Saved ??

[on the rails]

This deal suck and all I can see it doing is allowing us to survive and bringing the Merger back up in the next few years. Of course if we have to sell the hotel this is the way to do it but I can't see it being help to us.

You could well be right and it appears that the Power got what they wanted along re the Merger proposal - the POW and at no cost (so it appears) or on a better commercial deal with Pickard coming on board because long term they the Power and they alone will reap the profits from the Gaming if they can get that up and running to the max but they will have to also spend on it to improve it and that won't be cheap either but maybe that is part of the better commercial deal they will get re paying back Pickard rather than a normal finance lender?

After the Magpies clear current debts and cover normal running costs for this season and most likely 2011 will they have enough to go and purchase or borrow against to get another Hotel / Tavern lease to ensure they have a viable future income stream? If they do isn't this the same as they did in 2006 when they purchased the POW and look what they did to their bottom line.

You could be proven correct Lynwood - assuming of course that the Pickard deal as is being reported this morning?

[HeartBeatsTrue]

The only club that has benefited from this is the power.
How is this good for the magpies?
The magpies can sell the pow to anyone and their position would be no different.

Lynwood, the merger will not come up again in a few years as the Magpies will have little or no assets if the pow is sold to the power.

[jamdog]

Who is saved?

Was this not meant to be the Magpies who we were to be saved. (Although both entities need significant help)

It would appear the Power benefit by gaing an asset valued somewhere between 4-5 million. (Hopefully this includes funds for the renovations and modernisation of the factility.) For it to be successfull this is a must.
I assume as there is no mention of it. That all the profits raised in future at the POW will go directly to the Power.

Port Magpies benefit by receiving funds from the sale of the POW. These funds will go towards clearing outstanding creditors. Reports claim to be a surplus of 2 million. (Can some one clarify if the Port magpies own the POW facility outright or do the still have a loan against the Purchase of the POW and how much may be owing. It may be shown in their 2009 Annual Report, if it has been released yet.)

Assuming with the added memberships / merchandise and sponsorship pumped in over the last few days and week to come this may generate an added 100,000 to the coffers.

It is estimated that to run a club per year would be some where between between 1 - 1.5 million. The surplus will last them for 2-4 years with ongoing income per season.

How will they generate extra income, if they do not have the luxury of having a profitable gaming venue on their books.

Whilst this seams a good idea on the surface, it appears that the big winner will be the Power. (making the Power look like they are saving the Magpies). It would be good if more details can come to light on this.

We may be facing the same situation in 2-4 years time. Again it will be the SANFL and the other clubs that will get the blame for the situation caused by any bad dealings that may take place now.

Good luck to the Magpies and their supports. I hope it is the best deal for them.

[devilsadvocate]

Great post jamdog.

I'd like the Pickard deal to be clarified too. I don't think losing the POW is best for the Magpies either.

There was talk last night about it being expanded to be capable of holding 500 for Magpies after match functions and presentations. But the deal seems to be aiming to achieve something different to this.

You're absolutely right though - without a good income generating asset (POKIES!!!!!!!) the Magpies will struggle to fund ongoing seasons.

[JK]

Obviously losing the POW wouldn't be ideal for the Magpies, but it must also be remembered that they were going to be forced to part with it anyway .. At least this way they start with a better base than if they'd sold it privately themselves.

They will need to turn around their questionable financial management so far this millenium and invest in something that provides a decent return pretty quickly.

[Pseudo]

Agreed. It's been a poor reaction.

I'm very happy they've survived, but they haven't done themselves any favours with how they've handled it.

We might have to deservedly award them the frontrunners tag now.

Agree strongly with that. Fostering hatred for the SANFL among the supporters is not going to help them in 3 years' time when they're back on the ropes.

[topsywaldron]

I'm very happy they've survived, but they haven't done themselves any favours with how they've handled it.

Agreed. Given they've been ramming the image of the Magpies and their supporters as heroic defenders of a proud and resilient tradition I'm surprised that when confronted with an actual crisis they responded by metaphorically sucking their thumb and bawling about 140 years of history.

It's certainly going to add some spice to games this year.

[TimmiesChin]

I'm very happy they've survived, but they haven't done themselves any favours with how they've handled it.

Agreed. Given they've been ramming the image of the Magpies and their supporters as heroic defenders of a proud and resilient tradition I'm surprised that when confronted with an actual crisis they responded by metaphorically sucking their thumb and bawling about 140 years of history.

It's certainly going to add some spice to games this year.

What aload of horse shit.

Since the news on tuesday have you seen the reaction of the supporter base.
The club is now pushing 4000 members (probably shot past that now). thats well over 2000 membersin a couple days. Whats the normal membership level for clubs.

10's of thousands of private donations, afull house for a rally.

It may have taken a while for it to sink in that there was serious trouble, but since its hit home the reaction has been as strong as anyone couldask for.

[Ronnie]

I'm very happy they've survived, but they haven't done themselves any favours with how they've handled it.

Agreed. Given they've been ramming the image of the Magpies and their supporters as heroic defenders of a proud and resilient tradition I'm surprised that when confronted with an actual crisis they responded by metaphorically sucking their thumb and bawling about 140 years of history.

It's certainly going to add some spice to games this year.

What aload of horse ****.

Since the news on tuesday have you seen the reaction of the supporter base.
The club is now pushing 4000 members (probably shot past that now). thats well over 2000 membersin a couple days. Whats the normal membership level for clubs.

10's of thousands of private donations, afull house for a rally.

It may have taken a while for it to sink in that there was serious trouble, but since its hit home the reaction has been as strong as anyone couldask for.

The reaction has been excellent, backed up by amazing coverage in the Advertiser.

BUT, i think a fair proportion (certainly not all) have indulged themselves in slandering the rest of the SANFL clubs, the Commission as well, for rejecting the merger proposal, which they all did on business grounds. The boycott proposal is the main example of this. This only further alienates the club from other people who may want to help but are put off by the mentality which is being stirred up beyond what is reasonable.

[sjt]

The only club that has benefited from this is the power.
How is this good for the magpies?
The magpies can sell the pow to anyone and their position would be no different.

Lynwood, the merger will not come up again in a few years as the Magpies will have little or no assets if the pow is sold to the power.

$3million in the Magpies coffer is a pretty good starting point. We've also been continually told they've spent $1 million (received on the Power's AFL entry) on their Ethelton base.
Hopefully with $3 mill they can "buy" a revenue stream, and not stuff it up again and blame everyone else.

[devilsadvocate]

What sort of return can you get from a licensed pub like the POW? 12%, 15%, 20%?
And what is a similar asset going to cost? $5m? $10m?

I would have thought it will be very difficult to just walk up and buy another, similar asset. Even harder will be obtaining finance to fill the gap between what the club puts in and the cost.

I hate to say it, but I think the Magpies have to sacrifice a huge amount of any proposed investment in new players for the current and next season and direct that cash into a new asset.

Having said that, if we have to have 5 or 6 lean years to come out at the other end in a strong off field position, then so be it.

I just hope there is an announcement to clarify this deal and the clubs future plans very soon.

[Slots It Through]

The club has definately not spent any money on new players to the club. Gone are Elstone, Perry, Ahchee, Perkins, Batson, Barham.

That would have to have saved them $80k - $120k.

[TimmiesChin]

I'm very happy they've survived, but they haven't done themselves any favours with how they've handled it.

Agreed. Given they've been ramming the image of the Magpies and their supporters as heroic defenders of a proud and resilient tradition I'm surprised that when confronted with an actual crisis they responded by metaphorically sucking their thumb and bawling about 140 years of history.

It's certainly going to add some spice to games this year.

What aload of horse ****.

Since the news on tuesday have you seen the reaction of the supporter base.
The club is now pushing 4000 members (probably shot past that now). thats well over 2000 membersin a couple days. Whats the normal membership level for clubs.

10's of thousands of private donations, afull house for a rally.

It may have taken a while for it to sink in that there was serious trouble, but since its hit home the reaction has been as strong as anyone couldask for.

The reaction has been excellent, backed up by amazing coverage in the Advertiser.

BUT, i think a fair proportion (certainly not all) have indulged themselves in slandering the rest of the SANFL clubs, the Commission as well, for rejecting the merger proposal, which they all did on business grounds. The boycott proposal is the main example of this. This only further alienates the club from other people who may want to help but are put off by the mentality which is being stirred up beyond what is reasonable.

Surely though, the coverage of the advertiser is only a reflection of the interest in this story in the public (which can be measured by calls to talkback sportsshows ... its all people are talking about).

Leigh Whicker last night on radio when pushed indicated that the reason for rejection wasn't entirely on 'business grounds' related to the viability of the model. I understood the leagues reasoning for a no.... related to who liability the magpies would become if they failed (if the magpies got put under power banner, the SANFL as a consequence would have indirectly become liable).

There have been too many anecdotal accounts of clubs not wanting to look at the proposal for there not to be some truth to it. If this truely was the case, does it suggest anything ?

As for boycotts, if port survives i'd hope no-one boycotts anything ........ all clubs have people with these sorts of attitudes. If port goes under however I could say honestly I would have never been to another SANFL game - not because of any boycott.. but why would I go if I had noone to follow.

[devilsadvocate]

Well said TC!

And agree - if Port did finish up in the SANFL, I'd have been to my last game also.

[Mr Irate]

Has anyone seen any indication from either the SANFL or the AFL that they actually want the Magpies to survive......I haven't, and I don't think they do.....

[PhilH]

What everyone ANTI SANFL has fogotten is that

Late last year, in order to pay their 2009 bills, the Magpies were advanced a significant sum $200K+ from the SANFL not from their 2009 dividend but their 2010 dividend.

Now every so often the SANFL had provided a portion of a dividend in advance
However to my knowledge it has never been for this large an amount and it has been in the same year that the dividend is due not 12 months in advance.

In other words the SANFL have already provided unprecedented financial support to the Magpies to ensure they still existed into 2010.

If the SANFL / clubs / shooter on the grassy knowll / alien from Area 51 wanted the Magpies dead all they had to do was withhold that advance ..... and Magpies would now be officially wound up or would have already sold the pub.

[hereselmo1]

I am confident the deal will involve more than just buying the hotel at market value.

The PAMFC president said last night that if they were to sell the POW it would be to use the equity to buy elsewhere and for PAMFC fans not to worry if they heard about selling the hotel because it was part of a positive bigger picture.

I think you willl find this deal ends up with both clubs significantly better off as Pickard has stated that he wants the Power to save the Maggies and he wants the two clubs to come back together unofficially if not officially.

[JK]

Does anyone know which club Mr Pickard actually barracks for?

[devilsadvocate]

What everyone ANTI SANFL has fogotten is that

Late last year, in order to pay their 2009 bills, the Magpies were advanced a significant sum $200K+ from the SANFL not from their 2009 dividend but their 2010 dividend.

Now every so often the SANFL had provided a portion of a dividend in advance
However to my knowledge it has never been for this large an amount and it has been in the same year that the dividend is due not 12 months in advance.

In other words the SANFL have already provided unprecedented financial support to the Magpies to ensure they still existed into 2010.

If the SANFL / clubs / shooter on the grassy knowll / alien from Area 51 wanted the Magpies dead all they had to do was withhold that advance ..... and Magpies would now be officially wound up or would have already sold the pub.

It's not been forgotten, but....

That advance comes off our 2010 dividend. We just get it a little earlier than everyone else. It's eased cash flow now, which does help, but what happens at the end of the year when it's all spent and there's a huge gap before the 2011 payment?

Obviously that's our problem to sort out and woth some hard work, I'm sure we can. But I don't see the SANFL's advance as some world saving miracle. Sorry mate.

[devilsadvocate]

Does anyone know which club Mr Pickard actually barracks for?

Melbourne Victory now