DirtyDees DDC

We now have our new training facilities at AAMI stadium; we have our summer base at Casey; and we have an estimated $2 million profit for this year. The next stage seems to be the redevelopment of the Bentleigh and Leighoak clubs. I wonder if this includes a relocation to Casey - one of the fastest growing areas in Melbourne.

Yes it costs a packet to fit out a new gaming club. The worry is if turns into another Collingwood hotels fiasco. Hope we get this right.

The Board of the Bentleigh Club has received a proposal from the Melbourne Football Club for the Bentleigh Club to merge into its operation with the MFC. Reasons include the Bentleigh Club’s spiralling downward profitability trend, the challenging post 2012 new gaming regulations and the future capital expenditure projections required to maintain an attractive and viable venue. The proposals include relocating to an alternative commercially viable location, in close proximity to the existing site, but in any case remaining at Yawla St until at least until 30 June 2012. Key issues include: · The substantial profitability decline of the Bentleigh club, over the past 5 years · The ongoing and increasing reliance of gaming to fund our existing operations, and facilities. · The ongoing reliance on The Melbourne Football Club for survival · An ageing venue that will require extensive capital expenditure, to meet regulatory requirements, and to try to maintain an attractive and competitive venue. · The uncertainty but inevitability of ongoing and substantial changes in regulations and taxes of clubs and gaming venues in the future. · The certainty of an even greater substantial investment in other venues, which will create even more competition and pressure on our finances. (This has already begun with the upgrade to the Bentleigh RSL, and will escalate as 2012 approaches) and · The ongoing difficulty and inability to attract new and young membership numbers. The board approached many consultants who have all come to the conclusion that the current location is a significant impediment to its commercial success. The Board has reviewed the proposal in detail is giving an ‘In Principal’ recommendation to further investigate the proposal. This proposal can be found and downloaded from the Bentleigh Club website front page from Friday 23 July after 12 noon, at www.thebentleighclub.com.au Be interesting to see the affect of this merger proposal on the MFC's bottom line in 2012 and beyond.