Cairns Taipans say budget OK
THE Cairns Taipans have disputed the findings of a Cairns Regional Council report which suggests the club could be trading insolvent by the off-season.
While they have not yet seen the leaked report, the Taipans dispute the assertion that the club will be operating insolvent within three-and-a-half months if it continues "operating or paying for its immediate expenses without any additional cash inflows".
Pictures: Cairns Taipans 2009-10
Taipans president Denis Donaghy said while the club was running behind budget, the authors of the report had probably not considered the historically stronger revenues generated in the second half of the season.
"I don't think that's factored into the equation that crowds are generally better after Christmas," Donaghy said.
"We are certainly running behind budget, that's not a secret.
"And yes, we do need more people to come to games.
"But to suggest that we are going to run out of cash in three-and-a-half months' time is premature."
The Taipans have had three Wednesday home games - traditionally poor-drawing matches - in their home schedule so far this season, but face a better run for the rest of the season, with just one more Wednesday fixture, a mix of Friday and Saturday nights and the popular New Year's Eve game to come.
"The long and short of it is we need more people through the gates," Donaghy said.
The Taipans were placed in administration last December and looked set to fold before the community rallied, buying the club's NBL licence from liquidators KPMG.
Several teams in the NBL have experienced financial woes in the past few years, with five folding in the past two seasons.
All clubs competing in the new NBL this season were required to provide evidence of $500,000 working capital and a $1 million guarantee to ensure their spot.
The Taipans met this criteria with the council providing the guarantee.
"Because the council have given us the guarantee, we have certain obligations to give them certain (financial) information," Donaghy said.
"Yes, we have given them that information and yes, their accountants have gone through that information."
"There are reasonable and rational explanations (for matters raised in the report) and they are not cause for concern."
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