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Bit Of A Yarn

Auckland Trotting Club or the TAB?


Happy Sunrise

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Just now, Happy Sunrise said:

In a tight race for the most inept body in NZ by the sounds of it. ATC in a 40 million dollar hole.

Which one will win the race to bankruptcy first?

Just putting it out there.

Was going to bring this up as well Happy!

The Thing is there is a discrepancy of an amazing $70 million that’s right $70 million.

Fancy having to sell other property to bail the club out partially!

Must be the biggest Ballsup in racing ever, how on earth can you lose such an amount of money in Auckland real estate?

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3 minutes ago, Happy Sunrise said:

You have to wonder don't you.

Unfortunately could have the biggest consequences if it isn't sorted.

There has to be more to it?

The Auckland Club already owned the land so no cost  there!

How do you therefore have a discrepancy of $70million?

They could’ve just sold off that parcel of land and at least been in credit!!!!

Unbelievable really!!!!!!

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1 hour ago, Brodie said:

There has to be more to it?

The Auckland Club already owned the land so no cost  there!

How do you therefore have a discrepancy of $70million?

They could’ve just sold off that parcel of land and at least been in credit!!!!

Unbelievable really!!!!!!

They went with plan b, the higher risk,higher return option.   

They gambled and it seems north island harness racing is the big loser.

You would have to wonder how any business could possibly stand such a loss without it having a massive negative impact on its overall viability.

 

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Just now, the galah said:

They went with plan b, the higher risk,higher return option.   

They gambled and it seems north island harness racing is the big loser.

You would have to wonder how any business could possibly stand such a loss without it having a massive negative impact on its overall viability.

 

Was plan B, to build luxury apartments on land they already owned?

Seems totally unbelievable that you could possibly lose money!

You do your homework and get an accurate price as to what it would cost to build the total no. Of apartments and retail.

Then you add on a land value component and put on a sufficient markup so you make a great profit!

How can you possibly lose money when they already owned the land????

Sorry, but there is something else having gone on here, apart from employing the CTV building engineer!!!

 

 

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1 hour ago, Brodie said:

Was plan B, to build luxury apartments on land they already owned?

Seems totally unbelievable that you could possibly lose money!

You do your homework and get an accurate price as to what it would cost to build the total no. Of apartments and retail.

Then you add on a land value component and put on a sufficient markup so you make a great profit!

How can you possibly lose money when they already owned the land????

Sorry, but there is something else having gone on here, apart from employing the CTV building engineer!!!

 

 

Obviously not that simple.

There seems to have been several major developments run into trouble in Auckland in the last 2 or 3 years.  You would have thought the warning signs were there.

Blowouts in construction and  labour costs  have been reported as major contributing factors in some. The ATC seem  to have had multiple issues.

They did not correctly analyze all the possible scenarios.

You would wonder how their bank is viewing their predicament.

You would have to ask if it is prudent for stakes at the atc to  remain at their current levels. Any other business would be looking to not just sell any assets,like they are,,but also be looking to cut expenditure just to survive. 

Will be interesting to see what plays out in the next 12 months.

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I was just reading the press statement by the Auckland trotting club relating to their 2017 annual report. (I could not fine any link relating to their 2018 report)

One quote was "Ms Dowding(ceo) says 62% of the clubs total revenue is now generated by other departments outside of racing which continues to grow. Nonetheless,at 38% racing income growth remains important."

Given the club is selling some of its major assets that generate considerable income, and now has huge debt to service,surely the writing is on the wall for this club as far as significant stakes decreases.

That appears to be why they issued the recent statement about their focus on quality racing at Alexandra park ,chosing to run small race numbers.   Spin.

Just a way of saying we can't sustain paying stakes on racing when they already run at a loss given the stakes we pay ,because we're  financially crippled."

 

 

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