Archive for May 2014

ANZ’s extremely attractive proposal

As many of you would know, in February 2013 City Tatts moved from NAB to ANZ in a mad panic. The Club had been with NAB for 40 years. (In fact there used to be a branch of the NAB in the City Tatts building.) The move was so rushed that they couldn’t wait for the Treasurer, Jimmy Chen, who was away.

Ever since, there has been an attempt by Patrick Campion to pretend that they moved to ANZ because of some better deal.

In May 2013 Campion claimed that ANZ offered:

  • Lower interest rates
  • Less restrictive covenants, and
  • improved flexibility

We always knew that Campion was lying – and the accounts prove it.

Interest expense has increased to $1,346,029 (from $1,067,624). Bank loans have increased by about $1.2 million which might account for $80,000 in additional interest. But an increase of $280,000 can only mean that ANZ are charging a higher interest rate. (There has been a decrease in “Other finance expense” which is hard to understand since non-bank finance liabilities have increased.)

As for less restrictive covenants – ANZ insisted on a registered mortgage (where NAB had none) and “Specific Security over Liquor License and all related gambling machine entitlements and poker permits” !!!

And finally, what about the improved flexibility? As at 31 December 2013 City Tatts had unused finance facilities of $310,000. They had spent about $1 million (according to the accounts), and borrowed $300,000, for the property development by then. At the rate they are spending they must have used up all facilities by now – in other words they are totally at the mercy of ANZ. They have no flexibility whatsoever.

 

Save City Tatts Committee

Posted May 30, 2014 by savecitytatts in Uncategorized

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Have you ever heard such nonsense?

Another gem from Jimmy Chen’s, sorry Tony Guilfoyle’s, Treasurer’s Report 2013.

One of the propaganda themes in the past year has been to pretend that the Club moved it’s banking to ANZ because they got a better deal. In fact NAB got so worried about their loans that they demanded additional security or City Tatts could take their business elsewhere.

In an attempt to spruik the move from NAB the Treasurer’s Report reveals that the Club borrowed an additional $1.5 million from ANZ. $500,000 of this was used to pay down the overdraft and the rest was used to “greatly reduce our trade creditors”. Sure enough, trade creditors are down by $700,000 in 2013.

Have you ever heard such nonsense?

A club that makes $20 million profit from poker machines every year has been run so badly, for so long, that they had to take out a bank loan to pay trade creditors!!!

 

Save City Tatts Committee

Posted May 16, 2014 by savecitytatts in Uncategorized

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Tony Guilfoyle’s Treasurer’s Report

One thing is clear from reading the 2013 Treasurer’s Report – Tony Guilfoyle has written it.

It has all the Guilfoyle trademarks.

The first sign is useless public relations waffle right through the report. Mindless hype about the badge draw bringing “unprecedented numbers” is just one example.

The second sign is excuses. From the minute Guilfoyle became CEO in 2004, he started offering excuses to explain his mismanagement. The list is so long that we simply don’t have time to cover them here. But claiming the results were poor because they were “once again hindered by Government Intervention” is classic Guilfoyle.

Another sign of Guilfoyle’s involvement are statements that sound good at first but make no sense if you stop and think about them. There is one of these in the 2013 Treasurur’s Report. The Report tells members that the Club has bought $3 million  worth of gaming machines “via an arrangement with gaming manufacturers called Daily Licence Fees”. Now comes the Guilfoyle touch. The report then says “This arrangement is common within the club industry and is the first time the Club has taken advantage of it”. If it is so common within the club industry, how come City Tatts never used it before? The answer, of course, is that in the past the Club was run much better so it was never necessary. Now cash is so tight at City Tatts that Guilfoyle has resorted to buying poker machines on hire purchase – the most expensive form of finance there is, and an absurdity in a cash business. It is also an admission that the Club is close to the brink. 

So there is no doubt that Tony Guilfoyle, not Jimmy Chen, has written this Treasurer’s Report. But, apart from that, you have to wonder if Jimmy Chen is the Treasurer at all. There is a finance sub-committee in City Tatts which met five times during the year. Incredibly, Jimmy Chen was only at two of the meetings – while everyone else attended all five!

There is another reason why people wonder if Jimmy is the Treasurer. When the Club moved from it’s banking (and loans) from NAB to ANZ, Jimmy was away!

 

Save City Tatts Committee

Posted May 15, 2014 by savecitytatts in Uncategorized

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The Badge Draw at City Tattersalls Club

Nothing is what it seems at City Tatts.

Take, for example, the badge draw. This promotion runs once or twice a year. It usually starts at $5,000 or $10,000 and, if it is not won, jackpots up to $25,000 or $30,000. On the nights the draw is held there are about 100 extra members in the Club. If it jackpots up to the limit on the last night (when they keep drawing until it goes off) there can be as many as 400 members who will stay until it is won.

So far, all of this is fairly normal.

But this is City Tatts where there is always more than meets the eye.

Jimmy Chen lauded the badge draw in his 2013 Treasurer’s Report for “drawing unprecedented numbers attending the draw”.

Well, no. The badge draw brought the numbers, for one hour, back up to where they used to be every day. It is testament to the abject failure of the promotions department at City Tatts that the badge draw in 2013 is considered a success.

This brings us to the other strange part of this story. This supposed success has come in a year when Entertainment, Marketing and Promotion expenses have been reduced by $419,000. The obvious question is – what were they spending this money on in previous years?

That is, of course, if they really did reduce spending on Entertainment, Marketing and Promotion. The rumours are that there was no reduction – that they have spent the same amount but simply capitalised it instead of treating it as an expense.

If they have spent the same on promotion but used accounting tricks to show a reduction then Jimmy Chen is lying to members.

 

Save City Tatts Committee

Posted May 14, 2014 by savecitytatts in Uncategorized

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Mirvac – 5 months and counting!

Five months have passed since City Tatts members were told that Mirvac were the “preferred developer” of the Club’s site – and to date Mirvac have said nothing.

We know that Mirvac want this deal. And they know that Campion and Guilfoyle are desperate for a property development to bail out the Club from their mismanagement.

Maybe that’s the explanation. Mirvac know they already have the deal because the Club is publicly committed to them. But Mirvac can walk away at any time. That’s the perfect scenario for them. They have it if they want it – but other developers can’t step in and take it from them.

But if Mirvac have still not committed to this development after five months then clearly it is not ready to put to members.

 

Save City Tatts Committee

Posted May 12, 2014 by savecitytatts in Uncategorized

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Important News From Tweedledee

Dear City Tatts Member,

We are determined to do a property development regardless of what members want.

I thought it would sound good to say that members want the business model to change even though I know no member in their right mind has ever said that, or ever would.

The property development will make a lot of money for Mirvac and a long line of consultants.

There are members who know what is going on and have tried to draw attention to the decline of City Tatts. There are internet blogs and a book titled “The Destruction of City Tattersalls Club by Tweedledum and Tweedledee”. These contain many articles that explain what has gone wrong at City Tatts and who is to blame. If any such material comes to your attention, please read it carefully.

For reliable information about the real story behind the property development, please visit savecitytatts.wordpress.com, citytattersallsmembers.wordpress.com or citytattsinformationdesk.wordpress.com or get “The Destruction of City Tattersalls Club by Tweedledum and Tweedledee” from Amazon. In addition, I encourage you to meet members of the Save City Tatts Committee who are fully informed on all aspects of the property development (unlike the Committee).

In addition, we will be offering drop-off sessions where members can come in and get none of the information they need.

If you have any questions and cannot bear to listen to any more of my lies you can send your questions to 194-204 Pitt Street Sydney NSW 2000 (while it is still there) and Tony Guilfoyle will provide a misleading response, if he is in that day. Otherwise Jan Ellks will provide the misleading response.

Yours Dishonestly

Tweedledee (Patrick Campion)

Chief Liar

City Tattersalls Club

Posted May 10, 2014 by savecitytatts in Uncategorized

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Mary McKillop is back at City Tatts!

The 2013 trading results for City Tatts are out.

 

Revenue from pokies is down $638.000

Revenue from restaurants and bars is down $232,000

Other revenue is down $76,000

 

And how has this affected the bottom line?

 

Net Profit is up $186,000 !!!

 

Now that’s a miracle.

 

Save City Tatts Committee