West Adelaide Football Club wants to sell Richmond Oval clubrooms to pay off debt
AN SANFL club is considering selling its clubrooms to help raise up to $2 million to pay off debt — and address a “long-standing cash-flow problem”.
WEST Adelaide Football Club is advancing a plan to sell its clubhouse and land at Richmond Oval to a trust group as the Bloods battle a significant cash flow and credit squeeze.
Club members on Monday gave the West Adelaide board approval to explore the plan, which could raise as much as $2 million.
The board will seek external financial experts to provide a due diligence test on the proposal.
Selling the club assets to a trust group follows the West Adelaide Football Club conceding it has a “long-standing cash-flow problem” created by servicing debt.
It is understood the Bloods also face another heavy round of bills from the Australian Tax Office.
West Adelaide chief executive John Kantilaftas has dismissed speculation the Bloods are insolvent.
“The club is fortunate to be in the position where its assets comfortably exceed its liabilities,” Mr Kantilaftas said.
He described the plan to sell the club assets — which ultimately could be returned to the Bloods when the club is in a stronger financial position — as “a bold new initiative (for West Adelaide’s) future direction and prosperity”.
The assets would be held by a trust group made up of “individuals or entities approved by the club,” he said.
“This would result in a substantial injection of funds into the club which would enable it to pay off bank and other loans and creditors and shift the club’s focus from servicing debt to growing the club,” he said.
“(The club can then) use its equity of approximately $2 million to overcome a long-standing cash-flow problem in order to ensure the strength and growth of the football club on and off the field.”