Sturt tax troubles

[JessicaRabbit69]

There was a bit in our local Messenger saying Sturt hasn't paid its tax bill for a few years and is up for something like $100,000!!! Where are they going to get the money for that???

[Wedgie]

This from the Messenger:

Sturt Tax Shock
by Melanie Reid

Sturt Football Club has been hit with a suprise tax bill, rocking the club's already precarious financial position.
Well-placed sources told the Eastern Courier Messenger the Double Blues were expected to receive a bill for about $100,000 for neglecting to pay GST on revenue from its social club.
Sturt leases the Unley Community Sports Club at Oxford Tce, Unley base - better known as 'Jacks' - from the Unley Council.
The bill could spell disaster for the club which recorded a $96,000 deficit last financial year.
Sturt's annual report showed it had debts totalling $265,722 - $126,850 more than 2004's figures.
Sturt general manager Sturt Totham declined to comment but confirmed the bill related to the Unley Community Sports Club tax records. "We are simply awaiting the final outcome from the Tax Office," he said.
Unley CEO Mark Withers said he had not heard about the tax issue but said it would not affect the council unless the club failed to meet rent payments.
Sturt pays a discounted rate of $24,500 a year to the Unley Council to rent the clubrooms.
A spokeswoman for the Australian Tax Office said she could not comment on individual tax cases.
SANFL chief executive officer Leigh Whicker could not be contacted.

[Wedgie]

This from the official Sturt website, only a little bit touches on the issues which I've put in blue:

Jack’s Bar and Bistro and the Unley Community Sports Club
February 10, 2006


Dear Sturt Football Club Member,


Re: Jack’s Bar and Bistro and the Unley Community Sports Club


As you are no doubt aware, the Sturt Football Club is in the process of moving its gaming operation to 166 Unley Road. This move is designed to contribute to Sturt’s ongoing financial security and viability, and is part of a wider evaluation of all our off-field operations.

As part of this restructure the Board of Management of the Sturt Football Club made the decision last night to close the bar and gaming facilities known as Jack’s Bar and Bistro at 39 Oxford Terrace, Unley. The closure will be effective from Monday, February 13, 2006. Unfortunately, this will result in the redundancies of two full-time staff, and several casual employees.

This decision was not made lightly and has been considered by the Board for many months. The facilities at Oxford Terrace were in need of significant renovation that would require substantial capital expenditure to remain open and viable. In the end the move was considered the best option for the long-term future of our club.

On a more positive note, our efforts to establish a new gaming and hospitality venue at 166 Unley Road are progressing well. All relevant lisenses and approvals have been granted, and construction is well under way. It will now be only a matter of weeks before we will be able to open a facility that is on a par with anything offered by other clubs in the SANFL. The club is also progressing steadily with the paperwork required to take control of the gaming facilities at the Castle Tavern. Together, these two venues are expected to provide an income stream that would exceed anything ever previously enjoyed by the Club.

The Board of Management is now looking at options to use the space that will become available at 39 Oxford Terrace. We hold a lease over the property until September 2007, and a five-year option to extend those terms. We plan to remain at this venue, and to continue to use the facilities on match-day and for club events.

The Club regrets having to make this decision – and in particular the consequences this has for some of our loyal staff. However, we will continue to make decisions that are in the best interests of our members and supporters overall, and look forward to creating a much more solid financial environment for the Sturt Football Club.

On an unrelated matter, you may be aware of recent media speculation about the possibility of an unpaid tax liability between the Unley Community Sports Club (UCSC) and the Australian Taxation Office. Obviously, it would be inappropriate to comment on this matter before a meeting between the UCSC management and the ATO next week. Our bank and the SANFL remains fully informed and supportive of our moves, and we will endeavour to provide an update on this matter to all Sturt members as soon as practically possible.

If you have any questions about this decision please feel free to call me at the club on 8271 4611.

Yours sincerely,

Stuart Totham
General Manager
Sturt Football Club

[PhilH]

I guess from that we can gleem ;

There is an issue of some sort between SFC & ATO otherwise there would be no talks and no updating Banks & the SANFL.

Organisations that are doing it tough financially often use GST income collected to meet urgent cash flow and then it catches up on them 3-6 months later when this tax is due.

ATO's main goal is to collect all tax due. If Sturt is a going concern and ATO have a better chance collecting the full money through a payment plan as oppossed to winding the club up then the Double Blues are under no immediate threat.

Another key element will be how deliberate (& how much) the non-payment has been & how co-operate the Organisation has been in communicating ths issues / working with the ATO.

In todays Advertiser (Sat Feb 11) SFC are advertising for a new Finance Manager.
Is this co-incidence ?

[old blue]

In todays Advertiser (Sat Feb 11) SFC are advertising for a new Finance Manager.
Is this co-incidence ?

Not really, this is a new position directly related to the fact that they will shortly have two gaming venues running. I think what this whole issue shows is that while liquor & gaming operations can be good money spinners it is a high risk business and if trade drops off, operators can quickly find themselves haemorrhaging cash at a life threatening rate.

[zipzap]

gleem = glean

[Wedgie]

I hope Jimmy won't be defending Sturt for their dodgy tax problems as he had a snipe at North fans for defending Robert Gerard who has no tax problem and everything resolved.
Its amazing how things come back to bite some people on the arse, I blame Sturts 100k bill on Jimmy's karma!

[fish]

I wonder whether Sturt will try to blame the umpires, or the weather, or players lost to injury/AFL, or the draw etc?

[drebin]

Will the double blues express be stopping at Yatala on the way to Elizabeth to drop off your dodgy tax accountants. Whilst your out that way I'm sure I could arrange a discount lunch and pokies package deal at Grand North!
P.S. old blue - Why would you need a finance manager for the Castle Tavern - the owners of the licence have all the risk - not Sturt which have an under lease agreement. I find it rather amusing why the Sturt F.C. is happy to play "smoke and mirrors" with their own members on all their gaming and finance issues (Would thay have mentioned the tax issue in the bottom bit of an official releas to the members if it had not made the Messenger Press? - I think not!) Things are not all as the Sturt F.C. like to portray officially to their supporters and to the football community in general.

[Jimmy]

I hope Jimmy won't be defending Sturt for their dodgy tax problems as he had a snipe at North fans for defending Robert Gerard who has no tax problem and everything resolved.
Its amazing how things come back to bite some people on the arse, I blame Sturts 100k bill on Jimmy's karma!

mate, i know nothing about tax(es) so i doubt i would have made any comment at all... I probably asked a questions to add fuel to the fire...but i know when im out of my depth...

taxes...what are those

[Jimmy]

Will the double blues express be stopping at Yatala on the way to Elizabeth to drop off your dodgy tax accountants. Whilst your out that way I'm sure I could arrange a discount lunch and pokies package deal at Grand North!
P.S. old blue - Why would you need a finance manager for the Castle Tavern - the owners of the licence have all the risk - not Sturt which have an under lease agreement. I find it rather amusing why the Sturt F.C. is happy to play "smoke and mirrors" with their own members on all their gaming and finance issues (Would thay have mentioned the tax issue in the bottom bit of an official releas to the members if it had not made the Messenger Press? - I think not!) Things are not all as the Sturt F.C. like to portray officially to their supporters and to the football community in general.

The SFC have been upfront on all the issues with their members drebin. No doubt when they release information, they want to get it right...

...i await your spin and how north do everything effectively..blah blah

[Punk Rooster]

It does appear that they tacked on the "minor" tax issue as an afterthought- I would have thought that would have been the main focus of the letter, considering the serious nature?

[Ronnie]

Drebin, you really have no idea about how Sturt is run. Don't pretend you do.
The Sturt footy club Board has done a remarkable job with bugger all resources to keep the club not only afloat but highly competitive at senior level. They have operated under financial pressures for the last 2-3 years but they are highly competent and ethical people and have gone about their work that way. They haven't been perfect but no Board is. It's easy for a person like you to rubbish them but your knowledge of the work they have done I suggest is zero.
When North where in financial strife they were holding up the bottom of the ladder, that's what financial stress did to them. Thankfully North are out of that now and soon Sturt will be too.
But the next 5-6 months are going to be very tight.
Judging by your various comments you obviously have the Premier down in your pocket giving you the info on all the SANFL clubs and the way they are run. It's laughable how little factual stuff you post about clubs other than North.

[doggies4eva]

Will the double blues express be stopping at Yatala on the way to Elizabeth to drop off your dodgy tax accountants. Whilst your out that way I'm sure I could arrange a discount lunch and pokies package deal at Grand North!

Please note this bus trip will now cost $22 - (plus $2 GST)

[Punk Rooster]

Will the double blues express be stopping at Yatala on the way to Elizabeth to drop off your dodgy tax accountants. Whilst your out that way I'm sure I could arrange a discount lunch and pokies package deal at Grand North!

Please note this bus trip will now cost $220 - (plus $20 GST)

& please make the GST component payable straight to the ATO, and not the Sturt FC!

[doggies4eva]

Will the double blues express be stopping at Yatala on the way to Elizabeth to drop off your dodgy tax accountants. Whilst your out that way I'm sure I could arrange a discount lunch and pokies package deal at Grand North!

Please note this bus trip will now cost $220 - (plus $20 GST)

& please make the GST component payable straight to the ATO, and not the Sturt FC!

Punky - you seem to have inflated the cost of this trip a tad. Don't make it too expensive the Sturd supporters will need to buy tissues for the trip home.

[stan]

Well we hope sturt can sort this out, as they were just looking to get out of the red. Since i dont know any details about the situation im not going to comment on it, prehaps some others should try that approach rather than stating trivial comments about paying tax.

[Punk Rooster]

Well we hope sturt can sort this out, as they were just looking to get out of the red. Since i dont know any details about the situation im not going to comment on it, prehaps some others should try that approach rather than stating trivial comments about paying tax.

Well, I could have stated (allegedly) that the money going missing was linked to the return of a former player, but I didn't

[doggies4eva]

Well we hope sturt can sort this out, as they were just looking to get out of the red. Since i dont know any details about the situation im not going to comment on it, prehaps some others should try that approach rather than stating trivial comments about paying tax.

A bit touchy there Stan. I thought that this forum was for general comments from trivial to non-trivial!!!

[drebin]

Drebin, you really have no idea about how Sturt is run. Don't pretend you do.
The Sturt footy club Board has done a remarkable job with bugger all resources to keep the club not only afloat but highly competitive at senior level. They have operated under financial pressures for the last 2-3 years but they are highly competent and ethical people and have gone about their work that way. They haven't been perfect but no Board is. It's easy for a person like you to rubbish them but your knowledge of the work they have done I suggest is zero.
When North where in financial strife they were holding up the bottom of the ladder, that's what financial stress did to them. Thankfully North are out of that now and soon Sturt will be too.
But the next 5-6 months are going to be very tight.
Judging by your various comments you obviously have the Premier down in your pocket giving you the info on all the SANFL clubs and the way they are run. It's laughable how little factual stuff you post about clubs other than North.

I don't pretend to know how Sturt works and never claimed to have - part of last post was "tongue in cheek" but you can hardly claim that some people at Sturt are highly ethical and competent when the club has landed in the "poo" with the ATO!!! I have seen posts from other Sturt supporters after the clubs financial statements were released who were quering the lack of info actually contained in the statements and the fact the clubs actual financial position had not been fully disclosed. Was Sturt trying to paint a rosier picture than was the reality - which now has proven to be the case?. At least our club in the past has painted the full picture as bleak as it may have been, at least members new the full extent - something Sturt members could not claim given the recent events at Unley - ask yourself why and what does it acheive? I suppose next you will tell me that this tax issue and the closure of the social club are things that nobody could see coming so there could be no financial mismangement.
P.S. At least your club is now newsworthy - top of Page 2 in the Tiser today.