Possible crisis for North, South & Centrals looming?

[Rushby Hinds]

I agree 100% with your third paragraph, but a large organisation such as the SANFL (with net assets more then $43mill, if include aami stadium and the 2 afl licences) would indeed be pro-active rather then re-active.

[drebin]

There is a lot more to this than we all think. Time will tell but there well could be some impact. Unfortunately what I was told today I cannot post but it involves most clubs.

[doggies4eva]

I agree 100% with your third paragraph, but a large organisation such as the SANFL (with net assets more then $43mill, if include aami stadium and the 2 afl licences) would indeed be pro-active rather then re-active.

Fair point. The SANFL was something that I didn't consider. I thought the gameing was part of the Crows! The SANFL may have a case to answer and for that matter clubs need to be cautious about entering into agreements where they are minor players and business interests get the bulk of the profit.

[Rushby Hinds]

Mate, you are giving doggies supporters a bad name!

We had a rational discussion/debate where we agreed on somethings and disagreed on others, and we have now come to a middle ground!

Much more productive then calling someone a turd.

[topsywaldron]

Aren't Carlton and their social club in the same boat with all of this?

Makes Norwood's prescient decision to invest in real estate seem even smarter.

[drebin]

You are still subject to business tax on profits - regardless of where it comes from unless you can get the exemption being a not for profit organsistion and show that the bulk of the profit goes back into development of sport and recreation for the betterment of the community etc. - or something worded along those lines!

[Coorong]

Good point Drebin. I think my club has experienced the (please explain) question.

Cost you just as much as smart accountants to juggle the figures.

But then I am thinking of that Kerry Packer line about the amount of income tax he paid, questioned during the enquiry. Did he deliberately limit his tax declaration. (or something like that)

His reply was"ofcourse i do" You dont have a very good record of how you use tax payers money, so why not limit what I pay (or words to that effect)

One of the greatest one liners in our history.

[doggies4eva]

I have been considering this topic overnight and as far as the SANFL is concerned, I think owning a major asset which is a sporting stadium is a point in their favour. Its hard to argue that the key motivation is one of business when most of your accumulated wealth is in something necessary to play sport in!

Just for the record, the tax implications are not huge. Clubs pay tax on the profits made by non-members but not by members. That's why they keep records and sign people in. Not to be difficult but to keep the tax-man happy.

[doggies4eva]

Mate, you are giving doggies supporters a bad name!

We had a rational discussion/debate where we agreed on somethings and disagreed on others, and we have now come to a middle ground!

Much more productive then calling someone a turd.

Borat, I don't want to disillusion you and discredit doggies supporters. You're a turd

[Rushby Hinds]

Bump...

I was looking for stuff on google and i found a thread posted by myself!

Struth, i didn't know that i new that stuff

[sturt1]

Souths loses favourable tax status

27mar06

ONE of Australia's biggest league clubs, Souths Juniors, has lost its tax-free status after a tribunal found its main activity was gambling rather than sport.

The Administrative Appeals Tribunal revoked Souths Juniors' income tax exemption last week, The Australian Financial Review reported today.
The court decided its operation of a "miniature Las Vegas" overtook its support for junior rugby league or the NRL's South Sydney Rabbitohs.

Souths Juniors has assets of $43 million and provides substantial activities to members including 545 poker machines, free shows and $5 steaks, the newspaper said. It also has 21 holiday units, a hotel, two gyms, and interest in a golf course and a catamaran cruiser.

The decision, which is a victory for the taxman, could affect 3000 clubs nationwide as it threatens the privileged tax status of the clubs industry.
"We are closely examining the ruling in regard to Souths Juniors and it potential to create a worrying precedent for more than 3000 sporting clubs across Australia," Clubs Australia chief David Costello told the newspaper.

Souths Juniors said 80 per cent of its profits, or $4.6 million in 2003, was distributed to the junior league and Rabbitohs.

But the tribunal said sporting donations accounted for only 34 per cent of profits.


from http://www.theaustralian.news.com.au/common/story_page/0,5744,18616548%255E29277,00.html

The possible crisis for these 3 clubs is that they might drown in the amount of money they have. They should be worried.

[Snaggletooth Tiger]

Dodging the Taxman... NAFC should consider opening a (No questions asked!) bank account in Geneva!
In return Roosters supporters can wave the Red & White National Flag of Switzerland on game days!

[Wedgie]

Once again I think you'll find the smart clubs who find themselves in the position of huge turneover are also smart enough to realise the details about the ATO and are looking at ways of spending money on "football related" expenses to maintain their current tax arrangement.
Having said that, the 3 clubs mentioned could easily afford to pay normal tax but they will do their best to avoid this.

Perhaps all clubs will now lobby to eliminate the salary cap to make it easier to spend money on footy related things such as players. There's a lot of players out there that I know deserve a lot more than they're currently getting.

My suggestion:
Pay club photographers exorbitant amounts for taking pics for the club so they can afford a great SLR with heaps of lenses.

[dash61]

Wedgie and rooster supporters

A mate who knows these laws very well said norfs dont have a problem, others may and even westies are now in the works of changing the club strusture

[Wedgie]

Wedgie and rooster supporters

A mate who knows these laws very well said norfs dont have a problem, others may and even westies are now in the works of changing the club strusture

Cheers mate, is that because of what Drebin mentioned earlier with the change of constitution a couple of years ago to put all workings under the NAFC as opposed to having a separate social club?

[Scoop]

I second your proposal Wedgie!

[Wedgie]

I second your proposal Wedgie!

he he, I thought you would as would Callumn from the CDFC.

[Jimmy]

who the fk keeps digging up old threads....is the preseason that boring???

[Spiritof64]

A change to the Panthers Constitution was voted in at the last AGM specifically to ensure the club was not in breach of the legislation.
I understood when I raised my arm to vote, that the SNAFL had been consulting with all clubs to make sure no one was in breach.


But as my darling wife would say "You're only right when you get it in writing!"

[sturt1]

who the fk keeps digging up old threads....is the preseason that boring???

Its not that Jimmy, its that people are hanging out for the sanfl to start. I dont think one person on this forum would object to the games starting this weekend. Unless they are away from Adelaide.