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CONCERNS have been raised that the West Indies Cricket Board (WICB) applied for a US$6 million overdraft for one year from the United National Bank in England.
The loan is to fund three initiatives according to confidential documents provided to Newsday yesterday.
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre; to cover the operating expenses incurred for the ICC World T20 2010 Ticketing and Corporate Hospitality; and to meet obligations under the Future Tours Programme (FTP).
Financial observers have also raised their eyebrows at the WICB listing as collateral its projected earnings from International Cricket Council (ICC) for playing at ICC Events.
These events, between 2010 and 2015, are valued at US$64 million and includes television revenue between 2010 and 2012 from British Sky Broadcasting worth US$6.2 million.
The official documents provided to Newsday showed that the WICB took out a US$10 million loan and a US$2.5 million overdraft with Butterfield Bank of Englnad who are holding their US$7.3 million debt service deposit.
Therefore the WICB was exposed to the full extent of United National Banks’ facility limit due to the risk involved and will face an interest rate of 5.5 percent. WICB president Julian Hunte in his annual report for 2009 earlier this year stated that revenue increased by US$28 million, an increase of 144 percent from the previous year. According to Hunte’s last financial report the WICB generated Net Income of US$7,646,597. The report showed several lucrative deals such as the Media Rights fee earned for England’s tour of the West Indies in 2009 from British Sky Broadcasting was US$12 million and US$845,000 from Taj TV.
For India’s tour of the West Indies in 2009 the WICB received US$600,00 from British Sky Broadcasting and US$15.3 million from Taj TV. The WICB collected US$400,000 when the team toured Abu Dhabi and US$2 million for the tour of England while US$4.6 million was received from ICC Events.
Concern over loan of US$6M to WICB
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socafighter
- Posts: 1445
- Joined: Sat Apr 03, 2010 5:16 pm
This is what I have difficulty with.Here is my simple explanation.
I hope the WICB have a one year business plan
A 3 year Business plan , and a 5 year Business plan.
The first year must be accurate ,the rest can be off a little.
To get proper Financing the bankers look at these figures very carefully, must have supporting documents.They dont like spikes in these reports.
In this article the first thing that strikes out is the Butterfield Bank , their strength is in Institutional and Wealth Management.
Canadians hold the Senior positions at its head office in Bermuda.They most likely arranged the overdraft at
the United National Bank in England.
Whenever you have an institution like WICB with its history of Financial instability and debt,
you are in trouble to start with revenue increased by US$28 million, would scare the best
of Bankers.A Net Income of US$7,646,597.
Such growth rates are frown upon. Bankers are conservative.
the West Indies in 2009 from British Sky Broadcasting was US$12 million and US$845,000 from Taj TV.
India’s tour of the West Indies in 2009 the WICB received US$600,00 from British Sky Broadcasting and US$15.3 million from Taj TV.
The WICB collected US$400,000 when the team toured Abu Dhabi
US$2 million for the tour of England
US$4.6 million was received from ICC Events.
Total approx .....37 Million Dollars.
In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt,including sinking fund payments.
Net income divided by Total debt service equals....debt service deposit
The WICB took out a US$10 million loan and a US$2.5 million overdraft ..with Butterfield bank ,who are holding
their US$7.3 million debt service deposit.
To get 12.5 million ,they had to deposit the US 7.3 million plus listing
as collateral its projected earnings from International Cricket Council (ICC) for playing at ICC Events.
T
Now you understand why.....Financial observers have also raised their eyebrows .
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre; to cover the operating expenses incurred for the ICC World T20 2010 Ticketing and Corporate Hospitality; and to meet obligations under the Future Tours Programme (FTP)
.
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre;
The above long term debt.
This one is baffling .....have no idea.
I hope the WICB have a one year business plan
A 3 year Business plan , and a 5 year Business plan.
The first year must be accurate ,the rest can be off a little.
To get proper Financing the bankers look at these figures very carefully, must have supporting documents.They dont like spikes in these reports.
In this article the first thing that strikes out is the Butterfield Bank , their strength is in Institutional and Wealth Management.
The WICB is primarily not a client, they will lend on strong collateral ,if they think it suits their interest.
Canadians hold the Senior positions at its head office in Bermuda.They most likely arranged the overdraft at
the United National Bank in England.
Whenever you have an institution like WICB with its history of Financial instability and debt,
you are in trouble to start with revenue increased by US$28 million, would scare the best
of Bankers.A Net Income of US$7,646,597.
Such growth rates are frown upon. Bankers are conservative.
the West Indies in 2009 from British Sky Broadcasting was US$12 million and US$845,000 from Taj TV.
India’s tour of the West Indies in 2009 the WICB received US$600,00 from British Sky Broadcasting and US$15.3 million from Taj TV.
The WICB collected US$400,000 when the team toured Abu Dhabi
US$2 million for the tour of England
US$4.6 million was received from ICC Events.
Total approx .....37 Million Dollars.
In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt,including sinking fund payments.
Net income divided by Total debt service equals....debt service deposit
The WICB took out a US$10 million loan and a US$2.5 million overdraft ..with Butterfield bank ,who are holding
their US$7.3 million debt service deposit.
To get 12.5 million ,they had to deposit the US 7.3 million plus listing
as collateral its projected earnings from International Cricket Council (ICC) for playing at ICC Events.
T
hese events, between 2010 and 2015, are valued at US$64 million and includes television revenue between 2010
and 2012 from British Sky Broadcasting worth US$6.2 million.
Now you understand why.....Financial observers have also raised their eyebrows .
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre; to cover the operating expenses incurred for the ICC World T20 2010 Ticketing and Corporate Hospitality; and to meet obligations under the Future Tours Programme (FTP)
.
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre;
The above long term debt.
to cover the operating expenses incurred for the ICC World T20 2010 Ticketing and Corporate Hospitality; and to meet obligations under the Future Tours Programme
This one is baffling .....have no idea.
-
mapoui
- Posts: 8507
- Joined: Wed Apr 14, 2010 10:07 pm
you must be an accountant Bally ...or an MBA!
that financial report what is it......an audited finacial statemtn that includes balance sheet/income statement etc...lisintg of transactions and full breadowns of each.....or just an unverified 'state of the institution' paper presented by the chair?
the state of things with the wicb is far worse than I thouth it was. so all the money the wicb earns is not used in the westindies, with westindian owned banks, contributing to the development of the region?
thats one way to help...do all your business in the westindies, so that the millions you earn spins around 3, 4 5 times in the region before it leaves again, bringing with it all the structural achievements along the way.
but the wicb must manage its business well...that does not appear to be the case from this statement here.
there must be westindian business consulting firms that coupld put the wicb on a proper footing..business plans covereing all necessary periods of time, advising on how to plan and effect projects to max out earnings etc!
how to manage the money as effectively as possible,,even set up investments for the wicb to generate extra cricket earnings to facilitate ever greater westindian cricket growth
what are westindian MBA's doing in the region...consulting forrin firms on how to invest in the region, colluding with them to rip off the westindies as usual..or finding ways to wrest the region financially form forrin western clutches?
to look at how the wicb does business according to this report, westindians are still bent on assisiting the forriner to have the region rather than developing independence. what is the wicb doing dealing outside the region rather than facilitating the development of westindian banking?
I hope everybody noticing the complicity of westindians in the decline of the region....the lack of developement of westindian independence.
absent from all this is a nationalist westindian orientation and focus that is palpable. I dont know where we are going to get without that!
that financial report what is it......an audited finacial statemtn that includes balance sheet/income statement etc...lisintg of transactions and full breadowns of each.....or just an unverified 'state of the institution' paper presented by the chair?
the state of things with the wicb is far worse than I thouth it was. so all the money the wicb earns is not used in the westindies, with westindian owned banks, contributing to the development of the region?
thats one way to help...do all your business in the westindies, so that the millions you earn spins around 3, 4 5 times in the region before it leaves again, bringing with it all the structural achievements along the way.
but the wicb must manage its business well...that does not appear to be the case from this statement here.
there must be westindian business consulting firms that coupld put the wicb on a proper footing..business plans covereing all necessary periods of time, advising on how to plan and effect projects to max out earnings etc!
how to manage the money as effectively as possible,,even set up investments for the wicb to generate extra cricket earnings to facilitate ever greater westindian cricket growth
what are westindian MBA's doing in the region...consulting forrin firms on how to invest in the region, colluding with them to rip off the westindies as usual..or finding ways to wrest the region financially form forrin western clutches?
to look at how the wicb does business according to this report, westindians are still bent on assisiting the forriner to have the region rather than developing independence. what is the wicb doing dealing outside the region rather than facilitating the development of westindian banking?
I hope everybody noticing the complicity of westindians in the decline of the region....the lack of developement of westindian independence.
absent from all this is a nationalist westindian orientation and focus that is palpable. I dont know where we are going to get without that!
-
BallOil
- Posts: 19409
- Joined: Thu Feb 04, 2010 11:12 pm
interesting stuff Soca....keep me coming...socafighter wrote:This is what I have difficulty with.Here is my simple explanation.
I hope the WICB have a one year business plan
A 3 year Business plan , and a 5 year Business plan.
The first year must be accurate ,the rest can be off a little.
To get proper Financing the bankers look at these figures very carefully, must have supporting documents.They dont like spikes in these reports.
In this article the first thing that strikes out is the Butterfield Bank , their strength is in Institutional and Wealth Management.
The WICB is primarily not a client, they will lend on strong collateral ,if they think it suits their interest.
Canadians hold the Senior positions at its head office in Bermuda.They most likely arranged the overdraft at
the United National Bank in England.
Whenever you have an institution like WICB with its history of Financial instability and debt,
you are in trouble to start with revenue increased by US$28 million, would scare the best
of Bankers.A Net Income of US$7,646,597.
Such growth rates are frown upon. Bankers are conservative.
the West Indies in 2009 from British Sky Broadcasting was US$12 million and US$845,000 from Taj TV.
India’s tour of the West Indies in 2009 the WICB received US$600,00 from British Sky Broadcasting and US$15.3 million from Taj TV.
The WICB collected US$400,000 when the team toured Abu Dhabi
US$2 million for the tour of England
US$4.6 million was received from ICC Events.
Total approx .....37 Million Dollars.
In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt,including sinking fund payments.
Net income divided by Total debt service equals....debt service deposit
The WICB took out a US$10 million loan and a US$2.5 million overdraft ..with Butterfield bank ,who are holding
their US$7.3 million debt service deposit.
To get 12.5 million ,they had to deposit the US 7.3 million plus listing
as collateral its projected earnings from International Cricket Council (ICC) for playing at ICC Events.
These events, between 2010 and 2015, are valued at US$64 million and includes television revenue between 2010
and 2012 from British Sky Broadcasting worth US$6.2 million.
Now you understand why.....Financial observers have also raised their eyebrows .
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre; to cover the operating expenses incurred for the ICC World T20 2010 Ticketing and Corporate Hospitality; and to meet obligations under the Future Tours Programme (FTP)
.
Funds have been sought to meet the start up and running cost of the Sagicor West Indies High Performance Centre;
The above long term debt.
to cover the operating expenses incurred for the ICC World T20 2010 Ticketing and Corporate Hospitality; and to meet obligations under the Future Tours Programme
This one is baffling .....have no idea.
WICB sinking to new lows 
-
BallOil
- Posts: 19409
- Joined: Thu Feb 04, 2010 11:12 pm
Massa gone but still remote controlling WI? What's next?mapoui wrote:you must be an accountant Bally ...or an MBA!
that financial report what is it......an audited finacial statemtn that includes balance sheet/income statement etc...lisintg of transactions and full breadowns of each.....or just an unverified 'state of the institution' paper presented by the chair?
the state of things with the wicb is far worse than I thouth it was. so all the money the wicb earns is not used in the westindies, with westindian owned banks, contributing to the development of the region?
thats one way to help...do all your business in the westindies, so that the millions you earn spins around 3, 4 5 times in the region before it leaves again, bringing with it all the structural achievements along the way.
but the wicb must manage its business well...that does not appear to be the case from this statement here.
there must be westindian business consulting firms that coupld put the wicb on a proper footing..business plans covereing all necessary periods of time, advising on how to plan and effect projects to max out earnings etc!
how to manage the money as effectively as possible,,even set up investments for the wicb to generate extra cricket earnings to facilitate ever greater westindian cricket growth
what are westindian MBA's doing in the region...consulting forrin firms on how to invest in the region, colluding with them to rip off the westindies as usual..or finding ways to wrest the region financially form forrin western clutches?
to look at how the wicb does business according to this report, westindians are still bent on assisiting the forriner to have the region rather than developing independence. what is the wicb doing dealing outside the region rather than facilitating the development of westindian banking?
I hope everybody noticing the complicity of westindians in the decline of the region....the lack of developement of westindian independence.
absent from all this is a nationalist westindian orientation and focus that is palpable. I dont know where we are going to get without that!
-
mapoui
- Posts: 8507
- Joined: Wed Apr 14, 2010 10:07 pm
man overdrafts are expensive. you want to have some kind of overdraft here if you may have to use one...but to use it as little as possible, for the shortest time possible to avoid interest changers.
interest charges can quickly eat up yuh revenue at that rate of use...10 million usd over a year.
thats seems crazy to me unless the wicb does not care, treating the insitution like government treats taxes and the peoples labour power..like an unlimited bank that will always replenish itself
interest charges can quickly eat up yuh revenue at that rate of use...10 million usd over a year.
thats seems crazy to me unless the wicb does not care, treating the insitution like government treats taxes and the peoples labour power..like an unlimited bank that will always replenish itself