feel like we've totally screwed over the BC members? Sounds like we came in as the white night to save their club for next to nothing and now we're selling it on them for a massive profit, literally at the first chance we can (once the contract expires).

Edited June 28, 2021 by tincan

[Little Richard 6,264]

Very happy to not be reliant on the proceeds of gambling. Fingers crossed there is something big in the pipeline re home base.

[La Dee-vina Comedia 16,811]

13 hours ago, RalphiusMaximus said:

Great move.  Not only in dropping a large chunk of cash into the club for the "future fund," but getting rid of the gambling revenue.  Being pokie-free is a good look for the club. 

Bit of subtle but nevertheless mixed messaging in Pert's note. He says (paraphrasing) that it's both good that we're getting out of gaming and good when Jim Stynes and Don McLardy got us into gaming.

While a "Future Fund" sounds good, I'm interested in knowing what this actually means given interest rates are essentially zero. Investing in equities? Other real estate? (I'm not being critical, by the way. Just curious.)