DoyleG Posted August 7, 2004 Share Posted August 7, 2004 'Maybe some soccer balls' SCOTT ZERR, EDMONTON SUN It may take the entire cargo hold of a jetliner to stack up the number of unpaid bills left behind by the Edmonton Aviators. The failed soccer venture has racked up $646,919 Cdn in debts to various companies and at least 20 more creditors are still determining how much they are owed, according to documents from PricewaterhouseCoopers. "My lawyer told me we'd be lucky to get a cent out of it," said one creditor who asked not to be identified. "This is such a massive figure and there's nothing to be liquidated. "With another 20 creditors still determining how much they are owed, I don't think it's out of sorts to say they're going to owe $1 million." Among the biggest creditors is the United Soccer Leagues - the umbrella organization which operates the A- and W-Leagues - which is owed $105,302, along with Farlie Travel, to the tune of $97,768, and the City of Edmonton for more than $95,000. Acting city manager Larry Benowski figured the city would have to line up right alongside all the other creditors in hopes of getting any back payment on rent for Commonwealth Stadium. "What we'll have to do is pursue all our options for recovery, but we won't go to any extraordinary means and waste taxpayer dollars trying to collect," said Benowski. "We'll do our due diligence, but if a company's broke, it's broke." Dave Askinas, CEO of the United Soccer League, couldn't confirm the dollar figure owed to the Tampa-based circuit but remains hopeful of soccer's future in Edmonton. "We continue to get interest in the women's team, which is understandable because the budget is a lot smaller. And we've had a couple of calls on the men's team from people we think are expressing a legitimate interest," said Askinas. "We're looking for someone who will be able to run a team much more efficiently." Also owed money are: Morgex Insurance ($23,026); Aquila Productions ($21,428); Lotto soccer apparel ($25,521), Repeat-A-Seat ($24,915); a company registered as 862374Alberta ($37,523); and the Montreal Impact ($10,000). The Edmonton Sun, Sun Media and Quebecor are owed a combined $8,796. Among the list of creditors with sums to be determined are Revenue Canada, Ramada Hotels and Aviator investors Gary Gregg, Wylie Stafford and Tom Newton. A source at the Ramada Hotel where visiting teams and a few Aviators were put up indicated the amount owing was more than $16,000. "We had hoped they would do well so we are disappointed," said the source. "I'm not sure what kind of assets they have (to be liquidated) - maybe a few soccer balls." Others are holding out hope that the 19 investors in the Aviators will cover the club's debts. "They have a lot of investors who I gather are well-respected business people and they have to step up and take their lumps," said David Simpson, owner and GM of William Huff Advertising, which is owed about $36,000 for handling the Aviators signage in Commonwealth Stadium and around town, including ETS benches and shelters. "We provided services rendered and we expect to be paid for it. We provided our services in good faith and we expect to be treated the same way." http://www.canoe.ca/NewsStand/EdmontonSun/Sports/2004/08/06/570784.html Link to comment Share on other sites More sharing options...
DoyleG Posted August 7, 2004 Author Share Posted August 7, 2004 As a note. Zerr made an appearance on "Sportstalk with John Short" tonight and has apparently written off men's soccer as a whole in this city. He wasn't talking about just the A-League. He went on to praise about how the W-League will survive and prosper in the city. I think his aim was a little high on that one. Link to comment Share on other sites More sharing options...
fishman Posted August 7, 2004 Share Posted August 7, 2004 Wow... Add to the notes above...overheard from an investor during a recent soccer gathering...the Aviators expected to pull in $3.5 million in gate revenue during the first year. Again, wow. Link to comment Share on other sites More sharing options...
jeffymac1971 Posted August 7, 2004 Share Posted August 7, 2004 I had laugh when the ownership group said they were going to average 11,000 fans a year with gate revenues of 3.5 Million during the first year!! What the F**K were they smoking? C'mon! Nobody in the A-League can average 5,000 let alone 11,000 and now they are almost $700,000 in debt. Another failure I am afraid. Until we can convert Clarke Stadium or Foote Feildto a 6,000 Stadium, I say forget it cause nobody doesn't have the deep pockets to operate a soccer team in town. Link to comment Share on other sites More sharing options...
Andrew W Posted August 7, 2004 Share Posted August 7, 2004 These numbers get funnier (funny strange, not funny ha-ha) by the day. The laundry list of debts makes me wonder if any of the "investors" actually sunk money into this at all. Did this team pay for anything or have any working capital to start with? Link to comment Share on other sites More sharing options...
DoyleG Posted August 8, 2004 Author Share Posted August 8, 2004 quote:Originally posted by jeffymac1971 I had laugh when the ownership group said they were going to average 11,000 fans a year with gate revenues of 3.5 Million during the first year!! What the F**K were they smoking? C'mon! Nobody in the A-League can average 5,000 let alone 11,000 and now they are almost $700,000 in debt. Another failure I am afraid. Until we can convert Clarke Stadium or Foote Feildto a 6,000 Stadium, I say forget it cause nobody doesn't have the deep pockets to operate a soccer team in town. You will lose money still even when you are packing in a stadium. Don't put too much faith in the city or the U of A to do things. You'll just get burned. Link to comment Share on other sites More sharing options...
DoyleG Posted August 8, 2004 Author Share Posted August 8, 2004 quote:Originally posted by Andrew W These numbers get funnier (funny strange, not funny ha-ha) by the day. The laundry list of debts makes me wonder if any of the "investors" actually sunk money into this at all. Did this team pay for anything or have any working capital to start with? No doubt they had contracts signed to begin with. These companies are looking for the rest of the bill they agreed to. For some of the debts, Sun Media didn't do a good job of covering the team as they should have done. I don't think they should get any of the debt. Repeat-a-Seat was a Calgary operation that was trying to get into the Edmonton market. I have a feeling that they overcharged for their service. Anybody in Calgary got anything on this company? Sounds a little too much from Lotto for the sports gear. No doubt that the Impact want their transfer payment for Lemire. I guess the Impact charged too much for him to begin with. Screw Revenue Canada and the City. Morgex, Aquilla, Farlie Travel, Ramada Hotels and Aviator investors Gary Gregg, Wylie Stafford and Tom Newton deserve to put at the top of the list. Same goes for the USL. To give and idea of the revenue they did get: The goal from passes and seasons tickets was $700,000. The failure of the passes meant they only got half that total. Corperate sposorship goals were unknown but it's been stated that they got to about 65% of their goal. Other sources of revenue (ie. Soccer Camps) was on target. Link to comment Share on other sites More sharing options...
DoyleG Posted August 8, 2004 Author Share Posted August 8, 2004 quote:Originally posted by Andrew W These numbers get funnier (funny strange, not funny ha-ha) by the day. The laundry list of debts makes me wonder if any of the "investors" actually sunk money into this at all. Did this team pay for anything or have any working capital to start with? No doubt they had contracts signed to begin with. These companies are looking for the rest of the bill they agreed to. For some of the debts, Sun Media didn't do a good job of covering the team as they should have done. I don't think they should get any of the debt. Repeat-a-Seat was a Calgary operation that was trying to get into the Edmonton market. I have a feeling that they overcharged for their service. Anybody in Calgary got anything on this company? Sounds a little too much from Lotto for the sports gear. No doubt that the Impact want their transfer payment for Lemire. I guess the Impact charged too much for him to begin with. Screw Revenue Canada and the City. Morgex, Aquilla, Farlie Travel, Ramada Hotels and Aviator investors Gary Gregg, Wylie Stafford and Tom Newton deserve to put at the top of the list. Same goes for the USL. To give and idea of the revenue they did get: The goal from passes and seasons tickets was $700,000. The failure of the passes meant they only got half that total. Corperate sposorship goals were unknown but it's been stated that they got to about 65% of their goal. Other sources of revenue (ie. Soccer Camps) was on target. Link to comment Share on other sites More sharing options...
Andrew W Posted August 8, 2004 Share Posted August 8, 2004 Why should three investors in the club be paid[?] Link to comment Share on other sites More sharing options...
DoyleG Posted August 8, 2004 Author Share Posted August 8, 2004 quote:Originally posted by Andrew W Why should three investors in the club be paid[?] Those three got screwed by the rest. Link to comment Share on other sites More sharing options...
jeffymac1971 Posted August 8, 2004 Share Posted August 8, 2004 quote:Originally posted by DoyleG You will lose money still even when you are packing in a stadium. Don't put too much faith in the city or the U of A to do things. You'll just get burned. Faith? What faith? LOL There is no way the city or U of A would help out in a money losing venture. My god didin't these investors do ANYhomework when they inquired about getting the A-League in Edmonton...[?] Link to comment Share on other sites More sharing options...
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