Isaac
Years ago

NBL won't budge on $1m bank guarantee

Late yesterday afternoon Mat Campbell received a phone call from the NBL sub committee reviewing each Expression of Interest (EOI) for entry into the 'NEW NBL' for 2009/10 onwards.

A discussion took place in regards to the New Wollongong Hawks bid but the NBL sub committee stood firm on each NEW NBL team meeting the proposed criteria which includes $1 million bank guarantee.

Each team is guaranteed a place in the NEW NBL if they meet all of the points in the proposed criteria.
Full story from Save The Hawks

Topic #19418 | Report this topic


HAHA  
Years ago

Exactly how it should be.
If the Hawks had listened to this rather than a suck it and see and getting the public to fund them approach, the reality wouldn't now be dawning on them.

Reply #229963 | Report this post


Jack Toft  
Years ago

We need this guarantee to ensure that owners are serious about ownership. A bank guarantee doesn't mean you have to give $1M to the NBL for them to live off the interest, it means that if the club you own goes bad, then the NBL can extract $1M from your Gold Coast "holiday house" to pay the players and support staff.

Reply #229968 | Report this post


HAHA  
Years ago

Exactly.
I can't understand why so many one-eyed people are whinging about this and other trivial issues that are designed with a purpose.
If the Bullets or the Sixers were in the same situation, I'd say the same thing, but it's a shame that some peoples' opinion on it depends on which team they happen to support.

Reply #229969 | Report this post


mystro  
Years ago

after all the issues last season it is a must to have that cash, no point recruiting broke teams to start a broke new league

Reply #229971 | Report this post


Ben Fitz  
Years ago

ah actually it does cost you money.

it costs money to set up the guarantee.

Also if they want a true guarantee then property will not suffice, it will need to be a liquid asset usually cash.

Not only bank fees but legal fees as well to consider which usually relate to the amount.

If it is cash that means you have one million dollars tied up that you can not use, which also comes at a cost. Not just actual cost but also opportunity cost in that you can not use that money for anything else.


Reply #229974 | Report this post


peter  
Years ago

Actually, you can stick it in the bank and get better than CPI interest rate while still having access to it when you need it. Still, I guess the the point is you're not going to be able to get what you might if you invest it in something more speculative, like shares. You know, -30% last year...

However, there is a nother perspective, which is that the $1 million is part of investing in the NBL licence you get with a club. If you feel that's going to appreciate in value then you do your sums based on how much you think it will grow before you sell (your stake in) it. Just like any other investment.

Third perspective is you don't really care about the investment return, you just want to own an NBL club and are happy to just break even for as long as you do. Hey - everyone needs a hobby

It's all about values.

Reply #229975 | Report this post


Ben Fitz  
Years ago

actually peter you can not access the cash you have put up for the guarantee, that is the point of a guarantee in that if you call on it you can walk into the bank and call on the guarantee right there and then.

no oh sorry the guy who put up the guarantee only has $50 left with us but here is his number.

Better than CPI is not quite true as well as any interest that you earn is income and so therefore taxed at the appropriate rate( lets say 30%) so you need to discount the rate you are quoted by that before you can say that you are getting better than CPI. In most cases your cash is going backwards in a bank account.

Further to this the NBL has a right to do spot checks on your 500k working capital. so you need to have 1.5m on hand at any time to be compliant with the NBL.






Reply #229979 | Report this post


curious  
Years ago

NZ are allegedly putting up there new courts etc as the $1mill guarantee.
Most teams it seems wont have the $1mill. bannk guarantee.
$.5mill as working capital is a joke as well.
Esp if a club spends $2mill on players alone.

Reply #229984 | Report this post


A  
Years ago

'NZ are allegedly putting up there new courts etc as the $1mill guarantee.
Most teams it seems wont have the $1mill. bannk guarantee.
$.5mill as working capital is a joke as well.
Esp if a club spends $2mill on players alone.'

How can a team spend $2mill on players if the cap is set at $1.3mill?

If you cannot come up with $1mill, you should never be in a situation to even consider buying or running an NBL team. It's an absolute joke all these people want to have a team when they cannot even afford to pay the full salary cap to it's players.

Reply #229986 | Report this post


Akon  
Years ago

I need a guarantee!!

Reply #229988 | Report this post


DoDaBonk  
Years ago

Wasn't one of the criteria that each club had to have 3 owners/shareholder to spread the load and the responsibility?
Surely, even in these difficult times, if you were going to get 3 successful business people involved, you would expect that they could easily come up with $500k each, I mean how many CEO's get paid out multi millions in bonuses and payouts? Somebody's got the cash, surely if your dynamic and successful, you know how and where to get the cash.
Oh and bye the way, to me success is not someone who rides the wave when the economy is booming, I'm talking about someone who's survived through the tough times.

Reply #230005 | Report this post


kcgone  
Years ago

So what teams have put up the $1m bank guarantee?

Reply #230015 | Report this post


HAHA  
Years ago

Good point about clubs that whinge about the bank guarantee but are clearly able to fork out more than that on their roster- clearly they have the money, but they choose to (unwisely) spend it elsewhere.

Reply #230024 | Report this post


Bill  
Years ago

The NBL should create a opportunity and criteria for more teams to be in the league and help provide a pathway for the last original team. They have always paid their bills and always paid their players since thier involvemaent. They have actually helped save other teams during 31 involvement.
Find a way to keep this team in.
The AFL would do it. But they are a professional organisation ran by competent people

Reply #230061 | Report this post


save the hawks  
Years ago

Gujurat NRE help save ahm Hawks with $1 Million guarantee.

www.savethehawks.com

Reply #230260 | Report this post




You need to be a registered user to post from this location. Register here.



Close ads
Little Streaks - The fun and interactive good-habits app designed especially for kids.
Serio: Tourism photography and videography

Advertise on Hoops to a very focused, local and sports-keen audience. Email for rates and options.

Recent Posts



.


An Australian basketball forum covering NBL, WNBL, ABL, Juniors plus NBA, WNBA, NZ, Europe, etc | Forum time is: 10:48 am, Fri 29 Mar 2024 | Posts: 968,026 | Last 7 days: 754