HappilyManly
Journey Man
http://www.dailytelegraph.com.au/sport/nrl/promises-come-to-nought-as-souths-leagues-shuts-with-debts-of-55m/story-e6frexqr-1226605802512
Promises come to nought as Souths Leagues shuts with debts of $5.5m
Paul Kent
The Daily Telegraph
March 26, 2013 12:00AM
Peter Holmes a Court. Picture: Alan Pryke Source: The Daily Telegraph
THE South Sydney flyer was full of wonderful intent.
When Peter Holmes a Court and Russell Crowe made their bid to buy the building that housed South Sydney Leagues Club they issued a flyer promising to spend $3 million developing the new Leagues Club premises on level three.
They promised the football club would give the Leagues Club 100 per cent ownership of the top floor, worth $8 million.
They promised the struggling club would be debt free, with cash reserves of $4.5 million. They promised it would be operational within 18 months. Promised a Rabbitohs Hall of Fame.
And South Sydney fans, tired of never being competitive, bought it.
Yesterday afternoon, South Sydney Leagues Club called last drinks.
Instead of cash reserves of $4.5 million, as promised, the club has debts of more than $5.5 million and, after being in voluntary administration for three weeks, administrators called staff in yesterday to tell them they were jobless.
At 3.30pm, the Leagues Club that was once home to the Pride of the League closed its doors for the last time.
"Unfortunately, it's a sign of the times," Rabbitohs chief executive Shane Richardson said. Still shell-shocked, Leagues Club CEO Liam Rogers preferred not to comment.
Rogers was lured from his previous job to run the Leagues Club on January 14 and was given no clue as to its financial state until he started.
Now he is jobless, as are dozens of others.
The football club (75 per cent of which is owned by Crowe and Holmes a Court, the remaining 25 per cent by football club members) has distanced itself from the club's failings, pointing to the developer (and football club's equal partner) High Concept going into receivership last year.
In a statement from Leagues Club's lawyers, Gells Lawyers, on February 22, 2007, the Leagues Club was advised there was: "A guarantee from the football club of the developers' obligations under the deed."
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Almost the same scenario as Manly Leagues.
The Club's reconfiguration has turned it into a mausoleum and they still have $6 million in debts:-/
Promises come to nought as Souths Leagues shuts with debts of $5.5m
Paul Kent
The Daily Telegraph
March 26, 2013 12:00AM
Peter Holmes a Court. Picture: Alan Pryke Source: The Daily Telegraph
THE South Sydney flyer was full of wonderful intent.
When Peter Holmes a Court and Russell Crowe made their bid to buy the building that housed South Sydney Leagues Club they issued a flyer promising to spend $3 million developing the new Leagues Club premises on level three.
They promised the football club would give the Leagues Club 100 per cent ownership of the top floor, worth $8 million.
They promised the struggling club would be debt free, with cash reserves of $4.5 million. They promised it would be operational within 18 months. Promised a Rabbitohs Hall of Fame.
And South Sydney fans, tired of never being competitive, bought it.
Yesterday afternoon, South Sydney Leagues Club called last drinks.
Instead of cash reserves of $4.5 million, as promised, the club has debts of more than $5.5 million and, after being in voluntary administration for three weeks, administrators called staff in yesterday to tell them they were jobless.
At 3.30pm, the Leagues Club that was once home to the Pride of the League closed its doors for the last time.
"Unfortunately, it's a sign of the times," Rabbitohs chief executive Shane Richardson said. Still shell-shocked, Leagues Club CEO Liam Rogers preferred not to comment.
Rogers was lured from his previous job to run the Leagues Club on January 14 and was given no clue as to its financial state until he started.
Now he is jobless, as are dozens of others.
The football club (75 per cent of which is owned by Crowe and Holmes a Court, the remaining 25 per cent by football club members) has distanced itself from the club's failings, pointing to the developer (and football club's equal partner) High Concept going into receivership last year.
In a statement from Leagues Club's lawyers, Gells Lawyers, on February 22, 2007, the Leagues Club was advised there was: "A guarantee from the football club of the developers' obligations under the deed."
-------------------------------------------------------------
Almost the same scenario as Manly Leagues.
The Club's reconfiguration has turned it into a mausoleum and they still have $6 million in debts:-/