Not suprising. I really cant belive both teams were serious.

When do you think we will have some solid news?

Port where never considering to buy the team, just good PR for them to make it look like they are trying to to good in the community.

Kent, where's the good PR in looking like they are interested and then backing out? It makes no good PR sense at all. The decision had to be based on finance only. The good PR would have come from actually making a successful bid for ownership, not just looking interested.

It's publicity, not PR. Gets their name in the papers and when they withdraw, people can assume that the financial state of the Sixers is what caused that withdrawal, not the financial strength of the Power or Crows.

If there is financial strength in the Power or Crows, they would be able to make something financially positive out of ownership of an NBL club. I believe the weakness is with the 2 Football clubs.

Why would you believe that?

Here's what's for sale:

1. A WNBL team that loses money even when the belt is tightened as far as it can go.

2. An NBL team that doesn't make money now, probably won't make money this year, and might make money in the future, maybe, perhaps, possibly.

3. A purpose-built venue due for $1m+ in maintenance costs, on council-owned, contaminated land with very heavy restrictions on what it can and cannot be used for, plus impacted by a government looking to protect its interest in the Entertainment Centre from rivals by adding more restrictions (this point IMO is absolutely critical).

Given #3, the best sale option for the government is preferencing the combined purchase of all three. Yes, there are potential crossover promotions for a football club running a basketball team but it's not either of the club's core business - either of them could, for far less, buy an NBL license ($1m or less), create a new brand with their existing strength in the media and through membership, and play it out of the Entertainment Centre, all without having to touch the Lightning, the Dome, or pay for the Sixers' goodwill (not $1m or less!).

that's disappointing the footy teams have pulled out.

They hold more influence over the govt. (ie getting their Footy Park loan wiped) and could have assisted in wiping the dome debt, and even the ent centre protection contract.

I think the synergy benefits of a 'superclub' a-la Barcelona could have been more than we imagine.

theres still another football club in this state looking

btw the above message is from me, forgot to login

Anon #83769

When exactly did Smyth give you a guarantee that Port, or any other buyer for that matter, was going to purchase the club. What, does he have the ability to spend other people's money now too does he? I he on the Port board? Did he represent to you that he was?

Show me where Phil has intentionally mislead you in any way. I would love to see what you come up with.

Go back and look at the things that have been said in the past. It is your view of history that is skewed.

Smyth, like most coaches in the countyr, is very good at using the press, giving them good quotes that keep this sport in the media (in basketball's case, only just). Without Phil, and Boti to report every word to come out of his mouth, you would never hear anything. What would you prefer?

Statement from Phil:

"We are currently in a very tenuous position. We are hiring players for the coming season on the assumption that we will exist by then. Hopefully someone will be prepared to spend ludicrous amounts of money to bankroll the club and stadium so that we can pay them. I spoke with a friend of mine who knows some of the board members at Port, who said he would ask someone to see if they would think about buying the whole thing, and he said that they would look at it, but it doesn't look likely..."

I wouldn't pick up a paper to read that drivel..

If you don't like Phil, fine. If you think we need another coach, that is cool. But, stop writing absolute crap that is misleading and useless.

Yes sorry EC should have used a different term.

Also shows the supporters and backers of the clubs that the afl clubs are looking to expand there income streams by buying business such as pubs,travel agents etc.

From all AFL reports Port Power are one of 4 or 5 clubs in the AFL that are making a loss, so it could have something to do with their financial situation as well.

Oh yeah, and I heard it was Little Ley Ley that was looking at buying but may go into the deal with the Crows...

Power will struggle over the coming years as they hit a hard patch in form and their position on the ladder. For the Power or Crows to break even for a home game, they require a minimum of 20,000 people. The Power have only had approx 21,000 at the past 3 home games. Any profit that either the Power or Crows make a percentage must go back to the SANFL as per the agreement.

Thomo is right that an AFL player(s) is/are looking to put in an expression of interest...

Most of the above posts seem to deny the facts. As I said in other posts the Crows and Port were never serious contenders.

You cannot get a satisfactory return on equity from any business perspective. That is "investment" rule principle 101. Please go back and study.

So if any of it is to be sold your only purchasers are in fact therefore "philonthropic donaters" not business people looking for a return ie. people who love the sport and are prepred to loose NOT make money over the long term.

Please forget the crap, you can't make money out of any of these "assets".

Face facts, basketball in SA is or has peaked. There is NO growth ladies and gentlemen.

Thats why both Port and the Crows will not buy.

The question is can we find someone to donate their money, rather than make money.

Lets hope so.

Surely Fiji the challenge would be to turn in into a profitable venture? Many venture capitalists and businessmen invest preparing for losses in first few years knowing make it back in the long run?

Or do you think BSA has become a charity and we need some wealthy benefactor to pour his money into a pit out of the goodness of their heart?

Personally, I believe done properly, BSA could be marginally profitable, if not break even.

Whilst the "assets" themselves arnt worth a great deal the Sixers is a profitable venture IMO. Whilst I would agree that the outlay is rather large for the return it isnt entirely money down the drain just a very slow return.

Look at Eddie Groves, owner of Brisbane

When he bought into the club, they were one of the long running jokes in the league, fans so quiet their gym was nicknamed "The Library" (I remember almost being kicked out on my honeymoon for barracking for any club, let alone the visitors!!)
They were, reportedly, losing money hand over first, and their existence was a month to month proposition.

They now seem to be quite stable, and have decent crowd numbers, as for the noise level....well I dont know...

My point is, whilst someone (or someones) might invest in the 6ers and/or Lightning, they may not see a return for a while, but at the same time, if run correctly, will see a return in a few years.

I seriously doubt that the Bullets are making any money. This is especially so if allegations of under the table payments to players have any truth to them.

Their success (if you can call it that) has been more about having a mega rich owner who doesn't care about taking a hit (tax deduction anyway) and owns the team for some fun, and not an investment.

Same with Sydney Kings. 3 championships and 4 grand finals in a row and they still run at a loss. They are still afloat because the owners are worth 10s of millions of dollars per year and don't care if they lose a million in a season.

The bullets are a great tax deduction for Eddie Groves!

As for noise Yogee....if thre are winning the crowds follow and make a fair bit of noise - but cop a couple of losses in a row and they have to start giving away seats!

Phizzer,

You are half right.

VC's and Private Equity companies generally buy into start ups not making money yet, but with a "new idea" thats looks promising down the track.

BUT, and this I think is the catch, what do you think is going to improve for the purchasers of an up and running long term entity like is for sale?

1) Do you think the crowds can grow dramaticall? I doubt it.

2) Can you use the Dome for other purposes? Yes you can, but the government is not going to help you as their clear preference is the EC. That's why they built it AFTER approving a business plan from basketball for a loan to build the Dome as its now called, that could only survive with regular events held there.

3)Will you be able to dramaticall increase sponsorship? Despite protestations to the contrary, this is how all elite sporting teams really get their funding, not the grass roots supporter in the outer. The example of Port needing 20,000 right now is around the money, BUT they won't need that many next year. Why? Increased sponsorship deals (soon to be announced) and in particular their new corporate facilities at AAMI.

My guess is that this facility will bring in probably betweem 200k and 400k pa. That's alot of bums on seats in the outer at $25 each that you don't need........... still want but don't need.

So will a new sixers suddenly attract more corporate dollars, again I very much doubt it.

They have not been able to sell all the corporate boxes for years, why will it suddenly change.

Rembering we have been successful during this period.

The Adelaide United deal was invested in by a guy who loves his soccer foremost, BUT on the back of a business plan that if done right, you would get better corporate support and the crowd numbers could be doubled from the 2 to 3,000 av that City were getting to 6,000 over a few years. They got it year one.

Won't happen with bball as its not new.

So we are back to my long term view, its got to be either govt backed or a wealthy benefactor who wants to help (donate) to get basketball back on its feet.

Sorry for the length.

Can you use the Dome for other purposes? Yes you can

Sponsors are really only donors unless there is regular free to air TV coverage. When the 36ers were the hottest ticket in town, you could watch them on TV if you couldn't get in to a game. Now many of the games aren't even taped, let alone broadcast.

Potential buyers and/or sponsors need exposure or else they are merely befenactors requiring deep pockets. Pity the networks will pay millions for AFL, but won't put basketball on for nothing.

Don't despair though, soccer has shown how quickly an international sport can go from zero to hero ...

Anon, I don't know that it's that black and white, though you have a fair point. Consider the corporate suites at the Entertainment Centre - expensive, there's a waiting list, and the shows aren't put on FTA. There is value in sponsorship of NBL teams, but whether it's worth the expenditure could be debated.

I take your point, but the corporate suites at the EC are a nightmare for promoters and the centre management. If the restrictions on the Dome could be eased a little, there are shows the EC reject because they don't think they would appeal to their corporates. The expensive suites/wait list situation is down to the skill of the management of the EC.

Issac, take your point. But what I was really trying to emphasise was that whilst you can in theory, the reality and the govts stance means you can't. Therefore just another negative.

Also, 83958 you are being far too black and white. Many businesses get value out of corporate hospitality as opposed to brand exposure.

Taking out key clients and partners, rewards for good performing staff and/or suppliers, as opposed to just getting their names on the screen.

Those looking for signage on free to air (or Fox) will generally be the Multi national household name types not the medium to small businessses.

A Multi national household name type would be really handy at the moment ...