SEN chief financial officer Chris Tan quits as deadline set for network’s new deal

A long time executive at Craig Hutchison’s struggling radio station and sports team network has quit as the company scrapes together cash to extend a bank loan.

Craig Hutchison’s media company has been struggling. Picture: Jay Town

Craig Hutchison’s long term chief financial officer has quit as the SEN radio and sports group scrapes together $7 million to extend its loan with the Commonwealth Bank.

Sports Entertainment Group, the holding company for the radio stations and sports teams including the Perth Wildcats, announced Chris Tan’s departure to the Australian Stock Exchange.

The Commonwealth Bank agreed to extend its loan with embattled SEN group, but reduced it from $28.7 million to $20 million.

Hutchison’s company has until an April 30 deadline to find $7 million to meet the bank’s demands.

“We also wish to advise of the resignation of Chief Financial Officer – Chris Tan – to pursue an opportunity to advance his career with a leading global live entertainment company,” an SEG statement said.

SEN Chairman Craig Coleman (left) and CEO Craig Hutchison (right). Picture: Arsineh Houspian.

“Chris will finalise the renewal of the Group’s banking facilities and support an effective transition of key responsibilities … to Trent Bond … will assume the role of Chief Financial Officer.”

Sources claim that deals have already been done to cover the $7 million shortfall on the loan.

They include the $3.6m sale of SEN’s loss-making New Zealand business, a $2 million investment in the SEN Teams business and $2 million from new shareholders will pay that debt down.

A note to the Stock Exchange said that 3.63 million shares were issued on February 14. The identities of the new investors have not been revealed.

However, the radio station group whose presenters include Gerard Whateley, former Australian wicket keeper Ian Healy and rugby league star Matty Johns, made a $1.5 million loss in the six months to December 31.

Hutchison was upbeat about the group’s future on Thursday.

“We’re appreciative to extend our partnership with our finance partner who believes in our strategy and agenda,” he said.

“We’re delighted to welcome a small number of investors to our SEN Teams.

“Our radio build is in essence complete and we’re focused on running our sports integrated media company.”

Hutchison’s company has expanded rapidly since he merged the radio stations with his company Crocmedia in January 2018.

They expanded into Sydney and Brisbane with new radio stations and purchased the AFL Record.

The group also picked up the Wildcats and a new netball franchise to be known as the Melbourne Mavericks.

The netball team was previously known as Collingwood, backed by the might of the AFL powerhouse and its office.

However the Pies were unable to make the netball team profitable, with the team estimated to have cost $3 million a year to run.

Hutchison’s company took over the franchise on January 1 and has already locked in 11 sponsors.

The $28.7 million loan, which attracted a 6.36 per cent interest rate, with CBA had been due to expire on August 31.

The new loan was due to be extended until 2027 if it was reduced to $20 million.

“A condition of the renewed facility is the repayment of debt to reduce the facility limit which is expected to occur by 30 April 2024,” Hutchison’s company told the ASX.

Sports Entertainment Group had a valuation of $65 million on Thursday, with shares trading at 24 cents.

The company was trading at 42 cents per share on February 2, 2018.

Originally published as SEN chief financial officer Chris Tan quits as deadline set for network’s new deal