thalo
Years ago
In January i sent an email to Basketball Australia regarding it's ownership criteria of the NBL.I wrote that the league should remove it's $1 million dollar
bank deposit.My idea was to have owners with a $50m dollars of net assets or more to meet the criteria.
They have implemented my suggestion, but won't allow
an AIS team into the NBL.
Number 44
Years ago
Well that is stupid as if they do have $50M in assets what is wrong with giving a $1M guarantee.
A perfect example of that was Eddy Groves, he had more then $50M but lost it all.
A bank guarantee doesn't mean they hand over $1M, what they can do is open a term deposit account with their bank and get around 4% per year on their funds, they use that as security.
Obviously Mal doesn't have the 1M for the guarantee.
If you can't provide a bank guarantee for 1M you should not own a basketball team that at best will break even but more then likely lose you $200k-$300k a year.
Isaac
Years ago
44, I agree and wonder why Bendat couldn't put up the guarantee or put a specific asset on the line.
(Groves is a different case - his team dropped out in the off-season which the guarantee wouldn't protect against and probably shouldn't, IMO.)
Number 44
Years ago
I disagree Isaac, as even though the season finishes in say Feb, players are paid thru til the 30th of June. So if a team "pulled out" immediately after the finals, players would still be owed money.
Between March - June is when a lot of clubs would struggle with cashflow as there is money going out but none coming in, such as the 36ers current situation.
ESP
Years ago
A Bank will also provide a guarantee supported by a mortgage over real property. It does not neccessarily have to be secured by a cash deposit.
Isaac
Years ago
Aside from stuff outside the cap, Groves would've met the required payments - he still held the team during much of that off-season. The NBL just don't want to stuff around the season while it's in progress, and it's not fair if that drags down other clubs having to pitch in to pay other teams' wages.
By June, many teams would have a few of their season memberships paid for, so they'd at least have a start.
Any sort of up-front payment is going to impact cashflow, but as you said, you'd hope any ownership group had room to move as there are always things that pop up (Tyndale and Hodge last season, for example).
I only said that the NBL don't have to protect against teams dropping out between seasons because owners need a way of exiting or otherwise selling up. The NBL can't dictate that sort of thing unless they own the actual teams.
The NBL is doomed if they don't move soon.
Its either a criteria or not, changing the rules to suit the rich again
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