Newcastle Jets have licence handed back to the FFA

[AngrySeahorse]

Story below.

Big news here in Newcastle. Was Palmer onto something about his blasting of the FFA? Or is big money tycoons like him & Tinkler the problem. Not Rugby but does ask some interesting questions about some aspects of governing sporting bodies & private ownership.

http://www.theherald.com.au/news/local/news/general/jets-pull-out-of-aleague/2515588.aspx#comments

 

[wamberal]

Strange thing for the big Newcastle patriot to do. He and Palmer both strike me as being dickheads, both of them have behaved pretty shamefully.

 

[Torn Hammy]

For me, the FFA is looking totally inept.

$50million for one WC vote, Gold Coast United and now the Newcastle Jets.

The disdain of international football and the rage of Nathan Tinkler and Clive Palmer suggest an alarming lack of finesse.

 

[wamberal]

Maybe the World Cup bid was a mistake, but I would not blame them for only getting one vote, given the amount of graft and corruption that so obviously floats around in the upper echelons of the sport.

I would not choose Clive Palmer to run a chook raffle, and Tinkler is not much better. However, both have acted like totaly dickheads, and the FFA and the fans deserved a whole lot better than that.

 

[Badger]

Can they hand the licence back just like that? Both parties would have signed a contract so one of the parties would be in breach. "Irreconcilable differences" were cited as the reason they handed back the licence. These should be documented, otherwise it is a cop out excuse.

I was bemused when they were upset over the $5mil licence fee they had to pay. If it was a commercial negotiation, then why did they agree to it? It sounded like a case of "Buyer's remorse".

 

[kiap]

Strange thing for the big Newcastle patriot to do. He and Palmer both strike me as being dickheads, both of them have behaved pretty shamefully.

They may well both be dickheads, but they have sunk millions of their money into these losing clubs.

Chairman/President Frank Lowy also has billions, but wields most of the power in the FFA without spending dollar one of his own on the game.

There is a fair bit of stink in the FFA, not least in the dealings surrounding the WC bid and the use of the $40m plus in taxpayer funds. The problems are not all with the administration of the clubs.

This shit makes the ARU look glowing in comparison.

 

[Gnostic]

They may well both be dickheads, but they have sunk millions of their money into these losing clubs.

Chairman/President Frank Lowy also has billions, but wields most of the power in the FFA without spending dollar one of his own on the game.

There is a fair bit of stink in the FFA, not least in the dealings surrounding the WC bid and the use of the $40m plus in taxpayer funds. The problems are not all with the administration of the clubs.

This shit makes the ARU look glowing in comparison.

I was wondering if anybody would say it. Lowy runs the FFA like his own Kingdom. Can't have anymore roosters in that chook yard. As for corruption in Soccer it comes from the top, have a look at the goings on in FIFA.

 

[waratahjesus]

They may well both be dickheads, but they have sunk millions of their money into these losing clubs.

Chairman/President Frank Lowy also has billions, but wields most of the power in the FFA without spending dollar one of his own on the game.

There is a fair bit of stink in the FFA, not least in the dealings surrounding the WC bid and the use of the $40m plus in taxpayer funds. The problems are not all with the administration of the clubs.

This shit makes the ARU look glowing in comparison.

With all due respect, Lowy has sunk millions into the game in general and Sydney FC as his own personnel investment, don't see how he can be criticized here.

Also the world cup bid was taxpayer funded, as an organization presenting a case to the government and having the government review and agree to invest in it, it's good business on the FFA part isn't it? if it's the use of taxpayer funds fir ut you don't agree with, take that up with the government.

As a soccer fan the whole shit about this today has me laughing. From every point Newcastle and tinklers group has made it just seems like they havnt read any contract they signed. There obviously trying to make the argument emotional and damaging to the game in the hope the FFA crumble as a PR move and they get what they want.

I believe taxpayer funds were used to upgrade the stadium in Newcastle based on year round use, will this come under the same scrutiny as the world cup bid?

 

[I like to watch]

WJ, didn't the FFA approach Tinkler as a white knight to save the franchise?
Then told him the franchise fee of $5M was the standard fee that all clubs had to pay, only for him to find out later this was bullshit?
Then didn't the manager sign his son to a multi million $ contract even though he required a total knee construction?The FFA's response was that he had to go through a mediation process through them and not the courts?
If this is right, who could blame him for wanting no involvement with them.

 

[waratahjesus]

WJ, didn't the FFA approach Tinkler as a white knight to save the franchise?
Then told him the franchise fee of $5M was the standard fee that all clubs had to pay, only for him to find out later this was bullshit?
Then didn't the manager sign his son to a multi million $ contract even though he required a total knee construction?The FFA's response was that he had to go through a mediation process through them and not the courts?
If this is right, who could blame him for wanting no involvement with them.

If you watch the Ben Buckley press conference on foxsports news. The fee was actually 3.5 million for the club and it's assets and intellectual property and a further million dollars for a ten year licence. He ads that there was a tempery licence granted in order for tinker to apply due diligence to the perchance which the tinkled group waved in order to buy the club.

With regards to the Branco/Jason saga. Newcastle signed Branco as the coach and then Newcastle signed Jason as there star player. It's all newcastles fault. The process of the contract terminations is being handled by an independent tribunal that was agreed to in a collective bar ginning agreement by the plaers association and clubs (again newcastles fault for agreeing to those terms soon signing the contracts) to throw thisuo as a reason for anything is a pure smokescreen.

Tinkled is playing hard ball, u hope he ends up being sued and his money used to run the club in his own backyard.

 

[Inside Shoulder]

The most interesting part of this story is that in a one team town, with a healthy interest in any sport and a good supporter base:
a) the license holder decides he wants to hand back the licence - doesn't try to sell it (as far as we know) or finesse it he just purports to hand it back;
b) The FFA's immediate response is "you cant hand it back" sounding like "we dont want that in here - get it out immediately" - sounding like its a grenade on which the pin has been pulled.....

In what other code in what other country where there are only 10 licenses would the owner merely try to hand it back and the governing body refuse to accept it?

As with Westfield - its Lowy's way or the highway - just reflect on how many times the Westfield assets have been swapped between retail property trusts and private companies and public entities as the mood of the economy shifted and the Lowy interests were best served.

 

[joshbristow]

I wonder if this will effect the Perth NRL bid? Tony Sage has been spruking the NRL-A-League marriage (already owning the Perth Glory) , setting Newcastle as an example.

 

[mark_s]

The CEO of HSG was on Grandstand last night (good new nightly ABC sports show BTW) and his main beefs were around the licensing fee, the speed of the decision re the new Western Sydney team, some central sponsorship which is organised by the FFA (eliminating the prospect of the team gaining some sponsors) and what sounded like mis-communications during HSG’s due diligence on the Jets.



Peter Wilkins (quite rightly) went hard at him on two angles, firstly that it sounds like buyers regret from the HSG and secondly that they had just attended the CEO’s conference and didn’t raise their concerns there. I didn’t find the CEO’s responses very compelling at all.



More generally, I think we are going to see more of this happening in the future. These mining magnates have ridden the latest resources boom, as others have done before them. All booms are followed by a bust and owning an “asset” that losses $5-10m a year just won’t seem very attractive anymore.

 

[kiap]

With all due respect, Lowy has sunk millions into the game in general and Sydney FC as his own personnel investment, don't see how he can be criticized here.

Also the world cup bid was taxpayer funded, as an organization presenting a case to the government and having the government review and agree to invest in it, it's good business on the FFA part isn't it? if it's the use of taxpayer funds fir ut you don't agree with, take that up with the government.

FFA and good business cannot be mentioned in the same breath. And abso-fucking-lutely it's the use of taxpayer funds I disagree with!

Just about every club in the A League is financially struggling. FFA under Frank Lowy blew well over $40m on a scandalous bid that never had any chance of succeeding. They went from net assets of $4.6m to a net asset deficit of $1.2m eighteen months ago.

What did Lowy bring to the table? Nothing. Once again, it's being covered by a $1m loan from the Australian Sports Commission. Fucking rubbish planning. It's time for a clean out of 'strayan sokkah.

 

[Torn Hammy]

FFA gave HSG a 6 month temporary license to allow them to do their due diligence but entered into a full license after 3 weeks at their discretion and for a fee negotiated by Tinkler and Lowy. Not much wrong here.

An accountant mate had dealings with the Tinkler Group and claimed it was particularly unpleasant due to their hard ball tactics. But it didn't put him off future business dealings with them as the money was good.

This stoush is strange in that Tinkler is the one with the money, yet it is the FFA that is playing hard ball.

 

[waratahjesus]

FFA and good business cannot be mentioned in the same breath. And abso-fucking-lutely it's the use of taxpayer funds I disagree with!

Just about every club in the A League is financially struggling. FFA under Frank Lowy blew well over $40m on a scandalous bid that never had any chance of succeeding. They went from net assets of $4.6m to a net asset deficit of $1.2m eighteen months ago.

What did Lowy bring to the table? Nothing. Once again, it's being covered by a $1m loan from the Australian Sports Commission. Fucking rubbish planning. It's time for a clean out of 'strayan sokkah.

Lost has poured millions into soccer, saying he hasn't is just plain wrong.

And once again, they prepared a business plan, went to the government and asked for investment in the world cup bid and the govern,net reviewed, investigated and decided to invest in it. If you have a problem with the use of taxpayer funds, your problem should be with the government not with the FFA, finding the investment for there proposal is good business.

As for going from profit to loss, I guess if that's the problem for the FfA then rugby is up shit creek.

 

[kiap]

Lost has poured millions into soccer, saying he hasn't is just plain wrong.

And once again, they prepared a business plan, went to the government and asked for investment in the world cup bid and the govern,net reviewed, investigated and decided to invest in it. If you have a problem with the use of taxpayer funds, your problem should be with the government not with the FFA, finding the investment for there proposal is good business.

As for going from profit to loss, I guess if that's the problem for the FfA then rugby is up shit creek.

Nonsense, that figure was Net Asset Deficit, not just operating loss over the reporting period.

Rugby may have shit on its shoes, but the FFA is up to its neck.

The ARU lost $8m last year with the reduced domestic tests. Bad as that may be, the ARU still have a net equity position of over $10m. The FFA do not.

Expand the whole shit-show for the FFA to include 2011 and they went down the hole for $14m over two years. Enough to send them to wall, except - you guessed it - the tax-payer yet again paid the bill. An extra $7.5m on top of $1.25m from the ASC, FFS.

Concerns about a lack of transparency have been raised among some insiders because FFA made no mention of the special assistance funding in its 2010-11 financial report.

In the time this went on, Hinkler and Palmer (assholes or otherwise) sank millions into the game, this season and last.

Lowy did NOT.

 

[waratahjesus]

They didn't sink millions in though. They agreed and bought a team. The notion that they didn't see business plans, have discussions or the abililty to negotiate is what's at question here.

If I bought a house after negotiating with the owner, doing my research of the area assesing my finances etc etc the. A couple of years later the house next door sold for less, can I ring the guy I bought it off and say hey, don't want it anymore, money back please or is it my fault?

These rich dickheads agreed to something, they should be made to see it through, the way tinkled has gone about this as I stated before is simply to force the FFA to cave, I hope they don't.

Besides the fans who give there support and money to the club, he is screwing over the players and there families and not to mention the fact thatch is calling into jeopardy the tv contract that funds the game and putting others in jeopardy to.

It's a stupid and selfish move that should be seen as such. If the millions Lowy has poured into soccer, maybe nit this week but over alot of time. Be it from his own pocket or through the massive sponsorship his company pays to keep junior sport going,arnt good enough for you, then fine, but the fact is he saved soccer from extinction in this country then set up a board and allowed them to run the game. I'm not sure what you want from him, I'm not sure why it's soccer's fault if the government invests in them. Maybe fold the league and have tinkled run the whole show to make you happy?

 

[Badger]

As with Westfield - its Lowy's way or the highway - just reflect on how many times the Westfield assets have been swapped between retail property trusts and private companies and public entities as the mood of the economy shifted and the Lowy interests were best served.

Yeah, this was galling. They changed it and then pretty much changed it back again in the last two or three years. No doubt they will fart arse around with it again soon enough. The only thing that has really happened is the share price has been shot to crap.

 

[kiap]

<snip> blah blah blah <snip>

... the fact is he saved soccer from extinction in this country then set up a board and allowed them to run the game. I'm not sure what you want from him, I'm not sure why it's soccer's fault if the government invests in them. Maybe fold the league and have tinkled run the whole show to make you happy?

Let's be clear: Lowy did not save soccer, Australians and Australian taxpayers did.

Under Lowy's leadership, the FFA went down the toilet to the tune of $14m+ within two years, and would have gone to the wall without a government bailout. The FFA are not properly disclosing this in their financial reporting. It's a disgrace.

I don't give a flying for Tinkler, Palmer, or Lowy. They're much the same in many ways.

Four years ago, Lowy got bored with Sydney FC and decided to get his fun by throwing away $40m+ of taxpayer money instead, grubbing shoulders with FIFA. A rich Russian took control of the club, and Frank Lowy took money OUT of the club in return.

Frank Lowy screwed Sydney City in 1987 in eerily similar fashion to what Tinkler is doing with Newcastle now. Lowy couldn't get his way with the administrators of the game, so he simply refused to play the rules. Took his ball and walked away, dumping the club while the '87 season was in progress.

"I say without qualification that we cannot afford to maintain a professional team any longer. Despite the sentimental arguments I can see no justification for our current level of funding. The cost of running the team could be $300,000 and $500,000 would be needed to maintain a top-line professional team in the near future. The decision of your board of directors to bite the bullet on this issue is a sad one. But we must be realistic. Our support for Sydney City will have to end sooner or later."

He wouldn't allow Blacktown City or Harry Michaels, who offered to pay $650,000, buy the team out.

So let's hear no more of this paragon of virtue, Frank Lowy.