Taipans on the brink of insolvency

[cantremeber]

This league is in dire trouble.

Surely...if this franchise sinks the community wont put up their hard earned...again.

Interesting they gave away 40% tickets the other night. Yet the crowd appears to have been 4,236. If 40% were give-aways..this means the paying crowd was 2,540. If this represent the "typical" crowd #'s and their running expenses are similar to the Crocs they are WAAAAAYYYYYY below a break-even attendance base.

So one must ask - given their existence appears to be based upon the "groundswell" of the community...where is the community?

Or is it that the "community".... is a hard-core yet smallish fraction that, as a group on its own, can't make a club viable.

I note the Crocs have a 2:1 night this Friday night.

http://www.abc.net.au/local/stories/2009/11/26/2754925.htm

The Cairns Taipans are in financial trouble again less than twelve months after the NBL team was put into voluntary administration.

A Cairns Regional Council report says the club will be operating insolvent in three-and-a-half months if the club continues 'operating or paying for its immediate expenses without any additional cash inflows'.

The club is almost $350,000 over budget and has only recorded a profit in one of the last four months.

[Cussy]

Isn't this what the million dollar surety is for?

[cantremeber]

Isn't this what the million dollar surety is for?

Not exactly sure of the mechanism other than to get in you needed the surety

But whether or not as the granter of the surety you have nay rights to foreclose or precipitate an administrator if, in your belief, there is risk to the surety - I'm not sure. Not privy to the small print.

But it would seem that if the $1million was simply an entry criteria and if its at risk if insolvent trading occurs - one would think that there might be remedies to the stake provider to protect against losses.

Maybe someone closer to the action actually knows

[CGG]

I thought the $1,000,000 was to ensure that players were not left with no income again? So the Taipans could play out the rest of the season if they had to call on that - but it would be basic fulfilment of obligations, not an investment in future profits thing?

[CoachYT]

A Cairns Regional Council report says the club will be operating insolvent in three-and-a-half months if the club continues 'operating or paying for its immediate expenses without any additional cash inflows'.

I'm guessing they've used the 3 and 1/2 months estimate to project out to the end of the home and away season, given that's about then.

Isn't this what the million dollar surety is for?

Yes it is and I suspect this is what the Cairns council is getting excited about. If the Council's forecast show the 'Pans will be insolvent by the end of the season, therefore requiring a drawdown on these funds, it probably indicates that come season end there will be some outstanding expenses such as PAYG and/or GST, player and staff superannuation, and maybe some supplier invoices.

As it is illegal to trade insolvent, unless your names Tim "Firepower" Johnston, the ownership group will call upon the NBL (rather than Bankers or the council) to voluntarily administer them, where the NBL will ask for the funds to be drawn down and pay the bills.

As to the matter of will they be in next years NBL, I'd suggest that the NBL will require Tapians v3.0 to address the shortcomings of this year, something that IMO will not happen because the only answer for a small population (~120k) with a relatively flat economy is to have some big business ownership mixed in with the community owners.

[Tropo]

The big question is if their revenue is 350k under budget or if they have overspent by 350k.
Big difference. One would be concerned if they have overspent.
I am not privvy to their budgetting process but given that they were given an injection of funds at the start of the season/year that could not be counted on to be duplicated they would have done their budget accordingly. If they based their budget around getting another 500k every year or even being able to spend an extra 500k in their first year then surely that is not a sustainable model. There will definately be some dissapointed people in Cairns if this were to occur (me included) strange that the local paper has not picked up the story yet

[curious]

My understanding of the alleged 'debt' isn't as bad a picture as painted.

[cantremeber]

My understanding of the alleged 'debt' isn't as bad a picture as painted.

http://www.khanya.co.za/blogs/images/head_in_sand.jpg

[Twinkletoes]

I doubt the Taipans would have drawn up a budget counting on more money to be injected next season. Both the NBL and the Council looked at their budget and their projections and approved their entry into the league and the $1 million guarantee, respectively.

I also doubt that they have overspent, rather that most of the figure equates to projected revenue not coming in, although some of the figure could be due to some expenses being more than they projected.

The Save the Taipans campaign had $760,000 pledged to it, of which $500,000 was to be used as the compulsory working capital and the remainder was to be used to help the club cover it’s start up and operating expenses.

At last count on the Save the Taipans website only $550,000 of the pledged $760,000 had been paid up. I have no idea if any more was paid but perhaps this is where some of the problem lies.

I’m sure they would have budgeted for better attendances, so there would be a shortfall there also.

The schedule, so far, has done very little to help them get good attendances. The first 3 home games were held in the space of 12 days, which is not conducive to bringing in bumper crowds for all of those games. On top of that, the first two games coincided with the AFL and NRL grand final weekends and the third game was on a Wednesday at 6.30 pm, which is a crowd killer.

Two out of the 4 remaining home games we have had, have also been played on a Wednesday at 6.30 pm. One of those games was against Townsville and drew approx. 3,400 people (which is good for a Wednesday) but it probably would have drawn close to another 1,000 more on a Friday or Saturday night.

The only two games that weren’t affected by the above factors both had best of the season attendances (although we now know the Wollongong game had a lot of complimentary passes helping it achieve that figure).

The Taipans traditionally attract better crowds in the second half of the season and only have one Wednesday game left, so hopefully attendances will improve.

[curious]

Well you may think I am wrong. that's fine.
How in the hell can they be this far in debt in such a short time?
Yes they are in debt.
Why?

Please tell us all.
Stadium hire is less than previous.
Salary far less than the cap.
Please tell us all where exactly you think they have lost the money.
Seeing you think I have my head in the sand. I await your respnse with interest as will the NBL.

[Mr Black]

Well you may think I am wrong. that's fine.


http://www.grandmemories.com/smilies/lex-luthor-wrong.jpg

[isaac]

Please tell us all where exactly you think they have lost the money.
Ticket sales below forecasts?

[curious]

IMO no team should be setting budgets around crowds.
In the current climate that's crazy.
They should be able to set a realistic budget with no crwod guesstimates and anyone that turns uP is a bonus.
If the NBL allows that to occur in their initial projections, then they only have themselves to balme for the current situation.

[Wallitron]

As long as the outgoings are under control, the incomings don't matter? Without selling tickets, how exactly do they recover costs? Just sponsorship?

[SB.1]

Assume no one turns up? You can have a conservative estimate, but I wouldn't imagine any business could operate by budgeting on nobody turning up.

[curious]

So basing a budget on a game that has dramatically changed it playing time, in the current economic circumstanes is responsible?
If you have to base numbers on crowds base it only on break even.
If you over achieve fine.
No biggie, then. Everything over break even is a bonus in your bidget.
Their hiring co$ts are less than ever before.
NO reason IMO that they should be behind in any crowd related budget.

[SB.1]

The problem is I think the break even point is relatively high. Depends what costs you bring in. For example, should you include fixed overheads (like players Salaries)? Or just stadium rent, electricity, game night staff etc. That would mean sponsors would have to carry everything else, which would be a lot of sponsorship dollars (>$1M)?

At least the bank guarantee is there so that in the event of a collapse they can see out the season. The league should be applauded for that.

[scottgcau2]

So what are you saying should be the basis for the budget? Are you saying they should budget for sponsorship alone to cover all personell and administration costs and then the gate covers the costs of actually putting a game on at their home venue? Are there any other revenue streams?

[curious]

The problem is I think the break even point is relatively high. Depends what costs you bring in. For example, should you include fixed overheads (like players Salaries)? Or just stadium rent, electricity, game night staff etc. That would mean sponsors would have to carry everything else, which would be a lot of sponsorship dollars (>$1M)?

At least the bank guarantee is there so that in the event of a collapse they can see out the season. The league should be applauded for that.
Good idea that the bank guarantee is there for sure.
However the 1st team that fails and loses the government $1mill. guarantee will spell a lot more scrutiny for the other teams that have that situation.
The Taipans have openly said thay are well udner the salary cap.
Fixed costs are exactly that. Fixed.
If they haven't got enough sponsors and have projected previous crowd fufures that they used to get when they were spending SHIT loads over the cap in a 48 min game, then they seriously have a problem.

What other costs havent they allowed for?

[Wallitron]

Nobody goes into business with guaranteed costs and earnings. Of course their business plan called for estimate earnings from crowds and sponsorship.

If it was good value for a sponsor to pay all running costs to a club, why wouldn't a advertising agent buy all advertising available and then on sell it? Google could buy it, advertising is already their main business. Crowds are dismal, no ticket sales. Sponsorship return is dismal, not enough value to fund the club. TV coverage is dismal, I can watch NBA games for free on 1HD, no money from Fox to help the league. If your spending is on budget, and you make no money, you are not a business. Nothing has changed, this is the same scenario as every season before this one.

[Twinkletoes]

I have no inside info on this but from what I read at the time the budget was being put together, I got the impression that the figure they were using for the projected crowd numbers was around 3,500.

[cantremeber]

I have no inside info on this but from what I read at the time the budget was being put together, I got the impression that the figure they were using for the projected crowd numbers was around 3,500.

Theres that # again. I've heard form many places that they thought that was also the break even # for the Crocs

Goes to reason - with similar overheads and venues - that a similar # would prevail for Cairns

I take curious' pt about compiling a business plan with as minimum a crowd dependence as one can get by with

But rest assured...I cant see any business plan holding together with NO crowd #'s factored into the revenue.

If 3500 is close to the mark...its not that hard to figure out the shortfall that the game attendances have brought to their business.

AS to where other shortfalls might emerge....

Are all their boxes filled? Did they get the $'s for the ones filled as they projected?

Did the venue costs remain static year on year?

Any changes to the travel costs of the team?

What was the budget allocation for cap? Did they exceed this?

Memorabilia and team logo paraphernalia that is on-sold. Reality meeting projections?

etc....

[TOID]

I have no inside info on this but from what I read at the time the budget was being put together, I got the impression that the figure they were using for the projected crowd numbers was around 3,500.

fiqure is a bit more than that for crocs

[GordonG]

Taipans Media Release
November 27, 2009, 17:47 PM AEST

The Skytrans Cairns Taipans dispute the findings of a Cairns Regional Council report which suggests the club will be trading insolvent within four months.

“A number of Skytrans Cairns Taipans staff and board members have been contacted by local media regarding a leaked confidential document from a closed Cairns Regional Council report,” Taipans president Denis Donaghy said today.

“The Taipans management committee consists of the Mayor and CEO of CRC, however, the Taipans have not received a copy of this report to date. We would expect to discuss CRC recommendations from the closed meeting at the next committee meeting with the Mayor and CEO.”

However, Mr Donaghy said data showed crowds were historically better in the second half of the NBL season, while the club had also been hampered to date by having had three Wednesday night home games, as well as a Saturday home game on the AFL and NRL grand final weekend.

“Our budgets are based on 10-year historical attendance projections,” Mr Donaghy said.

“From these we determined that attendances post-Christmas are much stronger than pre-Christmas, which are also trends across the league.

“Taipans administration adapts to actual performance and a marketing sub-committee meets after each game to review the performance and decide on variations to promotions and advertising for the next game/s.”

Mr Donaghy urged the public to continue supporting the team, but reiterated the club would be doing everything in its power to earn that support.

“It’s no secret we have not been getting the game attendances that we need,” he said.

“We have reacted to that with several different initiatives but the last thing we want to do is start whinging about lack of community support.

“It’s our job to promote the game attandances and diligently apply ourselves to community engagement. We will work on whatever ways we can to earn the support we need right up until the last game of the season, one we hope will be in the finals series.”

Mr Donaghy also disputed an assertion that the Taipans were giving away too many complimentary tickets, saying the club was bound by a commitment to the Queensland Government, and other sponsors, to issues those sponsors with complimentary tickets as part of the sponsorship arrangements.

Media reports today suggested 40 per cent of tickets to the Taipans game against Wollongong in November were complimentary, however Mr Donaghy said this was incorrect.

“The November 6 game against the Wollongong Hawks did not have 40 per cent complimentary tickets.

“We received 20 per cent complimentary child’s ticket off the back of a number of school promotions as part of our communities’ engagement marketing strategy, designed for long-term increment in gate attendances.

“The format for the promotion worked too well, with over 1500 walk-up purchases on the night.”

Mr Donaghy said it was disturbing that details in the report, tabled in a closed council meeting this week, were leaked to the media before the club had the opportunity to address the issues.

“We work closely with our sponsors, with CRC Councilors and officers, with TTNQ and with other bodies such as Queensland Health and the Department of Communities and will continue to do so despite the best efforts of an individual in council who wants to derail the Taipans,” he said.

[paul]

If this is based on a COuncil report you have to realise the 4 months from insolvency is possibly just the opinion of one particular Council officer, and it could be just one option out of a number that are usually presented in a Council report.

Not saying the Taipans dont have some issues, but reading this article and using my knowledge of Council reports, I dont think the team is on the brink of collapse, and it is a good thing that the issues are being addressed early on.

Let's hope they can be sorted, but as someone said earlier, it will always be tough for a small market team when there isnt a big TV deal which gives sponsors national exposure.

[mattic]

This sucks! I don't want to lose any club, but especially the Taipans. Crocs/Taipans games are always a bit special for me.

[crocintaipanterritory]

This sucks! I don't want to lose any club, but especially the Taipans. Crocs/Taipans games are always a bit special for me.

my good friend ! don't panic, good source tells me they alive and kickin !

[Cussy]

http://www.khanya.co.za/blogs/images/head_in_sand.jpg

http://www.tomandang.com/blog/images/headUpArse.jpg

[mball]

my good friend ! don't panic, good source tells me they alive and kickin !

There is another similar article on nbl.com disputing the insolvency article.

Very sad if someone from Council wants to "derail the Taipans".

[cairns]

my good friend ! don't panic, good source tells me they alive and kickin !
Further story in today's Cairns Post disputing insolvency claims (page 5)

[Snapiat]

There is another similar article on nbl.com disputing the insolvency article.

Very sad if someone from Council wants to "derail the Taipans".

Hi all

I think you'll find that someones husband tried but failed to get on the Taipans board.

Just a case of sour grapes.

[2sc945]

My suggestions:

(1) Release imports Julien 'Skip' Mills and Richard Melzer.
(2) Sign Stephen Black (or Scott Cook) and Rowan Gray as replacements.
(3) Release head coach Aaron Fearne.
(4) Promote Mick Downer to Fearne's position.
(5) Relocate the team to Mackay, so the Crocs (North Queensland), Taipans (Central Queensland) and the Blaze (South Queensland) can each cover its own area (about 1/3 of Queensland).
(6) Rename the team Mackay (or Central Queensland) Taipans.
(7) New team slogan: '100% Central Queensland'

Line-up:

Head Coach: Mick Downer

Starters

PG: Stephen Black/Scott Cook
SG: Phill Jones (Captain)
SF: Gary Boodnikoff
PF: Dusty Rychart
C: Ian Crosswhite

Bench

PG: Kerry Williams
SG: Aaron Grabau
SF: Dwayne Vale
PF: Rowan Gray
C: Tony Rampton

Development Players

G: James Comino
F: Michael Chitham

Training Players

G: Deba George
F: Dean Brebner

[angry ant]

Is the depth chart really needed?

[Derek]

(5) Relocate the team to Mackay, so the Crocs (North Queensland), Taipans (Central Queensland) and the Blaze (South Queensland) can each cover its own area (about 1/3 of Queensland).
(6) Rename the team Mackay (or Central Queensland) Taipans.
(7) New team slogan: '100% Central Queensland'

Mackay doesn't have anything LIKE an NBL-level venue- the lowest crowd the Taipans have had this year wouldn't fit into the Mackay Entertainment and Convention Centre.

DN

[isaac]

Obligatory Red Dwarf:The Cat: Why don't we just break out the lasers?
Kryten: An excellent plan, sir, with only two minor drawbacks. One, we don't have a power source for the lasers; and two, we don't have any lasers.

[Derek]

"Now I realize that technically speaking that's only one flaw, but I thought that it was such a big one that it was worth mentioning twice."

DN

[paul]

Well said boys!

[bobo]

Hi all

I think you'll find that someones husband tried but failed to get on the Taipans board.

Just a case of sour grapes.

The names Linda and Stewart Cooper come to mind.

[mball]

Mackay doesn't have anything LIKE an NBL-level venue- the lowest crowd the Taipans have had this year wouldn't fit into the Mackay Entertainment and Convention Centre.

DN

And Mackay can get their own team if that's the way they're heading.
We want to keep the Taipans in Cairns as well as Fearny as coach.
Wouldn't have minded Cook on the roster but didn't happen and too late now. Brebner would have been good to keep also.

[Some Devil]

My suggestions:

(1) Release imports Julien 'Skip' Mills and Richard Melzer.
(2) Sign Stephen Black (or Scott Cook) and Rowan Gray as replacements.
(3) Release head coach Aaron Fearne.
(4) Promote Mick Downer to Fearne's position.


These are good ideas. 'Cept for including Rowan Gray (I'd replace him with Dean Brebner in this scenario) and making Downer head coach (I'd be trying to talk Mark Beecroft into playing head coach again), I approve.

(5) Relocate the team to Mackay, so the Crocs (North Queensland), Taipans (Central Queensland) and the Blaze (South Queensland) can each cover its own area (about 1/3 of Queensland).
(6) Rename the team Mackay (or Central Queensland) Taipans.
(7) New team slogan: '100% Central Queensland'

This is where you went all silly. No, thanks.

[2sc945]

THE Cairns Taipans will lodge an expression of interest to compete in the NBL next season despite receiving only half the number of season ticket pledges they had wanted. (http://www.cairns.com.au/article/2009/12/19/83255_local-sport-news.html)

[Jive Turkey]

my suggestions:

(1) release imports julien 'skip' mills and richard melzer.
(2) sign stephen black (or scott cook) and rowan gray as replacements.
(3) release head coach aaron fearne.
(4) promote mick downer to fearne's position.
(5) relocate the team to mackay, so the crocs (north queensland), taipans (central queensland) and the blaze (south queensland) can each cover its own area (about 1/3 of queensland).
(6) rename the team mackay (or central queensland) taipans.
(7) new team slogan: '100% central queensland'

line-up:

Head coach: Mick downer

starters

pg: Stephen black/scott cook
sg: Phill jones (captain)
sf: Gary boodnikoff
pf: Dusty rychart
c: Ian crosswhite

bench

pg: Kerry williams
sg: Aaron grabau
sf: Dwayne vale
pf: Rowan gray
c: Tony rampton

development players

g: James comino
f: Michael chitham

training players

g: Deba george
f: Dean brebner

roll on floor laughing my ass off !

[cairns]

If a team is going to be based in Central Queensland it would best be in Rockhampton that way Mackay can either support the Rockhampton or Townsville team...With a population of over 150,000 it justifies having a team in Cairns and it is evident with the average 3,100 or so that attend games at the convention centre. A team representing both Cairns & Townsville is good however it takes away the passionate basketball rivalry that has existed between the two since Cairns' inception into the league some 10 years ago.
I say personally keep Cairns & Townsville as separate teams...let Rockhampton have a CQ-based team that will represent both Mackay & Gladstone.

[2sc945]

Why Rockhampton? Mackay is a booming city with 81,148 ppl (just in the urban area) and has a lot of satellite towns around compared to the isolated Rockhampton's 76,729 (mainly elderly ppl). Just proudly announce to those old fashioned ppl out there: Mackay is the new capital city of Central Queensland.


Also, internationally renowned Cairns should be the capital city of North Queensland for the same reason. The likes of the North Queensland Cowboys (NRL), North Queensland Fury (A League) and Townsville Fire (WNBL) should consider relocating their teams to Cairns in the near future.

[mattic]

Please do not feed the troll.

[crocintaipanterritory]

Why Rockhampton? Mackay is a booming city with 81,148 ppl (just in the urban area) and has a lot of satellite towns around compared to the isolated Rockhampton's 76,729 (mainly elderly ppl). Just proudly announce to those old fashioned ppl out there: Mackay is the new capital city of Central Queensland.


Also, internationally renowned Cairns should be the capital city of North Queensland for the same reason. The likes of the North Queensland Cowboys (NRL), North Queensland Fury (A League) and Townsville Fire (WNBL) should consider relocating their teams to Cairns in the near future.

What have you been smoking? TSV is the capitol of North QLD, it says it on the sign as you drive in. Cairns sign says " Welcome to the city in a garden"

[mball]

Latest update from today's Cairns Post:

http://www.cairns.com.au/article/2009/12/24/84235_local-sport-news.html

[Bring back the Bullets]

Thanks for the update mball. At least the Taipans are trying to make some noise to save the club and not giving up. I really hope they can somehow scrape through but from what I heard it is a pretty futile cause.

[Snapiat]

What have you been smoking? TSV is the capitol of North QLD, it says it on the sign as you drive in. Cairns sign says " Welcome to the city in a garden"

Don't you live in Cairns? It must have something going for it then. Must be the gardens...

Townsville is NOT the capital of North Queensland. It just had a former mayor with a big enough chip on their shoulder to erect a sign.

[DJ Rod]

no we're not the capital of North Queensland, we're the capital of Northern Australia as the PM described us as earlier this month :D

[curious]

I fail to understand why the NBL would encourage any team, to submit an EOI based on their 'wish' list.
"We had a chat this morning and I explained that we don’t have the numbers we require at this point in time and he said to submit it based on where we want to get to and keep them updated next week," he said."

Ie 2010 members in 2010.
Clearly they are struggling for membership and crowds. Why should they be allowed to submit any guesstimate of what they wish for?
No sense in that what so ever.

[mball]

I fail to understand why the NBL would encourage any team, to submit an EOI based on their 'wish' list.
"We had a chat this morning and I explained that we don’t have the numbers we require at this point in time and he said to submit it based on where we want to get to and keep them updated next week," he said."

Ie 2010 members in 2010.
Clearly they are struggling for membership and crowds. Why should they be allowed to submit any guesstimate of what they wish for?
No sense in that what so ever.

It is not as black and white as what you are saying. This article from nbl.com last week explains the situation better:

http://www.taipans.com/index.php?id=46&tx_ttnews[tt_news]=14789&tx_ttnews[backPid]=44&cHash=12f3fa9e8a

"The club needs an indication of membership numbers so it can prepare a viable budget for next season.

If the club fails to reach 2000 membership pledges it will need to raise extra money from sponsorship and corporate boxes.

"If we had got to 2000 or get to 2000 it means we can balance the books
pretty well without increasing our major sponsorships and that was our major aim,’’ Donaghy said.

"We recognise that 2009 hasn’t been the best year in business for Cairns so we figured it would be easier to get
individuals to buy tickets.

"If we don’t get to 2000 we’re not out of the race but we have to find revenue from the other two directions.’’

I would hazard a guess that the Taipans are not the only team in this boat and all teams will be submitting their EOIs in a similar fashion (unless they have rich owners).

The "Snakes pledge-ometer" on Taipans website this morning stood at 1123; that is 100 more than yesterday.

[curious]

So based on the original submission that the Taipans were granted a licence, ie. memberships, crowds and sponsors the NBL will allow them to submit an EOI based on their wish list (again)?
In no way wish to see the franchise fail, but surely the 'wish list' selection criteria is flawed.

[mball]

I would imagine the NBL would allow all current teams to submit their EOIs at this point and then to assess each on merit. The NBL may need to rethink their criteria for entry if some of the EOIs fall short.

What do you think would happen if only four EOIs were received??

[Tropo]

Even more dissapointing is the fact that nearly 300 current season ticket holders have not committed to next year. I beleieve that the number has been inflated by a number of companies in Cairns who have committed to purchas season tickets (cheapest are only $150) to use in promotions next year . I have said before that my biggest is concern is if the Taipans have already dipped into the +500k given to them prior to this season(sauces tell me they have).
If this is the case then they are already running at a deficit.

[Twinkletoes]

My understanding of the 500,000k that was put up by the foundation members is that it wasn't an emergency fund (which I think you may have previously said you understood it was). I understood it was to be regarded as working capital.

My view is that the current economic climate has a lot to with the situation the Taipans are in at the moment. The greater Cairns region has seen a lot of people leave since the GFC began (one report said 20,000, if I remember correctly) and the unemployment figures are up amongst the highest in Australia at the moment. There is simply not a lot of surplus money around.

It will be a shame if the Taipans go under, as they fought hard to start again and I believe if they can get over this challenge they can be around for a long time.

[mattic]

NQ doesn't have a capital city, so all talk around it is pointless.
However, Townsville is clearly the major centre in the state, outside of Brisbane.

[curious]

My understanding of the 500,000k that was put up by the foundation members is that it wasn't an emergency fund (which I think you may have previously said you understood it was). I understood it was to be regarded as working capital.

My view is that the current economic climate has a lot to with the situation the Taipans are in at the moment. The greater Cairns region has seen a lot of people leave since the GFC began (one report said 20,000, if I remember correctly) and the unemployment figures are up amongst the highest in Australia at the moment. There is simply not a lot of surplus money around.

It will be a shame if the Taipans go under, as they fought hard to start again and I believe if they can get over this challenge they can be around for a long time.

I was talking to someone the other day and they mentioned high unemployment there?
Way higher than the rest of OZ?

[GordonG]

NQ doesn't have a capital city, so all talk around it is pointless.
However, Townsville is clearly the major centre in the state, outside of Brisbane.

Surprisingly, I'm not going to disagree with that... (Sorry, mate :D )

[cairns]

NQ doesn't have a capital city, so all talk around it is pointless.
However, Townsville is clearly the major centre in the state, outside of Brisbane.
There's really no point in getting tied up with who's the capital of what or who's the fairest outside SEQ. Each city in regional QLD has its own merits and its best we celebrate or embrace that :p

[Tropo]

Twinkletoes perhaps you have misunderstood what I was trying to say.
My belief was that the 500k was needed by the NBL to grant a license. If the Taipans have treated it as anything other than an emergency fund then this is a bad decision. They will not get this 500k again and if they are using it as general revenue then what are they going to do next year when it is all gone ? I am pretty sure that the local council will pull its Bank Guarantee if there is any notion that it will be called upon and I am sure that any political clout that the Taipans board has will ensure that they do not put themselves in a position where this may occur.
That said lets hope that they can get some good crowds to the rest of the games this season to give themselves a financial buffer to operate during the off season as I believe this is when any issues may crop up as the players and staff will need to be paid during a period when no revenue will be coming in.

[SB.1]

Can they pull the guarantee without league consent? Isn't that pretty much the point of a guarantee?

[Tropo]

Not sure SB1 but my understanding was that the Local Council put up the Guarantee as they were not subject to stamp duty which made it a cost neutral exercise. I believe that the QLD Govt was first approached but declined as they did not want to be seen favouring one team over another.
I would be suprised if the NBL could stop anyone pulling out their guarantee.

[Twinkletoes]

Tropo, what you are saying is basically correct, as far as I understand it. Although the majority of the council (including Val Schier) are very supportive of the Taipans efforts to stay in the NBL, they have to agree that the Taipans budget \ EOI for next season indicates that the guarantee is not at great risk, otherwise their support would have to be reviewed.

Where the 500k capital is concerned, I don’t think there has been any injudicious spending on the part of the Taipans, so if they have eaten into it I suspect it would have been from a position of little or no choice.

[paul]

The $500K was demanded by the league so clubs would have 'working capital' ie not counting on money they dont already have to finance operations from early in the season. In the case of the Taipans it is a little different because of the way it was raised it would be hard to repeat. But using some of it is understandable if it is to cover, for example, for sponsorship money that has yet to be paid etc.

Given the current economic situation, particularly in Cairns, if they can put a budget together that comes close, and can satisfy the Council, BA would be prudent to keep them in the competition and work with them to get through the next year until the economy improves.

The Taipans do a lot of good things for the sport in their region, moreso than most NBL clubs, and that has to be an important factor now that BA is running the league.

[Tropo]

I agree Paul the Taipans do lots of good things in the community up here and some of them may take a few years to come to fruition. I too would be dissapointed if the NBL does not let them in on a couple of technicalities because as I understand the people running along with the council will pull out well before they become insolvent. Unfortunately though with running a sporting team there are very few costs that can be cut short of asking admin staff to work for free and then you run the risk not having the organisation run well enough . It really is all about getting enough corporate and public support to cover the costs.
I really feel that the next two games against the Tigers will be make or break. If they win them both they are close to 500 and will be able to put some pressure on the teams above.
Lose and all hope for the season is gone as it will be difficult to convince people to come and watch a lame duck again(without the emotion of last season)

[Bring back the Bullets]

This I'm told was from the morning herald today(still trying to find the article myself)


"But Sengstock was confident the Taipans would stay in the league"

I hope it was a comment based on reason and fact not a pipedream. If the Kings & Bullets are anything to go off, the above statement could be the kiss of death. I lost count of the number of times Chucky said he was confident both teams wouldn't fold. Seeesh :rolleyes: