IMPORTANT MESSAGE FROM KBI - 2013-07-19

Wantirna Wasps Basketball Club

IMPORTANT MESSAGE FROM KBI

Dear KBI members,

Since the recent AGM an extensive review of the 2013 financial budget has been undertaken. The findings from this review, project Knox Basketball Inc. to trade with an approximate loss of over $500,000.00 for the financial year ending 31 December, 2013 unless significant changes are made to the current operations of the Association. This loss is significantly higher than the 2013 Financial Budget presented at the AGM on 30th May, 2013 suggesting that KBI was on target for a budgeted $114,000.00 loss. The newly elected KBI Financial Director has worked tirelessly since taking on the role to ensure that the records of KBI are accurate and kept up to date. Once all income and expenditure transactions were brought up to date it became evident that the forecast loss was unrealistic and based on some very loose assumptions. Any hope of actually achieving a result remotely close to the budgeted loss was based on receiving a large sponsorship deal of approximately $400,000.00 from Sixth Man Promotions Pty Ltd. Despite assurances at several meetings leading up to the AGM and at the AGM by Management that there were Memorandums of Understanding (MOU) in place ensuring this sponsorship deal was a done deal, it is now clear that those MOU’s are not worth the paper they are written on and do not hold the sponsor to any obligation to proceed. In fact the last MOU signed by Management 8th April 2013 basically gave the sponsor an option to pull out if there was a change in the position of Chairperson or CEO of KBI. At the time of that signing KBI did not have a Chairperson, only an acting Chairperson, who had already indicated in January 2013 that he was not intending to re-nominate. Therefore a change in Chairperson was imminent allowing the sponsor to opt out of the deal at their discretion. This is hardly a sponsorship deal to set a forecast on. It should also be noted that Sixth Man Promotions Pty Ltd has not repaid any money to KBI and is indebted to KBI in excess of $153,000.00. KBI has now commenced legal proceedings to recover this debt from Sixth Man promotions Pty Ltd and its Directors.

We can now also confirm that the claim for wage underpayment of approximately $176,000.00 by casual employees denied at the SGM is valid and relates to 3 years of award increases not being observed. Arrangements are being finalised to ensure that these employees are correctly remunerated for work already performed and to ensure that correct rates of remuneration are observed in future.

As a result of these projections, the KBI board has had to make many operational and financial decisions that are going to significantly improve the overall financial viability of the Association. If the Association and the KBI Board of Management do not make the necessary decisions to ensure the Association can meet its financial obligations, the Association is potentially going to be placed into liquidation.

The KBI Board fully understands the impact fee increases will have on members. However, without the additional income from a fee increase, KBI will not be in a position where it can continue to operate. The fee increases alone will not arrest the losses of KBI. The KBI Board of Management also recognises that significant expenditure savings and controls will need to be put in place as quickly as possible. Significant increase in salaries over the last 18 months has been highlighted as a major expenditure concern and will be addressed immediately.  Every opportunity for expanded competitions and growth is being explored together with opportunities for KBI to assist junior clubs with recruitment and development of members. The Board has established several task forces to work on specific areas of the business. This includes fortnightly financial task force meetings with Bill Fenton and Laurie Joyce who have both generously volunteered their time and expertise to the cause.

At a recent Junior Domestic Presidents & Secretaries meeting it was initially indicated that only the Saturday team sheet fee increase was necessary. However, the findings of the full financial review have shown otherwise. Hence, the fee increase to other competition costs is necessary.

We ask that all members consider that fees have not increased since 2008 and in that time wages for all staff and referees have increased. It has been well documented in the media that utilities such as electricity have also significantly increased in that time. Please also consider the major improvement in the quality of courts that KBI members now play on.

Please rest assured that the fee increase and operational changes are not a grab for cash and that the Board and Management will do whatever it can to minimise the cost of participation by members. The KBI Board of Management is fully committed to set about building a strong association for the members that includes services back to the member clubs to help grow the competition.

Any member who has a genuine case of hardship is encouraged to contact their Junior Domestic Club or Senior Team Delegate, so as it can be ascertained if support can be offered.

The Board would like to thank members in anticipation for their understanding during these very difficult times.

 

Yours Sincerely

Eric Noordzy

Chairperson KBI

on behalf of the Board and Management of KBI

______________________________________________

ERIC NOORDZY
Chairperson

 

Knox Basketball Incorporated
P.O. BOX 95
BORONIA VIC 3155
Mob: 0418 991 454
Email: [email protected]
Web: www.knoxbasketball.com.au

 

 

WHAT DOES THIS MEAN FOR WASPS MEMBERS

Due to the above email KBI have advised the following fee’s will apply effective from Saturday 27th July, 2013;

  • Stadium entrance fees - Saturday Games - $ 2.50 per person
  • Team Sheet Fees – Saturday Games - $ 35.00 per team
  • Team Sheet Fees – Junior Domestic Sunday Games - $ 32.00 per team
  • Team Sheet Fees – Senior Domestic Games - $ 62.00 per team
  • Team Sheet Fees – Senior Domestic Games (Sunday) - $ 40.00 per team

As Wasps registration fees are paid in advance and incorporate team sheet fee’s the Wasps Committee will be completing a review of current registration fee’s and will communicate the outcome of this once known.