Hoops

Cairns Taipans in financial trouble

Skull & Mball i hear what you are saying. This Wed is a perfect example of one of the problems. A Taipans home game against Tville which tips off at 6.30 & is on Fox. 4000 people to break even? I hope Croc supporters come in there droves. May as well stand there & burn $50 notes.

I agree with the last comment but I'd be surprised if there's any money left over at the end of all the expenses.
It's hardly a case of the NBL being able to 'profit' from folding clubs particularly ones that even after being saved still can't get there act together in towns where there's not much to do.

I'd love to see teams back in Syd and Bris but in Syd for example they are spoilt for choice on what live sports to spend their money on and to a lesser degree the same with Brisbane.

It's going to prove interesting with the number of teams in the mix for next season and give existing sponsors around the country cold feet on the stability of the plans for next season.

It's also frustrating that clubs have grand visions for the future of basketball and with reform BA are trying to accomodate for that but these sorts of scenarios just erode the work getting done behind the scenes to restore faith in getting financially involved in basketball.

Yeah I read that but I'm pretty sure they didn't.
There were definately 3 clubs who hadn't paid it, especially by the due date- the Dragons were one so count them out they don't figure anymore.

Someone who remembers when the clubs were complaining about the bank guarantee, correct me if I'm wrong?
I recall there were 3 clubs who got out of paying it- I believe Cairns was one of them I'm 99% sure of that.
(I think the other two were Dragons at the time and perhaps the Crocs but there was definately a 3rd)

Where does this leave them now with finishing off the season and paying wages etc if this is the case?

Well, at least it looks like the team will see out the season. If nothing else, the $1m guarantee ensures that. Smart move by the NBL not having teams drop out mid season.

Can't see it happening (Cairns surviving). For those not aware Cairns is a beautiful place to visit, but really doesn't have anywhere near the population or economy to support even an NBL team.

120k people, and an economy driven mostly from Tourism, Sugar and Transport (of raw materials mostly), with Sugar and Tourism at fairly low levels. Previous irresponsible ownership has given the community and the rest of Australia the false sense that Cairns is sustainable enough for a franchise, due to him footing the bill and trying to buy Championships.

Now that the public ownership model is in place, there's still not enough (public interest and alternate revenue) to keep the team going. Whilst it will be a shame to lose the Taipans, it will reinforce the new market forces in the newNBL and these requires you to a.) ensure you have sufficient cash-flow, and b.) that you break even, make a small profit, or are prepared (ie. Funded) to take a small loss from operations.

You can't do that without either a major investor (Hawks), large crowds or a lower cost of operations (T'Ville). Yes they have a cheap roster, but I'm sure the low revenue and the venue hire are the killer lines on their P&L.

Bloody hell! Hope Cairns survive...