Guilfoyle’s Record – Income Destruction

Most members are well aware how much City Tatts went downhill during Tony Guilfoyle’s stint as CEO.

But not all the damage is obvious.

For instance, not many members realise how much income he lost during his stint.

One of the most successful, and reliable, sources of income was the rent from the spaces on Pitt Street leased to NAB and the Lotteries Office. Even without any great planning these were bringing in over $700,000 every year.

And that’s in a club that was struggling to make any profit.

And what did Guilfoyle do?

He got rid of them. The Lotteries Office was the last to go in December 2010.

That means between then and now the club has lost $4 million in rent – at a time when the overdraft was up to the limit.

And for what? Another botched attempt at a new entrance (third in five years) and an attempted property development that has gone nowhere since 2012?

Another source of income that Guilfoyle destroyed was membership fees.

These are a far more important source of income to City Tatts than most other clubs. When Guilfoyle became CEO, membership fees were bringing in over $1 million per year. By the time he was fired he had driven away more than half the members he started with.

This loss of fee income has cost the club at least $2 million.

A million here, a million there.

It all adds up.

City Tatts Information Desk


Guilfoyle’s Record – Restaurant and bar losses

Tony Guilfoyle will go down as one of the great disasters in the history of Australian clubs.

A conservative estimate of what he cost City Tatts over 12 years would top $35 million.

Just consider his restaurant and bar performance.

In the last 10 years the Food and Beverage operation at City Tatts lost $8 million. That is not a misprint, he lost $8 million. This has to be a record for a club in Australia.

And he had no rent to pay.

Now these losses are after including an allocation of marketing expenses, and also some depreciation. These two items could be as much as $400,000 a year or $4 million for the 10 years.

You might say that the “marketing” expense makes the restaurant losses look worse than they really are, since it clearly failed to bring any benefit. That is true, but the fact is the money really was spent and it really is gone forever. And if it wasn’t allocated to restaurants it would have to be allocated somewhere else, making something else look worse.

And the same goes for depreciation. This is an accounting write-off, but a write-off of money that really was spent on restaurant and bar fit-outs and equipment.

So he really did lose $8 million on restaurants and bars.

Strangely, he proposed that restaurants would be sub-contracted in the future, if the property development was ever finished. But for some reason he never considered doing that while he racked up these losses.

City Tatts Information Desk


Does Campion think he will get a free apartment?

Five years ago if you asked members whether Campion was on the take very few would have said yes.

Today most members would say he must be.

If he’s not, how do you explain his behaviour?

Just consider the position Campion found himself in when he became Chairman.

He found himself working with a complete imbecile, Guilfoyle, who was getting $10,000 a week – while Campion got nothing.

Now, Campion is a partner in a firm of solicitors in the CBD. One thing we know about legal firms in the CBD is that they are not charities. Any money they pay is for results. $150,000 is a very good salary for an employee, $200,000 is exceptional and $250,000 would be for the best in Sydney.

So if there was one person who knew how much Guilfoyle was overpaid, it was Campion.

And yet he always defended Guilfoyle, even when it was obvious to everyone else he should be sacked.

And it wasn’t just Guilfoyle who was overpaid. Look at all the employees who got rich on City Tatts: Jan Ellks, Mark Cooper, Trevelyan Bale, Michelle Abbey, Mark Lonngren, the list goes on and on …

Not one of these came close to earning the money they received.

And then think of all the “consultants” and charlatans who made a fortune from City Tatts: Bartier Perry, Peter Georgeson etc etc

So Campion is watching all this easy money and never once thought of getting some for himself? And continued to act as Chairman (and cop plenty of abuse) for nothing?

And then along comes a property development.

The Club admitted to spending $2 million by December 2015 so it must be $3 million by now. And most of that is fees – to architects, tax advisers, solicitors, traffic consultants and god knows who else.

Now just think of all the dishonest things Campion has said and done to push this property development, and convince members it’s going well. It’s now a very long list. And it is very much Campion who is sticking his neck out. Guilfoyle could always claim he was just following Committee orders (although that would be a lie).

So Campion is doing everything to push Guilfoyle’s property development, watching everyone else make a fortune from it, and he’s never once thought about getting some for himself?

It doesn’t make sense.

He must think he’ll get a free apartment.

Or else, he’s even stranger than we think.

City Tatts Information Desk


Corrupt Campion’s path to a property fraud – Step 12. The final dishonest deal

When Campion and Guilfoyle went to members for approval in December 2015, they had nothing to present – other than Guilfoyle’s insane desire for a property development, any property development.

They had no planning permission (not even Stage 1 DA), no builder and no money to build.

In reality there was no proposal for members to approve.

It took less than 12 months to prove this although it was plain to anyone who cared to look at the time.

What they did have was a great deal for the developer.

Basically it handed the Club’s site to a developer, who could do whatever he wanted with it – and the Club could do nothing to stop it.

Some of the provisions agreed with the developer were truly extraordinary:

  • The actual “developer” is a new shelf company – good luck trying to enforce any contract with them
  • The project will only proceed if they get a DA acceptable to the developer. So even if they did get planning permission, the “developer” does not have to complete the project
  • The “developer” performs the fit-out of the Club’s new floors but does not have to complete it!
  • The developer gets a mortgage over the Club’s land and a general security over present and future assets – handy if they want to on-sell the deal rather than take on a very difficult building job
  • Some of the provisions are secret! That’s right, secret! Campion asked members to approve an agreement without revealing the contents.
  • The resolution presented, and passed by members, gave the Committee (ie. Tony Guilfoyle) the right to change any provision in the agreement! This defeats the whole point of listing all the other provisions!

Campion’s miserable deal was a fitting end to a property fraud.

 

City Tatts Information Desk


Tweedledee’s Advice to Members: Good Riddance to Bill Hurley

October 27th, 2016

Dear Altar Boys

After twenty (twenty) years on the Club’s Committee, Mr William Hurley, has decided to step down from the Committee because there is need for him to stay now that his good mate Tweedledum has been booted out.

Mr Hurley has been a City Tattersalls Club Committee Member (CTCCM) since 1993, but no one really knows why. Throughout this time he has seen and accepted every change to the Club by Tweedledum, all of them bad. He has tinkered with his resignation so that the Club may ignore section 6 of the City Tattersall’s Club Act which states that no mortgage can be placed on the assets of the Club without the approval of members at a General Meeting. This provision was another “unnecessary delaying factor” (UDF) for Tweedledum’s property obsession, which is why I ignored it and went ahead and mortgaged the assets.

Mr Hurley has been a very vacant Committee Member whose inaction and bumbling apathy have been immense and will not be missed, by members.

Tweedledum and I know Mr Hurley did his very best to ensure the Club has no future and thank him for his contribution to the Club’s destruction.

No Doubt will continue to perform for him at the Club and at Club activities, before he is committed to an asylum – unless he goes into hiding like John Kennedy BSF did when he quit.

Yours Dishonestly

Tweedledee (Patrick Campion)

Chief Liar

City Tattersalls Club


Corrupt Campion’s path to a property fraud – Step 11. The “Explanatory Memorandum”

It’s hard to know where to start with the “Explanatory Memorandum”.

In one way it was exactly the explanatory memorandum you would have expected from Campion and Guilfoyle.

By this time, November 2015, the whole property development was a complete shambles because of mistakes, delays and rejection. So an honest presentation was out of the question.

It had to be a totally one-sided document to persuade members to vote in favour.

So the most important thing about it is what it doesn’t say:

It doesn’t say why Mirvac quit

Mirvac were selected because they were, according to Campion, the ideal developer to take on the project. If that’s the case, then the first thing members need to know in order to make an informed decision is why Mirvac dropped it.

It says nothing about the real risks of the project

From every point of view there are huge risks with this project, enough to bury the club. And the fact that it is being attempted by two proven imbeciles, Tweedledum and Tweedledee, makes disaster more likely. There is nothing in the “Explanatory Memorandum” about these risks.

This is why it has been standard practice for 20 years (since the NRMA demutualisation case) to give a full account of a proposal in any explanatory memorandum, setting out the arguments for and against, even if the board or committee is in favour. That way the members have some chance of making an informed decision. You would think that a solicitor like Campion would know that.

But the “Explanatory Memorandum” was useful in some ways.

It’s a handy summary of the nonsense Campion offered members to persuade them to vote in favour – and therefore a good starting point for the inevitable investigations to come.

And, in places, it documents other information useful to future investigations, such as the names of “advisers” who made money from the attempted development.

But most of all, the “Explanatory Memorandum” is hilarious

Reading it now, a year on, it is just really funny, a record of near total failure.

  • Have a look at the Planning Timetable, now shot to pieces.
  • Read about the so-called “Grand Entrance”. The only problem is that under the Guilfoyle plan, 194 Pitt Street was going to be the hotel and 202-204 Pitt Street was going to be shops. And 196? Well, that’s going to be the car park entrance! So what’s left? 198-200 Pitt Street, that’s what! In other words, what it is now!
  • The profit forecasts provided by RSM Bird Cameron for the “Interim Club” might be pure fraud, and they are, but they are truly hilarious. Gaming revenue was going to increase with fewer members and fewer poker machines – while construction went on 10 metres away for 3 years!
  • There is even a timetable for gym classes – for a temporary club that will never happen!

Still, all credit to Campion. He’s given us a permanent record of his stupidity – and dishonesty.

City Tatts Information Desk


Aust Super buys Ausgrid – Maybe they’ll buy Campion’s leasehold apartments too!

IFM and Australian Super have bought 50% of Ausgrid, the electricity network, for $16 billion.

To be exact, they secured a 99 year lease on the assets, which is normal for these privatisation deals.

That got us thinking.

Maybe they’ll buy Patrick Campion’s leasehold apartments as well!

Remember them?

Campion told members that when the apartments were constructed the club would always retain ownership, because they would be sold as a 99 year lease only.

Maybe the IFM/Austtralian Super consortium could be persuaded to put in a bid for these 99 year leasehold apartments.

City Tatts could even follow the NSW government’s example and not bother to put it out to tender. City Tatts is already familiar with this approach. They used “expert advice” (Colliers) and an “independent transactions committee” (Colliers and Tony Guilfoyle) when they sold (donated?) the City Tatts site to the only bidder, a Chinese developer, for $25 million.

There should be no national security concerns with Campion’s apartments, so Chinese bidders are encouraged.

But finding even one buyer might be a problem.

First, Campion would have to convince the buyer that the apartments will actually be built.

That will not be easy. Every statement by Campion so far about the “progress” of the development has turned out to be garbage. So completion looks a long way off. Actually, even starting looks a long way off.

So Campion might have to drop the price a little. Or maybe he could sell them as bare concrete shells where the buyer has to finish the job, just like the club’s new floors.

Using the $25 million for the site as a guide, how about $10 million for all 200 leasehold apartments in one line?

City Tatts Information Desk