SEN boss Craig Hutchison addresses financial concerns of new netball team Melbourne Mavericks

Netball is in danger of being plunged into another financial crisis with questions being asked about the viability of new franchise Melbourne Mavericks. Team owner Craig Hutchison has his say.

Sports Entertainment Group boss Craig Hutchison remains “absolutely certain” his organisation will be in a financial position to take over ownership of the eighth Super Netball licence from Netball Australia in January, despite facing significant financial challenges.

Reports emerged this week that SEG, which includes the extensive Sports Entertainment Network and its SEN Teams division, which will run the Melbourne Mavericks next year, was at the mercy of the Commonwealth Bank after it breached loan conditions.

For a sport that has dealt with financial concerns surrounding Netball Australia, the collapse of Collingwood and an unresolved player pay war, the ongoing questions about the financial health of the incoming franchise ownership is yet another headache for the players and fans.

Netball Australia (NA), which set up a subsidiary company to hold the eighth Super Netball licence before the Sports Entertainment Network formally takes hold of the rights from January 1 next year, would not comment on the situation on Friday.

SEN entered into a heads of agreement with NA in July after the Mavericks were granted the licence following the collapse of the Collingwood Magpies.

The group has agreed to purchase 100 per cent of the shares of Netball Australia Team Co (NATC), the owner of the Team 8 licence, from Netball Australia on 1 January 2024 for what is described in its annual report as “a nominal fee”.

And Hutchison is not just confident, but absolutely certain, that transaction will go ahead.

“Our netball plans for the Melbourne Mavericks are off to a fantastic start and we’ve had tremendous initial support and commercial interest,” Hutchison said.

“We look forward to some exciting announcements in the coming weeks.”

SEN and Melbourne Mavericks owner Craig Hutchison.

The uncertainty stems from a going concern note included in the auditor’s notes in the SEG annual report.

The report, prepared at the end of October and released ahead of the company’s AFM next week, includes a note from auditors BDO Audit that “a material uncertainty exists that may (cause) significant doubt over the ability of the Group to continue as a going concern. The Directors consider that the Group remains a going concern and that and these financial statements have been prepared on this basis”.

Reasons for their optimism included SEG’s continued positive cash flow despite a reported operating loss of $9.2m, no plans for further material investing, forecast improved trading performance and support of creditors and suppliers.

Melbourne Mavericks general manager netball operations Shae Bolton-Brown. Picture: Jason Edwards

SEG has a $28.7m debt facility with the Commonwealth Bank, although had drawn $27.556m of this at June 30 and obtained covenant relief for the final quarter of the last financial year, meaning the bank has a right to request immediate settlement of the loan.

That is not expected to happen though, with Hutchison and SEG believing they are in a position to leverage the investment they have made in their broadcast network infrastructure and use their cash flow to help pay down debt.

While NA would not comment, their own recent financial challenges have them uniquely positioned to understand the position SEG finds itself in.

NA was itself under a going concern notice little more than 12 months ago and while it too, holds debt which it has to pay down, has turned around its own financial position to the extent that the business’s liquidity is now of no concern to auditors.

Continued noise around SEG’s position only adds to pressure on the under fire organisation and management though, after Collingwood’s collapse and the ongoing standoff with the Australian Netball Players Association over a new Collective Players Agreement continues to drag on months into the off-season.

Originally published as SEN boss Craig Hutchison addresses financial concerns of new netball team Melbourne Mavericks