Bentleigh Club … going, going, gone

[Lucifers Hero 36,983]

8 hours ago, A F said:

Had the place had a building permit, we'd have got a lot more from this, likely north of 30 mill.

But if the club is happy, I'm happy. 

They also need a planning permit.  That could take years. 

As you are aware it is smack bang in the middle of a low rise residential area with mainly houses on medium to large blocks of land.  I suspect the locals will want to keep it that way.  With it being on a corner with three street frontages the locals will probably want a park with community facilities.

The club has sold in a peak market.  Good time to cash in and let someone else take on the locals and the bureaucracies.

Edited September 16, 2021 by Lucifer's Hero

[Elwood 3184 1,263]

57 minutes ago, COVID Dan said:

Can @Demonland start a poll with what to do with the money?

One of the options has to be monorail.

There used to be a monorail on the Gold Coast from Jupiter’s Casino across the highway to the shopping centre at Broadbeach. Last time we went there, it was gone.

[Binmans PA 25,894]

1 hour ago, Lucifer's Hero said:

They also need a planning permit.  That could take years. 

As you are aware it is smack bang in the middle of a low rise residential area with mainly houses on medium to large blocks of land.  I suspect the locals will want to keep it that way.  With it being on a corner with three street frontages the locals will probably want a park with community facilities.

The club has sold in a peak market.  Good time to cash in and let someone else take on the locals and the bureaucracies.

Very good call mate.

[Supreme_Demon 3,009]

In some ways this is an end of an era and a little sad, it was certainly nice for the Melbourne Football Club to own pubs/clubs.

I have been to both the Bentleigh Club and the Leighoak in the past, but I understand that this was a prime opportunity to get into a strong financial position.

Setting up a "future fund" is crucial for the long term survival of the Melbourne Football Club.

Let's hope we can now focus on striving to win Premierships and getting our training and administration base built near Gosch's Paddock.

 

 

 

[Wizard of Koz 949]

We should put 30 mill on the Dees to win next week. 

[dice 566]

33 minutes ago, Wizard of Koz said:

We should put 30 mill on the Dees to win next week. 

Or all on RED!

[Guest]

17 hours ago, COVID Dan said:

I think investing in pumpkins is the way to go. Their stock price usually go up all through the month of October, and I think they’ll peak about January.

And BAM! That’s when we cash in!

[Red and Blue realist 2,026]

So in 2019 (pre-covid) the club made around $4.5mil in revenue with $3mil in expenses, so that'll be roughly (not taking into consideration other items such as depreciation etc.) a $1.5mil loss in revenue that the $24mil will have to cover, which of course it would have lost anyway not renewing the gaming machines.  I think the board has done very well here.

[Wizard of Koz 949]

18 hours ago, daisycutter said:

just glad he didn't invest it into a diamond mine 😂

I liked Joe and he really did so much for the club in its time of need. The racial vilification he received at the time from all and sundry including those within the club was vile (especially during the merger scam) and would not have been possible in todays world - Thankfully.

I saw Bill Guest on 360. If I remember correctly he bought up a number of memberships for his staff to pass on proxies to vote pro merger. Such was the elitist goons running the joint at the time. What a crock of [censored] .

Thanks Joe, for all of your short comings you are a real Demon legend. Would like to see him get some recognition somewhere if we bring home the big one. 

I was at Dallas Brooks Hall that night and it certainly was never a pro merger vibe. I am so proud of where we are at now. A real club with real values and hopefully a 13th cup. 

[george_on_the_outer 6,944]

36 minutes ago, Red and Blue realist said:

So in 2019 (pre-covid) the club made around $4.5mil in revenue with $3mil in expenses, so that'll be roughly (not taking into consideration other items such as depreciation etc.) a $1.5mil loss in revenue that the $24mil will have to cover, which of course it would have lost anyway not renewing the gaming machines.  I think the board has done very well here.

And that is the challenge.  A 6% return is required to just hold us in the same position as we were with the gaming venues.  Or in simple terms a dividend equivalent to 6%.  Capital gains doesn't put food on the table, which is what the club needs....just to stay where we are at the moment.

A mighty big ask over the long term. 

Edited September 17, 2021 by george_on_the_outer

[Red and Blue realist 2,026]

2 hours ago, george_on_the_outer said:

And that is the challenge.  A 6% return is required to just hold us in the same position as we were with the gaming venues.  Or in simple terms a dividend equivalent to 6%.  Capital gains doesn't put food on the table, which is what the club needs....just to stay where we are at the moment.

A mighty big ask over the long term. 

Yes, but then they were going to lose the majority of the income anyway, I suspect the Bentleigh club might have run at a loss without pokie revenue, together with cashing in at a point where the property market seems to have peaked, makes it a great decision. The board will have to invest well, but given the lack of CGT issues, they can take a lot more liberties with capital gains than in a normal company or individuals. I also suspect with the season we're having, that revenues will naturally be up (covid pending), which might mean the reliance on needing to use the income from these investments isn't as great.

[george_on_the_outer 6,944]

5 hours ago, Red and Blue realist said:

Yes, but then they were going to lose the majority of the income anyway, I suspect the Bentleigh club might have run at a loss without pokie revenue, together with cashing in at a point where the property market seems to have peaked, makes it a great decision. The board will have to invest well, but given the lack of CGT issues, they can take a lot more liberties with capital gains than in a normal company or individuals. I also suspect with the season we're having, that revenues will naturally be up (covid pending), which might mean the reliance on needing to use the income from these investments isn't as great.

Not talking about capital gains tax. Talking only about capital gains. You can only crystallise those if you sell. Otherwise they provide no cash, unlike the pokies.(Not in favour of them)
we forewent renewing the pokies licence at Bentleigh club from August 2022. We lose the $1m +per year of profit. That is what we have to replace just to stay where we are today.

The problem is how do you generate the same level of return without substantial risk.

[dice 566]

18 hours ago, Wizard of Koz said:

I saw Bill Guest on 360. If I remember correctly he bought up a number of memberships for his staff to pass on proxies to vote pro merger. Such was the elitist goons running the joint at the time. What a crock of [censored] .

Yes, snake:

"Melbourne marketing manager and furniture retailer Bill Guest acknowledged at the weekend that up to 60 of his staff had submitted proxy votes supporting the merger"

https://www.theage.com.au/sport/afl/from-the-archives-1996-rival-factions-clash-over-demons-hawks-merger-20190913-p52r1o.html

[DubDee 20,342]

So much money and tax talk

i think we can all agree the monorail is the best investment 

[Lucifers Hero 36,983]

I would think a chunk of the proceeds will go into our new facility.

On a financial note, I'm optimistic about our operating profit/loss this year.  It was mooted no QB and no Alice cost us $1.5m.  We will recoup a fair chunk of it from:

• increased merchandising
• increased i/state memberships
• sponsor's bonuses for finals games
• AFL prize money.  In 2019 premiers received $1.2m and runners up $0.660m.  This was cut back last year due covid $ impact but don't have figures for what it was.  Hopefully, having finals well attended will replenish the AFL coffers a bit.

While it would have been great to have both the $1.5m and the finals 'windfall' at least our bottom line won't take a big hit this year.

The 'windfall' could continue into next year with increased memberships, gate takings and another solid finals campaign.  Hopefully,  they can offset the lost pokies revenue until we can productively invest the Bentleigh proceeds.  

Edited September 17, 2021 by Lucifer's Hero

[Sir Why You Little 34,409]

43 minutes ago, dice said:

Yes, snake:

"Melbourne marketing manager and furniture retailer Bill Guest acknowledged at the weekend that up to 60 of his staff had submitted proxy votes supporting the merger"

https://www.theage.com.au/sport/afl/from-the-archives-1996-rival-factions-clash-over-demons-hawks-merger-20190913-p52r1o.html

Don’t make me angry 😡 this week!!

[Bitter but optimistic 21,165]

5 minutes ago, Sir Why You Little said:

Don’t make me angry 😡 this week!!

You’ll be chewing those Stuyvos SWYL !!!

 

 

 

[dpositive 1,547]

It seems a good strategy outlined and actioned.

Reap benefit from inflated real estate return, wean off pokies earnings. Invest capital and spend returns leaving capital base.

Remember to thank Joe Gutnick for this genorous option.

Worried that AFL will see this club capital as a reason to decrease investment in our club and divert funds to less successful clubs.

would like to see some consideration of capital returns on investment in entertainment facility in Fishermans Bend, including training grounds, gyms, club social area etc. A  god plan would decrease poperating costs while enhancing the capital investment.

[Allus Monk 568]

On 9/17/2021 at 8:25 AM, Elwood 3184 said:

There used to be a monorail on the Gold Coast from Jupiter’s Casino across the highway to the shopping centre at Broadbeach. Last time we went there, it was gone.

It also hasn’t been called Jupiter’s since long before the monorail went 😉

[Dingo 754]

I thought the club got $5 million from the pokies?

Where will the $23 million be invested to make $5 million a year?

 

 

[Red and Blue realist 2,026]

On 9/17/2021 at 10:59 PM, george_on_the_outer said:

Not talking about capital gains tax. Talking only about capital gains. You can only crystallise those if you sell. Otherwise they provide no cash, unlike the pokies.(Not in favour of them)
we forewent renewing the pokies licence at Bentleigh club from August 2022. We lose the $1m +per year of profit. That is what we have to replace just to stay where we are today.

The problem is how do you generate the same level of return without substantial risk.

The good thing about being capital gains tax exempt is that they have the ability to release those gains more freely than those that have tax considerations, so there can be a move to view take gains and use them more often than individuals might. It doesn't replace direct cash flow, but done properly could help replace lost revenue. It will be interesting to see if they ever release the investment strategy they take with the 'future fund', and what they want it to do, cause I agree generating the same level of income return will be very hard.

 

On 9/18/2021 at 11:04 AM, Dingo said:

I thought the club got $5 million from the pokies?

Where will the $23 million be invested to make $5 million a year?

 

 

There's a difference between revenue and profit, in 2019 the pokies had rough revenue of $4.5mil but costs of $3mil. Still $1.5mil from $23mil is around a 6.5% return. 

[Sir Why You Little 34,409]

On 9/18/2021 at 9:42 AM, Bitter but optimistic said:

You’ll be chewing those Stuyvos SWYL !!!

 

 

 

Saturday mate

[Half forward flank 1,022]

New owner got a bargain. At 2 million a block for minimum, 3/4 acre blocks of land. I walked the Bentleigh Club a few days ago. Completely run down on the outside as well as second rate inside. It had potential to make a lot more revenue than it ever did. I am against pokies but less so in affluent bayside where the punters were mostly locals with a few bob to spare. Is it a good sale. Yes/No. I think it depends on how we spend and invest the proceeds.

[deelusions from afar 1,608]

I'm glad to hear our club is getting out of the pokies - although the real problem going forward in terms of gambling is online / apps which AFL HQ is probably turning a blind eye to at the moment as it would be pumping so much $$ into the sport.

The cynic in me wonders why this announcement comes in the lead up to the grand final - has this not gone as well as we would like?  Why waste a great PR opportunity when it will be lost in the GF shenanigans?  Or is it just a case of the contracts being signed and its just a coincidence that its right on the eve of our grand final?

[daisycutter 28,456]

12 minutes ago, Half forward flank said:

New owner got a bargain. At 2 million a block for minimum, 3/4 acre blocks of land. I walked the Bentleigh Club a few days ago. Completely run down on the outside as well as second rate inside. It had potential to make a lot more revenue than it ever did. I am against pokies but less so in affluent bayside where the punters were mostly locals with a few bob to spare. Is it a good sale. Yes/No. I think it depends on how we spend and invest the proceeds.

think your maths are a liitle bit out there, hff

the site is the equivalent of 18 adjacent block sizes, given a value each of around 1.25m

these adjacent block sizes all seem to be less than an 1/4 acre in size......more like 1/5 of an acre

Edited September 20, 2021 by daisycutter