Colonial End Game

[CJH]

All this discussion on the why's and how's of the Essendon / Hawthorn round 9 game started me thinking...

How would Colonial be affected if Stadium Operations Limited went belly up? This is a possibility as their level of debt is presumably mounting, whilst the stadium is not generating the expected amount of revenue.

If SOL did fall over, this would leave an asset (property and chattels) worth nominally $450 million which would have sizeable securities hanging over the top of it as well as substantial investor funds tied up in there with no revenue or any prospect of a return in the short to medium term.

This would be likely to make both the investors and the banks (not usually reknowned for their relaxed attitude to underperforming investments) very nervous indeed.

This scenario could enable someone (read AFL) to come in and buy out the stadium at a reduced rate in the dollar.

Thoughts?

I should add that this may be why the AFL appear to often be giving Colonial the rough end of the pineapple. It has been accentuated this time as no doubt Coloniall (SOL) are putting a heap of pressure on the AFL to keep this marquee game at their stadium.

 

[Mr Ripper]

When I saw the header, I thought this was gunna be a thread about the sudden switcheroo of the Lockett end and the Coventry end!

 

[ptw]

or the final game to be played at colonial ????