News: ATO raises Delmege solvency concerns

[Matabele]

<p><strong><strong>Manly co-owner Max Delmege has been taken to court by the Australian Tax Office for failing to pay a $220,000 bill.</strong></strong></p>

<a href="http://www.silvertails.net/news/3910-ato-raises-delmege-solvency-concerns.html">Read the full article</a>

 

[Matabele]

So if we have Mayer sacked and lose $5m worth of sponsorship, from where does Delmege get the money to pay staff and player wages when the ATO nearly wound him up and, by his own admission, he has cash flow problems?

 

[missing_something]

He should take Penn's offer and concentrate on resurrecting his business, but he comes off as a guy with a large ego that would rather run both into the ground than to be seen to be taking a backward step.

He wanted to sell the club back to the fans at some point - I'd like to see him do that now.

 

[SeaEagleRock8]

Maybe Delmege's tactics have simply all been aimed at forcing Penn to buy him out at a price Delmege wants rather than what his share is actually worth. I can't think of what else makes sense.

 

[missing_something]

The big problem with that is he can't or seems unwilling to separate what he's put into Manly as sponsor and what he's put in as an owner.

 

[Fluffy]

he paid substantially more than penn for his 40%, about an extra million from memory

 

[byso]

http://www.foxsports.com.au/story/0,8659,25134993-23214,00.html

This article has been dredged up from 4th march 2009.

What games are you playing Mata?

 

[Matabele]

No games.  There has been a lot of discussion of Delmege's solvency.  This article would indicate there is substance to it. 

 

[Cameron]

he paid substantially more than penn for his 40%, about an extra million from memory

good point fluffy
but whose fault is that.

bob rielly said the same thing to me on the phone and i replied you guys (the footy club) were the vendors why didnt you sell the shares for more

 

[Matabele]

When the shares were sold to Penn, Delmege was majority shareholder.  If he didn't like the price he didn't have to sell. 

 

[reyam]

How in hell can sponsors dictate who the is chief executive,if mayer goes that has nothing to do with the sponsors.I think we would be better off if both delmege and mayer both go they are both in it for themselves and not the good of the club

 

[gomanly]

Mayer has been a rock, he has delivered and will continue to do so. He has the support of staff, players and sponsors why cant we build around that. Fucck off Max.

 

[Matabele]

[quote author=Fluffy link=topic=180479.msg224258#msg224258 date=1243125620]
he paid substantially more than penn for his 40%, about an extra million from memory

good point fluffy
but whose fault is that.

bob rielly said the same thing to me on the phone and i replied you guys (the footy club) were the vendors why didnt you sell the shares for more

[/quote]

What are we now to make of Rielly's letter alleging the Central Coast conspiracy.  Given his two lackeys have voted to take 4 further games there.

 

[manlyone]

A few comments -:
1. whatever your intention the article was posted as if it is current news, as if something has happened recently to indicate solvency issues for Max ... it is misrepresentation at best
2. if our sponsors can simply walk away because they don't like our CEO then I'd be asking who is responsible for issuing such a contract? What other contracts has the club entered into that can be terminated if certain personnell are no longer around?
3. as a member - when do we get canvassed on our opinion on such a big topic?
4. Clearly the joint ownership thing isn't working - lets hope someone allows the other to buy them out. Unfortunately, I don't think egos/love of the club will allow that to happen

 

[Berkeley_Eagle]

He paid the tax debt as far I remember

 

[Matabele]

What is pertinent is two instances of not paying bills until the final options are on the table.  Economic downturns are never kind to property developers, and where there is smoke ...........

And the reason for the comment is that Delmege is the one who put Mayer's job back on the line on Friday, for whatever reason.  Manly fans should start wondering who is in a better financial position to guarantee the club's future.

 

[manlyone]

The risk factor in general for a property investor no doubt rises in a recession but that doesn't mean Delemege (or anyother property developer) is necessarily in trouble.

The ATO going to the court to have Delemege wound up sounds dramatic but it is their (and any reasonably sized business) standard course of action for any slow payer. Why he hadn't paid I don't know (it is strange) but in fairness he may have been considering contesting a matter, he may have been waiting for term deposits to mature?

There are a huge number of variables in determining whether or not Delemege is struggling. What are his debt levels, what terms do the debts have, what is the quality of his assets, how are those assets financed, what reserves does he have etc etc ? We know none of this.

Delemege may well be struggling - I have no idea - but just because he is a property developer & the ATO took him to court 6 months ago (for a debt promptly settled) doesn't mean he is in trouble.

I still consider your posting of that article misleading at best .... I would also be interested in knowing who Penn Health are?