Mariners Financial Crisis in the Daily Tele

[cbowden9000]

Central Coast Mariners' SOS to Singo

Exclusive Tom Smithies From: The Daily Telegraph September 12, 2011 12:00AM

The Central Coast Mariners want John Singleton to take over the club.

Source: The Australian

Singleton has told the players he will do "whatever it takes" to secure the club's future, and will hold talks with owner Peter Turnbull about taking control of last season's grand finalists.

The Daily Telegraph has learned that the Mariners owe a tax bill of more than $1.5 million, and until last month were a year behind on their superannuation payments.

With some $200,000 owed on the super accounts, the PFA was forced to intercede on the players' behalf, and negotiated a payment schedule including interest. Although the first instalment was made in August, there is concern among some of the players that they will not be paid their wages this week.

Turnbull bought a controlling stake in the Mariners in 2007 and has ploughed millions into the club and to the related academy development at Tuggerah.

But a number of sources have confirmed to The Daily Telegraph that the club is in desperate financial straits, with some local businesses waiting months for bills to be settled.

CEO John McKay, who has been with the club since 2005, resigned on Friday in frustration at the club's mounting problems, and a source very close to the playing group contacted The Daily Telegraph last week to express their fear that the club could not exist in its current form for much longer: "The players and their families are very stressed. They have children in schools and mortgages to pay, and they keep being fobbed off with excuses," the source said.

"(Coach) Graham Arnold has done an amazing job shielding the players from all this and keeping their concentration on the football, but they're not stupid. That's why they spoke to 'Singo'."

FFA sources say they would be comfortable with Singleton taking control of the Mariners, but in truth it would get the governing body out of a hugely difficult position.

A-League head Lyall Gorman was executive chairman of the Mariners from its inception until August last year - and as The Daily Telegraph revealed in July - retains a substantial shareholding in Central Coast Mariners Developments Ltd, the company that owns 65 per cent of the Mariners, and the multi-million-dollar Tuggerah development. In addition the FFA itself retains a 5 per cent shareholding in the Mariners.

Singleton is an avowed rugby league fan but is equally immersed in the community of the Central Coast, and regards the Mariners as an essential part of that. Since the club was founded he has put in more than a million dollars.

FFA sources say Singleton would not want to hold the franchise for the long term but would do so until a new backer could be found.

http://www.dailytelegraph.com.au/sport/soccer/central-coast-mariners-sos-to-singo/story-e6frey4r-1226134243720

 

[Bex]

Ahhh crap. Let's hope the crowds come back this season and that the Mariners can make do in the meantime. Need more sponsors...

 

[midfielder]

Not a good read ....

 

[Marquee]

Not good.

Apologies to marinermick for digging up an old post of his on SFCU but he said this just after Lawrie stepped down from Chengdu.

Lawrie McKinna will have a role at the Mariners. Big changes afoot and one less club for the FFA to worry about.

So hopefully something is in the pipeline to fix this situation. Brisbane are set to announce a new ownership model and it's mostly likely to involve those Indonesian investors talked about a while ago. Maybe something similar for us or for Singo to take over.

 

[kevrenor]

Mike Cockerill has an item in the SMH dead-tree edition but I can't find an electronic one. Covers similar ground but with less drama.

This is Turnbull's response:

""Every club in the league needs investors because we all lose money", Turnbull said. "We've had different investors over the years, and we'll continue to look for new investors. It makes business sense. Singo has strong ties to the area, so that makes him a likely potential investor. As far as the players are concerned, they've always got paid. They'll be the first ones to tell you that. And whatever happens from here , I can tell you this club is going nowhere. We'll get through this and out the other side because we've got a good story to tell.""

 

[universalmind]

I'm perplexed as to how we have a tax bill? Surely tax losses wont be too far off accounting losses (there isnt too many items on a football clubs balance sheet that result in temporary differences), meaning we wont have to foot any tax as we continue to rack up losses. Unless of course players are considered capital assets and when sold we incur a captal gain, which cannot be offset against our operating losses. Can anyone shed any insight on the tax treatment on the sale of a player?

Anyways i dont have the information so cant really comment too much, however seems a little strange.

I doubt Singo will put much in, his passion is with League and until the Bears bid is 100% ruled out he will continue to support that.

We just need to get as many people to games as possible.

 

[marinermick]

I'm perplexed as to how we have a tax bill? Surely tax losses wont be too far off accounting losses (there isnt too many items on a football clubs balance sheet that result in temporary differences), meaning we wont have to foot any tax as we continue to rack up losses. Unless of course players are considered capital assets and when sold we incur a captal gain, which cannot be offset against our operating losses. Can anyone shed any insight on the tax treatment on the sale of a player?

Anyways i dont have the information so cant really comment too much, however seems a little strange.

I doubt Singo will put much in, his passion is with League and until the Bears bid is 100% ruled out he will continue to support that.

We just need to get as many people to games as possible.

When you are tardy with superannuation payments you get a hefty fine from the ATO. Can be up to 45% of the total super bill annually.h

 

[scoober]

I'm perplexed as to how we have a tax bill? Surely tax losses wont be too far off accounting losses (there isnt too many items on a football clubs balance sheet that result in temporary differences), meaning we wont have to foot any tax as we continue to rack up losses. Unless of course players are considered capital assets and when sold we incur a captal gain, which cannot be offset against our operating losses. Can anyone shed any insight on the tax treatment on the sale of a player?

Anyways i dont have the information so cant really comment too much, however seems a little strange.

I doubt Singo will put much in, his passion is with League and until the Bears bid is 100% ruled out he will continue to support that.

We just need to get as many people to games as possible.

I think you will find that the "tax" obligation has come from PAYG Tax Withholding and not anything else.

Pay As You Go (PAYG) is the Tax that is held by your employer out of your pay each week, your employer is then liable to pass this on to the government each quarter as part of its Business Activity Statement (BAS). This liability is the biggest contributer to amounts owing each quarter where a company has significant number of employees.

To be honest it is not only the players wages but all staff at mariners that are affected.

To indicate PAYG owing on $1000 per week, it is $184 to the government. quantify that for all players and staff and the size of everyones pay packets and you can easily see where the tax liability comes from.

 

[scottmac]

heres hoping my lottery ticket comes in.

 

[neverwozza]

When you are tardy with superannuation payments you get a hefty fine from the ATO. Can be up to 45% of the total super bill annually.h

The way super funds are performing these days its probably not a bad thing getting the sgc paid late. Especially as though it sounds that the players association has negotiated that they pay interest on top of the 9% thats is outstanding.

 

[Ancient Mariner]

Hey Mick, was it Singo you were alluding to in your Sydney forum post about Lawrie's future or another investor entirely?

 

[midfielder]

Tax penalties are always open to discussion with the ATO... would love to know how the Telie gets to know the TAX info ... either a guess or someone has told him...

 

[marinermick]

Tax penalties are always open to discussion with the ATO... would love to know how the Telie gets to know the TAX info ... either a guess or someone has told him...

In this case they wouldn't print it if they didn't know. There is plenty that they doidn't choose to print and could have went harder. Guess they couldn't prove it.

 

[marinermick]

Hey Mick, was it Singo you were alluding to in your Sydney forum post about Lawrie's future or another investor entirely?

Yes, but things are got a whole lot murkier since then and Singo taking over is not clear cut:
- Turnbull claims he has a whole heap of other investors coming aboard
- Gorman doesn't want to lose the dollars he put in the club
- Singo doesn't want to take over a club that is ridden with debt and tax liabilities

 

[marinermick]

might need to get Allan Mason from Broadview Accounting onto this!!

and here I was thinking you would impart you accounting knowledge and experience to this board to clear things up, but am not surprised it is another pisstake reply

 

[nikko]

and here I was thinking you would impart you accounting knowledge and experience to this board to clear things up, but am not surprised it is another pisstake reply

 

[offtheball]

I'm perplexed as to how we have a tax bill? Surely tax losses wont be too far off accounting losses (there isnt too many items on a football clubs balance sheet that result in temporary differences), meaning we wont have to foot any tax as we continue to rack up losses. Unless of course players are considered capital assets and when sold we incur a captal gain, which cannot be offset against our operating losses. Can anyone shed any insight on the tax treatment on the sale of a player?

Anyways i dont have the information so cant really comment too much, however seems a little strange.

I doubt Singo will put much in, his passion is with League and until the Bears bid is 100% ruled out he will continue to support that.

We just need to get as many people to games as possible.

Singo has stated publicly that Gallop and co can shove it. He offered something like $8 million a year to underwrite the bears and they knocked him back.

 

[scottmac]

In this case they wouldn't print it if they didn't know. There is plenty that they doidn't choose to print and could have went harder. Guess they couldn't prove it.

So what else did you tell them.

 

[adz]

Sports journos only printing stuff they can prove? What planet are you on, Mick?

 

[marinermick]

So what else did you tell them.

ha, as if they would run a story with me as the source