Gold Coast Titans (Property) Pty Ltd crisis

[C-Whiz]

methinks a leagues club would have probably been a better investment than that c.o.e and would have served the titans community far better than just accomodating the admin staff and having a gym and swimming pool for the players...or am i wrong?

No, you are spot on. The COE is a money pit, and produces nothing for the club from a financial point of view. A tavern or Leagues club would have been bringing in dollars, and would have encouraged a lot more people to attend games, because rather than just turning up on a train or bus, watching a game and then catching a train or bus home again, they could have made a day out of it, all the while bringing money into the clubs coffers. People would porbably have had a meal there too, rather than pay over $10 for a pie and coke at the stadium.

Also, I'm pretty sure almost everyone said that having the Titanium Bar located in Surfers Paradise was never going to work. It's too far from anything to do with the Titans, and has no real feel of a sports club and doesn't really suit the average NRL fan who just wants to watch footy in their footy gear.

[Toads]

Gold Coast's big hitters back Titans

Shannon Willoughby and Matt Killoran | 12:01am March 26, 2012

THE city's heaviest hitters have united in calls for the Gold Coast to rally around its embattled rugby league team and remain Titans Town.

Supporters have been rocked by revelations the Gold Coast Titans need $2.5 million from the NRL to stay afloat.

Gold Coast Airport boss Paul Donovan said the city needed to get behind the team.

"The Titans have been great for the Gold Coast in many ways. It has added more than a football team. It has been a family for a lot of the players," he said.

"It really is time to stop the criticisms and get behind our team and show them some support."

He said that support could start from the bottom up, with locals making an effort to attend home games.

He also appealed to the business community to back the side and its boss Michael Searle, who put everything on the line to form the Titans, by taking sponsorship boxes.

"The team needs a strong board that can help Michael make the tough decisions," Mr Donovan said.

He also said the team should look at offloading its Centre of Excellence, which has been at the centre of its financial woes for months.

Business leader and chairman of the Gold Coast Suns AFL team, John Witheriff, said he had telephoned Mr Searle and offered his support and he encouraged the broader community to follow.

"This is clearly an issue with a property interest. We should all be pushing for a solution which is in the best interests for the NRL and the broader Gold Coast community," he said.

"We have got to come up with a solution."

He said the community could support the team by going to a game.

"If the Gold Coast community stands up and heads to a game, it gives the NRL a compelling reason to support it and see it survive."

Ray White Surfers Paradise boss Andrew Bell said fans needed to send the NRL a strong message that they would back the club.

"If they want to expand the code, now we have the (AFL) Suns here, it's not the time to abandon them and leave them to their own (devices)," he said.

"The answer is for the NRL to get involved.

"I'm sure the team can come through this even stronger than before but we have to get fully behind them."

A Jetstar spokesman said the airline -- a major sponsor of the Titans -- would continue to support the team until at least the end of the season, when the sponsorship contract runs out.

"Jetstar has supported the club since its inauguration," he said.

Martin Winter, the boss of Gold Coast Tourism, said it was important for the city to be represented in all codes of football.

"We would fully support any action which would ensure both the Titans and the Gold Coast Football Club remain on the Gold Coast," he said.

Source: goldcoast.com.au

[Titanic]

Off-load the Centre of Extravagance ... clip Searle's wings and put Cartwright on notice ... the fans will rally around when they feel that there have been some positive steps taken.

No matter what the truth is behind the current diabolical situation, the stench is over-riding everything else.

[Nick]

No, you are spot on. The COE is a money pit, and produces nothing for the club from a financial point of view. A tavern or Leagues club would have been bringing in dollars, and would have encouraged a lot more people to attend games, because rather than just turning up on a train or bus, watching a game and then catching a train or bus home again, they could have made a day out of it, all the while bringing money into the clubs coffers. People would porbably have had a meal there too, rather than pay over $10 for a pie and coke at the stadium.

Also, I'm pretty sure almost everyone said that having the Titanium Bar located in Surfers Paradise was never going to work. It's too far from anything to do with the Titans, and has no real feel of a sports club and doesn't really suit the average NRL fan who just wants to watch footy in their footy gear.

Thats exactly what we needed from the start. Coming from Brissy I catch the train and head to the robina tavern before and after every game (as its the closest). I often have to resort to walking back to the train station as no cabs pick you up! The club would attract a lot more fans if we did have a leagues club.

[beeps]

finally a decent article has come out answering a few questions around whats happening

http://www.brisbanetimes.com.au/rugb...323-1vpbo.html

[Tamwelg]

finally a decent article has come out answering a few questions around whats happening

http://www.brisbanetimes.com.au/rugb...323-1vpbo.html

Titanic struggle, but ARL Commission won't walk from club's off-field woes
March 24, 2012

Brad Walter answers 10 key questions on the Gold Coast club's plight.

Is the Titans' financial position as bad as it sounds?

Views on the extent of the problem are varied but everyone admits the situation is dire. The Herald has been told the Titans could go under within days, they could die a slow death or they might not fold at all. ARL Commission auditors believe that if the club's owner, Michael Searle, cannot meet the Titans property group's debts of $25 million, creditors will seek to shut down the club. Searle says the property arm and football club are separate entities. ARLC boss David Gallop clearly disagrees, having said this week that ''the various arms of the group's business are intertwined in terms of the level of debt''. In any case, it is unlikely the ARLC would want an owner who left unpaid bills for the club's state of the art training base and administration headquarters.

How did they get into this mess?

After the Titans' entry to the NRL in 2007, Searle had a vision to build a Centre of Excellence that would be the envy of every sporting team in Australia. The building, which sits besides Skilled Stadium, houses a swimming pool, ice baths, gym and even has facilities to produce television broadcasts or deliver education programs to remote indigenous communities. But as a succession of builders went bust, construction was delayed and costs spiralled even further thanks to a series of court cases. As a result, what should have been a stunning asset has now become a massive liability.

Will the club survive?

The ARLC is not ready to give up on Searle just yet, and he is looking at various capital-raising options. Among them are bringing in other investors and selling both the Centre of Excellence and the Titanium Bar in Surfers Paradise. However, the deflated property market on the Gold Coast makes this a bad time to be selling, and the Centre of Excellence is understood to be subject to stringent local government restrictions on its use. Those issues aside, it is widely accepted that the football club is a financially viable entity, and some suggest it is even a business model other clubs should follow. The Herald was told the club had recently met sponsorship and marketing targets for this season and was close to finalising deals with new sponsors for its highly acclaimed community programs.

Should the ARLC abandon the Gold Coast if the Titans fold?

The Titans are the fifth incarnation of a Gold Coast league team since 1988. Other Gold Coast teams that have become defunct there include the AFL's Brisbane Bears, basketball's Gold Coast Rollers and now the A-league's United. However, if it weren't for the debt on the building, the Titans' future would be assured. It should also be noted that their problems arose during the global financial crisis, which appears to be biting harder in South-East Queensland than elsewhere. Construction is at a virtual standstill and tourism is down. To no longer have a team representing the Gold Coast would hand the area to the AFL, which is pumping $20 million a year into the Suns.

How can the club be allowed to continue signing players when it has such debts?

Like every NRL club, the Titans must abide by a $4.3 million salary cap. If they aren't allowed to continue signing players, they would be unable to field a competitive team and their financial problems would only deepen. How the Titans divide the salary cap among their top 25 players is up to them but they are still spending the same amount whether they sign big names or not.

Is any of the money the ARLC has given the Titans been used to sign the likes of Jamal Idris, Dave Taylor or Cooper Cronk?

Each club receives a grant of $3.85 million this season, which the ARLC aims to raise so it matches or exceeds the salary cap once the new television deal starts next year. In addition, the ARLC and, previously, the NRL, have also helped with shortfalls on repayments for the Centre of Excellence. Some rival clubs believe the ARLC should no longer do so to prevent the Titans signing big-name stars but the reality is that by refusing to help, the club would die.

What is the mood of players and staff at the Titans?

The players or their agents are usually like the proverbial canary in a coalmine when a club is about to fold but those that the Herald has spoken to have been surprisingly upbeat. Some are even defiant, and claim reports of the Titans' demise are part of a conspiracy against Searle because he was the driving force behind the independent commission that resulted in News Ltd leaving the game. So far, the players and staff have no complaints that they are not being paid on time.

Why did the ARLC send auditors to the Gold Coast last week?

Gallop has monitored the situation for some time and looked over the Titans' books more than a year ago when a builder began legal action. Auditors visited the Titans before Christmas and again last week after the Tax Office instigated court proceedings against its property arm. The ATO withdrew the proceedings but construction group Reed is pursuing the club for $1 million.

Could more have been done to help?

The AFL gives the Gold Coast Suns and GWS Giants $20 million a year above what other clubs receive, to ensure their viability. In addition, the new teams receive preferential draft and salary cap concessions. In contrast, the Titans and other NRL expansion teams receive little help. Rival clubs even blocked an agreement for Melbourne Storm to pay players a living-away-from-home allowance when they entered the competition in 1998. Surfboards Searle gave each player who signed had to be included in the salary cap.

Are other NRL clubs in trouble?

The financial problems at Cronulla, Manly and Penrith are well documented, while News demanded an additional $5 million a year for the next five years as as part of the deal that handed control of the game to the ARLC. The Herald has been told at one club training times are set to minimise water and power bills

[TITAN PETE]

Titanic struggle, but ARL Commission won't walk from club's off-field woes
March 24, 2012

Brad Walter answers 10 key questions on the Gold Coast club's plight.

Is the Titans' financial position as bad as it sounds?

Views on the extent of the problem are varied but everyone admits the situation is dire. The Herald has been told the Titans could go under within days, they could die a slow death or they might not fold at all. ARL Commission auditors believe that if the club's owner, Michael Searle, cannot meet the Titans property group's debts of $25 million, creditors will seek to shut down the club. Searle says the property arm and football club are separate entities. ARLC boss David Gallop clearly disagrees, having said this week that ''the various arms of the group's business are intertwined in terms of the level of debt''. In any case, it is unlikely the ARLC would want an owner who left unpaid bills for the club's state of the art training base and administration headquarters.

How did they get into this mess?

After the Titans' entry to the NRL in 2007, Searle had a vision to build a Centre of Excellence that would be the envy of every sporting team in Australia. The building, which sits besides Skilled Stadium, houses a swimming pool, ice baths, gym and even has facilities to produce television broadcasts or deliver education programs to remote indigenous communities. But as a succession of builders went bust, construction was delayed and costs spiralled even further thanks to a series of court cases. As a result, what should have been a stunning asset has now become a massive liability.

Will the club survive?

The ARLC is not ready to give up on Searle just yet, and he is looking at various capital-raising options. Among them are bringing in other investors and selling both the Centre of Excellence and the Titanium Bar in Surfers Paradise. However, the deflated property market on the Gold Coast makes this a bad time to be selling, and the Centre of Excellence is understood to be subject to stringent local government restrictions on its use. Those issues aside, it is widely accepted that the football club is a financially viable entity, and some suggest it is even a business model other clubs should follow. The Herald was told the club had recently met sponsorship and marketing targets for this season and was close to finalising deals with new sponsors for its highly acclaimed community programs.

Should the ARLC abandon the Gold Coast if the Titans fold?

The Titans are the fifth incarnation of a Gold Coast league team since 1988. Other Gold Coast teams that have become defunct there include the AFL's Brisbane Bears, basketball's Gold Coast Rollers and now the A-league's United. However, if it weren't for the debt on the building, the Titans' future would be assured. It should also be noted that their problems arose during the global financial crisis, which appears to be biting harder in South-East Queensland than elsewhere. Construction is at a virtual standstill and tourism is down. To no longer have a team representing the Gold Coast would hand the area to the AFL, which is pumping $20 million a year into the Suns.

How can the club be allowed to continue signing players when it has such debts?

Like every NRL club, the Titans must abide by a $4.3 million salary cap. If they aren't allowed to continue signing players, they would be unable to field a competitive team and their financial problems would only deepen. How the Titans divide the salary cap among their top 25 players is up to them but they are still spending the same amount whether they sign big names or not.

Is any of the money the ARLC has given the Titans been used to sign the likes of Jamal Idris, Dave Taylor or Cooper Cronk?

Each club receives a grant of $3.85 million this season, which the ARLC aims to raise so it matches or exceeds the salary cap once the new television deal starts next year. In addition, the ARLC and, previously, the NRL, have also helped with shortfalls on repayments for the Centre of Excellence. Some rival clubs believe the ARLC should no longer do so to prevent the Titans signing big-name stars but the reality is that by refusing to help, the club would die.

What is the mood of players and staff at the Titans?

The players or their agents are usually like the proverbial canary in a coalmine when a club is about to fold but those that the Herald has spoken to have been surprisingly upbeat. Some are even defiant, and claim reports of the Titans' demise are part of a conspiracy against Searle because he was the driving force behind the independent commission that resulted in News Ltd leaving the game. So far, the players and staff have no complaints that they are not being paid on time.

Why did the ARLC send auditors to the Gold Coast last week?

Gallop has monitored the situation for some time and looked over the Titans' books more than a year ago when a builder began legal action. Auditors visited the Titans before Christmas and again last week after the Tax Office instigated court proceedings against its property arm. The ATO withdrew the proceedings but construction group Reed is pursuing the club for $1 million.

Could more have been done to help?

The AFL gives the Gold Coast Suns and GWS Giants $20 million a year above what other clubs receive, to ensure their viability. In addition, the new teams receive preferential draft and salary cap concessions. In contrast, the Titans and other NRL expansion teams receive little help. Rival clubs even blocked an agreement for Melbourne Storm to pay players a living-away-from-home allowance when they entered the competition in 1998. Surfboards Searle gave each player who signed had to be included in the salary cap.

Are other NRL clubs in trouble?

The financial problems at Cronulla, Manly and Penrith are well documented, while News demanded an additional $5 million a year for the next five years as as part of the deal that handed control of the game to the ARLC. The Herald has been told at one club training times are set to minimise water and power bills.



Read more: http://www.brisbanetimes.com.au/rugb...#ixzz1qBIJgjhv

[beeps]

Titanic struggle, but ARL Commission won't walk from club's off-field woes
March 24, 2012

Brad Walter answers 10 key questions on the Gold Coast club's plight.

Is the Titans' financial position as bad as it sounds?

Views on the extent of the problem are varied but everyone admits the situation is dire. The Herald has been told the Titans could go under within days, they could die a slow death or they might not fold at all. ARL Commission auditors believe that if the club's owner, Michael Searle, cannot meet the Titans property group's debts of $25 million, creditors will seek to shut down the club. Searle says the property arm and football club are separate entities. ARLC boss David Gallop clearly disagrees, having said this week that ''the various arms of the group's business are intertwined in terms of the level of debt''. In any case, it is unlikely the ARLC would want an owner who left unpaid bills for the club's state of the art training base and administration headquarters.

How did they get into this mess?

After the Titans' entry to the NRL in 2007, Searle had a vision to build a Centre of Excellence that would be the envy of every sporting team in Australia. The building, which sits besides Skilled Stadium, houses a swimming pool, ice baths, gym and even has facilities to produce television broadcasts or deliver education programs to remote indigenous communities. But as a succession of builders went bust, construction was delayed and costs spiralled even further thanks to a series of court cases. As a result, what should have been a stunning asset has now become a massive liability.

Will the club survive?

The ARLC is not ready to give up on Searle just yet, and he is looking at various capital-raising options. Among them are bringing in other investors and selling both the Centre of Excellence and the Titanium Bar in Surfers Paradise. However, the deflated property market on the Gold Coast makes this a bad time to be selling, and the Centre of Excellence is understood to be subject to stringent local government restrictions on its use. Those issues aside, it is widely accepted that the football club is a financially viable entity, and some suggest it is even a business model other clubs should follow. The Herald was told the club had recently met sponsorship and marketing targets for this season and was close to finalising deals with new sponsors for its highly acclaimed community programs.

Should the ARLC abandon the Gold Coast if the Titans fold?

The Titans are the fifth incarnation of a Gold Coast league team since 1988. Other Gold Coast teams that have become defunct there include the AFL's Brisbane Bears, basketball's Gold Coast Rollers and now the A-league's United. However, if it weren't for the debt on the building, the Titans' future would be assured. It should also be noted that their problems arose during the global financial crisis, which appears to be biting harder in South-East Queensland than elsewhere. Construction is at a virtual standstill and tourism is down. To no longer have a team representing the Gold Coast would hand the area to the AFL, which is pumping $20 million a year into the Suns.

How can the club be allowed to continue signing players when it has such debts?

Like every NRL club, the Titans must abide by a $4.3 million salary cap. If they aren't allowed to continue signing players, they would be unable to field a competitive team and their financial problems would only deepen. How the Titans divide the salary cap among their top 25 players is up to them but they are still spending the same amount whether they sign big names or not.

Is any of the money the ARLC has given the Titans been used to sign the likes of Jamal Idris, Dave Taylor or Cooper Cronk?

Each club receives a grant of $3.85 million this season, which the ARLC aims to raise so it matches or exceeds the salary cap once the new television deal starts next year. In addition, the ARLC and, previously, the NRL, have also helped with shortfalls on repayments for the Centre of Excellence. Some rival clubs believe the ARLC should no longer do so to prevent the Titans signing big-name stars but the reality is that by refusing to help, the club would die.

What is the mood of players and staff at the Titans?

The players or their agents are usually like the proverbial canary in a coalmine when a club is about to fold but those that the Herald has spoken to have been surprisingly upbeat. Some are even defiant, and claim reports of the Titans' demise are part of a conspiracy against Searle because he was the driving force behind the independent commission that resulted in News Ltd leaving the game. So far, the players and staff have no complaints that they are not being paid on time.

Why did the ARLC send auditors to the Gold Coast last week?

Gallop has monitored the situation for some time and looked over the Titans' books more than a year ago when a builder began legal action. Auditors visited the Titans before Christmas and again last week after the Tax Office instigated court proceedings against its property arm. The ATO withdrew the proceedings but construction group Reed is pursuing the club for $1 million.

Could more have been done to help?

The AFL gives the Gold Coast Suns and GWS Giants $20 million a year above what other clubs receive, to ensure their viability. In addition, the new teams receive preferential draft and salary cap concessions. In contrast, the Titans and other NRL expansion teams receive little help. Rival clubs even blocked an agreement for Melbourne Storm to pay players a living-away-from-home allowance when they entered the competition in 1998. Surfboards Searle gave each player who signed had to be included in the salary cap.

Are other NRL clubs in trouble?

The financial problems at Cronulla, Manly and Penrith are well documented, while News demanded an additional $5 million a year for the next five years as as part of the deal that handed control of the game to the ARLC. The Herald has been told at one club training times are set to minimise water and power bills

thanks mate in future I'll copy n paste the text also

[DavidBouveng]

That is a solid read and shows a unbiased, broad view of alot of the issues.

Good job. The best thing we have is that the footy club makes money. The day we also get a leagues club we will be laughing.

[DIEHARD]

I think one thing is for sure, the Titans will endure. Just not in its current form...

[Titanic]

Ex NRL finance director Ed Farish is our finance director ... if nothing else he should have Gallop's ear.

[C-Whiz]

finally a decent article has come out answering a few questions around whats happening

http://www.brisbanetimes.com.au/rugb...323-1vpbo.html

Good work beeps. This is probably the best article to date about where the club is at, how it got there and where it might be headed.

[justin19]

So the Commission is set to announce within the next week that they are bailing the Titans out, also that Searle will be standing down as CEO and owner of the Gold Coast Titans. the NRL will take ownership of the club until a buyer is found. there are currently 2 buyers interested one being Clive Palmer. I do not know who the second is but as soon as i know i will post on here.

[tnkd]

So the Commission is set to announce within the next week that they are bailing the Titans out, also that Searle will be standing down as CEO and owner of the Gold Coast Titans. the NRL will take ownership of the club until a buyer is found. there are currently 2 buyers interested one being Clive Palmer. I do not know who the second is but as soon as i know i will post on here.

Thats a shame, I quite like Michael Searle, I just think he was on the wrong end of some deals and could only go so long with the juggling act.

Does that mean the titans continue to use the COE? If they have a future, I might consider a membership for the rest of the year (I feel dejected to become a member with no sure prospect of 2013.)

[Toads]

Whatever happens DO NOT let Clive Palmer anywhere near the Titans. As that would definately be the death knell of our club. It may not happen immediately, but it will happen eventually with him at the helm.

I honestly couldn't think of a worst outcome for the Titans.