Years ago

Cairns Taipans in financial trouble

'The Cairns Taipans are in financial trouble again less than twelve months after the NBL team was put into voluntary administration.'

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Years ago

Oops. Here's the link. http://www.abc.net.au/local/stories/2009/11/26/2754925.htm?site=farnorth

Reply #258487 | Report this post

Years ago

I just dont undertstand what the there could possibly be to do in Cairns, that people wouldnt go to a 40min game!? There team is pretty competitive at worst too for gods sake. As far as Im aware , its the only national sporting team they have?? Where is the communities pride in supporting a Cairns sports team at worst, weather it be bball or not!

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Years ago

On November 6, against the Wollongong Hawks more than 40 per cent of the crowd had been given 'complimentary' tickets for the Taipans 89-78 win.

The game was the highest attended of the six home games the Taipans have played this season with 4326 people attending.
The club notes later in the article that a lot of the comps go to foster families which is admirable.

If the Taipans bow out, I wonder if the league might look to bring in either one or three teams, to keep an even number?

Reply #258503 | Report this post

Years ago

Bloody hell! Hope Cairns survive...

Reply #258511 | Report this post

Years ago

I don't like reading this news. I hope they survive. This was my fear before I choose to re-new my season tickets. I hope the Taipans survive.

Reply #258519 | Report this post

Years ago

Can't see it happening (Cairns surviving). For those not aware Cairns is a beautiful place to visit, but really doesn't have anywhere near the population or economy to support even an NBL team.

120k people, and an economy driven mostly from Tourism, Sugar and Transport (of raw materials mostly), with Sugar and Tourism at fairly low levels. Previous irresponsible ownership has given the community and the rest of Australia the false sense that Cairns is sustainable enough for a franchise, due to him footing the bill and trying to buy Championships.

Now that the public ownership model is in place, there's still not enough (public interest and alternate revenue) to keep the team going. Whilst it will be a shame to lose the Taipans, it will reinforce the new market forces in the newNBL and these requires you to a.) ensure you have sufficient cash-flow, and b.) that you break even, make a small profit, or are prepared (ie. Funded) to take a small loss from operations.

You can't do that without either a major investor (Hawks), large crowds or a lower cost of operations (T'Ville). Yes they have a cheap roster, but I'm sure the low revenue and the venue hire are the killer lines on their P&L.

Reply #258523 | Report this post

Years ago

Good post. I think the spending of the previous ownership might've given fans high expectations in terms of roster talent this season.

Reply #258525 | Report this post

Years ago

Well, at least it looks like the team will see out the season. If nothing else, the $1m guarantee ensures that. Smart move by the NBL not having teams drop out mid season.

Reply #258527 | Report this post

Years ago

I wouldn't say there's not enough public interest but when you have 6:30 pm Wednesday games for Fox programming and one of those is the NQ derby, then how do they expect working people and families to make it??

They should follow Blaze and Crocs leads and change those games to 7:30 pm to get more bums on seats and better crowd for live TV.

And the NQ derby, in particular, should always be on a weekend.

Reply #258528 | Report this post

Years ago

Next year, Cairns out and a second victorian team & a brisbane and either a Sydney or Canberra team in the league will probably be better.

Adelaide - SA
Brisbane - QLD
Townsville - QLD
Gold Coast - QLD
New Zealand - NZ
Perth - WA
Wollongong - NSW
Sydney/Canberra/Wellington - NSW/ACT/NZ
Melbourne - VIC
Victoria (2nd team) - Vic

10 Teams relatively well spread out

Reply #258539 | Report this post

Years ago

I'd love to see the return of the Brisbane Bullets and Leroy Loggins with some kind of involvement.

Reply #258543 | Report this post

Years ago

Someone who remembers when the clubs were complaining about the bank guarantee, correct me if I'm wrong?
I recall there were 3 clubs who got out of paying it- I believe Cairns was one of them I'm 99% sure of that.
(I think the other two were Dragons at the time and perhaps the Crocs but there was definately a 3rd)

Where does this leave them now with finishing off the season and paying wages etc if this is the case?

Reply #258550 | Report this post

Years ago

From the article:

The council provided a $1 million bank guarantee to Cairn Taipans Incorporated allowing the club to compete in the 'new' NBL which stipulated all clubs must pay a $1 million licencing fee to enter the league.

Reply #258554 | Report this post

Years ago

Yeah I read that but I'm pretty sure they didn't.
There were definately 3 clubs who hadn't paid it, especially by the due date- the Dragons were one so count them out they don't figure anymore.

Reply #258559 | Report this post

Years ago

So the NBL makes some money from this taking the one million guarentee (minus the debts)?

Could be useful in putting together some sort of Sydney, Canberra or Wellington or Brisbane team.

I think there are better replacement options superior to Cairns.

Reply #258563 | Report this post

Years ago

I agree with the last comment but I'd be surprised if there's any money left over at the end of all the expenses.
It's hardly a case of the NBL being able to 'profit' from folding clubs particularly ones that even after being saved still can't get there act together in towns where there's not much to do.

I'd love to see teams back in Syd and Bris but in Syd for example they are spoilt for choice on what live sports to spend their money on and to a lesser degree the same with Brisbane.

It's going to prove interesting with the number of teams in the mix for next season and give existing sponsors around the country cold feet on the stability of the plans for next season.

It's also frustrating that clubs have grand visions for the future of basketball and with reform BA are trying to accomodate for that but these sorts of scenarios just erode the work getting done behind the scenes to restore faith in getting financially involved in basketball.

Reply #258566 | Report this post

Years ago

I wouldn't think that the NBL end up with the leftovers from the surety? More so that it's locked in to pay out players and coaches before any surplus is returned? That's my guess anyway.

Reply #258567 | Report this post

Years ago

cairns break even number is 4,000 paying fans to a home game.
that alone,i thought was far to big of a noose(as a business) to put your head in.
3000 to 3500, break even is worth a punt.

taipans dont receive anything from revenue raised,
drinks etc,so giving away tickets is like a double edged sword.

it makes marketing difficult......if you had control of the bar and offered a free glass of champers to season ticket holder ladies......get the ball rolling as the punters walk in,its basic stuff but as a business if you dont have some freedom to move and experiment you become stifled and boring and BROKE!!

as ive mentioned in previous threads,about scheduling,making every post a winner,the nq derby etc........ as we head into our wet season in fnq,some businesses wont make it through the other side, so we rely on certain occasions to give us cash flow to get through.

these wed night 6.30 local derbies on fox are killing the teams that they are supposed to be helping.

larry,i know it is to late to change the schedule but FFS the life line is short compared to what it is going to be in 3 months time..........

Reply #258618 | Report this post

Years ago

HaHa you are definitely wrong about the $1 million bank guarantee - put up by the Council. Perth and Dragons were the two teams you are thinking of. Townsville, Cairns and Melbourne with public money involved - not sure about Adelaide?

The good thing about that is it brings instant scrutiny, and the Taipans troubles are out in the open straight away and can be dealt with by the club and two levels of government who have a financial interest in the club.

Unfortunately the Council guaranteeing the Taipans' $1mill is it was instead of a subsidised deal at the CCC, which would make the club a much more viable proposition. Realistically, the CCC deal needs to be done or there will be zero revenue coming from that source for the centre.

Reply #258637 | Report this post

Years ago

paul-do you mean CCC needs to lease the whole venue and its revenue to taipans or lose them altogether?

it has always baffled me, its like renting a pub and putting a top band on but the land lord gets the bar take?? go figure.........

Reply #258639 | Report this post

Years ago

Skull & Mball i hear what you are saying. This Wed is a perfect example of one of the problems. A Taipans home game against Tville which tips off at 6.30 & is on Fox. 4000 people to break even? I hope Croc supporters come in there droves. May as well stand there & burn $50 notes.

Reply #258654 | Report this post

Years ago

That game is in Townsville and has been shifted to 7.30pm local time.

Reply #258664 | Report this post

Years ago

I was referring to the recent game in Cairns v Townsville, on a Wednesday at 6:30 pm.

Anyway don't believe everything you hear and read, Denis Donaghy has responded to this article in detail in today's Cairns Post and also on nbl.com.

Apparently a leaked document from someone within the council who would like to "derail" the Taipans.

That's very sad after all the hard work the basketball community in Cairns does.

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