It's time to support OUR Club Swans

[Beaussie]

What an absolute disaster last night at Club Swans. Was really sad being there trying to support our club as the place was rockin with lots of people eating and drinking (NAB Cup on the TV screens throughout the club) unaware of what the rain was doing to the roof.

The constant rain resulted in a pipe in the front street level bar bursting - flooding through the front street level seating area. Water was non stop flooding the whole area. Club Swans staff were quick to move us away. Our crew moved via the lift to Level 3 that was closed. Thank god we were there though to alert staff that the lights were dripping water. Moved from there back downstairs and within 5 minutes the evacuation alarms starting ringing throughout the club. Apparently the 3rd floor roof colapased under the pressure of the constant rain (who the #$% were the contractors to re-build our club..... dodgy?)

Meanwhile, everyone in the club was evacuated out onto the street, before we were told that the Bourban next door was also evacuated and on fire. Was not long after that the fire brigade, police and ambulance were on the scene telling people to get on the other side of the street as they thought the buildings were going to collapse. My god, all I kept thinking was we are safe, but how much money will we lose with the club likely to be out of action for quiet some time. This to me was the last thing needed so close to the footy season starting.

Please Swans fans, put your dislikes of the club aside and when the club re-opens, make an effort to support it and the fantastic Swans family staff working there - who I guess are now out of a job until the club re-opens. Seems so unfair right before the season to see OUR club in this state. :(

[satchmopugdog]

Are you for real or re-telling a dream. That sounds like something out of a thriller.

That is unbelievable!

[Jewels]

I heard a brief mention of it on the morning news but I had no idea it was so serious. With the financial strife the club is in, I wonder if this is a disaster or a blessing in disguise.

[EMJ]

Thank you for the info. Believe some news about in on sunrise this morning. Nothing else available.

this is realy sad to see the club destroyed like that.

Hopefully repairs and rebuilding do not take long.

Just when we hear of all the dream club rooms etc being opened at North Melbourne, Carlton etc.

Swans need support now big time from AFL - guess that will never happen.

Only out to help GWS.

Heavy rain at SCG hope all is okay there for the Swans.

[CJK]

Insurance scam!

[ROK Lobster]

Kevin Sheedy would never have let it happen.

[DST]

Beleive it or not, this is blessing for the club.

It temporarily removes the need to keep trading what is a negative cash flow for the club at present and probably allows them greater flexiblity to get out of the current tennant contract they have with the club and find more suitable premises to what they are trying to do.

Let's hope this time they decided to seperate the two purposes and have a seperate social venue for match days etc and actually get into a business that will generate revenue for the club as a pure investment.

I don't think the club should have tried to cater for both arrangements within the one premise, it was never going to work as it narrowed it's ability to attract customers being so closely aligned to the football club.

DST
:D

[Kirkari]

I hope the insurance (QBE surely?) was up to date. And that they take to opportunity to find a new venue away from Kings Cross.

[Beaussie]

Beleive it or not, this is blessing for the club.

It temporarily removes the need to keep trading what is a negative cash flow for the club at present and probably allows them greater flexiblity to get out of the current tennant contract they have with the club and find more suitable premises to what they are trying to do.

Let's hope this time they decided to seperate the two purposes and have a seperate social venue for match days etc and actually get into a business that will generate revenue for the club as a pure investment.

I don't think the club should have tried to cater for both arrangements within the one premise, it was never going to work as it narrowed it's ability to attract customers being so closely aligned to the football club.

DST
:D

I'm really not sure about the financial situation after asking staff at the club who said the club does run at a profit and the losses reported in the press were simply depreciation costs associated with the redevelopment. If that's the case wouldn't that be the case for any new club development?

The staff even went as far as to say attend the AGM in March to hear that. Like I said I'm not sure but would be interested in hearing more about it as judging by the numbers there eating, drinking and gambling the last couple of weeks I've been there, I'm not sure how it could be running at a loss.

[Cheer Squad]

Sorry to hear about the trouble. I think it's a great venue and will continue supporting it once it re-opens.

[Bas]

This is a job for superman.

Only danger I had last night was falling off the couch.

Another reason why this association should end.

Near disaster fortunately averted. A more appropriate venue near the SCG would make alot more sense. Subsidised parking at Fox Studios if you have a meal there for example.

I haven't walked through Kings Cross in 20 years. Although I did sprint through there last month chased by several bouncers :D

[Wardy]

Hmm I must call my colleagues at QBE to see if I can get any info.

[DST]

I'm really not sure about the financial situation after asking staff at the club who said the club does run at a profit and the losses reported in the press were simply depreciation costs associated with the redevelopment. If that's the case wouldn't that be the case for any new club development?

The staff even went as far as to say attend the AGM in March to hear that. Like I said I'm not sure but would be interested in hearing more about it as judging by the numbers there eating, drinking and gambling the last couple of weeks I've been there, I'm not sure how it could be running at a loss.

Conseidering we had to get a rent holiday and we owed more than $1 million in back rent at one stage it's pretty safe to assume that the club is running on negative cash flow at this stage.

However it, you are correct the losses reported where write downs against the asset which was being carried at far to higher value on the club's books and were designed to make sure that if we sold the business this year that we would not have booked a large paper loss in the one year.

DST
:D

[Wardy]

The beauty of having an insurance company such as QBE as your major sponsor is that they would ensure that coverage on all Swans assests would be top of the range. They will have adequate coverage in place to cover not only the damage & restoration, increase cost of workings etc but even relocation should they decide to open up elsewhere. They would also have good business interruption cover which covers all economic losses over a period up until they are open for business again, (and with in an indemnity period of say 2 years) even if it went over that period - I'm sure that insurers would accomodate that . Do we own the actual building or are we a long lease tenant?

[iigrover]

The property is owned by ING Real Estate Entertainment Fund (not the Sydney Aussie Rules Social Club nor the Swans footy club). IEF is also listed on the ASX, if you want to look up any further info on it.

Property portfolio - ING Real Estate (http://www.ingrealestate.com.au/au_en/investing/listed_real_estate_investment_trusts/ingre_entertainment_fund/property_portfolio/)

In that respect, it is IEF who will be responsible for fixing the damage to the building / insurance. Unfortunately for them, they also own the Bourban next door...

I think where most people get confused is that Richard Colless is Chairman of each of IEF, SARSC, and of couse the Swans. Some might argue that presents a few conflicts of interest. But if he's keeping the Swans as no.1 in his list of preferences, Im all for it :-)

And if anyone is really keen, they can attend a briefing by Richard on the ING Real Estate Entertainment Fund at 2pm, Monday 22 February 2010, on Level 4 of the Hilton Sydney.

[Wardy]

The property is owned by ING Real Estate Entertainment Fund (not the Sydney Aussie Rules Social Club nor the Swans footy club). IEF is also listed on the ASX, if you want to look up any further info on it.

Property portfolio - ING Real Estate (http://www.ingrealestate.com.au/au_en/investing/listed_real_estate_investment_trusts/ingre_entertainment_fund/property_portfolio/)

In that respect, it is IEF who will be responsible for fixing the damage to the building / insurance. Unfortunately for them, they also own the Bourban next door...

I think where most people get confused is that Richard Colless is Chairman of each of IEF, SARSC, and of couse the Swans. Some might argue that presents a few conflicts of interest. But if he's keeping the Swans as no.1 in his list of preferences, Im all for it :-)

And if anyone is really keen, they can attend a briefing by Richard on the ING Real Estate Entertainment Fund at 2pm, Monday 22 February 2010, on Level 4 of the Hilton Sydney.


ING's insurers will cover the building - the fitout and restoration of the clubs interior & contents (ie fitout) will be with the clubs insurers.

Was the Bourban's fit out/ reno done at the same time as Club Swans - I cant recall? I know it was a couple of years ago now, so I think that the defects period under the Contract Works would have expired by now. Still there maybe some chance of recovery from the building contractors if its deemed that there was a major fault in construction/renovation. Anyway one way or the other, there are some big decisions to be made on this one.

[jono2707]

I think where most people get confused is that Richard Colless is Chairman of each of IEF, SARSC, and of couse the Swans. Some might argue that presents a few conflicts of interest. But if he's keeping the Swans as no.1 in his list of preferences, Im all for it :-)



I would have thought that's a pretty major conflict of interest....

I had heard that the IEF was under some pressure to sell the club from its portfolio due to its poor performance and that the decision to acquire the investment in the first place was was not necessarily a popular one, but one that was pushed by someone within the IEF who had a personal interest in the Swans. Hmmmm

[AnnieH]

I would have thought that's a pretty major conflict of interest....

I had heard that the IEF was under some pressure to sell the club from its portfolio due to its poor performance and that the decision to acquire the investment in the first place was was not necessarily a popular one, but one that was pushed by someone within the IEF who had a personal interest in the Swans. Hmmmm

Dicky is a professional board sitter.

Other than that ... insurance will cover any damage made to both places.

[Beaussie]

Hopefully the report below is correct and the club will be operating again in the short term.


Temporary closure of Club Swans

As the result of a major storm in Sydney last Friday night, Club Swans is unable to trade and has been closed for repairs.

It is yet to be determined exactly when Club Swans will re-open but we are confident we will be operating again in the short term.

We will provide regular website updates on our progress as more information comes to hand.

We appreciate the positive support and offers of help received to date and look forward to seeing you all soon.

Doug Grant, chief executive, Club Swans


Temporary closure of Club Swans - Official AFL Website of the Sydney Swans Football Club (http://www.sydneyswans.com.au/news/newsarticle/tabid/7106/newsid/89637/default.aspx)