Financial Security
Your Board was extremely concerned in November 2019 (only 18 months ago) when the Bank Overdraft was fast approaching $1M.
This was not sustainable and your Board has been working hard for the past couple of years to secure the financial future of our Club and I am pleased to share some exciting news with you today.
As far back as 2005, the telecommunication tower near the 13th Tee has been leased to Optus, Telstra and Hutchison (which became Vodafone and then Axicom).
In 2013, 55% of these Leases were sold to AP Wireless until 2038 and the remaining 45% of the Leases was paid to the Club quarterly.
As part of their global investment plans, AP Wireless approached the Club in January 2020 and offered to purchase the remaining 45% of the Leases until 2038. Your Board undertook its own due diligence on the value and found the offer to be reasonable. However, the deal stalled during COVID-19 and only resurfaced recently.
Initially, your Board rejected the offer but an increased offer of $446,000 was reconsidered and accepted.
I would like to be very clear about one fact, as I know that some rumours have been circulating. No land whatsoever has been sold and the deal does not impact the Club or its facilities in any way. In fact, nothing material has changed since 2005 when the first lease was signed.
However, the reasonably large injection of cash has resulted in the following benefits:
1. Our Club has financial stability in the medium term;
2. Some of the much-needed course and equipment projects can be considered. Each of these, as always, will be based on value to members, necessity and merit; and
3. Your Board was able to reduce the planned increase of $3 per Competition round to $1. It is important to note that your Board (because of the Contract timing) was not at liberty to divulge why the reduction was made at that time.
I look forward to seeing the benefits of this initiative in the coming months.
Mark Mathieson – President