curious
Years ago
Still a good thing?
A view provided by a reliable source that might offer some more insight into the recent Government intervention at BASA.
Sorry for the length but it kind of makes sense.
Perhaps one of the reasons the forecast deficit for the year may have ballooned to $1.2 million [at least $600k+ of it] was that the debt to the Unley Council needed to move from the balance sheet to the P&L, or perhaps the Unley Council may have called in the administrators?
Why would that influence the Government? Well, perhaps that a prominent member of the Unley Council is standing for the Labour Party at the March state election in this seat, curiously held by the Liberals with a long standing but retiring member. Unley Council having to write off the $600k would be a bad look for their candidate? It seems the Unley Council does want its money back and sooner rather than later.
So, with this potential issue at hand, and against the backdrop of BASA crying out for assistance, perhaps the Government decided to send in an 'interim controller' with a mandate to report on 30 April, 6 weeks after the election, on the suggested changes to BASA?
If so, who would bet against this being the outcome?
The 'interim controller' recommends that the State Government needs to pay back the Unley Council debt to allow BASA to survive and complete a restructure etc.
The Government reluctantly agrees, again caning BASA for its poor financial management. However, positive media coverage is generated by the decisive manner in which it acts. Even the sport supports the Governments actions.
In getting the loan repaid, the 'local' Labour candidate can then take some credit for saving the people of Unley a big loss.
Again, both the Government and Council sheet home the blame to the now speechless BASA.
Meanwhile, back at Findon, the 'interim controller', still turning the ship, ultimately finds the only real way for BASA to go anyway toward meeting its immediate and long-term debt obligations is to sell the 36ers and close down/sell the Fellas. So, they go on the market, and get sold to private investors.
The Government is then off the hook, the 'interim controller' has made the tough decision for them. However, with this decision the Government still faces a big debt on the Dome and the risk of it becoming a white elephant. So, it finds that it is 'forced' to sweeten the sale of the 36ers with some further financial support to recover some of its debt, maybe a reduced rental on the Dome? The Government again sheets home the blame for this outcome to the now dying BASA, but says it has at least been able to ensure the 36ers remain at the Dome, and they have their best to preserve the pubic interest etc.
Come April, the 'interim controller' recommends that the restructure will result in basketball at district, club and social level needs to return to a basic governance structure, like it used to have.
Overall, everyone might seem pleased:
· There is minimal damage to the Government, especially given they faced a near hopeless financial position with BASA collapsing
· There is a positive outcome for the local Labour candidate Council gets its money back
· BASA is happily and universally condemned by all, and left without a reply, and the majority of the sport still thinking "restructuring is a good thing for basketball"
· The sport survives, debt free again, at a local level
· The 36ers still live on, playing out of the Dome at least a couple of years in private hands? Anyway, long enough to be distanced from the current position, and allow the Government, or perhaps the next one, to take the hit on the debt etc.
And they might all live happily ever after! Is it still a good thing?
