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Complete non-issue. The Swans are NOT insolvent, what's caused the confusion is that Club Swans, which has been losing money for some time now, is included in the Swans' overall bottom line under the accounting rules.
The Herald article includes a few more quotes from Colless, link here:
The Herald article includes a few more quotes from Colless, link here:
''We don't have any ownership of Club Swans but because we had influence over the governance of financial and operating policies, we are bound by accounting guidelines to annually consolidate the Sydney Swans [Ltd] and Club Swans. But that's the only time it's ever done, and it's a pretty theoretical notion.
''Any exposure that we had to the club has been written off in prior periods, and I think it's very simple that if you extract Club Swans out of the consolidated entity, you are left with Sydney Swans, and the position is as it's been for 20 years. It's a low-margin business, we don't turn a profit every year but we've got no debt, and I think what's really encouraging is this year our spon-sorship is up over 30 per cent.''
''Any exposure that we had to the club has been written off in prior periods, and I think it's very simple that if you extract Club Swans out of the consolidated entity, you are left with Sydney Swans, and the position is as it's been for 20 years. It's a low-margin business, we don't turn a profit every year but we've got no debt, and I think what's really encouraging is this year our spon-sorship is up over 30 per cent.''
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