Olmy
4 Oct 2001, 13:26
Taken from Lions on-line:
CATS FACE NEW DOLLAR CRISIS
Geelong is battling through a new financial crisis as it chases more than $200,000 owed by a major sponsor, according to The Herald Sun.
The company, Telezon Ltd, is under administration with debts of up to $3 million. The club is lining up with more than 150 other unsecured creditors, with no guarantee payment will be forthcoming. The Cats had also gone into business with Telezon. Major doubts hang over the fledgling telecommunications venture based at Kardinia Park, which the club had expected to add at least $200,000 a year to its bottom line. The sponsorship/business deal with Telezon, which last month changed its name from Min-Tech 8, was touted as being worth $1.5 million over five years when signed last year. The collapse comes as the club tries to secure a naming-rights sponsor for its Kardinia Park stadium. Shell did not renew a three-year deal after Geelong sought an increase from $150,000 a year to what was believed to be $250,000 a year.
Earlier this year the Cats were hit by the collapse of retailer Harris Scarfe, which had sponsored the Cats for $50,000-$60,000 annually. Geelong is hoping to break even this year after forecasting a $200,000 profit. The Cats have cut their bank debt from more than $6 million three years ago to $2.5 million but their financial position remains fraught.
CATS FACE NEW DOLLAR CRISIS
Geelong is battling through a new financial crisis as it chases more than $200,000 owed by a major sponsor, according to The Herald Sun.
The company, Telezon Ltd, is under administration with debts of up to $3 million. The club is lining up with more than 150 other unsecured creditors, with no guarantee payment will be forthcoming. The Cats had also gone into business with Telezon. Major doubts hang over the fledgling telecommunications venture based at Kardinia Park, which the club had expected to add at least $200,000 a year to its bottom line. The sponsorship/business deal with Telezon, which last month changed its name from Min-Tech 8, was touted as being worth $1.5 million over five years when signed last year. The collapse comes as the club tries to secure a naming-rights sponsor for its Kardinia Park stadium. Shell did not renew a three-year deal after Geelong sought an increase from $150,000 a year to what was believed to be $250,000 a year.
Earlier this year the Cats were hit by the collapse of retailer Harris Scarfe, which had sponsored the Cats for $50,000-$60,000 annually. Geelong is hoping to break even this year after forecasting a $200,000 profit. The Cats have cut their bank debt from more than $6 million three years ago to $2.5 million but their financial position remains fraught.