Cash Plus owes football clubs Clubs yet to collect December payout from league sponsor BY KAYON RAYNOR Senior staff reporter raynork@jamaicaobserver.com Monday, December 31, 2007
Chairman of the Premier League Clubs Association (PLCA), Edward Seaga, says that if title sponsor Cash Plus cannot maintain its monthly payout to the group the nation's top football tournament "could be thrown into turmoil". SEAGA... it won't be long before some clubs start dropping out because it's not possible to carry on "... If they can't maintain their payments to us which is a monthly payment, it is going to throw the league into turmoil," Seaga said yesterday.
The newly-formed PLCA - which is an association of the 12 participating Premier League clubs - had not received December's payment and the PLCA head is a worried man at this stage.
"Well they've been up to date with us right through until December. December payment was missed," Seaga said at yesterday's premiership game between Tivoili Gardens and Seba United. Tivoli won 2-0. Seaga's concern for the well-being of the rebranded Cash Plus Premier League (CPPL) heightened after the Financial Services Commission (FSC) ordered Cash Plus Limited, an alternative investment company, to cease its securities trading operations until it acquired a licence and for it to stop soliciting business in the financial market.
"...And it won't be long before some clubs start dropping out because it's not possible to carry on (the league) without the sponsorship and the sponsorship was negotiated on that basis, so we hope that they can work out something satisfactory," noted Seaga, who is also chairman of Tivoli Gardens Football Club.
Seaga, a former Prime Minister of Jamaica, indicated that sums drawn down on the $150-million three-year sponsorship deal were re-invested into Cash Plus to accrue interest that would eventually benefit member clubs. "...The accumulation would be a great benefit to us (PLCA)... but the way it's looking now we have a problem with just getting the current payment much less accumulation," Seaga added.
Following the FSC order, Cash Plus asked investors to hold strain for a three-month period as they take steps to regularise in accordance with the FSC.
Yesterday this newspaper reported general secretary of the Jamaica Football Federation (JFF), Horace Reid, as saying he does not expect the FSC ruling to affect the island's top football competition, noting that the JFF and Cash Plus will be having dialogue soon over the matter.
"We intend to have some discussions re the situation, but we are not expecting any major problem," Reid said.
Seaga said that the PLCA will also be pushing for an urgent meeting with Cash Plus. "We will be having some discussions with them in order to ensure that something is worked out," he said, noting that the PLCA board is scheduled to have their next meeting on January 8, 2008.
While the JFF runs the CPPL, the PLCA takes care of the business side of the competition.
_________________________ "Victory" in wars are never about who is right or wrong but more about who is left standing.
They kicked long time sponsor Wray and Nephew to the curb when Cash Plus flash $$$ before their eyes. Now Carlos Hill has been exposed as a convict and Cash Plus has stopped paying dividends. Like dem say, "a bird in the hand is worth two in the bush"
The general feeling was that Wray & Nephew were forced to make way for the Carlos Hill-led Cash Plus that pumped in $50m a year for three years into the league - twice the amount being offered by the former and a deal the PLCA could not refuse.
does that answer your question Miss P, or we need more facts?
in any event, from day one i man did question how the NPL or the CPPL (Can't Pay Premier League ) could be sponsored by an 'unregulated' company. dat never seem too smart to a dunce like me
mi naw rejoice caw a nuff baller naw go get pay and a eediat ting dat but we fi learn and stop mek (the promise of) $$ blind wi loyal loyal Wray and Nephew dem dash weh suh??!! i man wouldn't surprised if dem come back come SAVE the league Price is a yute weh legitimately (sp) love ball, so if wray and nephew can do a ting he will some man just deh round the sport fi rob and plunder BUN DEM OUT!
I think princess is correct according to this quote from a prior article
Quote:
Cash Plus Jamaica Limited will be the new sponsor of the Jamaica Football Federation's (JFF) National Premier League (NPL) following the withdrawal of long-time sponsor J Wray and Nephew, the Sporting World understands.
Both the JFF and J Wray and Nephew released statements regarding their amicable split and that an announcement will be made shortly regarding the sponsorship of the league.
but it looks `like the League budget was getting too large
I find it hard to believe that W&N would just walk away from a league they supported for such a long time without a little push. It seems that they could not match the Cash Plus offer so they were pushed aside gracefully.
It is going to be interesting to see how the league will survive if Cash Plus cannot support it or payout on the money reinvested
I don't find it hard to believe that they would. I find it hard to believe they stuck with it so long, and figured it was the "Price" connection. What is the ROI for sponsoring the league? How has sponsoring the league helped the image of W&N or even helped the image of the league?
What role if any did the JFF have in securing Cash Plus as sponsors? Wasn't it the newly-formed-Seag-run league that secured that deal?
Btw, I was only asking the previous question, not making a statement.
I can't blame Seaga and friends from going with a Cash Plus sposnored league for that much more money. Who wouldn't? But just as the other thread talks about the security of these old 'new' investment schemes, the same way they could have looked at this offer from Cash Plus. In addition, couldn't CP put this money aside? Or write a big fat check at least for the first year or so? Don't know the details of the sponsorship contract?
Anyway, I see a bakery in the future of the once again re-named troubled league. What say ye, Humble? Price a bulla and patty rise?
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South Floridians for Asafa
Wha!! the Baker coming to the rescue again. That is not far fetched as Burrell have a way to take advantage of situations and end up looking like a saviour. I hope it does not get to that and hope Cash Plus can deliver. From what I have heard they have not paid out to their investors since november and they are asking for another 3 months to restructure. That is not a good sign.
sums drawn down on the $150-million three-year sponsorship deal were re-invested into Cash Plus to accrue interest that would eventually benefit member clubs. "...The accumulation would be a great benefit to us (PLCA)
But what I don't understand is this monthly pay out that keeps being mentioned. I am not sure I understand this kind of league sponsorship.
Lincoln, Karl, please break it down for me. Why would they set up a sponsorship deal like this? CP pays the clubs to run themselves? In exchange for what, only naming rights? I see the clubs or rather the PCLA are 'investment club members' of CP. And how does this work:
Quote:
While the JFF runs the CPPL, the PLCA takes care of the business side of the competition.
I'm not familiar with league set-ups and sponsorship of leagues like this. What business model was used to create this situation? Are there any other leagues in the world set up like this, if so, how is the sponsorship handled? Does it work, does it not work?
Lots of questions, I know.
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South Floridians for Asafa
Wha!! the Baker coming to the rescue again. That is not far fetched as Burrell have a way to take advantage of situations and end up looking like a saviour. I hope it does not get to that and hope Cash Plus can deliver. From what I have heard they have not paid out to their investors since november and they are asking for another 3 months to restructure. That is not a good sign.
Fan, when all is said and done, is HUMBLE fault! Him put him goat mout pon di Cash Plus and the walls come tumbling dung!
Is fi him fault!
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South Floridians for Asafa
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Some rich man ago dead because of the demise of Cash Plus. Remember mi tell u dat. Never box the food out of a poor man's mouth. A bare threat a send to the bank manager's and thing from wha day. I dont want what's going to happen to take place but all the years the bank them a rob the poor man and them just want to be able to continue doing so, thus, them get rid of Cash Plus, who mind you, were doing very well for it's 5 years out here.
. . .talking to the people in charge of 2 of the 'country' teams while I was home suggests to me that the league might not have 12 teams by about the middle of the season.
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Well mi can't blame them fi take Cash Plus offer. The offer from Wray and Nephew was just not enough. Teams were already not getting enough money and the JFF owed most of the teams. Teams couldn't get individual sponsorships
At the time the deal was done Cash Plus had no problem with the FSC, was expanding and growing so it is not like they were going out of business.
If you look at other cases such as Enron how they also sponsored teams and other entity, same thing happen to the league in England a few years ago when some company went belly up.
All Seaga them have fi do a go pon the phone and tell Digicel, Cable and Wireless, Butch Stewart, Issa, Scotia bank and NCB,etc why them why them fi sponsor the league.
One startling thing about this thread is that so many people have professed an understanding why the Premier League fell into the Cash Plus trap. This, even as the League teeters on the bring of crashing!
Folks you don't need to be financial geniuses to have suspicion about something that appears too good to be true...sometimes a little common sense will do. If investments in JA were legitimately returning 120% a year, then Wall Street would be pumping money into yard, not China or India.
But the most startling of all is that no one less than an erstwhile prime minister and financial guru with a Harvard education was blinded by nothing more than the flash of cash!!!
The again, what do I know, I didn't go to Harvard.
As to those with their hard-earned money at Cash Plus' mercy, good luck. You're going to need it!
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The surest sign other intelligent life exists in the universe is that it hasn't tried to contact us.
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It look like unnu underate Seaga
PLCA’s has contingency plan following Cash Plus desist order Monday, 31 December 2007 Chairman of the Premier League Clubs Association (PLCA), Edward Seaga say they have a plan 'B' should sponsors Cash Plus Limited be unable to pay monies to clubs and run the island's top club competition.
The PLCA say it has not received monies for December from Cash Plus, to the run the premiership, as well as the prize money for end of first round champions Portmore United & runners up Tivoli Gardens.
However, Cash Plus stated that as far as they were concerned the money was already sent to the PLCA.
The alternative investment club, which pledged $150 million for the running of the league for three years, will now do an internal check to see what exactly the problem is.
Mr. Seaga says although the PLCA has a contingency plan, he admits that the cease and desist order issued on Cash Plus may affect the monies which should be handed over to the clubs.
Earning 120% on your money is no big deal since I have worked with guys who have seen returns much greater,for example, a colleague of mine turned $3000 into $8 million during the Dot.com era and many others who turned $10k or $20k into over $500,000. As long as these people are not guaranteeing 120% rate of return annually,and explaining the trade off between risk and return then it's not a leap to see these types of return. For example Google's IPO was $80 and today it's trading at around $700.
There are several mutual funds that have seen returns close to 100% and over like Exel China or HSBC China Equity. There are some funds that have seen 30% returns for the last 5 yeears. Now, mutual funds are supposed to be one of the safest financial instrument in the industry excluding fix income.
Forex is supposed to be able to get you extraordinary return if the trader knows what he is doing but there is always the potential of losing all of your money.
Cash plus doesn't have a liquidity problem but a compliance one. They are being asked to comply to industry standard which granted they won't be able to do since being compliant means awhole of things which is going to take time. If you have ever worked in a bank or taken a audit course you will know what I am talking about.
Cash plus missing December's payment shouldn't come as a surprise since what is being asked of them is huge.
I think calling out Boxhill on this would be hypocracy. Every one on here thought it was a good deal. All the parties in volved in NLP clubs did also. This cash plus sponsorship, rang up $$$$ signs in the club owners/managers/presidents eyes, hence the PLCA birth. Some people did questions the rapid grow of cash plus in jamaica and his background, but all in all we thought it was a positive signing. So, too where the impression given by W&N when Price said he and his company (employer) would not hinder JA's grow.
Conspiricy or not, i can't see W&N stepping aside with out a fight just to teach Boxhill and JA a lesson. Reid at Portmore had not negative comments at the time so i don't expect any now.
Funny thing here is will Burrell sue CP for BREACH OF CONTRACT and demand at least one months dues payable to all parties should CP have to set aside?
People, the biggest problem i see here is Jamaica's marketing strategy with sponsors on NPL. ONE NAME SPONSOR on ALL TEAM JERSEY, this makes no sense. If this was such solid business thinking, why aren't the other leagues of the world doing this?
Burrell will step up with the Captain Barkery NPL.
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Words can be like baseball bats when used maliciously.
What terminator said was my thought but as I'm sometimes financially challenged I could not translate or communicate in financial terminology as astute and concise as my learned colleague Termi "i will be back" nator..
Unuh leave cash plus alone. Furthermore I cannot recall the CP investment dudes ever investing without announcements that they have obtained titles, deeds and agreements outright. Thus I contend that they CP, must have done a deal suggesting all monies was sorted b4 hand. Cant believe Seaga and Co. would have done otherwise. So I pray they are not using the CP fiasco to cover other tracks.
What is funny is how all the clubs were in favor of a deal that allowed them to obtain other sponsorships. But all I see is Cash Plus on jerseys. Seems like Cash Plus has simply replaced W&N. Where's the initiatives and ideas from the clubs to attract their own investments.
Why couldn't everything be as simple as assuming soon it will be the Horace Burrell NPL.
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They make the world so hard
ms p say a mi 'lion mouth' mek di ting a hitch bwoy mi a tell yu, all when mi name change it easy fi call
mi read seh the fsc man dem haffi step up security mine yu mek mi haffi step up mine to, caw people wi beleive yu seh mi a fight di ting
a muss ole mi a get, caw mi tend fi question everyting yah now and a caan parro, caw mi doc seh fi low di smoking but if yu know seh cash plus under 'pressure' , why use dem as a SOLE sponsor?
as karl seh, yu no keep wray and nephew $$, and den tek cash plus own to a wha? cash plus want all or nothing? or was that wray and nephew?
whoever it was tek a 'gamble' wid di ting and seeit deh now
rum money may no nuff nuff but it 'perpetual' white rum? weh everybody put inna dem christmas sorrel?? weh we drink a nine night?? can't stop sell
