Members of City Tatts have rightly questioned how Tony Guilfoyle has been able to avoid the ongoing scrutiny that would be reasonably expected from the Chairman while pursuing his agenda of destroying the Club and selling out to private enterprise.
When Guilfoyle offically took over as CEO in February 2004 he had already assumed the majority of control in the Club for a number of years. He gradually expanded the responsibilities of his position as Assistant CEO. (His formula was to then retain the power and delegate the workload)
Now, as CEO, Guilfoyle wanted absolute power. To achieve this he knew he had to compromise those in the position of Chairman.
COMPROMISING THE LEADERS
John Healy - Chairman No 1
When Guilfoyle became CEO John Healy was Chairman. Happily for Guilfoyle, Healy's position was already compromised. Healy was content to accept the occasional overseas trip, free meals, free parking and the $10,000 he was paid each year. The $10,000 was paid for supposedly "conducting gym classes". Other members conducted similar classes but only received free gym membership for their services.
Healy would dutifully present whatever Guilfoyle drafted for him at meetings and would sign off on the Guilfoyle-scripted "Chairman's Message" that appeared in the Club's Magazine. Healy was getting old and was easily manipulated by Guilfoyle.
John Kennedy - Chairman No 2
John Kennedy was the Committee's "next in line" under their succession plan for Chairman. When Guilfoyle became aware of the plan by John Kennedy and the other three trustees of the Bookmakers Superannuation Fund to implement a skim operation for their own benefit, he knew that if it went ahead he would have an automatic hold on Kennedy. In the middle of July 2004 Kennedy set up a bogus "promotion" company (Super Promoters Pty Ltd) to skim .615% off the assets of the BSF each year and then appointed Equity Trustees as trustee. For good measure Guilfoyle then merged the City Tattersalls Club Super Fund into the BSF (giving Kennedy an automatic benefit at the expense of the staff who were in the fund).
In 2008 Kennedy's bogus "promotion" company received $2 million from the fund but only spent $24,000 on Advertising and Promotion (a nice little earner).
The Member and Employer Representatives were never democratically elected and were always stooges from either senior management or the Club's Committee. Guilfoyle still retains a representative position to this day. Super Promoters is currently being investigated by ASIC and APRA.
Six months into his reign as CEO, with Healy and Kennedy in his pocket, Guilfoyle had no problem taking $200,000 from the Club without the permission of the Committee. Guilfoyle used this $200,000 to set up a business venture (Springs Resorts) with one of the Club's questionable consultants who has been paid in excess of $250,000 over the last few years (an obvious conflict of interest in itself).
When the $200,000 was brought to the attention of the Committee six years later (2010) it was covered up by Kennedy and current Chairman, Pat Campion. An investigation of this matter is currently under review by the Office of Liquor, Gaming and Racing.
Guilfoyle's incompetence, corruption and bullying went unchallenged by Kennedy with evidence showing he even supported it. Time caught up with Kennedy. For the last six months of his Chairmanship he could not face his "life long" friends in the gym when they became aware of the super fund ripoff (some of them lost heavily). Kennedy did not stand for re-election in 2011 and has not been sighted in the Club since.
Pat Campion - Chairman No 3
Guilfoyle assessed Campion's attitude on the Committee to be similar to most of the other Committee members. That is, accept without notice and without question whatever Guilfoyle put forward, put your hand up when required and sit down to a free lunch.
In 2007 Guilfoyle had to look at Campion differently. Kennedy was being groomed to take over from Healy as Chairman with Campion being endorsed as the next Vice Chairman. 2007 was a testing year for Guilfoyle. Too many members were becoming aware of his obvious mismanagement. He manouvered rule changes to take away members rights. He instigated a fear campaign about the impact of the non-smoking legislation to justify spending $7 million on the "Alfresco Gaming Hole" he proposed to put through the middle of the Club. He also had to convince members to approve the purchase of 194 Pitt Street for $9.25 million when the market value was no more than $6 million. Campion was a solicitor. What if he started to take his position seriously now that he was identified as a future Chairman? Guilfoyle was worried that Campion would learn that due diligence was either never carried out or ignored, because the building could never provide members what they were told to approve the purchase. The Club had bought a virtual derelict building that they would never be able to afford to refurbish.
At the same time as members were being asked to approve the purchase (Nov 2007) Guilfoyle organised for the Club to donate $80,000 to an arm of a charity that was chaired by Campion's brother. Members were misled to to believe that this $80,000 went directly to St John Ambulance (who in 2007 had a turnover of $20m, a marketing expense of $4m and a profit of $8m - the same year CTC ran at a loss). It was never disclosed to members that the $80,000 was used to fund an eye clinic in Moree (the Campion family's hometown) and it involved Campion's brother.
Guilfoyle now had Campion well and truly on the hook. Campion was now a willing servant of Guilfoyle.
Campion failed to act when he became aware of the conflict of interest when Guilfoyle formed Springs Resorts with a consultant that has been paid hundreds of thousands of dollars by Guilfoyle on behalf of the Club.
Campion failed to act when he became aware that Guilfoyle took $200,000 without the permission (or knowledge) of the then Committee in 2004.
Campion failed to act when he knew the $200,000 was a lump sum taken in 2004 and not the accumulation of travel and entertainment expenses that is being offset against accrued annual leave (the charade put up by Guilfoyle)
Campion was party to fabricated evidence in the Supreme Court action taken against the Club by a member.
Campion misled the recent AGM by informing members that there were no legal settlements in 2011.
Campion did not disclose to members the $200,000 taken by Guilfoyle and is implicated in the cover-up.
The danger for members is that Guilfoyle and Campion will fast-track the sale of the Club premises hoping that skeletons of corruption will get buried in the demolition.
The plan by Guilfoyle and Campion is to present themselves to members as "White Knights", the saviours of the Club with a proposal - the Club has no alternative but sell out to developers and/or hoteliers. Ironic seeing that they were the main players in orchestrating the Club's deliberate demise.
Save City Tatts Committee
Thursday, 25 October 2012
All in the timing
Guilfoyle and Campion are running out of time in their pursuit to sell off City Tattersalls Club
They are currently under investigation so they have to fasttrack the process. Their latest destruction strategy is to hold out on paying even the smallest creditors and not replace employees who continue to form a long line to leave the Club. They hope this will speed up the decline to justify that the sell-off is the only option for members.
These two destroyers will put a plan to members under the guise of "saving the club". Campion continues to aid and abet Guilfoyle's "questionable" irregularities by repeatedly covering them up and the $64m question is "will the expanded investigations into the Club, the Committee, Guilfoyle, Kennedy and Campion be finalised before they can put the sell-off to members?
"The biggest single threat to the survival of our Club is the activities of ... Campion and Guilfoyle" - Pat Campion's message to members (slightly modified by the Save City Tatts Committee to reflect the truth)
Save City Tatts Committee
They are currently under investigation so they have to fasttrack the process. Their latest destruction strategy is to hold out on paying even the smallest creditors and not replace employees who continue to form a long line to leave the Club. They hope this will speed up the decline to justify that the sell-off is the only option for members.
These two destroyers will put a plan to members under the guise of "saving the club". Campion continues to aid and abet Guilfoyle's "questionable" irregularities by repeatedly covering them up and the $64m question is "will the expanded investigations into the Club, the Committee, Guilfoyle, Kennedy and Campion be finalised before they can put the sell-off to members?
"The biggest single threat to the survival of our Club is the activities of ... Campion and Guilfoyle" - Pat Campion's message to members (slightly modified by the Save City Tatts Committee to reflect the truth)
Save City Tatts Committee
Spare a thought for Mark Cooper !
City Tatts CEO Tony Guilfoyle has two "alibi's-on-call" - Jan Ellks and Mark Cooper.
Although Cooper's alibi duties might seem attractive, destinations like Hamilton Island and the Snowy Mountains, the reality is different.
When Cooper attends these Guilfoyle/Purdy getaways he is still required to bring along his computer and put in a 8 hour day. He is put under pressure by Guilfoyle to cover for him both recreationally and professionally. Cooper comes back from these trips needing a holiday himself!
Jan Ellk's alibi duties, more often than not, only cover for Guilfoyle up until 9pm, although there have been some midnighters.
While Cooper is referred to by some staff as Guilfoyle's "pet dog", because of the ongoing bullying, it should be noted that even pets can turn on their masters under certain circumstances.
Every dog has his day, Mr Guilfoyle!
Save City Tatts Committee
Although Cooper's alibi duties might seem attractive, destinations like Hamilton Island and the Snowy Mountains, the reality is different.
When Cooper attends these Guilfoyle/Purdy getaways he is still required to bring along his computer and put in a 8 hour day. He is put under pressure by Guilfoyle to cover for him both recreationally and professionally. Cooper comes back from these trips needing a holiday himself!
Jan Ellk's alibi duties, more often than not, only cover for Guilfoyle up until 9pm, although there have been some midnighters.
While Cooper is referred to by some staff as Guilfoyle's "pet dog", because of the ongoing bullying, it should be noted that even pets can turn on their masters under certain circumstances.
Every dog has his day, Mr Guilfoyle!
Save City Tatts Committee
Round Table Re(Treat) at Boonoona Ski Lodge !
It became obvious this week who wears the pants in the Guilfoyle/Campion relationship. After being directed by Campion to cancel the Melbourne jaunt because it was highlighted in the Herald article, Guilfoyle blatantly defied Campion and went on his own Round Table Retreat to Boonoona Ski Lodge for the past week (at the Club's expense) so that he wasn't deprived of the valuable time he had earmarked to spend with Tania Purdy.
To give this junket credibility Guilfoyle dragged along the Marketing Manager and the Financial Controller. By the way, the total salaries of these for absent employees is over $1 million per annum. (It should be remembered that Guilfoyle took Mark Cooper and The Hyphenator to Hamilton Island last year as his alibi for his holiday with Tania.)
How Campion tolerates this contempt is a mystery (one of many in City Tatts!) and again raises a number of questions. Over the last few weeks Campion has steadfastly defended Guilfoyle in a number of areas and this is how he is rewarded.
By failing to stand up to Guilfoyle, Campion is proving to be not only a disgrace to the Club but an embarassment to the memory of his late father John who was held in the highest regard by the Club and it's members.
Footnote
For those (valued?) staff members who are not up to speed with staff terminology, T1/T2, Ken and Barbie, Bill and Monica and TG/TP are one and the same (or should that be two and the same?)
Save City Tatts Committee
To give this junket credibility Guilfoyle dragged along the Marketing Manager and the Financial Controller. By the way, the total salaries of these for absent employees is over $1 million per annum. (It should be remembered that Guilfoyle took Mark Cooper and The Hyphenator to Hamilton Island last year as his alibi for his holiday with Tania.)
How Campion tolerates this contempt is a mystery (one of many in City Tatts!) and again raises a number of questions. Over the last few weeks Campion has steadfastly defended Guilfoyle in a number of areas and this is how he is rewarded.
By failing to stand up to Guilfoyle, Campion is proving to be not only a disgrace to the Club but an embarassment to the memory of his late father John who was held in the highest regard by the Club and it's members.
Footnote
For those (valued?) staff members who are not up to speed with staff terminology, T1/T2, Ken and Barbie, Bill and Monica and TG/TP are one and the same (or should that be two and the same?)
Save City Tatts Committee
Unsolved Mysteries at the Bookmakers Superannuation Fund
After all the publicity in the papers there is still one thing that remains a mystery in the Bookmakers Superannuation Fund and that is the role of Keith Free.
Keith Free and the Bookmakers Superannuation Fund
For those of you who don't know, Keith Free was the Treasurer of City Tatts for 19 years until he retired in 2009.
The more interesting fact is that he also ran the Bookmakers Superannuation Fund for a long time before it became a Public Offer fund in 2004. (The BSF office was located on the second floor of City Tattersalls Club.)
Then John Kennedy came along!
As the whole world now knows (as a result of coverage in the Sydney Morning Herald and the Financial Review) in 2004 there were big changes in the Bookmakers Superannuation Fund.
John Kennedy (Committee member, and later Chairman, of City Tatts) set up a company called Super Promoters Pty Ltd to get fees from the BSF. He did this, by the way, while he was a Trustee of the fund. This nifty little scheme eventually made $11 million for him, and the other three amigos, by the time they sold it to Diversa in 2009.
Here is the real mystery of the Bookmakers Superannuation Fund
Given the amount of money made from the scheme (at the expense of members) you would think that Keith Free must have had strong feelings about it, either for or against.
Since he built up the Bookmakers Superannuation over a long time you might expect him to be totally opposed to what Kennedy had done. But that is not the case:
So he certainly was not against the scheme.
But if he approved of it why did he not insist on his share of the profits?
Save City Tatts Committee
Keith Free and the Bookmakers Superannuation Fund
For those of you who don't know, Keith Free was the Treasurer of City Tatts for 19 years until he retired in 2009.
The more interesting fact is that he also ran the Bookmakers Superannuation Fund for a long time before it became a Public Offer fund in 2004. (The BSF office was located on the second floor of City Tattersalls Club.)
Then John Kennedy came along!
As the whole world now knows (as a result of coverage in the Sydney Morning Herald and the Financial Review) in 2004 there were big changes in the Bookmakers Superannuation Fund.
John Kennedy (Committee member, and later Chairman, of City Tatts) set up a company called Super Promoters Pty Ltd to get fees from the BSF. He did this, by the way, while he was a Trustee of the fund. This nifty little scheme eventually made $11 million for him, and the other three amigos, by the time they sold it to Diversa in 2009.
Here is the real mystery of the Bookmakers Superannuation Fund
Given the amount of money made from the scheme (at the expense of members) you would think that Keith Free must have had strong feelings about it, either for or against.
Since he built up the Bookmakers Superannuation over a long time you might expect him to be totally opposed to what Kennedy had done. But that is not the case:
- He obviously knew about the Super Promoters scheme and no member ever heard him say anything against it.
- He worked very closely with John Kennedy on the Committee of City Tattersalls Club especially when John Kennedy became Chairman.
- He was the Treasurer of City Tatts when the City Tattersalls Staff Super Fund was rolled into the Bookmakers Super Fund (which meant that every member of the City Tatts fund started to pay fees to Kennedy).
- He was an Employer Representative on the policy committee of the BSF after the Super Promoters scheme was set up.
So he certainly was not against the scheme.
But if he approved of it why did he not insist on his share of the profits?
Save City Tatts Committee
An Open Letter to Patrick Campion
Dear Sir,
In your recent correspondence sent to staff on Tuesday August 7 you refer to staff at City Tatts as Valued Staff Members.
Valued Staff Members?
These are the same valued staff members who don't get a regular roster until a couple of days before the shifts are to start. This is despite repeated requests for rosters to be passed to staff in advance on many, many occasions.
These are the same valued staff members that you and your executive team headed by Guilfoyle thanked last Christmas for an entire years work with a tiny cup cake (which staff had to sign for).
These are the same valued staff members who were not paid public holiday rates, as award requirements dictate, during public holidays over Christmas last year and early this year.
The same valued staff members who only got paid their public holiday rates when they complained about not being paid.
The same valued staff members who don't receive any overtime, even when colleagues are sick or indisposed.
The same valued staff members who are expected to work full shifts with no support often on their own when fellow staff do not show up for shifts.
The same valued staff members who thought you looked like a rabbit trapped in a spotlight when delivering you spiel about the recent newspaper articles.
The same valued staff members who don't believe a word you say!
Signed
The Valued Staff Members Group, City Tattersalls Club
In your recent correspondence sent to staff on Tuesday August 7 you refer to staff at City Tatts as Valued Staff Members.
Valued Staff Members?
These are the same valued staff members who don't get a regular roster until a couple of days before the shifts are to start. This is despite repeated requests for rosters to be passed to staff in advance on many, many occasions.
These are the same valued staff members that you and your executive team headed by Guilfoyle thanked last Christmas for an entire years work with a tiny cup cake (which staff had to sign for).
These are the same valued staff members who were not paid public holiday rates, as award requirements dictate, during public holidays over Christmas last year and early this year.
The same valued staff members who only got paid their public holiday rates when they complained about not being paid.
The same valued staff members who don't receive any overtime, even when colleagues are sick or indisposed.
The same valued staff members who are expected to work full shifts with no support often on their own when fellow staff do not show up for shifts.
The same valued staff members who thought you looked like a rabbit trapped in a spotlight when delivering you spiel about the recent newspaper articles.
The same valued staff members who don't believe a word you say!
Signed
The Valued Staff Members Group, City Tattersalls Club
City Tatts are saving costs !!
First there was the cancelled holiday to Melbourne for the committee, executive staff, Ms Purdy and Mr Guilfoyle (that Guilfoyle-Purdy has a ring to it, doesn't it?). Then there was the stripping back of poker machine staff.
In a business that has declining membership revenue and massive losses in all restaurants, that is wholly and solely dependent on gaming revenue, what do they do? Cut back on poker machine technicians of course !
Now if you are unsure what the issue is here, a poker machine technician is the person who ensures that poker machines are working to full capacity. They are what a motor mechanic is to a car dealership or what a pastry chef is to a bakery. They are as important as the battery in a battery operated torch or the gas in a gas lamp.
Now that we have painted the picture we can advise that Guilfoyle has cut back on technician hours. It is not clear whether he was advised to do so or decided on this foolhardy initiative on his own.
Come to think of it, he must have decided on this himself because it fits in with every other foolish idea he has come up with while he has held office at City Tatts.
Consider the facts:
The Solution
Sounds like a good idea to us - and we are sure it will sound like a good idea to most.
Miss Management
In a business that has declining membership revenue and massive losses in all restaurants, that is wholly and solely dependent on gaming revenue, what do they do? Cut back on poker machine technicians of course !
Now if you are unsure what the issue is here, a poker machine technician is the person who ensures that poker machines are working to full capacity. They are what a motor mechanic is to a car dealership or what a pastry chef is to a bakery. They are as important as the battery in a battery operated torch or the gas in a gas lamp.
Now that we have painted the picture we can advise that Guilfoyle has cut back on technician hours. It is not clear whether he was advised to do so or decided on this foolhardy initiative on his own.
Come to think of it, he must have decided on this himself because it fits in with every other foolish idea he has come up with while he has held office at City Tatts.
Consider the facts:
- Pokies deliver in excess of $20,000,000 revenue yearly to City Tatts club.
- Technicians work for average wages and keep the machines working at all times the Club is open.
- Guilfoyle delivers nothing except heartache and bad decisions while receiving in excess of $500,000 in wages.
The Solution
- Replace Guilfoyle with two technicians and a CEO on a wage more in keeping with a fair wage for managing a registered club. For this swap City Tatts would ensure their only "cash cow" was working to maximum capacity and better decisions would be made, not to mention less staff turnover, improved staff morale, happier members and a club not for sale! All this for $250,000, representing a saving of over $300,000!
Sounds like a good idea to us - and we are sure it will sound like a good idea to most.
Miss Management
Well, who did burn the toast at City Tatts?
Many funny things have happened at City Tatts during Guilfoyle's time in the big chair so what follows will not surprise.
Recently a high-paid City Tattersalls "executive" attended Zest Restaurant for a free breakfast. No, not a breakfast with that genius Keith Free (remember this mental giant annointed Guilfoyle) but a free breakfast - the kind where someone else is paying for it.
The breakfast consisted of items which included at least two pieces of toast. When the toast was brought from the kitchen the "exec" turned their nose up at what was served and declared "it's burnt". Staff on duty tried to appease the "exec" by offering more toast to which the "exec" simply said "I am busy, you can't even serve toast properly. I don't have time to wait for toast that isn't burnt, I have a meeting to attend". As the exec left to attend their meeting they actually took their toast with them. The entire episode was witnessed by a member who thought the show was quite comical, to say the least.
Now was the the toast burnt or not? Obviously not, or at least not too much, because our "exec" didn't mind taking it in the end. Considering the toast was eventually taken by the exec why did they create such a scene about it in the first place? The answer to this is simple. They do such acts because they can, a trait which is plentiful when given the Guilfoyle green light !
Now when Trevelyan Bale was employed in the kitchen on a salary of $250,000 we didn't hear of any cases of executive burnt toast. Does this mean Trevelyan must return to take charge of executive toast production?
Who was the "executive" involved in Toastgate? Tania Purdy, of course - after all who else would complain about burnt toast? Who else at City Tattersalls except for Guilfoyle would think themselves so important to make such a noise about bread not cooked to their liking?
What is most surprising is that Tania was only having toast for breakfast. You could be excused for thinking that she would have more to eat to build strength and energy levels considering she has more than a "hectic workload" to manage most afternoons and some evenings.
Miss Management
Recently a high-paid City Tattersalls "executive" attended Zest Restaurant for a free breakfast. No, not a breakfast with that genius Keith Free (remember this mental giant annointed Guilfoyle) but a free breakfast - the kind where someone else is paying for it.
The breakfast consisted of items which included at least two pieces of toast. When the toast was brought from the kitchen the "exec" turned their nose up at what was served and declared "it's burnt". Staff on duty tried to appease the "exec" by offering more toast to which the "exec" simply said "I am busy, you can't even serve toast properly. I don't have time to wait for toast that isn't burnt, I have a meeting to attend". As the exec left to attend their meeting they actually took their toast with them. The entire episode was witnessed by a member who thought the show was quite comical, to say the least.
Now was the the toast burnt or not? Obviously not, or at least not too much, because our "exec" didn't mind taking it in the end. Considering the toast was eventually taken by the exec why did they create such a scene about it in the first place? The answer to this is simple. They do such acts because they can, a trait which is plentiful when given the Guilfoyle green light !
Now when Trevelyan Bale was employed in the kitchen on a salary of $250,000 we didn't hear of any cases of executive burnt toast. Does this mean Trevelyan must return to take charge of executive toast production?
Who was the "executive" involved in Toastgate? Tania Purdy, of course - after all who else would complain about burnt toast? Who else at City Tattersalls except for Guilfoyle would think themselves so important to make such a noise about bread not cooked to their liking?
What is most surprising is that Tania was only having toast for breakfast. You could be excused for thinking that she would have more to eat to build strength and energy levels considering she has more than a "hectic workload" to manage most afternoons and some evenings.
Miss Management
The NEWS at City Tatts
Members of City Tatts who take the offer of reading newspapers supplied by the Club noticed that the free newspaper service was somewhat diminished by usual standards the week before last.
On Saturday 11 August, no weekend Sydney Morning Heralds could be found in the Club !
Did the newspaper stop delivering papers to the Club just like the dry cleaner stopped delivering laundered uniforms to the Club because of unpaid outstanding accounts or did Tony Guilfoyle just decide to hold back on the Heralds on that day?
The members didn't think too much about it until Monday 13 August when it was discovered that page 2 of the Sydney Morning Herald was missing.
Why would the Saturday 11 August weekend Herald not be available for members to read in the Club?
Why would page 2 of the Sydney Morning Herald on August 13 not be available for members to read in the Club?
What makes this even more intriguing is that no such thing happened on Saturday 18 August and Monday 20 August.
Miss Management
On Saturday 11 August, no weekend Sydney Morning Heralds could be found in the Club !
Did the newspaper stop delivering papers to the Club just like the dry cleaner stopped delivering laundered uniforms to the Club because of unpaid outstanding accounts or did Tony Guilfoyle just decide to hold back on the Heralds on that day?
The members didn't think too much about it until Monday 13 August when it was discovered that page 2 of the Sydney Morning Herald was missing.
Why would the Saturday 11 August weekend Herald not be available for members to read in the Club?
Why would page 2 of the Sydney Morning Herald on August 13 not be available for members to read in the Club?
What makes this even more intriguing is that no such thing happened on Saturday 18 August and Monday 20 August.
Miss Management
Mark Cooper - would you please explain !
Mr Mark Cooper, would you please explain the outrageous salary you take home for delivering nothing.
You are the City Tatts financial controller and your salary is in excess of $200,000, Over the past 10 years the Club has lost money, lots of money, so where have you been controlling the finances?
The members of City Tatts have come to the conclusion that while you masquerade as a financial controller the facts are that you are just a simple bookkeeper. Now there is nothing wrong with being a bookkeeper except as a bookkeeper you would not expect to earn a salary above $60,000.
If you are a financial controller you have failed miserably.
If you are a bookkeeper you are massively overpaid.
So which is it Mr Cooper, are you a failed financial controller or an overpaid bookkeeper?
Remember you are being paid out of members funds so we would like to know.
The gall you have displayed in taking a huge salary for failure as financial controller makes the members ask - is your performance indicative of Mr Cooper or Mr Bean?
The members think Mr Bean is far more appropriate until you can justify your huge salary for delivering absolutely nothing.
Miss Management
You are the City Tatts financial controller and your salary is in excess of $200,000, Over the past 10 years the Club has lost money, lots of money, so where have you been controlling the finances?
The members of City Tatts have come to the conclusion that while you masquerade as a financial controller the facts are that you are just a simple bookkeeper. Now there is nothing wrong with being a bookkeeper except as a bookkeeper you would not expect to earn a salary above $60,000.
If you are a financial controller you have failed miserably.
If you are a bookkeeper you are massively overpaid.
So which is it Mr Cooper, are you a failed financial controller or an overpaid bookkeeper?
Remember you are being paid out of members funds so we would like to know.
The gall you have displayed in taking a huge salary for failure as financial controller makes the members ask - is your performance indicative of Mr Cooper or Mr Bean?
The members think Mr Bean is far more appropriate until you can justify your huge salary for delivering absolutely nothing.
Miss Management
Panic at City Tattersalls Club !!!
Something shocking happened at City Tatts last night.
Tony Guilfoyle and Jan Ellks worked late !
Yes, we know that sounds hard to believe but it really happened. It's a shock because nobody can recall this ever happening before. (By the way, Tony Guilfoyle is paid $540,000 and Jan Ellks gets $135,000.)
Why did Tony Guilfoyle and Jan Ellks work late?
If you thought that they worked late to do something special for members, like bringing back entertainment or offering restaurants that members actually want, then you are sadly out of touch with the way City Tatts is run now.
The reason for the late shift is that the media have started to take a close look at City Tatts and Guilfoyle is starting to panic.
Guilfoyle doesn't realise that he has shown his true colours
Just stop for a second and think about what is happening here. At the moment City Tatts faces mounting problems, every one the result of sustained mismanagement. This is just a small sample:
Save City Tatts Committee
Tony Guilfoyle and Jan Ellks worked late !
Yes, we know that sounds hard to believe but it really happened. It's a shock because nobody can recall this ever happening before. (By the way, Tony Guilfoyle is paid $540,000 and Jan Ellks gets $135,000.)
Why did Tony Guilfoyle and Jan Ellks work late?
If you thought that they worked late to do something special for members, like bringing back entertainment or offering restaurants that members actually want, then you are sadly out of touch with the way City Tatts is run now.
The reason for the late shift is that the media have started to take a close look at City Tatts and Guilfoyle is starting to panic.
Guilfoyle doesn't realise that he has shown his true colours
Just stop for a second and think about what is happening here. At the moment City Tatts faces mounting problems, every one the result of sustained mismanagement. This is just a small sample:
- Restaurants losing over $300,000 each every year
- A disastrous purchase of 194 Pitt Street that costs the Club over $700,000 every year in interest alone - while the building is mostly empty.
- Suppliers refusing to deal with the Club because of unpaid bills
- Astonishing waste of members' funds on radio advertising, legal expenses, holidays for the Committee and failed building projects
- Falling membership
- Staff morale at an all time low
Save City Tatts Committee
City Tattersalls Club - Big Salaries for Dismal Performance (Part 2)
Money is being wasted left, right and centre at City Tatts.
Nowhere is there greater waste than in the inflated salaries and bonuses given to a few favoured employees despite a track record of total failure. Here is another example of where members' money is being wasted on salaries.
Tania Purdy
If you're in City Tatts on a regular basis you will know that staff morale is plummeting. The main cause of this is resentment at the insane salaries given to a few senior employees regardless of results, while the majority of staff are on award wages. The main focus of this resentment at the moment is Tania Purdy.
Tania Purdy is paid $100,000 a year !
That's right, we have been told by a number of sources that she is now being paid $100,000 a year.
Why is Tania Purdy paid $100,000 a year?
Naturally, we were curious to learn why a fairly new employee with no particular role would be paid $100,000, especially when the Club is cutting back in so many areas. Well, we asked around and these were the replies we got:
Hamilton Island
Speaking of things we don't understand, there was a trip to Hamilton Island in 2011 by four employees of City Tatts. At the Club's AGM in May members asked the Chairman about it and managed to get some information on it. Like so much about the Club these days the more you find out the stranger it seems:
Will Tania Purdy send the Club broke?
We are starting to worry that Tania Purdy might send the Club broke. And we don't just mean her inflated salary. We mean her cleaning bill.
A recent strange incident highlighted the precarious position of the Club. It seems that a dry-cleaner refused to release uniforms cleaned for City Tatts because they had not being paid for months. This seemed unlikely to City Tatts staff so they asked for copies of the unpaid bills in order to follow it up with the City Tatts accounts department. But when the bills arrived they were found to include dresses which did not come from City Tatts. Apparently the dresses were for Tania Purdy !
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Nowhere is there greater waste than in the inflated salaries and bonuses given to a few favoured employees despite a track record of total failure. Here is another example of where members' money is being wasted on salaries.
Tania Purdy
If you're in City Tatts on a regular basis you will know that staff morale is plummeting. The main cause of this is resentment at the insane salaries given to a few senior employees regardless of results, while the majority of staff are on award wages. The main focus of this resentment at the moment is Tania Purdy.
Tania Purdy is paid $100,000 a year !
That's right, we have been told by a number of sources that she is now being paid $100,000 a year.
Why is Tania Purdy paid $100,000 a year?
Naturally, we were curious to learn why a fairly new employee with no particular role would be paid $100,000, especially when the Club is cutting back in so many areas. Well, we asked around and these were the replies we got:
- "She works closely with Tony Guilfoyle"
- "Tony Guilfoyle takes a keen interest interest in her performance"
- "She has a special relationship with Tony Guilfoyle"
- "She performs certain duties better than Jan Elks"
Hamilton Island
Speaking of things we don't understand, there was a trip to Hamilton Island in 2011 by four employees of City Tatts. At the Club's AGM in May members asked the Chairman about it and managed to get some information on it. Like so much about the Club these days the more you find out the stranger it seems:
- This trip was paid for by a radio station, MIX 106.5. We are not sure why a radio station would be so generous but then they have received at least $3 million from City Tatts since Tony Guilfoyle became CEO so some token of gratitude would probably be in order.
- The four employees were Tony Guilfoyle, Tania Purdy, Mark Cooper and The Hyphenator (Lisa-Faye Tudhope-Wickham).
- While at Hamilton Island it seems that Guilfoyle then travelled backwards and forwards between Fiji (where his family was), Sydney and Hamilton Island. No, we don't understand this either.
Will Tania Purdy send the Club broke?
We are starting to worry that Tania Purdy might send the Club broke. And we don't just mean her inflated salary. We mean her cleaning bill.
A recent strange incident highlighted the precarious position of the Club. It seems that a dry-cleaner refused to release uniforms cleaned for City Tatts because they had not being paid for months. This seemed unlikely to City Tatts staff so they asked for copies of the unpaid bills in order to follow it up with the City Tatts accounts department. But when the bills arrived they were found to include dresses which did not come from City Tatts. Apparently the dresses were for Tania Purdy !
Save City Tatts Committee
The Strategic Plan for City Tattersalls Club
There is a strategic plan for City Tattersalls Club. Not the mythical, vague "Strategic Plan" that Tony Guilfoyle used to refer to in his useless slide presentations at AGMs (but that no one was allowed to see). No - we mean the real Strategic Plan. The Strategic Plan that explains what has happened to the Club since 2004.
It is not possible for City Tattersalls Club to trade so badly
It doesn't take a genius to see that City Tatts is struggling. But it is only when you dig a little deeper that the scale of the disaster becomes clear. Basically, the Club has performed so badly since 2004 that it can only be intentional. There is no conceivable incompetence, inefficiency or mismanagement that could produce results this bad.
Just consider the situation Guilfoyle inherited in 2004. City Tatts had thrived for 100 years through recession, depression and world war. It owned a large building in the best possible location in Sydney. It had restaurants, bars, gyms and other facilities that were much appreciated by its loyal members. The population living in the city was growing every year. And one more thing - yes, it had over 400 poker machines making a profit of $24 million every year.
What has happened since then is beyond belief. Everything he has touched has failed. Every building project has failed. Every restaurant is failing. (It is not possible for a restaurant to lose $400,000 every year, when you have no rent to pay.) It has been an 8 year track record of total failure.
How did he get away with failure for so long?
You have to wonder why the Committee let him get away with this for so long. Even the members knew as early as 2006 that he was a complete idiot. One reason is that he always took special care to look after the Chairman. We have provided extensive information in previous blogs on Save City Tatts about the three Club Chairmen since 2004. Here it is only necessary to point out that all three were receiving something from the Club that seems to have made them reluctant to rock the boat. So John Healy got his overseas trip and $10,000 a year for gym classes (even though others doing similar classes got nothing). John Kennedy was allowed to run the Bookmakers Superannuation Fund skim operation, making millions for him and the other Three Amigos. And a clinic in Moree which just happens to be run by Pat Campion's brother gets a donation of $80,000 from City Tatts, but the members of City Tatts are never told.
194 Pitt Street is the key to this sordid tale
More and more it looks like buying 194 Pitt Street is the key to understanding the real game. Other internet blogs provide a detailed account of the purchase. In a nutshell, it has been an unmitigated disaster from the point of view of members.
Given that members got nothing from the purchase you have to look at what they were told when they approved the purchase. Most of the promises made to members turned out to be false. For instance, the promised cafe. restaurant and administration office were instantly rejected by the council. This leads you to question the due diligence supposedly done prior to purchase. Basically, either no due diligence was done or it was totally negligent.
But when you look at the purchase from the point of view of someone who wants to hand the Club's property to a developer at a later date it starts to make sense. For one thing, the $9.8 million debt burden instantly increased the odds of the Club getting into financial difficulties and being "forced" to sell it's building. Buying 194 Pitt Street also does a lot directly for the developers, giving them additional options to maximise their profit.
The timetable for selling the building
Members fear that the storm clouds gathering over Tony Guilfoyle will prompt the parties to bring forward the plan to sell the building:
Who are the players in the game?
Reports from inside and outside the Club have identified the frontrunners in the race to get control of the Club's prized asset - it's property. Last year a meeting was held in March in the Club between a well-known hotelier, a person holding high profile racing positions, a financier and a former City Tatts Treasurer. There have been further meetings and the Club Corruption Vigilante is certain that the property is now "in play".
Save City Tatts Committee
It is not possible for City Tattersalls Club to trade so badly
It doesn't take a genius to see that City Tatts is struggling. But it is only when you dig a little deeper that the scale of the disaster becomes clear. Basically, the Club has performed so badly since 2004 that it can only be intentional. There is no conceivable incompetence, inefficiency or mismanagement that could produce results this bad.
Just consider the situation Guilfoyle inherited in 2004. City Tatts had thrived for 100 years through recession, depression and world war. It owned a large building in the best possible location in Sydney. It had restaurants, bars, gyms and other facilities that were much appreciated by its loyal members. The population living in the city was growing every year. And one more thing - yes, it had over 400 poker machines making a profit of $24 million every year.
What has happened since then is beyond belief. Everything he has touched has failed. Every building project has failed. Every restaurant is failing. (It is not possible for a restaurant to lose $400,000 every year, when you have no rent to pay.) It has been an 8 year track record of total failure.
How did he get away with failure for so long?
You have to wonder why the Committee let him get away with this for so long. Even the members knew as early as 2006 that he was a complete idiot. One reason is that he always took special care to look after the Chairman. We have provided extensive information in previous blogs on Save City Tatts about the three Club Chairmen since 2004. Here it is only necessary to point out that all three were receiving something from the Club that seems to have made them reluctant to rock the boat. So John Healy got his overseas trip and $10,000 a year for gym classes (even though others doing similar classes got nothing). John Kennedy was allowed to run the Bookmakers Superannuation Fund skim operation, making millions for him and the other Three Amigos. And a clinic in Moree which just happens to be run by Pat Campion's brother gets a donation of $80,000 from City Tatts, but the members of City Tatts are never told.
194 Pitt Street is the key to this sordid tale
More and more it looks like buying 194 Pitt Street is the key to understanding the real game. Other internet blogs provide a detailed account of the purchase. In a nutshell, it has been an unmitigated disaster from the point of view of members.
Given that members got nothing from the purchase you have to look at what they were told when they approved the purchase. Most of the promises made to members turned out to be false. For instance, the promised cafe. restaurant and administration office were instantly rejected by the council. This leads you to question the due diligence supposedly done prior to purchase. Basically, either no due diligence was done or it was totally negligent.
But when you look at the purchase from the point of view of someone who wants to hand the Club's property to a developer at a later date it starts to make sense. For one thing, the $9.8 million debt burden instantly increased the odds of the Club getting into financial difficulties and being "forced" to sell it's building. Buying 194 Pitt Street also does a lot directly for the developers, giving them additional options to maximise their profit.
The timetable for selling the building
Members fear that the storm clouds gathering over Tony Guilfoyle will prompt the parties to bring forward the plan to sell the building:
- He is under investigation by the Department of Gaming & Racing over the $200,000 he took from the Club, without approval of the Committee. (Not that they could have approved it anyway - loans to employees are prohibited by the Club Rules.)
- The relentless exposure on the internet of his dismal failure is getting harder to ignore.
- He is trying to sell his motels in Nowra and Mittagong, so he may have money problems.
- A few senior employees who were always considered to be on Guilfoyle's side now seem to be discreetly preparing for his departure. (Basically he bought their loyalty with members' money by paying them twice what they would have got elsewhere.) We interpret this as an obvious plan to distance themselves from him for when the proverbial hits the fan.
- Even the Committee of City Tatts are starting to doubt him. (Here at Save City Tatts we had extreme difficulty believing this. We have watched for years as the Committee let him do whatever he wanted without a squeak out of them. But careful observers of the Club say they have detected the very early signs of the Committee turning against him. As a small example they notice that the level of propaganda in the Club magazine has declined significantly in recent issues.)
Who are the players in the game?
Reports from inside and outside the Club have identified the frontrunners in the race to get control of the Club's prized asset - it's property. Last year a meeting was held in March in the Club between a well-known hotelier, a person holding high profile racing positions, a financier and a former City Tatts Treasurer. There have been further meetings and the Club Corruption Vigilante is certain that the property is now "in play".
Save City Tatts Committee
Fruitjuice at City Tattersalls Club !
Many of you would be aware that there is a discussion on the internet about the recent Life Membership of City Tatts given to Martyn "Fruitjuice" Berry. Apparently some people have woken up to the fact that Fruitjuice has done absolutely nothing since he has been on the Committee.
While this may have come as a surprise to some, here at Save City Tatts it is old news. In fact, we knew what to expect from Fruitjuice even before he was elected to the Committee. A very shrewd observer of City Tatts in the Dance Club warned us about Fruitjuice as soon as he announced that he was going to run for election. This Dance Club member was certain that Fruitjuice was just a pompous old fool who had been asked to run by the existing Committee precisely because he would not raise any difficult issues, would not tackle management and would not "rock the boat" in any way. This assessment, made back in early 2009, has been proved to be exactly right. Fruitjuice has turned a blind eye to every financial disaster in the Club.
There were a few clues that members should be wary of him. In his "100 Words" election pitch from 2009 he said "I have had an association with City Tatts for over 35 years". What does that mean ? Did he walk past the front door every day ? The truth is that he had only been a full member of City Tatts for one year when he wrote that !
In fact, it's hard not to laugh when you read his "100 Words" election pitch from 2009. Back then he talked about his career in financial services with Westpac Financial Services and MLC Client Services. Well, for all the financial acumen he has demonstrated on the Committee of City Tatts, he might as well have had a career of emptying garbage bins.
Save City Tatts Committee
While this may have come as a surprise to some, here at Save City Tatts it is old news. In fact, we knew what to expect from Fruitjuice even before he was elected to the Committee. A very shrewd observer of City Tatts in the Dance Club warned us about Fruitjuice as soon as he announced that he was going to run for election. This Dance Club member was certain that Fruitjuice was just a pompous old fool who had been asked to run by the existing Committee precisely because he would not raise any difficult issues, would not tackle management and would not "rock the boat" in any way. This assessment, made back in early 2009, has been proved to be exactly right. Fruitjuice has turned a blind eye to every financial disaster in the Club.
There were a few clues that members should be wary of him. In his "100 Words" election pitch from 2009 he said "I have had an association with City Tatts for over 35 years". What does that mean ? Did he walk past the front door every day ? The truth is that he had only been a full member of City Tatts for one year when he wrote that !
In fact, it's hard not to laugh when you read his "100 Words" election pitch from 2009. Back then he talked about his career in financial services with Westpac Financial Services and MLC Client Services. Well, for all the financial acumen he has demonstrated on the Committee of City Tatts, he might as well have had a career of emptying garbage bins.
Save City Tatts Committee
Gravestone for City Tattersalls Club
In life, things generally move in the opposite direction once they reach their extreme, or to explain in another way, in everything there is a beginning, or the time of minimum existence and just before the end, the time of maximum existence. What comes after, we all know, death of a relationship, friendship, business, or of a million other processes, actions and events. If we understand this we might be able to prepare for the end so it is as smooth as possible, and if we are smart it may lead to a new beginning. It seems to me that the CEO and the inner circle of the committee believe in: ‘Luck is when opportunity meets preparation” They have had their “maximum existence” and are now moving to the death phase of the club as we know it. After death there must also be a rebirth or a new beginning.
Let us all imagine a likely scenario: members are finally told that due to the world recession, the inability of Chinese gamblers to get their visas, change of weather patterns or due to the large number of boat people (you can insert here any excuse you might think of…just to make it more interesting), the club is forced to close its doors, unless a saviour is found who is willing to bankroll a project that guarantees the club’s existence.
In my opinion, and as corporate intellectuals would say, we have finally turned the corner, so members should start working on a plaque that might be placed, possibly on a side entrance of a five star hotel owned by the above mentioned saviour (or his company) and maybe managed by our current fearless leader and the “all the way to court loyal committee team” (or their company). In a way, a gravestone might be more appropriate, but will certainly not be allowed by the new leaders and their PR team or directors.
Let’s all think about this, it could say something like:
Here lies over one hundred of years of history, dedication and loyalty of a large body of CTC members, who gave of themselves that a five star hotel might be created and its owners and managers be made wealthy and prosperous.
Of course, some future researcher might find this not quite accurate, he/she may conclude that members were never told the truth, but by that time all will be forgotten, the main players may even be in another country, enjoying the success of their forward planning. The researcher might even come up with a theory that the operation of taking the club away from members was the work of an organized crime fraternity. Crime like this is big business and big business requires elite financiers and professionals. The entrance of elite corporate players, started years ago, and as the directors, advisors, consultants and lawyers of high business calibre, came in, the demarcation line between “legitimate” and “illegitimate” actions blurred. The true plans were protected by hard to understand legal definitions and by an army of advisors and lawyers all working together for a common goal, as the architect of a large offshore mutual fund would say: “Money has a strange kind of purity”.
The goal is soon to be clearly seen, and with it, all the “errors” in management will be shown as just small stepping stones to a Grand New Hotel in Pitt Street.
Club Corruption Vigilante .
Club Corruption Vigilante .
City Tattersalls Club - AGM 2012
City Tattersalls Club held it's Annual General Meeting on 22nd May 2012 and a number of very interesting issues arose at the meeting, at least to those who carefully observe everything about the Club.
Financial Questions from members
The main part of the meeting consisted of financial questions from members. That's good because it is the only part where any real information is given to the meeting. The Chairman's and Treasurer's reports basically consist of weak excuses to explain the Club's poor management, with very little useful information.
Before we look at some specific issues we have to highlight something that the Chairman, Patrick Campion, told the meeting before he got on to the questions. He said that the Club would answer financial questions as required by the Club's rules but was only obliged to answer questions if the disclosure was required by the Registered Clubs Act. This is totally false. There is no connection between the requirement to answer members' financial questions at a meeting and the disclosures required by the Registered Clubs Act. The requirement to answer financial questions is contained in the Club's Rules attached to the City Tattersall's Club Act. Even if there was no Registered Clubs Act, the Club would still have to answer financial questions at meetings according to it's own rules !
Campion is a solicitor. So whether he deliberately tried to deceive members, or just has no idea, we can't say for sure. Here, at Save City Tatts, we are not solicitors but we spent five minutes looking at this and the legal position is clear. How could a solicitor not know ?
Radio Advertising
One of the very interesting facts to emerge from financial questions was that radio advertising cost $246,000 in 2011. This is interesting because when members asked a few years ago it was $500,000 and a few years before that it was $900,000 (yes, $900,000 in one year, that is not a misprint).
We have known for a long time that the money spent on radio advertising was a disgraceful waste of members' funds but in their own roundabout way the Club has now basically admitted this. Just consider a few basic facts about radio advertising at City Tatts:
194 Pitt Street
194 Pitt Street is always of interest to us (and should be of interest to all members who care about their club) because it has been a financial disaster from the day it was bought in 2007 and nothing has changed since. Questions at the meeting reminded us of a few issues about the building.
Campion told the meeting that 194 Pitt Street "completely complies with all fire regulations". We are not sure what to make of this answer. Our sources have always told us that the building does not comply with fire regulations. So who is right? Well, remember that only one floor of the building has ever been renovated for use by members - the other seven floors are vacant (or "used for storage"). Maybe 194 Pitt Street "complies with all fire regulations" as it is currently used - that is, using the ground floor only. And, in this scenario, the other seven floors comply as long as they are not used by members. This may be the explanation - members need to find out more about this.
Another subject that caught our eye was the valuation of the building. One member asked what the current valuation was (a very good question). Jimmy Chen's answer was that 194 Pitt Street was regarded as "core property" of the Club ("core property" is a term from the Registered Clubs Act) and was therefore included in the Club's total premises valuation of $63 million. That is very convenient for management because it allows them to hide the disaster from members. But, hold on. National Australia Bank only has a mortgage over 194 Pitt St - they have no mortgage over the rest of the premises. Well, if that's their only security, they must have a valuation of the building. Maybe Jimmy Chen could ask them what it is and pass it on to the member who asked the question.
Save City Tatts Committee
.
Financial Questions from members
The main part of the meeting consisted of financial questions from members. That's good because it is the only part where any real information is given to the meeting. The Chairman's and Treasurer's reports basically consist of weak excuses to explain the Club's poor management, with very little useful information.
Before we look at some specific issues we have to highlight something that the Chairman, Patrick Campion, told the meeting before he got on to the questions. He said that the Club would answer financial questions as required by the Club's rules but was only obliged to answer questions if the disclosure was required by the Registered Clubs Act. This is totally false. There is no connection between the requirement to answer members' financial questions at a meeting and the disclosures required by the Registered Clubs Act. The requirement to answer financial questions is contained in the Club's Rules attached to the City Tattersall's Club Act. Even if there was no Registered Clubs Act, the Club would still have to answer financial questions at meetings according to it's own rules !
Campion is a solicitor. So whether he deliberately tried to deceive members, or just has no idea, we can't say for sure. Here, at Save City Tatts, we are not solicitors but we spent five minutes looking at this and the legal position is clear. How could a solicitor not know ?
Radio Advertising
One of the very interesting facts to emerge from financial questions was that radio advertising cost $246,000 in 2011. This is interesting because when members asked a few years ago it was $500,000 and a few years before that it was $900,000 (yes, $900,000 in one year, that is not a misprint).
We have known for a long time that the money spent on radio advertising was a disgraceful waste of members' funds but in their own roundabout way the Club has now basically admitted this. Just consider a few basic facts about radio advertising at City Tatts:
- City Tatts used to spend $900,000 a year on radio advertising but once members started asking questions about it the amount has dropped every year. This makes no sense. If it was money well spent it would make no difference whether members asked about it or not. Clearly, the scrutiny from members exposed it for the fraud it always was.
- Every time members asked about it, management have always assured them that it was successful, that they were pleased with it, that it was effective etc. etc. The problem is that the same answers were given whether they were spending $900,000, $500,000 or $246,000. It is not possible that spending $900,000 or $246,000 is equally valuable. If spending $900,000 was bringing great benefits to the Club, then they are making a big mistake today in only spending $246,000. If spending $246,000 is enough, then the excess $654,000 was a disgraceful waste. Either they were lying back then or they are lying now.
- In any case, it is clear from listening to the answers at the AGM that management have no idea if radio advertising brings any benefit to the Club. Any club that spends $900,000 on anything should be able to clearly demonstrate the benefit to the club or else you don't spend it !
- Apart from the nonsense "explanations" provided by management, it is obvious to members that spending hundreds of thousands of dollars on radio advertising is a complete waste of members' money. Here is our simple suggestion: Cancel all radio advertising today and give the money directly to members in door prizes, free drinks and subsidised meals. This would have ten times the promotional impact.
194 Pitt Street
194 Pitt Street is always of interest to us (and should be of interest to all members who care about their club) because it has been a financial disaster from the day it was bought in 2007 and nothing has changed since. Questions at the meeting reminded us of a few issues about the building.
Campion told the meeting that 194 Pitt Street "completely complies with all fire regulations". We are not sure what to make of this answer. Our sources have always told us that the building does not comply with fire regulations. So who is right? Well, remember that only one floor of the building has ever been renovated for use by members - the other seven floors are vacant (or "used for storage"). Maybe 194 Pitt Street "complies with all fire regulations" as it is currently used - that is, using the ground floor only. And, in this scenario, the other seven floors comply as long as they are not used by members. This may be the explanation - members need to find out more about this.
Another subject that caught our eye was the valuation of the building. One member asked what the current valuation was (a very good question). Jimmy Chen's answer was that 194 Pitt Street was regarded as "core property" of the Club ("core property" is a term from the Registered Clubs Act) and was therefore included in the Club's total premises valuation of $63 million. That is very convenient for management because it allows them to hide the disaster from members. But, hold on. National Australia Bank only has a mortgage over 194 Pitt St - they have no mortgage over the rest of the premises. Well, if that's their only security, they must have a valuation of the building. Maybe Jimmy Chen could ask them what it is and pass it on to the member who asked the question.
Save City Tatts Committee
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Trouble at Balmain Leagues Club - Could the same happen at City Tatts?
That was a very interesting story on the weekend on the front page of the Sydney Morning Herald about the financial problems at Balmain Leagues Club. Naturally we wondered if the same could happen at City Tattersalls Club.
What happened at Balmain Leagues Club
Let's summarise what happened at Balmain Leagues Club and use it as a blueprint, or template, for what could happen at City Tatts:
Could it happen at City Tattersalls Club?
With this blueprint in mind, let's look at the present state of City Tatts:
Realistically, isn't this where City Tattersalls Club is heading?
When you look at how City Tatts has gone since Tony Guilfoyle became CEO, you have to worry that the Club is heading the way of Balmain Leagues Club. Even back in 2006, many members speculated that his real agenda must be to run the Club into the ground. They came to this conclusion by simply observing his actions as CEO. He inherited a thriving club with a fantastic location, great facilities, and loyal members and with every major decision or project he has taken the Club closer to collapse. Even a complete idiot would have got a few right by pure chance.
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What happened at Balmain Leagues Club
Let's summarise what happened at Balmain Leagues Club and use it as a blueprint, or template, for what could happen at City Tatts:
- A club gets into financial difficulties and owes a lot of money.
- Someone close to the club comes up with a plan to "save" the club. This plan is presented to members as the only option to save the club.
- The "saviour", whose only concern is to save the club, just happens to make millions from the "rescue" - always from redeveloping the club's property..(Property is the key.)
Could it happen at City Tattersalls Club?
With this blueprint in mind, let's look at the present state of City Tatts:
- City Tatts has been badly run for years and now owes a lot of money (about $20 million to National Australia Bank alone). It was particularly interesting to read that Balmain Leagues Club was "bleeding ... through previous risky property acquisitions and declining patronage of it's poker machines". Sound familiar?
- We have every confidence that many of the people presently doing so well from City Tatts would be delighted to come up with a plan to "save" the Club. Here we are thinking of top management, builders, consultants and one or two on the Committee. (You only have to think back to John Kennedy's role in the Bookmakers Fund, where he generously agreed to roll all of the City Tattersalls Club Staff Super fund into the BSF, which just happened to increase his own income.)
- City Tatts owns a prime CBD property and we know that the Committee have dreamed about redeveloping the City Tatts site for a long time. John Healy used to talk about putting a hotel on the site. We would expect that any property developer who made millions on the redevelopment would be very grateful to any insider who could deliver the property to them.
Realistically, isn't this where City Tattersalls Club is heading?
When you look at how City Tatts has gone since Tony Guilfoyle became CEO, you have to worry that the Club is heading the way of Balmain Leagues Club. Even back in 2006, many members speculated that his real agenda must be to run the Club into the ground. They came to this conclusion by simply observing his actions as CEO. He inherited a thriving club with a fantastic location, great facilities, and loyal members and with every major decision or project he has taken the Club closer to collapse. Even a complete idiot would have got a few right by pure chance.
Save City Tatts Committee
Wednesday, 24 October 2012
Artwork at City Tattersalls Club !
Some of you may have noticed new paintings around City Tattersalls Club. As with everything else in the club. there is more to this than meets the eye.
City Tattersalls Club pays $54 000 to display these paintings
Thanks to members who asked questions at the recent AGM, we now have some information on the arrangement, in particular that City Tatts pays $54 000 a year to have these paintings displayed.
From what we have been able to find out, it seems that these paintings belong to some Aboriginal art gallery and while on display at City Tatts are available for sale. If a member does happen to buy one, the gallery makes a commision and the artists gets what's left.
And for providing a showroom for the gallery- City Tatts pays them??
This seems like a really good deal for the gallery and the person that introduced it to the City Tatts Club, but it certainly has no benefit to the Club or the members. This has only created more unreasonable and unjustifaible spending by the management and the committee.
Save City Tatts Committee
City Tattersalls Club pays $54 000 to display these paintings
Thanks to members who asked questions at the recent AGM, we now have some information on the arrangement, in particular that City Tatts pays $54 000 a year to have these paintings displayed.
From what we have been able to find out, it seems that these paintings belong to some Aboriginal art gallery and while on display at City Tatts are available for sale. If a member does happen to buy one, the gallery makes a commision and the artists gets what's left.
And for providing a showroom for the gallery- City Tatts pays them??
This seems like a really good deal for the gallery and the person that introduced it to the City Tatts Club, but it certainly has no benefit to the Club or the members. This has only created more unreasonable and unjustifaible spending by the management and the committee.
Save City Tatts Committee
City Tattersalls Club - Jimmy Chen's Treasurer's Report
The City Tattersalls Club Treasurer's Report for 2011 was presented to members at the AGM on 22nd May 2012, and also included in the May-July Club magazine.
Jimmy Chen's Treasurer's Report
Overall, the Treasurer's Report told members very little. As has been the trend at City Tatts in recent years, most of the important financial problems were ignored or explained away with lame excuses.
But Jimmy Chen showed that he has fully embraced the concept of disinformation to members with his latest report. His comments about how the Club's restaurants and bars performed can not be left unchallenged.
What Jimmy Chen told members
In his report, Jimmy Chen said "It is pleasing to report that Food and Beverage revenue has recorded year on year growth for the past seven (7) years. For 2011 our Food and Beverage departments increased revenue by 1% or $68,000." That's it - that was his only reference to Food and Beverage.
How Food and Beverage actually performed in 2011
These are the the facts of how Food and Beverage performed at City Tatts in 2011, which emerged only because members specifically demanded the information under the Club's Rules:
To tell members that revenue has risen and make no mention of the horrendous losses during the year, or indeed for the past seven years, is a disgraceful attempt to mislead members. Besides, what is the point of increasing revenue if you are losing money on every meal?
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Jimmy Chen's Treasurer's Report
Overall, the Treasurer's Report told members very little. As has been the trend at City Tatts in recent years, most of the important financial problems were ignored or explained away with lame excuses.
But Jimmy Chen showed that he has fully embraced the concept of disinformation to members with his latest report. His comments about how the Club's restaurants and bars performed can not be left unchallenged.
What Jimmy Chen told members
In his report, Jimmy Chen said "It is pleasing to report that Food and Beverage revenue has recorded year on year growth for the past seven (7) years. For 2011 our Food and Beverage departments increased revenue by 1% or $68,000." That's it - that was his only reference to Food and Beverage.
How Food and Beverage actually performed in 2011
These are the the facts of how Food and Beverage performed at City Tatts in 2011, which emerged only because members specifically demanded the information under the Club's Rules:
- Food and Beverage at City Tatts lost $650,000 in 2011.
- The Esperanto restaurant lost $400,000 in 2011. That is not a misprint - it actually lost $400,000. In fact, it managed to lose $409,000 on sales of $919,000. When you realise that they have no rent to pay, that might make it the worst restaurant performance in Sydney. Obviously, looking at these figures would cause anyone to question management's ability, to put it mildly. But we have checked with people in the restaurant trade and they have told us that even total stupidity would not produce results this bad. And Jimmy Chen? He doesn't even mention it. Maybe he doesn't know.
- Zest restaurant lost $300,000 in 2011.
- They even manage to lose money on beverage. The Esperanto managed to lose $105,000, and Zest managed to lose $82,000, on beverage alone ! Since the Club would charge customers, on average, twice or even three times it's cost price, this also must be some kind of record for losing money.
- Remember, they "had to" close the Smorgasbord because it was losing money. In the three years that Jimmy Chen has been Treasurer, the Club's top two restaurants have lost a combined $2,200,000 !
- The other notable point about the Esperanto and Zest is that they are not cheap. If the meals were being given away at half-price you could understand some losses. But they are charging top dollar for everything, which makes these losses all the more inexplicable.
To tell members that revenue has risen and make no mention of the horrendous losses during the year, or indeed for the past seven years, is a disgraceful attempt to mislead members. Besides, what is the point of increasing revenue if you are losing money on every meal?
Save City Tatts Committee
City Tattersalls Club - Big Salaries for Dismal Performance (Part 1)
Money is being wasted left, right and centre at City Tatts.
Nowhere is there greater waste than in the inflated salaries given to top management for dismal performance. Here is an introduction to where members money is being wasted on salaries.
Tony Guilfoyle
Guilfoyle has been a failure as CEO from day one. Almost everything he has tried has been a flop. If you were to examine his top 10 projects as CEO, whether restaurants, building jobs, property purchases or just general management duties, you would find that 9 of them are failures, sometimes hilariously so. In fact, you will have to look hard to find the one that is a success. But a track record of failure is no longer a barrier for top management at City Tatts. Instead they get increases and bonuses. Here is what City Tatts has paid Guilfoyle since he became CEO -
Year Ended 31 December 2004 $410,000
Year Ended 31 December 2005 $410,000
Year Ended 31 December 2006 $430,000
Year Ended 31 December 2007 $430,000
Year Ended 31 December 2008 $460,000
Year Ended 31 December 2009 $530,000
Year Ended 31 December 2010 $540,000
Year Ended 31 December 2011 $540,000
Some things about City Tatts are so strange that it is no wonder people don't believe them when they are told for the first time. Here is someone who clearly has no ability of any kind to run the Club and yet he has been given $3,750,000 in 8 years. And the best part is - he is only there 3 days a week !
Michelle Abbey - Million Dollar Baby !
Michelle Abbey was the first high profile appointment by Guilfoyle after he became CEO. She was paid an insane salary of $250,000 per year as Marketing Director and was a total failure. In the four years she was at the Club she received a cool $1 million. She would not have brought in enough revenue to cover her own salary, never mind contribute anything to the Club.
She is also a perfect example of everything that has gone wrong with City Tatts. The whole notion of a Marketing Director on $250,000 at City Tattersalls Club is ridiculous. The Club's facilities, lacation and tradition provide all the promotion necessary. City Tatts was a thriving club for years without any Marketing Director. And, with the greatly increased population living in the city centre, it should be doing even better now.
There is another reason why paying someone $250,000 a year to promote the Club is nonsense. At the same time that Guilfoyle hired her to promote the Club, he started to take away the very things that used to bring people to the Club ! So the Smorgasboard (probably the Club's greatest attraction) was closed down, Then entertainment was reduced and eventually stopped. Other restaurants and bars were closed before spending millions on new restaurants and bars that members rejected. It simply makes no sense to pay huge salaries to attract people to the Club while you remove the very things that have proven in the past to attract people to the Club.
Members are being deceived in other ways by these insane salaries. By paying someone $250,000 a year, Guilfoyle is trying to convince everyone that City Tatts is a large complex business that is difficult to run. In fact, it is a very simple operation that anyone could run using basic common sense. If you stopped somebody at random walking past the front door they would run the Club better than it is now.
Trevelyan Bale
Trevelyan Bale was a chef who was hired on a salary of $250,000. That, in itself, tells you how insane City Tatts had become by then. The idea of paying $250,000 for a chef in any club is madness but squandering members' money was in full swing by then. (Bale's salary dropped to around the $200,000 mark later - we're not sure why.) Meanwhile, of course, the majority of the staff were paid minimum wages.
It goes without saying that he was a total failure. During the time he was there, restaurants were probably the worst performing part of the Club. The losses racked up while he was in charge were staggering. Someone calculated that restaurants and bars lost over $4 million while he was there. Obviously his own bloated salary contributed to these losses, but aside from that there must have been astonishing incompetence to lose that kind of money.
What is even more amazing is that restaurants and bars used to do well at City Tatts. In the past they were run much better by people on half that salary. And don't forget that back then each restaurant had it's own kitchen. By the time Bale arrived the Club had a centralised kitchen which was supposed to provide big savings. So, if anything, it should have been easier for him. So, either he is even more incompetent than he appears or the centralised kitchen was another grandiose building project that failed.
Jan Ellks
Jan Ellks is Guilfoyle's secretary. We are not sure what her qualifications were to get the job but it should be a fairly easy job given that Guilfoyle is only there three days a week on average. But this is City Tatts, so it will not surprise you to learn that she is now paid $135,000 a year ! That's right - City Tatts pays Jan Elks $135,000 a year.
This is how members' money is being wasted. Do you really think that Jan Elks would get $135,000 a year if Kevin Smith or Bill Hurley were paying it from their own pockets ? Not a chance - but if members are paying it (and the members don't know) then don't worry about it. Incidentally, we have checked around the CBD and the maximum salary for what she actually does is $50,000. So, how much has she been overpaid in the five years she's been there - $200,000? $300,000? How's that for waste?
Save City Tatts Committee
Nowhere is there greater waste than in the inflated salaries given to top management for dismal performance. Here is an introduction to where members money is being wasted on salaries.
Tony Guilfoyle
Guilfoyle has been a failure as CEO from day one. Almost everything he has tried has been a flop. If you were to examine his top 10 projects as CEO, whether restaurants, building jobs, property purchases or just general management duties, you would find that 9 of them are failures, sometimes hilariously so. In fact, you will have to look hard to find the one that is a success. But a track record of failure is no longer a barrier for top management at City Tatts. Instead they get increases and bonuses. Here is what City Tatts has paid Guilfoyle since he became CEO -
Year Ended 31 December 2004 $410,000
Year Ended 31 December 2005 $410,000
Year Ended 31 December 2006 $430,000
Year Ended 31 December 2007 $430,000
Year Ended 31 December 2008 $460,000
Year Ended 31 December 2009 $530,000
Year Ended 31 December 2010 $540,000
Year Ended 31 December 2011 $540,000
Some things about City Tatts are so strange that it is no wonder people don't believe them when they are told for the first time. Here is someone who clearly has no ability of any kind to run the Club and yet he has been given $3,750,000 in 8 years. And the best part is - he is only there 3 days a week !
Michelle Abbey - Million Dollar Baby !
Michelle Abbey was the first high profile appointment by Guilfoyle after he became CEO. She was paid an insane salary of $250,000 per year as Marketing Director and was a total failure. In the four years she was at the Club she received a cool $1 million. She would not have brought in enough revenue to cover her own salary, never mind contribute anything to the Club.
She is also a perfect example of everything that has gone wrong with City Tatts. The whole notion of a Marketing Director on $250,000 at City Tattersalls Club is ridiculous. The Club's facilities, lacation and tradition provide all the promotion necessary. City Tatts was a thriving club for years without any Marketing Director. And, with the greatly increased population living in the city centre, it should be doing even better now.
There is another reason why paying someone $250,000 a year to promote the Club is nonsense. At the same time that Guilfoyle hired her to promote the Club, he started to take away the very things that used to bring people to the Club ! So the Smorgasboard (probably the Club's greatest attraction) was closed down, Then entertainment was reduced and eventually stopped. Other restaurants and bars were closed before spending millions on new restaurants and bars that members rejected. It simply makes no sense to pay huge salaries to attract people to the Club while you remove the very things that have proven in the past to attract people to the Club.
Members are being deceived in other ways by these insane salaries. By paying someone $250,000 a year, Guilfoyle is trying to convince everyone that City Tatts is a large complex business that is difficult to run. In fact, it is a very simple operation that anyone could run using basic common sense. If you stopped somebody at random walking past the front door they would run the Club better than it is now.
Trevelyan Bale
Trevelyan Bale was a chef who was hired on a salary of $250,000. That, in itself, tells you how insane City Tatts had become by then. The idea of paying $250,000 for a chef in any club is madness but squandering members' money was in full swing by then. (Bale's salary dropped to around the $200,000 mark later - we're not sure why.) Meanwhile, of course, the majority of the staff were paid minimum wages.
It goes without saying that he was a total failure. During the time he was there, restaurants were probably the worst performing part of the Club. The losses racked up while he was in charge were staggering. Someone calculated that restaurants and bars lost over $4 million while he was there. Obviously his own bloated salary contributed to these losses, but aside from that there must have been astonishing incompetence to lose that kind of money.
What is even more amazing is that restaurants and bars used to do well at City Tatts. In the past they were run much better by people on half that salary. And don't forget that back then each restaurant had it's own kitchen. By the time Bale arrived the Club had a centralised kitchen which was supposed to provide big savings. So, if anything, it should have been easier for him. So, either he is even more incompetent than he appears or the centralised kitchen was another grandiose building project that failed.
Jan Ellks
Jan Ellks is Guilfoyle's secretary. We are not sure what her qualifications were to get the job but it should be a fairly easy job given that Guilfoyle is only there three days a week on average. But this is City Tatts, so it will not surprise you to learn that she is now paid $135,000 a year ! That's right - City Tatts pays Jan Elks $135,000 a year.
This is how members' money is being wasted. Do you really think that Jan Elks would get $135,000 a year if Kevin Smith or Bill Hurley were paying it from their own pockets ? Not a chance - but if members are paying it (and the members don't know) then don't worry about it. Incidentally, we have checked around the CBD and the maximum salary for what she actually does is $50,000. So, how much has she been overpaid in the five years she's been there - $200,000? $300,000? How's that for waste?
Save City Tatts Committee
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