Post Vote

I believe that there are now more than 800 votes in the ballot box which would seem to fulfill the requirement given that noone is likely to challenge Article 46.

As I think we all believe, a vote to move forward will be just the first step.

This note is just a heads up to advise that we will be keeping the blog going as a discussion forum.

Either that or roll it into the club website as a discussion forum. Agian we suggest that TAC absorbs this forum into it's website.

Those behind the blog are certainly not doing so with the demise of the club as an objective. They started the blog to show there were actually some people who really care about TAC.

The numbers that showed at the Town Hall Meetings showed that we are certainly in the minority.

As one of the founders of this forum I can assure you that we care about the future of TAC and believe that Dan, Jerry and many others are on the same page. I was a bit perturbed about some sour looks when a few of the questions were being asked

The reason I say that the vote is just the start, is that there is still some serious hurdles to jump.

The numbers are wobbly.

The primary advocates are nervous.

There are alternatives.

Some very significant questions remain unanswered:

- Could the Club get better leverage from a sale of the land into a consolidated development and come out with much less debt and a better business model?

- Why build at Takanawa when we can utilise the Tokyo Lawn Tennis Club, FCCJ and YCAC to provide basic services in the interim and close TAC for 2 years.

I think the club could do well to promote the fact that the new club will be with us not just 50 years but 100 years at least. Old building methods in Japan ensured that there was built in obsolescense via low grade concrete. Basically tha club was sold a dud when it was built. This is unlikely to happen agaon. Sell the point.

Personally, I thought the meetings were held in good spirit and decorum and isn't that what a club is all about.

FABUQ's

Appendix to Exhibit D...FABUQ (Frequently Asked But Unanswered Questions)

1. Contingency Options
What are the options if the forecast revenue streams during the transition and early years of the new facility fall well short of projections?

2. Failure to Maintain Loan Covenants
What happens if the club breaches loan covenants?

3. Member Liability
Should the club become financially compromised, what are member obligations?

4. Why not Sell the Land?
As noted in an earlier comment, why has the LRPC not considered selling all the land into an integrated project and lease back land on a long-term basis? What would be the debt position if it was done this way?

5. How much of the USD20m in consulting costs is already committed?

6. Kenrikin USD100m
How is this calculated? What rights pass to the owners of the condominiums for 50 years and what buyout contingincies need to be made to reclaim economic use of the land?

7. Borrowing Capacity
With encumbered assets and USD 100m of debt, what capacity does the club have to borrow additional funds to meet contingencies?

8. Cost Base
A detailed breakdown of employee costs is required to provide credibility to rhetoric concerning cost cutting.

9. Shadan Hojin
Is the shadan hojin status jeapordised during the transition? What is the benefit of maintaining this status?

Ask the questions

You will all have received the message below from the Long Range Propaganda Comittee. It is important that anyone that reads this blog and agrees with the concerns be there to voice your opinion. Do not let this slip through. A vote YES will put the club into massive and unworkable debt. THE FIGURES IN THE PACKAGE YOU WERE SENT ARE MISLEADING. Read the blog entries below and the comments for more information.

Dear Member,

The Special General Membership meeting on the proposed redevelopment of the Club is just 15 days away. We hope you have had a chance to read over the information booklets mailed to all voting Members and seen the displays in the Genkan Gallery.

To answer your questions and share views on this important project, we will be holding a third round of Town Hall meetings this week. We encourage everyone to turn out for one of the following sessions:

Wednesday, May 10 6:30pm - 8:30pm
Thursday, May 11 7:00pm - 9:00pm (in Japanese with simultaneous translation)
Saturday, May 13 2:00pm - 4:00pm

Many years of work have gone into creating the redevelopment proposal. Now your support is vital for it to move ahead.

We need your vote!

Your fellow members on the Long Range Planning Committee

Thought for the Day

USD100 Million Debt

The brochure is indeed glossy but provides little in the way of financial breakdown and modelling.

Basically what it says is TRUST us as we load the club up with USD100m of debt. That is about USD 30,000 for each member or about 10 years of dues per member.

F&B at Takanawa will only drop 20%.
Employee costs will drop by 29%...but what about staff numbers?
F&B back at Azabudai will increase 2.3 times in Year 1 over 2005.
Repair & Mainetenance costs will increase in the new club.
Debt service cover is precariously thin and totally predicated upon meeting F&B sales forecasts...and where are interest rates going?

I don't know how many members would put a proposal like this to the board of their company but if they did they would be a braver person than I.