Carlton to strip Richmond of Royal Oak Hotel & pokie revenue

[tigersalive]

How are they maximising profit by taking ownership of licenses (or lease of venue, or whatever)  away from Richmond and Footscray and giving it to Carlton?

I'm just telling you why Dick Smith has no legs to stand on to stamp their feet at a fellow Woolworths subsidiary from doing whatever they want.

Whether they get better profitability or the intangible benefit for ALH Group is beyond the specifics what I can discuss without pulling inferences out my backside.

[Penelope]

For a company to allow a minor business partner to take action, based solely on fulfilling that minor business partner's personal desires, that brings no benefit to that arm of the company, while potentially harming another arm of the business is just plain crazy, illogical and poor governance.

That is the point I'm trying to make.

If somehow the royal oak decision was geared towards increasing profits then I would agree with what you said. It is not though, a business decision.

[Owl]

Do they own all these things outright or is it just a controlling shares deal ?

[Ramps]

I actually sent the club an email about some of these issues- still waiting for a reply! Also emailed Woolworths and still waiting on a reply from them as well!

[WilliamPowell]

Fromt he RFC website:

http://www.richmondfc.com.au/news/newsarticle/tabid/6301/newsid/94261/default.aspx

Richmond and the Royal Oak
richmondfc.com.au 1:39 PM Thu 13 May, 2010

There has been speculation in recent weeks about the operation of the Royal Oak Hotel.

Currently the Royal Oak is being operated by the Richmond Football Club and we therefore encourage our members and supporters to continue to support the venue.

for richmondfc.com.au

How are they maximising profit by taking ownership of licenses (or lease of venue, or whatever)  away from Richmond and Footscray and giving it to Carlton?

It depends what there cut from gaming revenues & the property leases they are getting I would think, coupled with how much they paid for the licences

[Penelope]

All those sort of things are possibilities WP, but no-where has had it been mentioned that Richmond (or Footscray) were asked to change these conditions and refused. In fact there has been no mention of any negotiation at all. From the info we have it appears as if the decision is based solely on Mathesien wanting to provide for the team he supports.

[WilliamPowell]

All those sort of things are possibilities WP, but no-where has had it been mentioned that Richmond (or Footscray) were asked to change these conditions and refused. In fact there has been no mention of any negotiation at all. From the info we have it appears as if the decision is based solely on Mathesien wanting to provide for the team he supports.

I don't believe that Richmond or Footscray had any say or option ot negotiate at at all.

I see it as being to similar to a Landlord deciding at the end of a long term lease with a tenant that "I want you out" and tell sthem such. As the Landlord you don't have to give a reason, just follow the legal requirments to end the lease. The tenant doesn't have a choice

[Ramps]

All those sort of things are possibilities WP, but no-where has had it been mentioned that Richmond (or Footscray) were asked to change these conditions and refused. In fact there has been no mention of any negotiation at all. From the info we have it appears as if the decision is based solely on Mathesien wanting to provide for the team he supports.

I don't believe that Richmond or Footscray had any say or option ot negotiate at at all.

I see it as being to similar to a Landlord deciding at the end of a long term lease with a tenant that "I want you out" and tell sthem such. As the Landlord you don't have to give a reason, just follow the legal requirments to end the lease. The tenant doesn't have a choice

We can jump up and down all we want - but what I want to know is- Did our club bid for machines in other places, Did the club look into getting some venues in the last 6 months in preparation for these auctions, Did the club look at Joint Venturing with other parties? What actions did our management undertake to best represent the clubs interests? Or have we just been screwed out of 100 machines at Royal Oak and our management want us to be happy with an extra 10 machines at Wantirna which has always been a lemon? The club needs to tell us!

[Penelope]

All those sort of things are possibilities WP, but no-where has had it been mentioned that Richmond (or Footscray) were asked to change these conditions and refused. In fact there has been no mention of any negotiation at all. From the info we have it appears as if the decision is based solely on Mathesien wanting to provide for the team he supports.

I don't believe that Richmond or Footscray had any say or option ot negotiate at at all.

I see it as being to similar to a Landlord deciding at the end of a long term lease with a tenant that "I want you out" and tell sthem such. As the Landlord you don't have to give a reason, just follow the legal requirments to end the lease. The tenant doesn't have a choice

Which all points to this being nothing more than a personal desire by mathiesen . If it was a business decision to bring in more cash, the first option, from a business point of view  is renegotiate with current tennants. I know you dont have to do this by any law, but common business sense says you do - unless there is a personal agenda in the decision
making.

End result is that a personal agenda by a minor business partner is working towards devaluing the sponsorship dollars paid by a business arm of the major partner.



 

[WilliamPowell]

, Did the club look at Joint Venturing with other parties?

I think that's what we did with the Royal Oak and look how that's ended up

The RFC getting screwed

[Ramps]

, Did the club look at Joint Venturing with other parties?

I think that's what we did with the Royal Oak and look how that's ended up

The RFC getting screwed

Joint venturing with a couple of RSL or Bowls Clubs or other type of clubs is different to joint venturing with Mathieson IMHO WP.

[WilliamPowell]

Joint venturing with a couple of RSL or Bowls Clubs or other type of clubs is different to joint venturing with Mathieson IMHO WP.

That's true Ramps - a nice bowling club sounds a great idea 

[Ramps]

Joint venturing with a couple of RSL or Bowls Clubs or other type of clubs is different to joint venturing with Mathieson IMHO WP.

That's true Ramps - a nice bowling club sounds a great idea 

well if you think about it properly, if you get into a jv with a bowls club for example, most of there members would be 70+ so according to me- that means-

we can branch stack the place- taking effective management control- giving us access to facilities, the gaming machine revenues and cheap grog. I should be on the RFC committee- Its time to bring down our board and VOTE 1 - Ramps 

[Mopsy]

You leave our Big Banana alone

[one-eyed]

A message from the Club via email:

Richmond's Royal Oak
Despite recent speculation about the operation of the Royal Oak Hotel, the venue is being operated by the Richmond Football Club, and we encourage our members and fans to continue to support the venue.