In case you missed it the following is an article from a couple of weeks back by Heather Kennett of the Guardian Newspaper
THE cash-strapped Glenelg Football Club is asking for a $500,000 loan extension from Holdfast Bay Council to help pay its creditors and inject capital back into its operations.
The club has approached the council to increase its borrowings to implement a range of measures designed to restore the club’s profitability.
Bays president Nick Chigwidden said the club “was in a tight spot”.
He blamed unforeseen legal fees of $132,000 to install new lights at the ground, difficult trading conditions and poor on-field performances for its parlous financial position.
“We are looking at ways to make the business run more efficiently and looking at the operation as a whole,” he said.
“We need to reduce costs as best we can while trying to identify ways to increase revenue. “To be able to do this we need an injection of cash to reinvest into the business.
“We are part of the Glenelg community and we do pay $60,000 rent to the council. It isn’t a donation … we will pay it back.”
The club took out a $2.5 million loan with the council in 2001 to fund an upgrade of its Glenelg Oval facilities.
“With more than $1.8 million outstanding, the club wanted to redraw $500,000, he said.
The club was keen to pay off its outstanding debts, to avoid a situation similar to West Adelaide Football Club, he said.
The Bloods were taken to court over on outstanding $9000 debt earlier this month.
“There are creditors that have been dragged out … but we are not yet in the position of West Adelaide.”
He hoped the council would approve the extra borrowings.
He would not link the club’s fortunes to the resignation of former chief executive Rob Nelson last month.
Holdfast Bay councillors will consider the request at their meeting on Tuesday, August 27.
A staff report recommended the council agree to the loan extension.
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