View Full Version : GCFC's $11m netted from Sharks
Beaussie
4 Sep 2009, 07:55
Wow, well done GCFC. Looks like you have a ready made social/leagues club too. :thumbsu:
GCFC's $11m netted from Sharks
Luke Turgeon | September 4th, 2009
THE Gold Coast Football Club will enter the AFL in 2011 as the one of the competition's richest clubs thanks to the Southport Sharks club.
The cashed-up Aussie rules and community club will pump a staggering $11 million into the GCFC over the next 10 years after signing off on a deal that will make them patron partners of the club.
http://www.goldcoast.com.au/article/2009/09/04/133715_gold-coast-afl.html
catters05
4 Sep 2009, 10:47
Wow, well done GCFC. Looks like you have a ready made social/leagues club too. :thumbsu:
Great Stuff.
RussellEbertHandball
4 Sep 2009, 11:13
I was wondering how the Sharks were going to be involved. I started a thread awhile back asking if anyone knew what their involvement would be. Nobody seemed to know. It makes sense to be via the social club, which is their real money spinner and getting a seat on the board is pretty handy. Mind you the Sharks probably still have $20mil+ in the bank.
So all after match function and other functions will be at the Sharks social club. Does that mean that the GCFC wont build a social venue for a decade?
But the opening sentence of the story is pretty misleading. The writer makes it sound like its $11m upfront. The GCFC are a long way behind the richest 6 to 8 clubs in terms of how rich they are in terms of cash in the bank, net assets, or sponsorship $$ generated.
LIONOFZION
4 Sep 2009, 13:46
That settles it then - looks like we'll officially be known as the Gold Coast Remoras...
"The Remora is a pelagic marine fish that is usually found in the warmer parts of most oceans clinging on to large sharks..." :D
catters05
4 Sep 2009, 14:38
That settles it then - looks like we'll officially be known as the Gold Coast Remoras...
"The Remora is a pelagic marine fish that is usually found in the warmer parts of most oceans clinging on to large sharks..." :D
hahaha nice one.
That settles it then - looks like we'll officially be known as the Gold Coast Remoras...
"The Remora is a pelagic marine fish that is usually found in the warmer parts of most oceans clinging on to large sharks..." :D
..... hahahhahahahah. Well played good sir, well played indeed.
isthisavailable
5 Sep 2009, 17:59
Unless the Sharks expect to make 1.1m per year from hosting after-match functions etc, I wonder what is in it for them to pump so much cash into the GCFC?
:eek:
magic_johnson!
5 Sep 2009, 21:52
Unless the Sharks expect to make 1.1m per year from hosting after-match functions etc, I wonder what is in it for them to pump so much cash into the GCFC?
:eek:
And this is more then what Freo got with their new Major Sponser. Will the 2nds play for Southport?
Stereophonic
6 Sep 2009, 19:10
Unless the Sharks expect to make 1.1m per year from hosting after-match functions etc, I wonder what is in it for them to pump so much cash into the GCFC?
:eek:
Ability to placard their name all over town as well as the association rights.
CoastBhoy
6 Sep 2009, 19:15
Sharks have money to burn , great deal from the club , and to make it even better 5 mins from my house , some big nights ahead at the Sharks.
Stereophonic
6 Sep 2009, 19:24
Sharks have money to burn , great deal from the club , and to make it even better 5 mins from my house , some big nights ahead at the Sharks.
I hope you have a big couch for me and swampy, and lionshine (when he does finally decide to 'comitt'
isthisavailable
6 Sep 2009, 19:30
Ability to placard their name all over town as well as the association rights.
Yeah but will these things in turn generate anything close to 1.1m net return per year?
Stereophonic
6 Sep 2009, 19:33
Yeah but will these things in turn generate anything close to 1.1m net return per year?
Taxable? Im a lawyer not an accountant, anyone shed some light?
CoastBhoy
7 Sep 2009, 08:08
Yeah but will these things in turn generate anything close to 1.1m net return per year?
I think the Sharks got in early , as i heard there are plans for a social club near the Carrara ground . Will they recoup there 1.1 mil ?? no idea , but the sharks have more money than some small countries.:D
A Living God
7 Sep 2009, 08:38
I think the Sharks got in early , as i heard there are plans for a social club near the Carrara ground . Will they recoup there 1.1 mil ?? no idea , but the sharks have more money than some small countries.:D
They have more money than America, around $13 trillion more.
Taxable? Im a lawyer not an accountant, anyone shed some light?
The $1.1 million per year is a tax deduction so presumably that will be reduced to $550 thousand per year by offsetting present income .
.
isthisavailable
7 Sep 2009, 11:53
The $1.1 million per year is a tax deduction so presumably that will be reduced to $550 thousand per year by offsetting present income .
.
How could it be a 'tax deduction'? How could it even be tax deductible? The GCFC is not a charity.
How could it be a 'tax deduction'? How could it even be tax deductible? The GCFC is not a charity.
As a business expense .
.
RussellEbertHandball
7 Sep 2009, 16:03
All a bit irrelevant if you are a non taxable entity and if you apply the mutuality principle to both income and deductions.
All a bit irrelevant if you are a non taxable entity and if you apply the mutuality principle to both income and deductions.
It's totally relevant if you're the club receiving $11 million
or you're the entity able to claim a tax deduction for payment of services rendered .
I hope you're not an accountant .
.
RussellEbertHandball
7 Sep 2009, 16:33
The GCFC will be like ever other AFL club, ie a tax free entity. So $11mill in sponsorship income has no tax consequence.
Southport Sharks being a licensed club with members (ie about 40,000) is subject to the Mutuality Principle so income for tax purposes is determined by the ATO formula or its own calculation and mutual income isn't subject to tax, ie you can't profit off yourself, and therefore the same proportion of its $11mill sponsorship expenses wont be allowable deductions.
RussellEbertHandball
7 Sep 2009, 16:50
In fact Southport FC + Southport Sharks licensed club could be set up in such a way that the group is assessed under Section 50-45 of the Income Tax Assessment Act 1997 and is exempt from income tax, just like all the AFL clubs and the their licensed clubs are!! And the Mutuality Principle applied to licensed clubs becomes totally irrelevant.
In fact Southport FC + Southport Sharks licensed club could be set up in such a way that the group is assessed under Section 50-45 of the Income Tax Assessment Act 1997 and is exempt from income tax, just like all the AFL clubs and the their licensed clubs are!! And the Mutuality Principle applied to licensed clubs becomes totally irrelevant.
So Southport pay no tax at all ?
Let me edit that .
They pay no tax at all on their earnings ?
.
.
RussellEbertHandball
7 Sep 2009, 19:13
So Southport pay no tax at all ?
Let me edit that .
They pay no tax at all on their earnings ?
If you are talking income tax then it depends how Southport FC + Southport Sharks FC licensed club has been set up. I have no idea how they are set up, that's why I gave 2 answers.
Go and look at the AFL clubs that publish their accounts on their website and you will see that none of them pay income tax on the profits their licensed clubs generate. Collingwood generated the following for the year ended 31 October 2008 and paid no income tax.
3 Revenue
Social club and gaming $20,165,254
Total revenue________$62,611,192
Social club / gaming expenses $16,380,764
So the Southport FC was around before the licensed club, so if their tax adviser got it right 20 years or so ago when they set up their licensed club with a large donation from a benefactor, then yes just like AFL clubs have tax free licensed clubs, then the same for the Sharks.
If not, then they have to calculate what % of income was generated by members and what % from non members. What ever that non members % is then that's the % of income that is assessable and that is the % used to calculate allowable deductions to calculate their taxable income.
All licensed clubs would pay whatever gaming tax is assessed in their respective states on their pokie turnover or net gaming revenue.
qldander6
18 Sep 2009, 21:17
All this money and the club has the hide to ask some of the kids from this year who deserve to be there next year, back with full commitment, and from what I hear have asked these kids to do it at there own expense. Is this true, can anyone confirm this. Good enough to be on the list they have to deserve at least the minimum wage.Surely this can not be true?