What’s with all this Aboriginal nonsense?

Why the sudden interest in Aboriginals at City Tatts?

Some of the Club rooms have been given Aboriginal names. And Patrick Campion is talking about Aboriginal tribes at meetings?

No one can recall this ever getting a mention before. Even Life Members can’t remember any mention of anything Aboriginal about City Tatts, and they’ve been in the club 40 years.

So where is it coming from?

The committee is essentially the same committee for the past ten years, so it can’t be them. And anyone who knows the committee individually knows they have never shown any interest in Aboriginal affairs.

And it is certainly not coming from staff.

So this can only be coming from the new CEO, Marcelo Veloz.

But why?

We know he is desperate to promote a friendly image, although staff, suppliers and many members tell a different story. This looks more like an attempt to portray himself as Mr Nice Guy rather than any genuine concern for Aboriginal issues.

If Veloz has developed a sudden interest in Aboriginal culture let him do it on his own time.

It’s got nothing to do with City Tatersalls Club.

City Tatts Information Desk

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Down to 302 poker machines

The club sold more poker machine entitlements during 2017.

This has gone on for a few years and now they are down to 302. It used to be 420.

But what is this telling us about the club’s future?

What business sells off it’s main income producing asset, when it’s planning for the future?

Is this a clue to what Marcelo Veloz really thinks about the future of the club?

It looks more like a slow wind down to a property development.

Or maybe he was just desperate for cash?

City Tatts Information Desk


How is the $5 million spent on planning permission still an asset?

The cost of the failed attempts to get planning permission, over $5 million to date, is still being carried on the Club’s balance sheet as an asset.

How could it be an asset when the council repeatedly rejected the application, and the Land & Environment Court delivered the final rejection in May 2017?

Wouldn’t that be substantial evidence that the money spent was not an asset?

In fact even if a property development was approved in the future the money already spent might have to be written off anyway, because the existing plans might not be used. Didn’t Pat Campion tell members ” a whole new approach has been adopted” for the next attempt at getting approval?

But of course if they did get approval in the future that would provide the cover to claim the existing $5 million did have value – even if it contributed nothing to the later approval.

City Tatts Information Desk


Another $800,000 spent trying to get planning permission

Another $800,000 was spent during 2017 trying to get planning permission.

This brings the total to almost $6 million – with basically nothing to show for it.

But how much has the developer spent?

Wasn’t the developer going to foot the bill for getting the Stage 1 DA? And Mirvac handed over all of their plans and designs for free.

So how has the club managed to spend so much?

This means that of the $25 million the club is going to get from the developer, $6 million is gone already, before they have even a Stage 1 DA. And the remaining $19 million will go by the time the development is ready because even Tony Guilfoyle admitted the club would have to borrow $7 to $10 million to fit-out it’s own floors.

So how is the club gaining from this development?

City Tatts Information Desk


Men’s gym closed for safety reasons

The men’s gym was closed recently due to safety concerns.

Well, sort of.

It was caused by work being done in the pop up bar area. You know the pop up bar. It was trumpeted with much fanfare but now has been, well, popped down. Popped down to make way for the TAB that couldn’t be built when intended because the correct permits hadn’t been applied for. Remember now?

Well during the popping down of the pop up bar pipes burst and flooded the men’s gym causing it to close for said “safety reasons”.

This can happen but surely in this day and age the club would have engaged builders with some sort of ability to identify a pipe in the way of their demolition?

Now how much damage was done by the burst pipe? Is it possible the cost is going to blow out over and above the original budget?

Can’t wait until the details on this one are leaked – pardon the pun.

City Tatts Information Desk


The cracks start to appear

You really should have a look at the latest accounts.

There are two very important things you will learn about how the club is going.

First, profit from poker machines is down from $19 million to $17 1/2 million. That is very significant.

Second, the net profit for 2017 is $745,000 but that is only after including a $700,000 profit on the sale of poker machine entitlements. So really they are operating at breakeven.

Putting these two facts together means the cracks are starting to appear.

Remember this was the first full year of Marcelo Veloz and it is clear he has no answers. Although to be fair the real damage was done by Tony Guilfoyle over the previous ten years.

This is exactly what the property development was meant to hide. On the original timetable construction was supposed to be underway by now. If that had happened the drop in trading due to years of mismanagement might not be noticed or could be brushed off as unimportant. In fact the committee could have blamed the property development for the poor trading during 2017 by claiming they were winding down to prepare for construction.

But because there is no construction that excuse is not available.

City Tatts Information Desk


$140 million !!!

Believe it or not, the City Tattersalls Club building is now worth $140 million.

At least that is the opinion of Preston Rowe Paterson according to the latest accounts.

This means that the value of the club’s building has gone from:

  • $62 million at December 2014, to
  • $82 million at December 2015, to
  • $140 million at December 2017

Could this be right?

During that time Patrick Campion, Tony Guilfoyle and Marcelo Veloz tried repeatedly, and failed repeatedly, to obtain even a Stage 1 DA. So we can be certain their efforts could not have produced any increase in value.

And there has been no general increase of that magnitude in Sydney CBD values that could explain it.

So what could have caused the dramatic increase?

Then consider the various deals Patrick Campion agreed to for the club’s site.

In December 2013, when the value was $62 million, Campion agreed to let Mirvac build 250 apartments on the site and keep all the profits, for $25 million.

In April 2015, when the value was heading to $82 million, Campion agreed to let a Chinese developer build 250 apartments on the site and keep all the profits, for $25 million.

In February 2018, when the value was $140 million, Campion agreed a “new” deal whereby the Chinese developer could build 250 apartments and keep all the profits, for ….. $25 million.

Does this make sense?

Or, to put it another way, is Campion a complete fool or is he working for the developer?

City Tatts Information Desk