Does anyone recall this slide from the LRPC Town Halls?
It is clear, transparent and clearly lays out the current financial position of the Club...which is DIRE. But then everyone, other than those who embrace MORAL HAZARD as a code to live by, already knew that.
Also a huge "Thank You"plus "Elephant Stamp" is due to the President for putting together the debt re-structure. Without that, we wouldn't have made it to this EGM.
The move toward a DUES BASED model is the only sensible approach given the reality of demographics and turnover.
Summary comments:
1. Membership numbers to support this model - more like 4,500 and not high 3,000's.
2. The presentation is deficient in only one area - breakout of labour costs and numbers.
3. Promises of substantial reductions in this area have not been honoured. Target Yen 1.5bn.
4. Immediate outsourcing of Engineering.
posted by Unlock at 1:56 AM
1 Comments:
The famous slide...a memorial to the Dukes of Moral Hazard.
The latest financials of TAC show that it is on the verge of trading insolvent and probably is insolvent of one re-jigs the balance sheet to properly show the kenrikin numbers.
Likewise, I applaud John Durkin for taking on the task he has. It is a pity that so many of the other board members involved in destroying the Yen6bn in stored value in the club are still in denial.
Most other members who care are still in the anger phase. An apology would help transition to the acceptance phase.
The net result of higher fees for legacy members can only be guessed at but one thing is for sure, it further degrades the value proposition of the club.
A labor cost of about Yen 2bn shows that some of the hard decisions have never been addressed.
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