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Roos' cash crisis deepens
By CAROLINE WILSON (also known as USC) and CHRISTOPHER WEBB
The perilous financial situation facing the North Melbourne Football Club has significantly worsened with the Kangaroos now facing the near-certain failure of their $1.6 million Broadmeadows Social Club venture.
The Kangaroos Social Club has received a statutory demand from the Hume City Council for unpaid rents totalling between $100,000 and $200,000 - a demand according to North president Andrew Carter that could force the club to fight the council in the Supreme Court.
While the club has managed to negotiate deals with most of its creditors at venues such as Colonial Stadium and among its staff, the Hume Council has refused repeated attempts by the club to renegotiate its 20-year-lease and has now handed the social club a deadline to meet its debts.
Carter spoke to The Age following the Kangaroos board meeting yesterday to emphasise that the club's cash flow had not been affected by the latest crisis in what has become a six-year disaster for North.
The club's 2000 balance sheet includes the social club debt of $1.6million that has been recorded as an asset. Only with the establishment of a profitable gaming venue at the old Broadmeadows Town Hall - which the council looks certain to block - would that debt appear recoverable.
``The loss would have to be brought to account,'' said Carter, who emphasised that the Kangaroos remained ``absolutely'' solvent.
The Kangaroos Social Club obtained a lease for the Broadmeadows Town Hall from the City of Hume in December 1996 and has faced a series of obstacles since then in setting up a licensed venue.
The football club lost $1.14million last year and struggled to meet its player payments on time. The death of its chairman Ron Casey led to series of reshuffles at board level. Late last season financial director Ken Montgomery resigned and director Mark Dawson is also looking at leaving the board.
Chief executive Greg Miller indicated just before the start of the season that his tenure could end as soon as late 2001. Now the AFL has paid for the independent accounting group Pitcher Partners to independently check the club's finances - an exercise that began three weeks ago.
Miller said it was important the club distanced itself from the social club problem. ``My job is to make sure the football club is up and running and profitable and that's what I'm concentrating on at the moment,'' he said.
Of the potential Supreme Court action to fight the statutory demand, Carter said: ``We don't think it will come to that. What we're doing is looking at a number of different options. That would be up to our social club board to decide, but if we have to, we'll do that. We'll fight fire with fire.
``From the football club's point of view, our disagreement with the council has reached a bit of a negotiation stance.''
Hume chief executive Darrell Treloar said yesterday that his council had refused the social club's attempts to renegotiate the lease and wipe out the rental arrears. ``We've told the club we expect the rent to be paid,'' said Treloar.
Roos' cash crisis deepens
By CAROLINE WILSON (also known as USC) and CHRISTOPHER WEBB
The perilous financial situation facing the North Melbourne Football Club has significantly worsened with the Kangaroos now facing the near-certain failure of their $1.6 million Broadmeadows Social Club venture.
The Kangaroos Social Club has received a statutory demand from the Hume City Council for unpaid rents totalling between $100,000 and $200,000 - a demand according to North president Andrew Carter that could force the club to fight the council in the Supreme Court.
While the club has managed to negotiate deals with most of its creditors at venues such as Colonial Stadium and among its staff, the Hume Council has refused repeated attempts by the club to renegotiate its 20-year-lease and has now handed the social club a deadline to meet its debts.
Carter spoke to The Age following the Kangaroos board meeting yesterday to emphasise that the club's cash flow had not been affected by the latest crisis in what has become a six-year disaster for North.
The club's 2000 balance sheet includes the social club debt of $1.6million that has been recorded as an asset. Only with the establishment of a profitable gaming venue at the old Broadmeadows Town Hall - which the council looks certain to block - would that debt appear recoverable.
``The loss would have to be brought to account,'' said Carter, who emphasised that the Kangaroos remained ``absolutely'' solvent.
The Kangaroos Social Club obtained a lease for the Broadmeadows Town Hall from the City of Hume in December 1996 and has faced a series of obstacles since then in setting up a licensed venue.
The football club lost $1.14million last year and struggled to meet its player payments on time. The death of its chairman Ron Casey led to series of reshuffles at board level. Late last season financial director Ken Montgomery resigned and director Mark Dawson is also looking at leaving the board.
Chief executive Greg Miller indicated just before the start of the season that his tenure could end as soon as late 2001. Now the AFL has paid for the independent accounting group Pitcher Partners to independently check the club's finances - an exercise that began three weeks ago.
Miller said it was important the club distanced itself from the social club problem. ``My job is to make sure the football club is up and running and profitable and that's what I'm concentrating on at the moment,'' he said.
Of the potential Supreme Court action to fight the statutory demand, Carter said: ``We don't think it will come to that. What we're doing is looking at a number of different options. That would be up to our social club board to decide, but if we have to, we'll do that. We'll fight fire with fire.
``From the football club's point of view, our disagreement with the council has reached a bit of a negotiation stance.''
Hume chief executive Darrell Treloar said yesterday that his council had refused the social club's attempts to renegotiate the lease and wipe out the rental arrears. ``We've told the club we expect the rent to be paid,'' said Treloar.
