GC Board on the ropes?

Some of us will have seen the WhatsApp messages this week about the troubles in GC country.

See below

Turf Talk
A storm has erupted in Gold Circle country after a threat of legal action against the Gold Circle Board served on Thursday, 11 June, by high-profile businessman and racehorse owner, Nic Jonsson. It concerns the release of ring-fenced funds required to maintain racing’s operations in the region.

Jonsson’s legal move follows the convening of a Special Gold Circle General Meeting next Thursday,18 June, to be held via the electronic meeting platform Zoom, at which the Board will be asking members to remove any impediment in the constitution and the Memorandum of Incorporation (MOI) that safeguards the ringfenced funds from the sale of the Clairwood property. The ringfenced amount is said to be R242-million - Read More www.turftalk.co.za/storm-erupts-over-gol...s-ring-fenced-funds/

Some background

The wisdom of those who had insisted on the ring-fencing of half of the proceeds of the sale of Clairwood Park eight years ago, has ensured that horseracing in KZN should survive the latest and greatest challenges facing the sport globally.

On a South African racing landscape littered with victims of battle, Gold Circle appear to be the one bright light capable of navigating their way out of the current situation and chartering into calmer waters. That could be achieved under a unified front, or a on a go-it-alone basis.The future remains fluid in the current time.

Gold Circle Chairman Neil Butcher writes in a recent letter to Members that without any revenue streams for the last two months and negative investment results, the company is expected to post losses of around R70 million for the financial year ending 31 July 2020. Read more www.sportingpost.co.za/2020/05/gold-circ...aces-the-challenges/

My mates and I are with the Jonssan family on this, we surfed with these guys in Dbn growing up, proper people!

My mates didn't do much surfing.They were involved with horses all of their lives.

This is the ripple effect of Phum not paying over to GC the money which is owed to them....

@louisg perhaps you would be so kind as to give us your view about the allegation by a poster on SP that GC have not lodged a claim for the 70 bar they are allegedly owed by Phumelela?

Business rescue on the cards?

Maybe too many cooks earning executive chef salaries?

It’s such a great racing centre, with great crowds and vibe. Should be very easy to sort out.

I see some not so nice things being said about Mr Jonsson... I wonder why these not so nice things were not said about Jooste when he was destroying Racing?

Because there is big a difference in inheriting everything from your daddy and fleecing a listed company by over ballooning the share price.

i think ota had hit the nail on the head. what about the 80 odd receivable due from mp. overlooking that and then having to raid the family silver. business rescue should be the next option. then the mod squad could step in and unify racing under one umbrella which surely has to happen. maybe thats whats behind this whole thing.

......I quite like the Goose's post on this matter in the SP....

So if I understand they don't want the UNCONDITIONAL use of the funds and want accountability and checks and balances and a solid forward plan - I think this is the most reasonable objection ever

OTA, that is untrue. The claims have been lodged, a mixed batch which totals close to R100M...
Rescue not ready and wanted extension to end August, but now will only extend to end July..

Mr H ,

I just think that there is a proper manner of doing things. This whole thing appears to be improper.

The 11th hour letter, the failure on more than one occasion to pitch up to a meeting to discuss issues with GC Board, the dishonest and also illegal manner of obtaining and circulating GC members details, the fact that all in Racing will suffer if we now have to close again, yet the very people forcing the closure are pointing fingers, creating uncertainty. This appears to be deflection at it's best and if anything, it is proof that we must tread warily now. This whole 11th hour objection thing appears to lack integrity..... maybe the state of Denmark refers?

We all know that even with the negative impact of Covid, GC would still have been ok, had Phum paid them. Now we are suddenly trying to stop them from accessing the fund to keep going, because we dont trust them....?