Financial Matters

The Queensland Cricket

Loan Scheme .

1. INTRODUCTION

Most Associations and Clubs affiliated with Queensland Cricket (affiliates) hold playing fields and club facilities on leasehold land. As a consequence, considerable difficulty is faced obtaining loan funds for the construction of new facilities from a mainstream financial institution at a reasonable rate of interest. It is considered appropriate that Queensland Cricket act as a lender of funds to affiliates for the purpose of building new playing or club facilities or ground amenities or to purchase heavy machinery for grounds maintenance and preparation. Associate members are also included in this scheme. This paper outlines the process for providing a Loan Fund Scheme available to all affiliates or associate members on a competitive basis.

2. AIM

This scheme will provide a pool of $100,000p.a. for five years from which allocations are made twice a year to provide loans to affiliates to assist in providing new playing or club facilities for members. This scheme will operate on a trial basis for a period of five years (to 31 May 2010) and then be reviewed comprehensively to determine whether or not it has proved sufficiently useful to justify its continuance. This scheme will complement, not replace, existing grant schemes offered by Queensland Cricket to its affiliates.

3. OPERATION OF THE SCHEME

3.1 Purpose

Affiliates may apply for a Queensland Cricket Loan (QCL) up to a maximum value of $25,000 to fund projects to build new cricket fields, practice facilities, club facilities or ground amenities or to purchase heavy machinery for grounds maintenance and preparation. Projects that relate directly to substantial renovation of existing fields or facilities also qualify for consideration. Several minor projects may be combined in one QCL application provided that all of the minor projects form part of a formal master plan prepared by the affiliate.

3.2 Support Funding
Applicants will need to demonstrate that the affiliate has applied for, or proposes to apply for, a grant or grants from government or private organisations. Specifically, it is envisaged that an affiliate may use the formal written approval of a QCL as a demonstrated commitment of funds for the purpose of applying for matching or contributory grants. In any case, QCL funding will be provided on a 50/50 basis with funds from other sources.

3.3 Payment
The funds applied to a successful QCL will remain with Queensland Cricket until the affiliate or associate member awarded the loan demonstrates that the money is required to make payments related to the project for which the QCL is approved. Interest will accrue from the date that the funds are transferred to the affiliate s or associate member s account.

3.4 Frequency of Applications
No affiliate or associate member may be awarded more than one QCL before 1 June 2007. Between 1 June 2007 and 1 January 2010 no affiliate or associate member shall hold concurrent QCLs which total more than $50,000.00 award value.

3.5 Repayment
A QCL is offered at an annual interest rate of 5%. The amount of interest payable per quarter is calculated using the outstanding QCL balance at the end of the previous quarter, or for the first part quarter, the date the QCL was first drawn.
The QCL principal in full, with interest, is repayable over five years in quarterly rests. The maximum required annual repayment under these provisions is $6,156.26, being $5,000.00 principal and $1,156.26 interest, in the first year of a $25,000 QCL. The corresponding maximum quarterly amount is $1,562.50, being $1,250.00 principal and $312.50 interest in the first quarter of a QCL.

Repayments will be due on the last working day of each quarter, viz June, September, December and March.

Early repayments of part or all of a QCL is encouraged and will be considered favourably when assessing subsequent applications for a QCL from that affiliate or associate member.

4. ADMINISTRATION

4.1 Timeframe
Applications for a QCL must be received by Queensland Cricket no later than the close of business on the first working day after 31 October and 31 January each year. Applications received after this date will be given low priority and may not be considered until the next cycle of QCL applications.

4.2 Supporting Documentation
Applications must demonstrate:
(a) the need for, and benefit of the project,
(b) the number and type of cricketers who will benefit from the project,
and
(c) the period of the year the new facilities or equipment will be used.

It will be necessary to lodge
(a) a copy of the affiliate s or associate member s tenancy agreement
(minimum five year term remaining)
(b) copy of the affiliate s or associate member s business plan
demonstrating the affiliate s or associate member s strategy on
participation; retention and volunteers
(c) a declaration confirming that the affiliate or associate member does
not allocate any of its funds to pay players.

4.3 Benefits
Preference will be given to applications that demonstrate that the project will benefit the highest number of cricketers, provide a benefit to the broadest coverage of male and female cricketers and be used for the longest period of time each year. For this purpose, the following weights will be applied:
(a) male cricketers over 18 years of age = 1.0
(b) female cricketers over 18 years of age = 0.5
(c) male cricketers under 18 years of age = 0.5
(d) female cricketers under 18 years of age = 1.0

4.4 Repayment Method
Applications must demonstrate how the affiliate or associate member proposes to repay the QCL. This will require the submission of the affiliate s or associate member s two most recent audited annual profit and loss statements and balance sheets as well as projections for its anticipated major revenues and expenses for the period of the QCL, ie a business plan for the period of the QCL.

5. ASSESSMENT

5.1 Sub-Committee
All applications for a QCL will be considered by sub-committee comprising:
(a) a Director, appointed as Chairman
(b) another Director
(c) the Commercial Manager, Queensland Cricket.

5.2 Role of Sub-Committee
This QCL sub-committee will assess all applications during the months of November and February each year and determine which QCLs will be approved for funding no later than 30 November and 28 February each year. The sub-committee may only recommend QCLs that can be accommodated by the total funds allocated for QCLs in each assessment cycle. For each assessment cycle, the sub-committee will recommend the QCLs approved to the Board of Queensland Cricket for endorsement, or otherwise, as well as a list of applications considered eligible for a QCL but unable to be funded.

5.3 Re-Submit
Affiliates or associate members may resubmit an application to a later QCL assessment cycle.

5.4 Board
The Board of Queensland Cricket reserves the right to cancel or suspend the QCL scheme at any time.

6. CONCLUSION

The QCL scheme will establish a new avenue for loan funds available to Queensland Cricket affiliates or associate members which operate in the financial world often with the disadvantage of holding their most significant assets on a leasehold basis. The scheme will assist and reward affiliates and associate members which seek matching or contributory grants from government and private organisations. It will thus encourage affiliates and associate members to seek such grants. The scheme will provide another form of assistance and encouragement to affiliates and associate members to plan for the provision of new cricket related facilities or equipment or the renovation or replacement of dilapidated cricket club facilities.

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