jazzsax

Brutal call on goosen

Brutal call on goosen

Reading over the financial statements is interesting. From an accounting perspective it was quite smart --- have a seperate entity own the stadium and carry the loans --- based on the strength of the borrowers (City of Winnipeg and University of Manitoba primarily) --- with the two plus the Team being the members. Payments from the team are essentially funding both the Capital Asset (ie, building) --- and interest on the loans for the buildings with the lenders. 
Part of the 4.5 Mllion the team has been funding is $500k a year towards the operating reserve --- sitting at 2.59 million - reserve should be 5 million when done in 5 years. 
2017 including capital fund contribution --- max payment is $3.5 Million
2018 and on --- $4,335,834 until capital fund is maxed, after which it would be $3,835834.
Essentially --- get bums in the seats, have extra events and the obligations are easily met and we keep a world class stadium in good. use.
So --- focus on developing a strong team, a loyal and growing customer base and it will work itself out. 
From the financials...
Subject to the existing note payable (Note 5) to the City of Winnipeg, all entertainment tax and facility fees collected on regular season and exhibition Blue Bomber football games by the Club will be paid to Triple B. In any year that entertainment tax and facility fee payments in total exceed $2,000,000, the first $2,000,000 will be applied against the scheduled payments noted below and the excess will be applied to a capital fund to be held by Triple B, to a maximum of $500,000 per year. Any further excess entertainment tax and facility fee payments (over $2,500,000 in a year) will be applied by Triple B to the scheduled payments below. In addition, the Club is to use any Excess Cash generated in a fiscal year, after consideration of the Club’s required working capital levels and allocations to the Operating Reserve, to make a further annual payment to Triple B in accordance with the maximum total scheduled payment, inclusive of the amounts collected and remitted by the Club for entertainment tax and facility fees (except for amounts applied to the Triple B capital fund), as follows: 2016 $ 4,000,000 2017 3,000,000 Thereafter, the maximum annual scheduled payment of Excess Cash will be $3,885,834, until 2058. Any shortfall on the above Excess Cash amounts in any year will be added to the amount to be paid by the Club in the following year in which it was originally due. Under the terms of the Management Agreement the Club is also required to remain a community owned non-share, not-for-profit corporation.

Reading over the financial statements is interesting. From an accounting perspective it was quite smart --- have a seperate entity own the stadium and carry the loans --- based on the strength of the borrowers (City of Winnipeg and University of Manitoba primarily) --- with the two plus the Team being the members. Payments from the team are essentially funding both the Capital Asset (ie, building) --- and interest on the loans for the buildings with the lenders. 
Part of the 4.5 Mllion the team has been funding is $500k a year towards the operating reserve --- sitting at 2.59 million - reserve should be 5 million when done in 5 years. 
2017 including capital fund contribution --- max payment is $3.5 Million
2018 and on --- $4,335,834 until capital fund is maxed, after which it would be $3,835834.
Essentially --- get bums in the seats, have extra events and the obligations are easily met and we keep a world class stadium in good. use.
So --- focus on developing a strong team, a loyal and growing customer base and it will work itself out. 
From the financials...
Subject to the existing note payable (Note 5) to the City of Winnipeg, all entertainment tax and facility fees collected on regular season and exhibition Blue Bomber football games by the Club will be paid to Triple B. In any year that entertainment tax and facility fee payments in total exceed $2,000,000, the first $2,000,000 will be applied against the scheduled payments noted below and the excess will be applied to a capital fund to be held by Triple B, to a maximum of $500,000 per year. Any further excess entertainment tax and facility fee payments (over $2,500,000 in a year) will be applied by Triple B to the scheduled payments below. In addition, the Club is to use any Excess Cash generated in a fiscal year, after consideration of the Club’s required working capital levels and allocations to the Operating Reserve, to make a further annual payment to Triple B in accordance with the maximum total scheduled payment, inclusive of the amounts collected and remitted by the Club for entertainment tax and facility fees (except for amounts applied to the Triple B capital fund), as follows: 2016 $ 4,000,000 2017 3,000,000 Thereafter, the maximum annual scheduled payment of Excess Cash will be $3,885,834, until 2058. Any shortfall on the above Excess Cash amounts in any year will be added to the amount to be paid by the Club in the following year in which it was originally due. Under the terms of the Management Agreement the Club is also required to remain a community owned non-share, not-for-profit corporation.