Melbourne to sell the Bentleigh Club

[Bitter but optimistic 22,218]

12 hours ago, daisycutter said:

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

“Go early go hard” !

[george_on_the_outer 7,546]

4 minutes ago, La Dee-vina Comedia said:

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.)

Likewise have a good degree of scepticism. 

"Future fund " sounds great but it has to earn a bucketload of money to cover the $2M per year that gaming produces for this club. At $200 per membership we would need another 10K members permanently, just to stay where we are financially. 

And if the money is spent on a Training base, then there is no Future fund left. 

[IWAP 170]

I really hope they use the money wisely. The sale of our other asset (Leighoak) was just used to cover our debt from recent seasons (not that we could have foreseen the pandemic).

[Lord Nev 13,512]

17 minutes ago, La Dee-vina Comedia said:

Other real estate?

Apparently this is what's being talked about atm. Don't know any detail though.

[kallangurdemon 551]

Not as enthusiastic as some about the sale .It was part of Joe Gutnicks presidency philosophy that we have a consistent and  continuous income stream .Now that both Leighoak and Bentleigh club are gone we will be back to a year to year financial model .Hopefully we wont return to save the Demons days .

[Vitamin Dee 863]

Assuming I have this correct, the entire site is over 10,000m2.

The block sizes sitting between Huntley Road and Yawla St fall between an average of 550m2 - 580m2 

[Tricky 341]

1 hour ago, La Dee-vina Comedia said:

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.)

Yeah would be great to know what they are planning - i doubt they will parking it in a savings account with 0% interest rate so don't think we need to worry about that ;) 

1 hour ago, george_on_the_outer said:

Likewise have a good degree of scepticism. 

"Future fund " sounds great but it has to earn a bucketload of money to cover the $2M per year that gaming produces for this club. At $200 per membership we would need another 10K members permanently, just to stay where we are financially. 

And if the money is spent on a Training base, then there is no Future fund left. 

I hear you - but 2M is 10% of the sale so some savvy investing should make that possible without relying on memberships.

IMO "Gaming" is a blight on sport & society in general - so I'm all for this. I do agree that it will take some good management (& ironically maybe some amount of luck) to transition. 

  

[one_demon 826]

Won't some of that be used to pay off the debt we'll most likely accumulate this year?

[george_on_the_outer 7,546]

38 minutes ago, Tricky said:

Yeah would be great to know what they are planning - i doubt they will parking it in a savings account with 0% interest rate so don't think we need to worry about that ;) 

I hear you - but 2M is 10% of the sale so some savvy investing should make that possible without relying on memberships.

IMO "Gaming" is a blight on sport & society in general - so I'm all for this. I do agree that it will take some good management (& ironically maybe some amount of luck) to transition. 

  

Trouble is if the proceeds are $20M then we need a 10% return every year ad infinitum just to break even with what gaming produces today. No "savvy" investing will produce that without high risk.

The only positive that may be from this outcome, is that the State Government has linked a "project financing" for the training base to the removal of gaming. 

[La Dee-vina Comedia 16,665]

2 hours ago, george_on_the_outer said:

Likewise have a good degree of scepticism. 

"Future fund " sounds great but it has to earn a bucketload of money to cover the $2M per year that gaming produces for this club. At $200 per membership we would need another 10K members permanently, just to stay where we are financially. 

And if the money is spent on a Training base, then there is no Future fund left. 

Actually, I was only curious, not sceptical.

Until I read your post and now I'm sceptical as well as curious!

[Tricky 341]

30 minutes ago, george_on_the_outer said:

Trouble is if the proceeds are $20M then we need a 10% return every year ad infinitum just to break even with what gaming produces today. No "savvy" investing will produce that without high risk.

The only positive that may be from this outcome, is that the State Government has linked a "project financing" for the training base to the removal of gaming. 

I would hope they have done the numbers and are not relying Crypto! Guess we'll see. We aren't the first club to have gone this route....