regardless i hate seeing the stories about a no-sale, just shut up until the deadline and they talk about it. It makes it look like it wont get sold when shit like this comes out. Was the debt on the dome not wiped?

I found one of the last lines in the article very interesting.

"If the Government was to restructure the bid and wipe at least $10 million from the debt, the field of those showing interest is likely to swell" gave me the impression that the South Australian state government might reduce the debt if a suitable owner could not be found.

Not quite sure how you get that impression?

Gives me the impression that potential buyers are saying IF at least $10 million was reduced from the debt than more buyers would show interest.

Dosn't really say/imply anything about the Government even contemplating reducing the debt.

MY biggest question about this article is the fact that the Debt is part of the sale/deal/package?!

I can't see how the debt is part of the package.

They would be stupid to think they could sell it with such a large debt attached!?

If that is the case than there is NO chance of a sale in my opinion.

yeah this is real wierd i assumed that the debt was off and that is why they were saying they will never get back what they are owed. If the case is that the debt is still attached lke DJ said who in their righ mind would buy it.

Geez.

I can't believe this debate or misunderstanding is still out there as I have posted on this same issue many times.

1. BASA have a debt of say $10 mill to the Govt.
2. They also have some assets (??) called the Dome and 2 teams.

Maths 101. If you take the price of 2 less 1 is it positive or negative?

If they sell those assets for anything less than the total debt the debt STILL exists.

So the Govt assuming someone does finish up making a bid, has a decision to make....accept the offer or not.

Assuming they accept and there is a shortfall, who has the liability for the debt remaining...NOT the new owners, but basketball SA, that's us folks.

Now they could do as they did for soccer and Hindmarsh and forgive all or some of it, but how are we basketball people going to pay it back.

Increase subs? I doubt it.

That folks is the $10 mill question.

Hence my sceptism previously as to why everyone thinks its so good for basketball in SA for us to sell these assets.

Why sell your only assets?

Items in 2 are for sale

They don't have that choice to make. If they were pulling their way out of the hole, then perhaps the government would've given them the chance to hold onto their assets and make the most of them.

Issac, what choice?

I think you are saying, that the govt has forced BASA's hand to repay the debt, ie to sell their assets. I agree, but what then happenes if the sale does not obtain an offer for the total debt?

84288

Tell me what I have wrong?

As for point 2, well the states governing body has had no say in this process because quite simply they have F***** it up over the past years hence the govt's intervention.

And I don't understand? You are kidding.

Whether or not the assets are sold to recoup the debt is no longer BSA's choice to make. They were given the opportunity to use those assets to trade out of debt and it was beyond them.

The government has done more than forced BSA's hand; they've wrested control. I might be wrong, but I can't see that the government would do anything but wipe the remaining debt post-sale - if I understand the situation correctly, they're relying on competition in the bidding market alone plus maybe a little bit of encouragement during the process to give them a reasonable price.