Board Communication Update
Category: Board Report
Welcome to this edition of Board communications. Firstly, I must apologise for the delay in this information as the decisions made by the Board were on the day before I went on leave.
The Foxtel contract has been terminated by the club after the company had introduced a new method of charging commercial venues for their services. After several months of trying to negotiate a fairer deal Foxtel finally came back with the reply that the new charges would not be reduced.
The new charge for our club was to be $59,558 inc. gst for twelve months. A rise of approx. $18,000. The board took great care and due diligence in coming to a unanimous decision to terminate the contract. The revenue, clear of other expenses, needed to cover the Foxtel contract would be $130,450 or to put it more simply 21,742 schooners or 197 kegs. We can better spend $60,000 on the continued improvements for our club and to the benefit of all members.
Our Club is not alone in reviewing this situation with some of the bigger clubs also negating their contracts. The board took the view that the free to air coverage of Rugby League on Thursday, Friday nights and Sunday afternoon, Rugby, Football and AFL was a good compromise.
Further to this we still have the ability to show other sports through our live TV media with TAB which includes some OPTUS sports channels and also engage further with Sky Sports Vision which includes major sports such as NBA, NFL, Major League Baseball, and Premier League Football to name some.
The TAB is reliant on SKY and is, and will be, offering greater potential on their Sky Sports platform whilst they also are offering to reduce costs to try to support our industry.
The Board hopes our members understand the financial logic behind this decision and we can assure the members that the long-term financial and successful future of the club is foremost in our sometimes robust but always unanimous decisions.
On a change of direction contracts have been exchanged on our rental properties and the developer will assume control once settlement is finalised in early April. It is understood that the current tenants will be offered a short term lease whilst preparing for construction works.
Yours Faithfully on behalf of the Board and Management
Chairman Kahibah Sports Club