Hoops

Boti: Hemmerling tenure 'not marked by success'

NVS, I tend to agree with you. The whole guarantee thing is not so much about putting money up, it's about being in a position that the money can get accessed in case of collapse.

The NBL would be very naive if they expected $1M sitting in some fund somewhere and getting no return.

I would expect any funds set aside for this guarantee would be put in some investment somewhere with the MINIMUM balance being $1M. The guarantee would be invested in some form of scheme and the proceeds from the investment would either be re-invested, or a dividend paid.

The fund would be separate to the operating bank accounts.

The other very simple way to form a guarantee is to draw a loan against an asset and then have the loan sitting in an mortgage offset account so that the $ may be accessed quickly is required, but no interest is paid.

It seems to me that if you don't own something, you don't really want to guarantee it. Maybe a secret code to who actually owns the Sixers. Be that as it may, it doesn't really matter.

At the end of the day, the discussion on the guarantee is a distraction from the most important thing. That is, having a solid business plan that guarantees success. If that is in place, the $1M guarantee is a like a one armed dwarf - it sits on the bench and is not required!

I may have been walking around with my head in the clouds for the last few weeks but I had nothing detrimental on my mind regarding Hemmerling. The news last Thursday that he wouldn't come up with the $1m guarantee came down like a lead balloon. One could only feel contempt that he would wait until this stage (the day before the new league's teams would be announced) that he would drop the bombshell. I could only think about Wollongong and how they busted their guts to find a last minute rescuer and still managed to do it in a timely manner. How bloody selfish can one person get. Not only jeopardize his own team whilst fooling around with the passion that fans have for this team but hijacking the whole league by creating delays in settling the details. All clubs are hanging out for the final word so they can go about business and start their recruiting process in preparation for the new season and now this one single person is putting a spanner in the works.

I can quite understand why Boti is now coming out against Hemmerling as with many others, myself included. I challenge anyone without inside knowledge who would have predicted this coming. It certainly took me by surprise. I also get the impression that he was deliberately manipulating his position by leaving it this late as it seemed unlikely that the NBL would have allowed a strong fan based club like Adelaide to bow out of the competition and at the very end had no time to insist on full compliance. Otherwise why did he not attend the summit and voiced his concerns then?

Boti's style is a bit sarcastic, but the points he make are valid.

IMO, the Sixers need to develop a firm plan that ensures positive cash flow, and a strong direction forward.
* Costs need to be under control, but realistic. If an NBL club needs a budget of $4M/yr to be successful, then budget that amount, don't cut the cloth to fit the team to $2M/yr.
* sponsors need to be well managed (something many of them say is poorly done at this stage) to ensure maximum cash flow from them into the club. Sponsors must be guaranteed of exposure + some return.
* supporters need to be engaged as well so they feel part of the club. The supporters need to feel part of the club off season as well.
* basketball must be marketed better. The retirement of Brett means someone needs to step up to the plate to be the face of the club.
* the club won't find it within basketball, the club needs to develop this plan from other successful sports and clubs.

At the end of the day, the club needs a firm foundation and a plan that sees a strong house. Clubs that are houses of cards fall pretty quickly