Pretty serious allegation on Brian Edwards blog that TVNZ Close-Up held back a story on Terry Serepisos debts because it would hurt the TVNZ Apprentice programme.
Sir Robert Jones has his say in SST. Does seem to be a bit strange that someone claiming to have net worth of $140m doesn’t pay the rates bill or the guy who installs the TV set.
Hat tip Kiwiblog.
Hmmm. A media which actually investigates, digs deeper and uncovers new facts and insights about stories would be good, as opposed to just parrotting what the different players on different sides of an issue say, and then describing that as journalism.
So, who are Networked Blogs and why didn’t you link to Brian Edwards blog rather than kiwiblog?
Thanks Draco – fixed. Technically useless.
Maybe not – don’t know and I’m not going to ring admin guys on a Sunday – sorry.
http://brianedwardsmedia.co.nz/2010/04/a-little-bird-told-me/
Thanks Ed
Terry, you’re fired!
LOL
While I think the television show in question is a silly one, and also that there is something rather dubious about sidelining a news story for the sake of ratings, I also think that some respect is due to Terry Serepisos for his positive contributions to his city, and what he has done for football in this country.
Donald Trump had even bigger money woes than this no body.
I cant see what all the fuss is about. There wouldnt be a property developer in NZ that pays his bills unless you kick his head first.
Olwyn, I guess that depends on who actually ends up paying for the football… I mean if he is indebted, HE might not have actually been generous at all, but rather his creditors unwittingly have supported football. I take your point though.
Some businesses make profits buy getting work done at lower rates (lower wages here or taking the jobs offshore), others operate on oily rag cashflow until they sell assets to make their profit. If they cannot sell a development at a profit (market downturn leaving the intended buyer bankrupt) they need income from rents to maintain positive cashflow. Sometimes this does not occur and if someone re-values assets downward, they take book losses. This places continuing bank finance at risk and results in needing to sell an asset even at a book loss to raise finance (meaning the developers net worth takes a hit). Once the market knows this – thanks to the DomPost story, everyone offers well below book value hoping to get a bargain which delays any sale from actually being made.
Basically, as noted, profits are maximised by delaying payment of creditors until the property development is sold (and suppliers and councils could/should have unpaid bills adjusted for cost of finance till the development is completed and sold – thus creating an incentive for the developer to pay their bill if bank finance is cheaper).
PS Bob Jones knows adding pressure on a propertyy developer, increases the liklihood of a bargain coming onto the market -he has an interest to declare.
Yes definitely a fairly serious allegation.
SPC you make a good point too however, rates fund our city and I have to wonder how developers like Mr Serepisos can be seen to provide so much benefit that they deserve to get special treatment? They seem to get breaks left right & centre whereas as the rest of us have to abide by the rules to the letter or else….that’s the perception anyway.
And yes, while he has obviously done a lot to lift the profile of football in NZ, potentially at his own personal expense, I do question how much of this has translated into boosting the actual Wellington economy…do me his contribution to football is no more important than all the great parents out there doing a great job with raising their kids….and we pay our rates on time!
But this could all be a mountain out of a mole hill as neither he or the council have commented and one does have to wonder how much of a coincidence it is that these people are piping up now that he is on telly. People love tearing shreds off those who are seen to be doing well and like SPC, there is a process with regards to how businesses operate…