TACROPOLIS

So, it is about to be admitted by the Board and the Management that the plan to build the TAC MAHAL was actually based on Greek accounting standards and sub-prime CDO morality.

TAC is about to go to the market...which means pick your pockets...with a rights issue...without the rights of course.

Prepare yourselves to be touched up with a Yen 100,000 levy.

This begs the simple question of why you would consider forking over another USD 3 million to an organisation that has consistently failed to exercise fiscal discipline over an extended period of time?

The simple answer, of course, is that you should not, regardless of the consequences.

This would only be delaying the ultimate day of reckoning bearing in mind that USD3m is approximately 5 months of operating deficit at the current rate of cash burn.

TAC MAHAL

Time to resume watch!

Anyone perusing the recent TAC financials will realise it is a race against time.

An 800m yen operating loss for the last fiscal year means that the Club is losing nearly USD1m per month and that is without having any rent costs. Sounds like JAL...fly on in blissful ignorance until the wings fall off.

No serious attempts have been made to address 'major cost items' at the interim club in Takanawa. All the heavy costs of expat management have been maintained. You can cut all the front line hourly labor you want but it doesn't address the real issues that needed to be addressed.

Satisfaction surveys = bandaid management.

The planning folk are working furiously on revenue enhancements. This basically equals surcharges for use of Club facilities...that, by the way, you are already paying for in monthly dues. If that doesn't further gut membership then I will eat my hat.

The old cry of 'value for money ' has always been ignored, as if TAC is immune to market forces.

All care and no responsibility...