sandeano
5 Jan 2004, 09:45
From today's AGE
Casey's $1.3m boost to Tigers
By Jake Niall
January 5, 2004
Richmond's financial position has been shored up through the intervention of president Clinton Casey, who has backed the club to the tune of $1.3 million.
Casey has provided security of $1.3 million - giving the club's bank a hold over that amount - to ensure the Tigers are able to extend their bank overdraft in 2004.
Casey's commitment of his personal wealth enabled Richmond to raise its overdraft, effectively a short-term loan, from $500,000 to $1.8 million.
The Tigers lost $882,000 in 2003 after a terrible year in which they finished 13th and were hit hard by diminished gaming revenues.
Like other clubs, the Tigers have cash-flow difficulties at this time of year, before their membership and match-related income starts to flow in, and they rely on an overdraft facility to make ends meet.
To have the overdraft boosted to $1.8 million required someone - Casey, in this instance - to "put up" either $1.3 million in cash or a property worth more than $2 million to the ANZ Bank, Richmond's banker.
Casey, who owns one of Australia's biggest aged-care companies and has a stake in residential golf developments, is providing the bank with security for the club to borrow against; his position is unsecured.
The Tigers were also keen to avoid receiving AFL assistance - such as an advance on their annual dividend or the more drastic option of emergency funding - to ensure they remained independent and in control of their own destiny.
"We chose not to go to the AFL," said Casey of the overdraft. "We feel that the club is heading in the right direction. We've made investments that don't turn around overnight.
"We want to be independent, we don't want to be beholden. We can stand on our own two feet."
The club pays 100 per cent of the salary cap, for instance, a choice that is not available to the AFL-backed Bulldogs and Kangaroos. The club's primary difficulty is cash flow, given that it has no significant debt, besides the overdraft.
Casey, one of the wealthiest presidents in the AFL, yesterday confirmed he had "supported" the club financially, but would not make details public. "That's information that's within the club."
Casey is believed to be the first Richmond director to risk a substantial amount of his own wealth since former long-time board member Gary Krause loaned the club about $400,000 in the late 1980s.
Casey's financial support, while significant, is less drastic than that offered by some past presidents, notably Melbourne's Joseph Gutnick, who plunged millions of his own into club coffers during his presidency.
Casey also revealed that the Tigers had trimmed more than a million dollars from administration and football costs for 2004 to ensure that the club makes a profit, regardless of on-field results.
The Tigers have shed staff and further reduced costs by outsourcing some commercial operations to sports management company Elite Sports Properties.
In their report, Richmond's auditors, PricewaterhouseCoopers, expressed concern that the club might not continue "as a going concern if debt facilities are not extended or other support provided". The required "other support", it turns out, has come from Casey in 2004.
Three members of Casey's board, including football directors Tony Jewell and Peter Welsh, face challenges at this month's election. Casey said he was supporting Jewell, Welsh and fellow director Gary March in the poll.
Casey's $1.3m boost to Tigers
By Jake Niall
January 5, 2004
Richmond's financial position has been shored up through the intervention of president Clinton Casey, who has backed the club to the tune of $1.3 million.
Casey has provided security of $1.3 million - giving the club's bank a hold over that amount - to ensure the Tigers are able to extend their bank overdraft in 2004.
Casey's commitment of his personal wealth enabled Richmond to raise its overdraft, effectively a short-term loan, from $500,000 to $1.8 million.
The Tigers lost $882,000 in 2003 after a terrible year in which they finished 13th and were hit hard by diminished gaming revenues.
Like other clubs, the Tigers have cash-flow difficulties at this time of year, before their membership and match-related income starts to flow in, and they rely on an overdraft facility to make ends meet.
To have the overdraft boosted to $1.8 million required someone - Casey, in this instance - to "put up" either $1.3 million in cash or a property worth more than $2 million to the ANZ Bank, Richmond's banker.
Casey, who owns one of Australia's biggest aged-care companies and has a stake in residential golf developments, is providing the bank with security for the club to borrow against; his position is unsecured.
The Tigers were also keen to avoid receiving AFL assistance - such as an advance on their annual dividend or the more drastic option of emergency funding - to ensure they remained independent and in control of their own destiny.
"We chose not to go to the AFL," said Casey of the overdraft. "We feel that the club is heading in the right direction. We've made investments that don't turn around overnight.
"We want to be independent, we don't want to be beholden. We can stand on our own two feet."
The club pays 100 per cent of the salary cap, for instance, a choice that is not available to the AFL-backed Bulldogs and Kangaroos. The club's primary difficulty is cash flow, given that it has no significant debt, besides the overdraft.
Casey, one of the wealthiest presidents in the AFL, yesterday confirmed he had "supported" the club financially, but would not make details public. "That's information that's within the club."
Casey is believed to be the first Richmond director to risk a substantial amount of his own wealth since former long-time board member Gary Krause loaned the club about $400,000 in the late 1980s.
Casey's financial support, while significant, is less drastic than that offered by some past presidents, notably Melbourne's Joseph Gutnick, who plunged millions of his own into club coffers during his presidency.
Casey also revealed that the Tigers had trimmed more than a million dollars from administration and football costs for 2004 to ensure that the club makes a profit, regardless of on-field results.
The Tigers have shed staff and further reduced costs by outsourcing some commercial operations to sports management company Elite Sports Properties.
In their report, Richmond's auditors, PricewaterhouseCoopers, expressed concern that the club might not continue "as a going concern if debt facilities are not extended or other support provided". The required "other support", it turns out, has come from Casey in 2004.
Three members of Casey's board, including football directors Tony Jewell and Peter Welsh, face challenges at this month's election. Casey said he was supporting Jewell, Welsh and fellow director Gary March in the poll.