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Let's hope Ezybonds comes through with the money....
Western Bulldogs still owed $390,000 from sponsor
Mark Stevens
The Herald Sun
December 20, 2008
THE global financial crisis has hit the Western Bulldogs, delivering a savage cut of almost $400,000 to the club's bottom line.
Struggling shorts sponsor Ezybonds still owes the Bulldogs $390,000 and there is no guarantee the bill will be paid.
The Bulldogs' auditors have listed the outstanding money as a doubtful debt in the club's balance sheet.
It robbed the Dogs of a $1 million-plus profit, forcing them to settle for the $640,000 announced at Thursday night's annual general meeting.
Although the club has not given up hope of netting some of the owed money to boost next year's balance sheet, any further payment would be viewed as a bonus.
Ezybonds was also contracted to provide about $500,000 in sponsorship for next year, but has been forced to walk away from the arrangement because of financial pressures.
Bulldogs president David Smorgon last night said Ezybonds made a payment in July/August, but the money had dried up since.
"The principal of Ezybonds has good intentions and we can see that, but this is an example of how business is being hit by the crisis," Smorgon said.
"Some funding they were hoping to get didn't appear."
The Dogs would be happy to get half of the money owed, but are taking a realistic approach.
"Probably to get $100,000 of it would be a windfall," Smorgon said.
Bulldogs chief executive Campbell Rose said the club continued to have a strong relationship with Ezybonds.
"The company has been a great Bulldogs backer and we are hopeful of a satisfactory resolution," Rose said.
Smorgon said it was "extremely disappointing" the doubtful debt had cost the club a landmark $1 million profit.
It also means the Dogs are in the market for a new shorts sponsor.
"We now have a valuable asset, in the shorts, up for grabs," Smorgon said.
Despite the worrying outlook for Ezybonds, the Dogs were relieved this week when another doubtful debtor paid up in full.
The Dogs, like Melbourne and Richmond, are also seeking a major sponsor.
They have had several leads, but an announcement will now be delayed until after Christmas.
The going rate for a major deal is $1.2 million to $1.5 million a year and the club will not be lured into a cut-price deal.
"We've come too far and achieved too much to discount our assets," Smorgon said.
A British-based money transfer company, Ezybonds started its connection with the Dogs in 2006.
The $390,000 owed equates to a top-line player and is more than the Dogs earned from their entire roster of home games at Telstra Dome this year.
On Monday night influential supporters chipped in to raise $50,000 so the club could afford to draft another rookie on Tuesday.
Western Bulldogs still owed $390,000 from sponsor
Mark Stevens
The Herald Sun
December 20, 2008
THE global financial crisis has hit the Western Bulldogs, delivering a savage cut of almost $400,000 to the club's bottom line.
Struggling shorts sponsor Ezybonds still owes the Bulldogs $390,000 and there is no guarantee the bill will be paid.
The Bulldogs' auditors have listed the outstanding money as a doubtful debt in the club's balance sheet.
It robbed the Dogs of a $1 million-plus profit, forcing them to settle for the $640,000 announced at Thursday night's annual general meeting.
Although the club has not given up hope of netting some of the owed money to boost next year's balance sheet, any further payment would be viewed as a bonus.
Ezybonds was also contracted to provide about $500,000 in sponsorship for next year, but has been forced to walk away from the arrangement because of financial pressures.
Bulldogs president David Smorgon last night said Ezybonds made a payment in July/August, but the money had dried up since.
"The principal of Ezybonds has good intentions and we can see that, but this is an example of how business is being hit by the crisis," Smorgon said.
"Some funding they were hoping to get didn't appear."
The Dogs would be happy to get half of the money owed, but are taking a realistic approach.
"Probably to get $100,000 of it would be a windfall," Smorgon said.
Bulldogs chief executive Campbell Rose said the club continued to have a strong relationship with Ezybonds.
"The company has been a great Bulldogs backer and we are hopeful of a satisfactory resolution," Rose said.
Smorgon said it was "extremely disappointing" the doubtful debt had cost the club a landmark $1 million profit.
It also means the Dogs are in the market for a new shorts sponsor.
"We now have a valuable asset, in the shorts, up for grabs," Smorgon said.
Despite the worrying outlook for Ezybonds, the Dogs were relieved this week when another doubtful debtor paid up in full.
The Dogs, like Melbourne and Richmond, are also seeking a major sponsor.
They have had several leads, but an announcement will now be delayed until after Christmas.
The going rate for a major deal is $1.2 million to $1.5 million a year and the club will not be lured into a cut-price deal.
"We've come too far and achieved too much to discount our assets," Smorgon said.
A British-based money transfer company, Ezybonds started its connection with the Dogs in 2006.
The $390,000 owed equates to a top-line player and is more than the Dogs earned from their entire roster of home games at Telstra Dome this year.
On Monday night influential supporters chipped in to raise $50,000 so the club could afford to draft another rookie on Tuesday.
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