Archive for May 2013

Getting rid of Tony Guilfoyle

Following on from last weeks blog about how Tony Guilfoyle came to be CEO of City Tatts, we now turn to a related topic – getting rid of him.

A member gave us a vital tip-off about Guilfoyle – his contract is up this year.

It seems that his original contract was signed in 2003 and was for five years. This means it was renewed in 2008 for a further five years and therefore expires in 2013.

So we can finally be rid of him.

But here is our prediction.

Campion has become so obsessed with his insane property development that he will ignore Guilfoyle’s record of absolute failure and keep him on.

 

 

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Posted May 22, 2013 by savecitytatts in Uncategorized

Martyn “Fruitjuice” Berry

There is always a chance of a laugh anytime you read something from City Tatts.

Fruitjuice Berry is running again in the committee elections so we had a look to see what he is telling members.

Sure enough, he says that he has “qualified for life membership” !

Really?

Life Membership of City Tatts is granted to someone who has been a member of the Club for 40 years.

Fruitjuice got his life membership for being on the committee for three years. In fact, he had only been a full member of the Club for a year before that. We know this because he wanted to run for election a year earlier but hadn’t been a member for the required 12 months.

 

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Posted May 17, 2013 by savecitytatts in Uncategorized

Top Five Salaries at City Tatts

These are the five highest paid employees for 2012 at City Tattersalls Club according to the disclosures under the Registered Clubs Act.

 

1 $545,000

Yes, $545,000 – that is not a misprint. The Secretary/Manager, Tony Guilfoyle was paid this amount in 2012 despite a 9 year track record of total failure.

2 $205,000

This is what Mark Cooper, the “Financial Controller” got.

3 $155,000

Most likely this is Amy Conroy.

4 $125,000

This is Jan Ellks, Tony Guilfoyle’s secretary. This would make her the best paid secretary in Sydney CBD.

5 $115,000

Not sure who this is, could be The Hyphenator or maybe it’s …….. TANIA PURDEY !!!

 

Basically, if these five were sacked today the Club would get an imstant boost.

 

 

Save City Tatts Committee

Posted May 16, 2013 by savecitytatts in Uncategorized

Poker Machine Profits at City Tattersalls Club

Here is a topic that some members are starting to pay close attention to. These are the Gaming Machine Profits as reported to members in recent years:

2007  $23,908,830

2008  $22,080,963

2009  $22,623,831

2010  $21,172,266

2011  $20,857,548

2012  $21,551,296

(2012 probably includes $627,500 from sale of machines – so that would mean the normal profit is $20,923,796)

 

Now let’s think about this.

Even using the lower 2012 figure of $20,923,796 these figures mean that:

(a) In 2012 Gaming Machine Profits are up on 2011, and

(b) Gaming Machine Profits in 2012 are down just 1% on 2010

 

Could that be right?

Members who are in the Club four or five days a week say that 2012 was the quietest the Club, and the gaming machine area, has ever been. They have estimated that gaming revenue would have to be down by about 20% compared to, say, 2010. In fact it could be worse than 20% because most of the big players from former years were gone by 2012.

So how is it possible that the 2012 gaming machine  profits are basically the same as the two prior years?

We have asked a few in the club industry and they are baffled. They say that the numbers are hard to understand unless there was a skim operation on the takings in prior years.

 

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Posted May 15, 2013 by savecitytatts in Uncategorized

New Auditor at City Tatts?

Nothing is normal at City Tatts.

Like all clubs, City Tatts members elect an auditor each year at their AGM. In previous years this was just a formality where the existing auditor was elected unopposed.

Well, this year it could be a lot more interesting because there are two nominations, the current one and a new contender.

And how has Tony Guilfoyle reacted to this?

Of course – he is doing everything possible to block the new auditor. He is even trying to stop it being put to members at the AGM !

Hmm, now why he is so concerned about a new auditor coming in?

 

 

Save City Tatts Committee

Posted May 14, 2013 by savecitytatts in Uncategorized

How Tony Guilfoyle was appointed City Tatts CEO in 2003

The following document is one of the most extraordinary we have ever read.

We believe it was presented by John Healy and Keith Free to the Committee of City Tattersalls Club in 2003 to support the appointment of Tony Guilfoyle as CEO (the most disastrous appointment in the history of the Club). It was probably written by Guilfoyle himself with help from Michelle Abbey. We have not altered the document in any way.

There is so much that we are tempted to say but instead we simply suggest that you read it for yourself in the light of what has happened to the Club since then.

——————————————————————————————————————————————————————————————

The Appointment – Tony Guilfoyle

Silks City Tatts is in an extraordinarily fortunate position that, as a result of excellent succession planning, Tony Guilfoyle, the Assistant General Manager, is now perfectly positioned to assume the role of General Manager of the club in February 2004. .

For over 19 years Tony has been immersed within the club and has displayed a key and prominent role in ensuring the club’s success in highly challenging and uncertain times, the like of which this industry and this Board has never seen before.

In considering the picture of the person/profile created for this role. the decision now becomes straightforward. In appointing any candidate, it is vital to look at those behaviours in a particular role, (which enables elimination of the subjectivity or guesswork from the decision to hire) by very carefully assessing how the tasks and situations of the job have been handled in the past and considering how the role will need to be fulfilled in the future.

The listed key points demonstrate clearly. the presence of the knowledge, skills, ability/attitudes needed to deliver the outcomes-critical to the success of the club moving forward. The following accomplishments add clarity and confirmation to this fit. They are:

•   Tony Guilfoyle has been sitting on the Club Gaming Council of Australia since 1997. This Council is restricted to a body of 34 people, the.majorityof whom are Chief Executive Officers

•      Masquerade, in the past, advised the board of Silks City Tatts of forthcoming restrictions, and as a result, the club took a position of debt of $10.7 million to expand. This doubled the gaming machines to some 437 and allowed the club to. grow this market. Now, three years later, the restrictions of 450 machines has allowed the club to continue to successfully and profitably grow revenue. The licenses now have value of approximately $25,000 each so this increase in the number of machines has immediately provided the club with additional assets worth approximately $5 million

•      The club has successfully traded through one of the most severe major downturns over the past three years. Since Masquerade was established the results have been significantly above .the club industry average. All this has been achieved in spite of the restrictions of a three-hour shutdown, no external advertising, no direct promotions or incentives and no cheque cashing facilities. Reinforcing this achievement, all revenue figures within Silks City Tatts are up by industry and competitive comparisons.

•      Earlier this month 1500 clubs in New South Wales were rated on gaming machine income. Silks City Tatts has gone against all trends into a position of number 19, its highest ever. This extraordinary result has been achieved with . increased opposition from clubs, pubs and casinos. with none of the restrictions that Silks City Tatts has encountered

•      Tony Guilfoyle has clearly demonstrated the ability to manage the club and combat the legislative restrictions as well as out manoeuvre some major new competitors (EST, CBD, etc) with reliance only on foot traffic, no parking facilities (as well as suburban competition with only weekend closures of 3 hrs with none of the above mentioned restrictions) and other setbacks,

•      Has generated record trading conditions in some of the toughest and most unpredictable environments. the industry and the country has seen (11t‘ September 2001, SARS, war in Iraq, tourism downturn, global and local fear and caution, the Bali tragedy etc)      _

•      Has initiated full business unity of accounts and created this increased business clarity and the appropriate accounting principles. so educated decisions can be made based on sound commercial and business practice •   Led parties overseas to identify trends and patterns in the restaurant, bar and hotel markets to enable the club to identify, implement and maintain a unique marketing edge based on valid research. This has now started.to ensure members nmx obtain club facilities based on global best practice.

•   Was instrumental in identifying the need for a strong marketing presence early this year to continue to ensure the Club’s differentiation and branding in this highly competitive marketplace. He has now successfully appointed a superbly qualified Marketing Director based on implementing strong strategic management skills and rigorous selection processes. One of the key reasons Silks City Tatts was able to attract Michelle Abbey, from WestfieldlLend Lease to the club, was as a direct result of Tony Guilfoyle’s ability to communicate the vision and to demonstrate strong leadership and management disciplines lacking in the club industry in Australia.

•      The selection process used to attract, hire and select Michelle is one used by companies locally and globally. Telstra, PrioewaterhouseCoopers; Cisco Systems, Hewlett Packard, The Royal Bank of Scotland/Naf West and over 470 medium sized businesses in the UK last year used the Preferential Interviewing/Behavioural Interviewing approach to.recruit. The process has . been validated by legal expertise in Australian Industrial Relations. Tony was instrumental in sourcing/introducing this type of managerial expertise and skill development into the Club to ensure that hiring top quality staff became a priority.

•      Has clearly demonstrated the ability to- create a structure and team which will ensure that the club has implemented sound business and commercial practice that will allow it to continue the fairly unique ability to trade profitably and successfully in an environment where evidence suggests the industry and competition is struggling significantly with the changes.

•      In February through to June this year, he orchestrated revenue generating activities and strategies when the club faced a major downturn. Tony Guilfoyle was able to generate $700,000 trading which translated to $500,000 profit to the club. Currently the Club is trading with its best ever results in the harshest conditions in the Club’s history.

The club is very clearly able to consolidate and build on its position in the market by making the appointment of Tony Guilfoyle to Chief Executive Officer immediately. From the job description and picture of the person needed to ensure the club’s survival, subjectivity and randomness which can, on occasions cloud these types of decisions, are eliminated.

The remuneration package of $390,000 with bonus opportunities, leading to a $415,000 ceiling is consistent with the industry. Having discussed GM/CEO packages with key personnel from Robert Waters Recruitment and Executive Search, the average within the industry ranges from between $260.000 and $510,000 with appropriate bonus and performance incentives built in. These salaries are quite often dependant on percentage revenues from gaming versus other income generating sources. Packages for a CEO of a club like Revesbv Workers or Dee Whv would range from $430,000 and $390,000 respectively (with bonuses added on delivery of financial targets.)

In fact, in view of the nonperforming nature,of some of the competition, the GM package demonstrates extraordinary value. With the outcomes/deliverables defined, the knowledge, skills and abilities/attitudes clearly detailed and demonstrated in behavioural terms, the decision becomes straightforward and virtually risk free.

Conclusion

It is vital for the board to make the decision on the appointment of Tony Guilfoyle to General Manager today. Any hesitation may well have disastrous implications by sending a message that services of Tony are not valued and/or needed. This could result in losing one of your most prized and well groomed managers, who is overwhelmingly capable of leading this fine club. The risk factor created by introducing an untried and untested outsider could not only undermine the many years of tradition but also result in irreparable damage to the implementation of the club’s strategy in the future.                                                                                   ‘

The Board has been consistently warned of difficult times and harsh trading conditions looming by Tony and have been presented with strategies and activities to maintain and enhance the revenue and profitability of the Club The recent figures reinforce the consistent achievement of the Clubs strongest ever trading results.

Over the next 7 years, the Club will be confronted with reacting to the impending taxation issues and jurisdictions that will have a major impact on downtown Sydney. Introducing an unfamiliar or untested candidate would be an act of complete folly and risk.

Tony Guilfoyle has a proven, enviable and tested track record of both leadership and delivery of consistent financial results, is respected and highly regarded within this industry and. will allow the Board to successfully affect a smooth transition of high quality management expertise and commercial acumen so critical for implementation in February 2004 for Silks CityTattersalls

 

So there you have it – how Tony Guilfoyle came to be CEO of City Tatts. We will return to this when you have had a chance to take it all in.

 

Save City Tatts Committee

 

Posted May 12, 2013 by savecitytatts in Uncategorized

Jan Ellks up to her old tricks

Jan Ellks is showing why she is the best paid secretary in Sydney.

City Tatts does not like it’s members to know too much about the Club’s financial situation so it does not have copies of the detailed annual accounts at the front lobby or even the second floor office reception. Any member who wants a copy has to ask for them.

This is where Jan comes in.

When a member asks for a copy Jan gives them a specially reduced copy that is harder ro read. Then she records the name of the member!

And, just to make it as difficult as possible, she refuses to give a copy of the additional disclosures that every club must give under the Registered Clubs Act – unless the members hands in a written request. Jan tells them that under the Act she is not allowed to give out the information without a written request. This is a blatant lie – City Tatts, or any club, is quite free to give this information to all members if it chooses. 

Jan Ellks has been at City Tatts since February 2007. $50,000 would be a generous salary for what she does but she has been receiving $135,000 in recent years. So in 6 years she has cheated members out of at least $400,000. We have checked with solicitors to see if members can sue her to return this money but the feedback is that it’s not easy to do.

Still, it will be funny to see her on the witness stand some day.

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Posted May 6, 2013 by savecitytatts in Uncategorized