Gold Coast Titans (Property) Pty Ltd crisis

[karnage]

We were talking about this at the pub tonight.

We think the biggest thing that we have in our favour is the Gold Coast Suns. We believe (hope...) that the NRL will never let the Titans fold and concede the entire region to the Suns.

[Tamwelg]

Good point Karnage.

[MightyTitans]

Commission contemplating what to do with struggling Titans
March 22, 2012
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Claims that the Titans owe close to $30 million are "a lie and completely misleading" ... Michael Searle.

THE new Australian Rugby League Commission is discussing the extraordinary option of letting the embattled Gold Coast die and starting from scratch with a new franchise on the south-east Queensland tourist strip.

The ARLC has employed independent auditors from a major Sydney firm who are presently on the Gold Coast and are scheduled to report back this week with a more complete picture of the Titans' financial status.

The club is in dire straits due to debt relating to the Centre of Excellence next to Skilled Park, with some estimations that the total figure owed to financiers the Commonwealth Bank, contractors and others stretches as high as $30 million.

Titans boss Michael Searle, who has a share of nearly 80 per cent in the club, maintains the organisation can get back on track by selling the training facility and property trust, as the football club itself is profitable. Only three days ago the club signed Dave Taylor to a four-year contract worth a reported $1.8 million. Searle said last night claims that the Titans owe close to $30 million are ''a lie and completely misleading''.

However, the Herald has learnt that a series of options have been drawn up by the ARLC to combat the crisis should the troubles of the Titans' property arm impact gravely on the lifespan of the club.

They include a possible bailout and parachuting in of a new administration to run the Titans or, potentially, to allow the winding-up of the club and establish a replacement entity on the Gold Coast under a new licence. In such a scenario a Gold Coast team could stay in the NRL but possibly with a new name, logo and colours.

The latter is a last-resort alternative as the ARLC is concerned about alienating the public in a competitive sports market where the AFL is driving enormous funding to back their franchise, the Suns.

The members of the ARLC met on Tuesday and the Titans' problems were a key subject. Speaking yesterday, ARLC chief executive David Gallop would not detail the plans being weighed up by the new body running the game but said that auditors would have an assessment of the Titans' financial position shortly.

''Clearly it's a concern and we're in constant dialogue with Michael. There are a range of options but it's too early to say which option will be needed,'' Gallop said.

''It's not appropriate to go into what was discussed [on Tuesday] but clearly the commission were given a full update of where things are at.

''We are currently gathering as much information as we can regarding the financial position of the property investment and the football club. We've got some outside people assisting us with that and hopefully that information will be available in the next few days.''

Searle, one of the architects of the rugby league's independent commission and a visionary who set up the annual All Stars game, has been left to scramble as the Titans' property arm, Gold Coast Titans (Property) Pty Ltd, comes under pressure.

Despite spiralling property prices hitting hard on the anticipated value of the Centre of Excellence, he is adamant the Titans will survive and escape the maelstrom by selling the facility. They also plan to restructure the football club with the introduction of a partly independent board made up of two or three prominent Gold Coast figures as well as those with capital invested in the club.

Searle said last night the decision had been made to sell the Centre of Excellence.He also brushed off concerns that its sale price may not come close to matching the Titans' debt, and that the Titans' future was in immediate danger. ''We've made a decision to get rid of it,'' he said.

''We would only sell it if we eliminated all the debt - we're not going to sell it and say 'we still owe money'. We'll work with our bankers to come up with a solution. It's not as if it's not going to sell.''

Searle admitted he had approached the NRL late last year for funding support but said that was primarily to combat the AFL's insurgency on the Gold Coast. Searle claimed that request was the reason ARLC auditors were in town.

The sale of the Centre of Excellence would, in fact, benefit the football club significantly by easing costs, he said. ''The financial position of the club in 2013 is even stronger than it is in 2012,'' he said. ''We're profitable in 2012 and in '13 we're profitable again and with the [sale] of the property trust relieving the debt, we're $1.5 million a year better off.''



Read more: http://www.brisbanetimes.com.au/rugb...#ixzz1pl5fsihH

[teke]

We were talking about this at the pub tonight.

We think the biggest thing that we have in our favour is the Gold Coast Suns. We believe (hope...) that the NRL will never let the Titans fold and concede the entire region to the Suns.

The Titans will never fold because of this.

[DavidBouveng]

This is an article finally shedding some factual light on things rather the Sydney media just speculating and bagging us.

[TITAN PETE]

Commission assessing Titans finances
The Australian | 07:55am March 22, 2012

GOLD Coast Titans managing director Michael Searle last night insisted his resolve was as steely as ever as it emerged the Australian Rugby League Commission was in the process of weighing up what to do with the financially stricken club - including the extreme measure of allowing the Titans to fall over before starting a new team from scratch.

ARLC chief executive David Gallop yesterday confirmed the commission had engaged a major accountancy firm to gather as much information as possible on the Titans' financial picture, which has been the source of conjecture for months, The Australian reports.

Gallop declined to discuss possible solutions to the Titans' woes but it is understood the club's financial position and future occupied much of the discussion at Tuesday's meeting of the independent commission.

Among the alternatives believed to be discussed by the commission was the slim prospect of allowing the club to collapse before setting up a new team on the tourist strip. Commissioners are also believed to have discussed the option of the NRL taking over the existing licence.

Searle, however, insists that won't be happening. He has acknowledged the club's financial issues, which are related to loans taken out to build the Centre of Excellence. The building has also been the subject of legal action, the latest involving The Reed Group. The construction company has begun court proceedings over claims it is owed more than $1 million.

Searle disputes the figure. However, he has confirmed he will sell the building to alleviate the financial squeeze on the Titans. There have been suggestions the property arm's debt could exceed $25 million. Searle denies it is that high.

Despite their financial woes, the Gold Coast club is stepping up its bid to sign Melbourne Storm star Cooper Cronk.

Searle also confirmed he made a request to the ARLC late last year for further funding as the club jostles for space on the Gold Coast with a cashed-up AFL.

"We put a request in for consideration around the AFL," Searle said. "Which club in western Sydney hasn't done the same? All we're saying is that yes, we need some support. It's not rocket science when the AFL gives the (Gold Coast) Suns $20 million.

"What we have to do is very different to what other clubs have to do. I think our club is entitled to some form of support.

"If anything, my resolve is more steely now than it has ever been. I fought for a long time to have a football team on the Gold Coast, I will fight for a long time to keep it here on the Gold Coast.

"As I said last week, we will do whatever it takes to make sure this football club is sustainable in the long term."

Searle has, however, given up on the idea of retaining the Centre of Excellence. He said last night he would definitely off-load the facility, a move that he believes will remove any doubts over the club's future.

"The property arm costs the football club money. By us getting rid of the property arm, the football club's profits will increase by $1.5 million a year."

Searle also insisted the Titans would make a significant profit this year despite disappointing crowds for their home games against Canberra and Melbourne.

Gallop confirmed the ARLC was in talks with Searle and awaiting a report on the club's finances, expected in days.

[TITAN PETE]

The COE should never have been built there should'v been a Leagues Club with admin office's & a gym etc built on the site & they would'v never had the money problems they have today..

[karnage]

The latter is a last-resort alternative as the ARLC is concerned about alienating the public in a competitive sports market where the AFL is driving enormous funding to back their franchise, the Suns.

The Titans brand is VERY strong here on the Coast and if the team can just start winning again with some attractive football kids in every school on the Coast will want to buy back in.

[DavidBouveng]

The latter is a last-resort alternative as the ARLC is concerned about alienating the public in a competitive sports market where the AFL is driving enormous funding to back their franchise, the Suns.

The Titans brand is VERY strong here on the Coast and if the team can just start winning again with some attractive football kids in every school on the Coast will want to buy back in.

Yeah a new team name and everything would be a ball ache

If they gonna take over, just take over as is. Starting fresh would lose many people.

Better than nothing at all though.

[TITAN PETE]

Yeah a new team name and everything would be a ball ache

If they gonna take over, just take over as is. Starting fresh would lose many people.

Better than nothing at all though.

+ i would need to change my Tattoo

[DavidBouveng]

+ i would need to change my Tattoo

Exactly!

Not to mention parents getting pissed at having to replace jerseys, number plates etc.

They should do everything possible to maintain the titans brand.

[Toads]

The COE should never have been built there should'v been a Leagues Club with admin office's & a gym etc built on the site & they would'v never had the money problems they have today..

Agreed.. To go even futher, The Titans should've never setup shop in Robina. Which is traditionally known as the AFL heartland of the Coast. They should've established their operations up the Northern end of the Coast. I believe the old Showgrounds on Queen St (Southport), or somewhere closer to either Nerang or Helensvale Station. Anywhere but Robina.

What Mr Searle either didn't consider and/or wasn't interested in, was building a Culture for the Titans Fan Base. Because as it now, we go the Home Games with no where really to congregate and/or socialise before the game and afterwards to celebrate/commiserate. We all just get shuffled along to either the Train Station or Shuttle Buses and disperse. With that going on, there's little to no chance of breeding a great culture that many other League Clubs have. Sorry to say, as it is now. The atmosphere at Skilled Stadium isn't that much better than sitting at home watching it on Tele. There's definately something adrift that stops us uniting like other teams do at their home games.

With saying that.. The Legion does a fabulous job of bringing it altogether at the best of the their ability. Just unfortunately, the Legion also needs a lot more help from the club to help win back our Fan Base to healthy numbers again. And this will only come about with the Lads winning more games and/or playing more entertaining Rugby League, and more incentives from Titans Management to win back the masses.

The Coast has taken more than it's fair share of financial hits, since the GFC. High unemployment, and generally no money/progress in town has seen the place damn near slow to a crawl..

There's a heaps more reasons that has proved to be quite challenging for the Titans. But I do honestly believe if The Titans can stick to the 10 year plan. I do reckon we'll make it. Nearly five years down, 'n five to go. In the meantime, a Premiership or two wouldn't go astray.

[DIEHARD]

I hate reading this.

They will never change the clubs brand, we have had three, maybe 4 previous brands and adding a 5th would be a joke. So that wont happen but the ARL Commission are in the business of discussing all options. Im sure that one was quickly taken off the table.

And the Centre of Excellence. I agree with Pete, I wanted a Leagues Club and it could have also served as a player base. But WE could be there right now, eating and drinking and pouring money into the Titans. And game day would be amazing.

I just cant get my head around why no organisation has rented space at the Centre of Excellence. Also why there are no longer any signs advertising that it is for lease.

[DIEHARD]

The Titans will never fold because of this.

I agree but who controls or owns the Titans is in play.

The Gold Coast Suns.... ARE the AFL. As are GWS.

The other issue is, if we cant find tenants for the Centre of Excellence, can we find a buyer? And would it be at the figure we want?

[kwigibo]

What was their boneheaded reason for not wanting a leagues club again? There's local leagues clubs on the coast that make profits, right? Why wouldn't a national team do better? The titanium bar is not a substitute. A leagues club in Southport or Broadbeach or somehwere central like that without being inpenetrable like Robina (I missed the first half last week because of traffic and the weather) would be popular. A bunch of pokies might not be classy, but I'd rather my footy team be milking pensioners dry than some generic pub owned by Woolworths.