Exactly how it should be.
If the Hawks had listened to this rather than a suck it and see and getting the public to fund them approach, the reality wouldn't now be dawning on them.

We need this guarantee to ensure that owners are serious about ownership. A bank guarantee doesn't mean you have to give $1M to the NBL for them to live off the interest, it means that if the club you own goes bad, then the NBL can extract $1M from your Gold Coast "holiday house" to pay the players and support staff.

Exactly.
I can't understand why so many one-eyed people are whinging about this and other trivial issues that are designed with a purpose.
If the Bullets or the Sixers were in the same situation, I'd say the same thing, but it's a shame that some peoples' opinion on it depends on which team they happen to support.

after all the issues last season it is a must to have that cash, no point recruiting broke teams to start a broke new league

ah actually it does cost you money.

it costs money to set up the guarantee.

Also if they want a true guarantee then property will not suffice, it will need to be a liquid asset usually cash.

Not only bank fees but legal fees as well to consider which usually relate to the amount.

If it is cash that means you have one million dollars tied up that you can not use, which also comes at a cost. Not just actual cost but also opportunity cost in that you can not use that money for anything else.

Actually, you can stick it in the bank and get better than CPI interest rate while still having access to it when you need it. Still, I guess the the point is you're not going to be able to get what you might if you invest it in something more speculative, like shares. You know, -30% last year...

However, there is a nother perspective, which is that the $1 million is part of investing in the NBL licence you get with a club. If you feel that's going to appreciate in value then you do your sums based on how much you think it will grow before you sell (your stake in) it. Just like any other investment.

Third perspective is you don't really care about the investment return, you just want to own an NBL club and are happy to just break even for as long as you do. Hey - everyone needs a hobby

It's all about values.

actually peter you can not access the cash you have put up for the guarantee, that is the point of a guarantee in that if you call on it you can walk into the bank and call on the guarantee right there and then.

no oh sorry the guy who put up the guarantee only has $50 left with us but here is his number.

Better than CPI is not quite true as well as any interest that you earn is income and so therefore taxed at the appropriate rate( lets say 30%) so you need to discount the rate you are quoted by that before you can say that you are getting better than CPI. In most cases your cash is going backwards in a bank account.

Further to this the NBL has a right to do spot checks on your 500k working capital. so you need to have 1.5m on hand at any time to be compliant with the NBL.

NZ are allegedly putting up there new courts etc as the $1mill guarantee.
Most teams it seems wont have the $1mill. bannk guarantee.
$.5mill as working capital is a joke as well.
Esp if a club spends $2mill on players alone.

'NZ are allegedly putting up there new courts etc as the $1mill guarantee.
Most teams it seems wont have the $1mill. bannk guarantee.
$.5mill as working capital is a joke as well.
Esp if a club spends $2mill on players alone.'

How can a team spend $2mill on players if the cap is set at $1.3mill?

If you cannot come up with $1mill, you should never be in a situation to even consider buying or running an NBL team. It's an absolute joke all these people want to have a team when they cannot even afford to pay the full salary cap to it's players.

I need a guarantee!!

Wasn't one of the criteria that each club had to have 3 owners/shareholder to spread the load and the responsibility?
Surely, even in these difficult times, if you were going to get 3 successful business people involved, you would expect that they could easily come up with $500k each, I mean how many CEO's get paid out multi millions in bonuses and payouts? Somebody's got the cash, surely if your dynamic and successful, you know how and where to get the cash.
Oh and bye the way, to me success is not someone who rides the wave when the economy is booming, I'm talking about someone who's survived through the tough times.

So what teams have put up the $1m bank guarantee?

Good point about clubs that whinge about the bank guarantee but are clearly able to fork out more than that on their roster- clearly they have the money, but they choose to (unwisely) spend it elsewhere.

The NBL should create a opportunity and criteria for more teams to be in the league and help provide a pathway for the last original team. They have always paid their bills and always paid their players since thier involvemaent. They have actually helped save other teams during 31 involvement.
Find a way to keep this team in.
The AFL would do it. But they are a professional organisation ran by competent people

Gujurat NRE help save ahm Hawks with $1 Million guarantee.

www.savethehawks.com