Hoops

36ers meeting Comm Bank officials today

we need someone with Photoshop skills to do something with those CBA CAN'T campaigns,
Post them on the facebook page if anyone does one...

I dont know if this will help, but Ive started a Facebook Page to hopefully catch the attention of someone in the government: https://www.facebook.com/pages/Online-Petition-To-Get-Our-Local-Government-To-Save-The-Adelaide-Arena/257882447662397

Please like and share around...

Agree with those who say the State Govt should bite the bullet. They have ploughed precious little money into community sports facilities over the last decade or two, all the while funding the top end of town - so modern Labor! Sport is never going to be self-funding, and you are crippling any sport to insist on user-pays. We all pay taxes, let's see something for them. Oh and what better facilities couldn't do for obesity rates, healthy community participation etc etc.

It's in the best interest of the CBA to be cagey. Create uncertainty and a sense of urgency that precipitates demand for the place.

Under real estate law, all offers must be presented to the vendor.

Who is handling the sale? I feel like offering $2, but I think the first offer should be $1M.

Before we all start handing out razor blades, let's take stock of the situation.

The property is basically Lot 44 and Lot 1-3 William St Beverley. The site is around 183 m x 100 m (TBC) or 18,300 m2 (1.83 Ha). Located on the site is a custom built constructed building approximately 7,000 m2 in size. Built in 1991 at a cost of nearly $16 million, the asset would be written down to ? M. (I think the ATO allows a writedown rate of 2%/yr on a building?)

The CBA has taken control of the asset, so in order to maximise its return, it needs to either find a buyer for the asset, or obtain a good return in the form of rent from the asset. The asset is restricted by planning laws and this can limit the sales return.

The CBA would have a number that the assets "owes it" and would be seeking to obtain this number of possible through open sale.

If the CBA acted as landlord (ie Adelaide Arena) (probably not their preferred position), while it would be seeking to achieve a high ROI, the CBA is limited by the commercial realities of the market and so they would be seeking to maximise the best return they could if they leased out their asset.

Their best position may be to continue to lease the building to the Sixers while it:

1. Seeks a buyer who wishes to keep it as a basketball stadium.
2. Seeks a buyer who would change its use (this would need planning approval, so there would be a time delay before they could move in)
3. Take the bull by the horns and redevelop the site to maximise any capital.
4. Lobby the government to make the stadium use more flexible in order to achieve greater rents and therefore make it a more attractive option for a multi-use stadium.

Therefore, while the current position does not appear to be favourable to the Sixers, unless the CBA has a buyer tearing down the door, the CBA need the Sixers to continue as tenants to keep any cashflow at the site and at least give a prospective buyer an option.

After all, what's the worst that could happen? The Sixers could relocate to the Gold Coast !

13 August 2012

Members & Fans note from Adelaide 36ers CEO

I’m sure, as 36ers members and fans, you would be eagerly following the story on the Adelaide Arena. I wanted to update you all today that, unfortunately, we still do not have an answer from the Commonwealth Bank as to whether they will grant us a lease to remain at the Arena for the 2012-13 season.

This is immensely frustrating for us and all 36ers fans.
We are continuing to work with the Bank and have been providing them with all of the information they need from us, to help them make their decision.

We have made it very clear to the Commonwealth Bank that we must know as a matter of urgency, because we all want to see the 36ers take the court from October 7.
There is no question that the longer we do not have a decision on our lease, the harder it is for us to prepare for the 2012-13 season. Unfortunately, for us in South Australia, there is no alternate, available venue to stage our NBL matches.

We will continue to keep you informed and hope we will be able to update you again soon, once we have heard about the lease agreement.

Leeanne Grantham