Pies post big loss
19/11/2008 3:44 PM
Collingwood has announced a loss of over $3 million for the 2008 season.
The poor result has been attributed to the club choosing to record the anticipated loss that will accompany the sale of the Beach Hotel and the Diamond Creek Tavern in this year's figures.
The hotels have been an investment disaster for the club and will be sold in 2009.
CEO Gary Pert said the club was keen to off-load the hotels as quick as possible.
"During the current economic climate the club made the strategic decision to sell the two loss-generating hotels in an effort to be completely debt-free post-sale," he said.
"It is important that the Collingwood supporters understand that the loss from the venues will have zero strategic impact on the Club and has already been absorbed by existing cash reserves."
"The result will not affect the Club's redevelopment plans for the Lexus Centre and its aggressive investment in the football department."
As a result of the proposed fire-sale of the under-performing hotels, Collingwood has recorded a loss of $3,278,859.00.