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Dapto Dogs closed - effective immediately page  1 2 3 4 5 

Bruce Teague
Australia
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Posts 1718
Dogs 0 / Races 0

05 Dec 2019 00:33


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Let’s leave aside who owns bits and pieces of office gear – that’s a different subject.

Two things have me puzzled.

1. Presumably (I have not seen a copy), arrangements between a club and GRNSW are covered in an agreement for a given period – now ended. That would require the club to supply races up to a certain standard and, in return, GRNSW would automatically provide operating funds under a certain formula. That requires no forensic auditing.

2. Separately, tracks need occasional boosts for works or equipment, for which GRNSW would provide funds but no doubt under certain conditions and under some order of priority decided by GRNSW. At the same time, the club would have presented some justification, which may have allowed or required the club to disclose financial and other details. By definition, that process would have permitted GRNSW to check those details.

Now Item 1 is hardly a source of contention. Item 2 may well be, although nothing of that nature is mentioned in this discussion.

But there are third and fourth puzzles.

3. Should the club properly decide – following the termination of the former agreement – to cease running racing, who is to stop them? It is not any business of GRNSW to tell an independent club how to run its affairs. That is the responsibility of the club’s directors and its constitution. Whether they run the club profitably or not is their decision alone.

4. GRNSW funds have materially underpinned the assets of the club – ie its track and buildings. Was there some associated agreement between the parties as to how that funding/ownership would be divided in the event of a shutdown? In the event of that shutdown, are they of any value at all?

It seems fairly clear what the club intends doing, why, and with what authority. On the other hand, it is not clear what authority GRNSW has to intervene and its only objective is to ensure continuity of racing. That’s nice but it is hard to see how a judge could order DAH to do something it does not wish to do.

There are a few blanks to be filled in but it is hard to see how they would affect the above conclusions.

More critically, is this the canary in the coal mine? If, or when, club surpluses start disappearing then surely it is time to radically reform the industry, utilising long term criteria. This is much more serious than just a dose or two of rationalisation. By which I mean what do you rationalise to?



Sandro Bechini
Australia
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Posts 17966
Dogs 14343 / Races 1817

05 Dec 2019 00:53


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Bruce

You are half-right

Dependent on any agreements that GRNSW and Dapto A & H have that we are not privy to, it is obvious they believe that they have an equitable interest to protect, in relation to what is happening with the Dapto facility.

Whether its supply of funds for infrastructure, whether those funds perhaps structured as loans have been forgiven with conditions precedent or not i.e. are they repayable if Dapto does not conduct greyhound racing there?

Have the funds that GRNSW supplied been spent on greyhound racing facilities or not? Should that be repaid if it has funded other activities

The Court is there to provide a mechanism to assist in filling in the blanks to get a complete picture.

It can only be solved by the A & H providing full information and original banking, income and expenditure records .

Without GRNSW protecting its interest in the facility, it is totally lost to the industry and any investment in it

That may still end up being the case, but that's up to the Court to decide.

Hopefully, it can be resolved fairly quickly, accounts settled and each party can move on to greener pastures, but I think you are right in that they don;t have any ownership rights in the Dapto facility and in time I believe greyhound racing will cease there.

The relationship is broken, it won't be repaired




Bruce Teague
Australia
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Posts 1718
Dogs 0 / Races 0

05 Dec 2019 04:21


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Sandro,

Quite right ..... but.

Over time, GRNSW/GRA has invested in ...

A new bar area
The betting ring
New kennels
Dining room and related developments
The track (twice)
A so-called grandstand.

Each of which cost upwards of half a million (in old money) and on land the industry does not own. So if the operating agreement is now kaput we then resort to any agreement which might have been signed at the time of each major job. I doubt such agreements exist as DAH would have been complete nuts to sign their life away (any DAH auditor would have been horrified as it verges on DAH putting itself into a potential bankruptcy situation and probably counter to its own code).

Many other tracks are in a comparable position. Look at the schemozzle in Newcastle which cost the industry upwards of $6m just to get the thing running. (Note: Either one of NCA/GBOTA/GRA could have purchased Beaumont Park from the NJC, lock stock and barrel, for $3m as a going concern - again in old money, too - but knocked it back).

Yes, the fine detail needs flushing out but I make the point that the business model is on life support in this day and age, particularly for an industry which is facing huge structural challenges as we speak - dog numbers, loss of customers, bureaucratic rule-making, whims of government, public disenchantment, the hopeless IDC agreement, opposition to gambling, greenies, periodic breaches by participants and so on.

Even those clubs which are running along neatly are totally dependent on the good will of the landlord and the support of the local community. Those are not things you can put in the bank.

A perfect solution would have been the Beaumont Park deal but that is spilt milk now. Still, can it be done again - or something close to it with long term tenure?

Certainly, that should be the long term aim.

Immediately, Dapto will be no great loss. It's a lousy track and the slack can be taken up readily by Nowra, Bulli, Goulbourn and Richmond. But that will not guarantee the long term.


Mark Donohue
Australia
(Verified User)
Posts 2684
Dogs 6 / Races 0

21 Dec 2019 00:25


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EXTERNAL LINK

(Courtesy of GRNSW)



Steven Martin
Australia
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Posts 7417
Dogs 179 / Races 66

21 Dec 2019 12:07


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So it looks like Dapto will be staying at Dapto for mediate future, &/or until a possible new complex is built. Just trying to read between the lines.


Sandro Bechini
Australia
(Verified User)
Posts 17966
Dogs 14343 / Races 1817

21 Dec 2019 23:18


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It was always obvious that the Dapto A & H had proprietary rights as the owner of the property and they have a right to do whatever they want with their property as long as it didn't contravene any contractual arrangements with GRNSW

Obviously GRNSW were very concerned at the process in which they were ousted from the track and believed they had a right to remain even though the Dapto licence had expired

Now, whatever the dispute that went on behind the scenes regarding the computer records, money spent by the A & H on greyhound racing has now gone bye the bye to save on what would be at least $1m in legal costs if this was ever played out to its full extent in court

GRNSW have a lease for 18 months while they look for a new facility to invest in and develop for the South Coast region

Greyhound Racing will continue at Dapto under a new Committee or Club funded by GRNSW to foster racing there in this period

Who knows what will happen, but I am tipping there will be a new facility that will roll Dapto, Bulli, Appin and possibly Nowra into one facility for the South Coast.

Hopefully with better tracks even though its hard to produce a better track than Bulli.

Who will be in charge, where will it be and how much will it cost?

That's yet to be seen

However, its better to spend a million dollars on that facility than give it to lawyers

I really agree with what the GRNSW Board & CEO and team has done with this situation




Mark Donohue
Australia
(Verified User)
Posts 2684
Dogs 6 / Races 0

22 Dec 2019 04:08


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It’s a good result; saving big legal costs and a lease until June 2021.

He’s over-spent this year and we’re $1.5 million in the ‘red’ from a $4 million surplus the year before. This will be a very interesting financial year (2019/2020).


Gillian Wilcox
Australia
(Verified User)
Posts 71
Dogs 1 / Races 0

22 Dec 2019 19:43


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Sandro It would be great if there would be a complete new modern complex , but would that be in this century we are still waiting on starting dates on grafton and Goulburn.I wonder if anything is going to happen.


Sandro Bechini
Australia
(Verified User)
Posts 17966
Dogs 14343 / Races 1817

22 Dec 2019 22:35


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gillian wilcox wrote:

Sandro It would be great if there would be a complete new modern complex , but would that be in this century we are still waiting on starting dates on grafton and Goulburn.I wonder if anything is going to happen.

Gillian

I hope all this kerfuffle won't end up as one of those situatuons that promises the world but delivers an atlas

Like you I would prefer a multi track modern complex for the South Coast as well

Worst case, in 18 months time is, Dapto is no more and South Coast racing is concentrated at Bulli and Nowra as they take on more importance and to some extent Goulburn

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