FINANCIAL POSITION - Frequently Asked Questions

Thursday, July 26, 2018 - 3:38 PM

 

West Perth Football Club Inc (Administrators Appointed)
ABN 92 978 459 481

 

Frequently Asked Questions

This document provides an overview of proposed responses to general queries that may be raised relating to the Voluntary Administration process.

Q. What has happened?

On 24 July 2018, the board of WPFC resolved to appoint Voluntary Administrators. The Administrators are Richard Tucker and John Bumbak from KordaMentha.

Q. Why has this happened?

Over the last several months, the Board and Management of the Club have been working tirelessly to address the Club’s financial position. This has involved a comprehensive review of the financial options available to the Club and has involved numerous key stakeholders, including the West Australian Football Commission.

Having considered all its options, the Board formed the view that the Voluntary Administration process was its most effective solution to restructure the Club’s balance sheet and to put the Club back on a strong financial footing to underpin its long-term future.

Q. What does Voluntary Administration mean?

The objective of the Voluntary Administration process is to restructure the financial affairs of the Club in a way that will see the Club emerge as a long term, viable business. It is a well regarded and widely used process in Australia. KordaMentha are highly experienced in these circumstances.

Q. What is the process?

The process is swift and efficient. It will go for about a month. During that time, there are required to be 2 meetings of creditors:

  1. a first meeting on Friday 3 August which is more of an information meeting
  2. a second meeting on Tuesday 28 August. This is an important meeting where creditors of the Club will vote on the future of the Club. The Club’s future will be decided by creditors.

About a week prior to that second meeting, the Administrators will provide a report to creditors that will outline their recommendation for the future of the Club. The Club’s plan is to present a proposal to the Administrators aimed at fixing the Club’s financial position. That proposal is currently being worked on. Full details of that final proposal will be included in the Administrators’ report.

Q. What will happen during this process?

During the process, no changes are expected to be made to the way the Club is run. Wages and salaries will continue to be paid. Over the next month, it will also be business as usual on the field. We have an important month ahead of us as we head into the Finals, and we encourage everyone to continue supporting the Club and joining us in our remaining rounds of season 2018.

Q. What can members/supporters do?

The Falcons are the oldest and proudest Australian Rules football club in Western Australia. To our members, our sponsors, our players, our coaching staff, our support staff, and our administration staff, we thank you for all of your loyalty and support so far. We are confident that this process will best place the Club to continue for another 130 years. Please continue to support us as we embark on this process.

Q. Can members attend the 2 creditors’ meetings and also vote?

No. The Administration process is for creditors only.

Q. How in-debt is the Club?

Current financial commitments are approximately $790,000. The Administrators are presently reviewing the Club’s financial position as part of the Administration process.

Q. What will happen to the Club if the Administration is not successful?

We are confident that WPFC will be successfully restructured during this process.

Q. What is the WA Football Commission doing?

The Commission has been very supportive and continues to be. The Board have maintained open dialogue with the Commission. The Commission values every football club in WA and are working with us to secure a future for the Club.

Q. Will the Club lose their place on the ladder or be penalised points?

No. During this process, it is business as usual.

Q. What will happen to the Club’s scouting and recruiting for the next season and generation of players?

It is continuing as usual during this process.

Q. What will happen to the Club’s sponsors?

We are talking with all our key sponsors to explain the process we’re going through. Ongoing sponsorship support is key to the Club. The Club intends to maintain all sponsorship agreements going forward, and importantly secure new ones to underpin the Club’s future.

Q. How much is the Voluntary Administration process going to cost the Club?

This information will be provided to creditors in the coming days, when the Administrators will post documentation to all creditors.

Q. Who do I contact with queries?

All queries can be directed to the Club, and we will involve the Administrators as required

Q. How can I support the Club at this time?

There will be several ways our supporters and members can assist the Club at this time, including:

  1. Buy a membership to the Club;
  2. Support home game match days and upcoming Club events;
  3. Make donations to the Club either by post or direct debit. All donations should be made payable to either:

WPFC Past Players and Officials Association (Bank West, BSB 306 035, A/C 4197315)

WPFC Life Members Association (Bankwest, BSB 306 058, A/C 4197363)