Sports media heavyweight Craig Hutchison’s Sports Entertainment Network posted a $9.2m loss final monetary yr, the Herald Sun studies.
The loss comes as monetary paperwork filed with the Australian Securities and Investments Commission state that Commonwealth Bank, with whom SEN, previously referred to as Crocmedia. have taken out a $28.7m line of credit score, is entitled to recuperate “immediate settlement” of the mortgage.
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The studies state that the corporate’s earnings earlier than curiosity, taxes, depreciation and amortisation from its operations was $4.7m, making the monetary yr loss roughly double the gross earnings.
Sports Entertainment Group, preliminary last report states that the corporate has simply over $1 million obtainable within the line of credit score, however needed to ask for “covenant relief” from the financial institution within the June quarter.
Covenant aid is when a lender quickly forgives a borrower’s breach of mortgage phrases.
“The covenant relief confirmed that the bank did not exercise its right to request immediate settlement of the liability,” the report mentioned.
The Herald Sun reported that shares within the firm are at the moment buying and selling round 20 cents, half the value in comparison with when Hutchison took over the corporate in January 2018.
Despite a worldwide pandemic tanking inventory markets within the interim, SEN’s share worth has fallen additional because the nation emerged from lockdown, with shares sitting at roughly 25 cents on the conclusion of pandemic restrictions.
An SEN assertion offered on behalf of Hutchison mentioned that the corporate meant to resume their relationship with Commonwealth Bank.
“We have a close working relationship with our financier and continue to work within the parameters of our facility which is due to expire 31 August 2024 (as disclosed), with our intention to renew for a further term in due course,” the assertion learn.
SEN has made quite a lot of vital investments since being taken over by Sports Entertainment Group.
The firm expanded into New Zealand below the SENZ model, and bought the New Zealand National Basketball League group the Otago Nuggets in November 2021 – the SENZ division was the first contributor to the loss, concluding the monetary yr $5.5m within the purple.
The firm previously held a 20 per cent stake in Victorian NBL franchise Melbourne United, which was bought off to finance the acquisition of the Perth Wildcats.
Hutchison additionally purchased out Brisbane’s 4KQ radio community to rebrand as SENQ, bringing on names comparable to former Australian Test cricketers Ian Healy and Matthew Hayden as a part of the operation.
Notably, after the collapse of the Collingwood Super Netball franchise, SEN was liable for shopping for up the vacant eighth licence, based mostly in Melbourne’s southeast and operated by Netball Australia in 2023 earlier than transferring to SEN management in 2024.
Hutchison reportedly earned a $500,000 bonus within the final monetary yr in line with the Herald Sun, which introduced his 2022 earnings to nearly $1.5 million.
He is likely one of the largest personalities in Australian soccer media, and at the moment presents Nine’s Footy Classified on Monday nights, having labored as a journalist since 1994.
He began media content material supplier and public relations firm Crocmedia in 2006 alongside fellow journalist James Swanwick earlier than rebranding the corporate as Sports Entertainment Network in 2020.
A spokesperson for Sports Entertainment Network made the next assertion to news.com.au.
“In response to the recent media article published in the Herald Sun today, please find attached Sports Entertainment Group’s FY23 results announcement that was released to the ASX on 31 August 2023, which provides appropriate commentary on the FY23 period.
“While the headline $9.2 million loss after tax was quoted, this included a number of accounting adjustments, including impairments and non-recurring abnormal costs. Excluding these adjustments the Group made an underlying EBITDA profit of $4.8 million.
“As an overall summary, within the reporting period our business completed its expansion of its national radio footprint, which contributed to significant upfront operational costs. With this footprint of owned stations complete, this cost base has now normalised.
“We continue to have a close working relationship with our financier who have been supportive of our growth journey to date and remain supportive of our long-term strategy.
“Rest assured, there is no impact to our operations.”
Originally revealed as Craig Hutchison’s Sport Entertainment Network studies $9.2m loss amid large exec bonuses
Source: www.dailytelegraph.com.au
