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News and discussion about Manly-Warringah Sea Eagles
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DIEHARD
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Sea Eagles owners defend multimillion-dollar club loan as financial questions mount
The Penn family’s public claims of pouring money into struggling Manly mask a profitable empire built on interest-bearing loans and lucrative property sales worth tens of millions.
The Penn family have been quick to point out over the past week that they have have plowed millions into Manly in response to claims that penny-pinching is hurting the club on the field.
What they haven’t pointed out is that they’ve also made millions from their association with the Sea Eagles and stand to make plenty more if the club is ever sold or flushed with funds.
Manly is one of the least affluent clubs in the NRL and there have been periods over the years when the Penn family and their other minority owners have been forced to dip into their own pocket to help out.
That money hasn’t been a gift. It will be paid back - with interest.
Weekend Read can reveal that the Sea Eagles’ ownership group - of which the Penns are the significant majority—has a convertible note on the club that is worth nearly $10 million and is accruing interest, believed to be about six percent a year.
The loan amount can eventually be converted to shares. In the 2024 financial year - the last to be lodged with ASIC - the convertible note increased by more than $600,000 due to interest payments.
The note only becomes payable once the club is in position to pay the money back or the club is sold. Until then, the interest on the loan continues to compound.
Either way, it means the Penns and their fellow owners Andrew Michael and Gary Wolman stand to make a fortune from the growing value of sporting franchises in this country if they ever decide to part ways with the Sea Eagles.
“The ownership group, which includes the Penn family, has invested significant funds over many years to support the club’s operations,” a spokesman for Manly said.
“Those funds are structured using standard corporate instruments that would only be repayable if and when the club is ever in a position to do so.”
Part of the reason the owners have had to dip into their pocket over the years was, according to Penn, the lack of leagues club support.
The leagues club was actually in the hands of the Penn family about a decade ago, but they sold it to a consortium and walked away with a handsome profit.
There have been suggestions it was in excess of $20 million.
The new owners of the building charge the leagues club significant rent, which limits what they can pass on to the football club.
“The property was acquired by the Penn family at market value in 2009 providing the leagues club with a critical injection of cash at a time of financial need, following the GFC,” a spokesman said.
“The property was subsequently sold at market rates, with returns consistent with the performance of the broader property market over that period.”
The leagues club does pass on a small amount which is used for junior development.
The vast majority comes from the football club’s operations, which is largely generated via the grant from the NRL and game day earnings.
The sale of 25 per cent of the club to Wolman and Michael also generated a significant return for the Penn family - reports at the time suggested they were paid around $5 million for the stake.
The point is that it hasn’t all been one way. Yes, the Penns have stumped up when needed, albeit seemingly on the proviso that the money is paid back with interest.
But they have also generated significant sums for the family through their ties to Manly.
Now, questions have been raised over their ability to turn the Sea Eagles into competition heavyweights following their latest coach sacking: the axing of Anthony Seibold three games into the season.
Seibold joined a long list of coaches and chief executives who either left the club or were sacked over the past decade, many of whom were paid out in what was another drain on club finances.
The world is changing rapidly in the NRL. Rugby league clubs are big business as broadcast rights soar and leagues clubs expand into other interests.
Manly exists on one of the smallest budgets in the NRL and their ability to increase revenues is hampered by their failure to generate funds to develop their home ground at 4Pines Park.
The Sea Eagles punch above their weight, but the gap is only growing and chief executive Jason King is currently undertaking a sweeping review of where the money is spent.
Chair Scott Penn has confirmed that there has been subtle changes in the wake of medical retirements to Josh Aloiai, Lachlan Croker and Brad Parker.
In a sport where the difference between winning and losing can be measured in millimetres, every dollar counts.
The Sea Eagles insist that they fund the football department and salary cap to the maximum level, and say that reflects a strong commitment to on field performance.
No one doubts the owners’ commitment to winning. The only question is whether they have the financial muscle or desire to do what it takes to compete with the big boys.
Because there are some heavy hitters waiting in the wings, armed with bank balances that would make Manly among the richest clubs in the game.
The Penn family would walk away with a handsome profit on their initial investment.
The loans would be paid back, the club would start with a clean slate and money would no longer be an issue.
“Like many other professional sporting organisations, the club regularly reviews how resources are allocated to ensure it is best positioned to achieve its objectives,” a spokesman said.
“This is prudent, responsible management and is what our corporate partners, members and fans rightly expect.”
They also crave owners who are committed to winning regardless of the expense.
The Penn family’s public claims of pouring money into struggling Manly mask a profitable empire built on interest-bearing loans and lucrative property sales worth tens of millions.
The Penn family have been quick to point out over the past week that they have have plowed millions into Manly in response to claims that penny-pinching is hurting the club on the field.
What they haven’t pointed out is that they’ve also made millions from their association with the Sea Eagles and stand to make plenty more if the club is ever sold or flushed with funds.
Manly is one of the least affluent clubs in the NRL and there have been periods over the years when the Penn family and their other minority owners have been forced to dip into their own pocket to help out.
That money hasn’t been a gift. It will be paid back - with interest.
Weekend Read can reveal that the Sea Eagles’ ownership group - of which the Penns are the significant majority—has a convertible note on the club that is worth nearly $10 million and is accruing interest, believed to be about six percent a year.
The loan amount can eventually be converted to shares. In the 2024 financial year - the last to be lodged with ASIC - the convertible note increased by more than $600,000 due to interest payments.
The note only becomes payable once the club is in position to pay the money back or the club is sold. Until then, the interest on the loan continues to compound.
Either way, it means the Penns and their fellow owners Andrew Michael and Gary Wolman stand to make a fortune from the growing value of sporting franchises in this country if they ever decide to part ways with the Sea Eagles.
“The ownership group, which includes the Penn family, has invested significant funds over many years to support the club’s operations,” a spokesman for Manly said.
“Those funds are structured using standard corporate instruments that would only be repayable if and when the club is ever in a position to do so.”
Part of the reason the owners have had to dip into their pocket over the years was, according to Penn, the lack of leagues club support.
The leagues club was actually in the hands of the Penn family about a decade ago, but they sold it to a consortium and walked away with a handsome profit.
There have been suggestions it was in excess of $20 million.
The new owners of the building charge the leagues club significant rent, which limits what they can pass on to the football club.
“The property was acquired by the Penn family at market value in 2009 providing the leagues club with a critical injection of cash at a time of financial need, following the GFC,” a spokesman said.
“The property was subsequently sold at market rates, with returns consistent with the performance of the broader property market over that period.”
The leagues club does pass on a small amount which is used for junior development.
The vast majority comes from the football club’s operations, which is largely generated via the grant from the NRL and game day earnings.
The sale of 25 per cent of the club to Wolman and Michael also generated a significant return for the Penn family - reports at the time suggested they were paid around $5 million for the stake.
The point is that it hasn’t all been one way. Yes, the Penns have stumped up when needed, albeit seemingly on the proviso that the money is paid back with interest.
But they have also generated significant sums for the family through their ties to Manly.
Now, questions have been raised over their ability to turn the Sea Eagles into competition heavyweights following their latest coach sacking: the axing of Anthony Seibold three games into the season.
Seibold joined a long list of coaches and chief executives who either left the club or were sacked over the past decade, many of whom were paid out in what was another drain on club finances.
The world is changing rapidly in the NRL. Rugby league clubs are big business as broadcast rights soar and leagues clubs expand into other interests.
Manly exists on one of the smallest budgets in the NRL and their ability to increase revenues is hampered by their failure to generate funds to develop their home ground at 4Pines Park.
The Sea Eagles punch above their weight, but the gap is only growing and chief executive Jason King is currently undertaking a sweeping review of where the money is spent.
Chair Scott Penn has confirmed that there has been subtle changes in the wake of medical retirements to Josh Aloiai, Lachlan Croker and Brad Parker.
In a sport where the difference between winning and losing can be measured in millimetres, every dollar counts.
The Sea Eagles insist that they fund the football department and salary cap to the maximum level, and say that reflects a strong commitment to on field performance.
No one doubts the owners’ commitment to winning. The only question is whether they have the financial muscle or desire to do what it takes to compete with the big boys.
Because there are some heavy hitters waiting in the wings, armed with bank balances that would make Manly among the richest clubs in the game.
The Penn family would walk away with a handsome profit on their initial investment.
The loans would be paid back, the club would start with a clean slate and money would no longer be an issue.
“Like many other professional sporting organisations, the club regularly reviews how resources are allocated to ensure it is best positioned to achieve its objectives,” a spokesman said.
“This is prudent, responsible management and is what our corporate partners, members and fans rightly expect.”
They also crave owners who are committed to winning regardless of the expense.