ManxTaxPayer Posted October 18, 2016 Share Posted October 18, 2016 .....Still In The Pipeline "The final draft of a contract to run the TT is still a work in progress but it is expected to be finalised soon. Economic Development Minister Laurence Skelly said he didn’t want to be any more specific than that at this stage. The contract, with promotions company Vision Nine, was to have seen them take over the promotion side of the TT and Classic TT from next year but this has now been delayed until at least 2018 once all contractual details have been finalised. An announcement was originally made in March by the Department of Economic Development that it was to enter a 10-year deal with Vision Nine, promoters of the Boardmasters’ surf and music festival in Cornwall. Vision Nine, which already lists the TT in the ‘Events we produce’ section on its website, and illustrates it with a photograph of a road bike, hopes to increase visitor numbers to between 76,500 and 125,000 during the course of the next 10 years. The company hopes to get as many as 85,000 for the TT alone and aims to make the event more family friendly with a range of extra attractions that appeal not just to fans of the bike racing. ACU Events will continue to run the actual races. " Link to comment Share on other sites More sharing options...
ManxTaxPayer Posted October 18, 2016 Author Share Posted October 18, 2016 Lol.... Link to comment Share on other sites More sharing options...
Max Power Posted October 18, 2016 Share Posted October 18, 2016 Having admitted liability for the contract being unworkable, have we been exposed to a claim for costs to date and loss of profits? Vision Nine had raised venture capital to fund their foray into TT promotion, I imagine their backers will be expecting a return on that money by the end of 2017? We also have an issue for 2017 where all major sponsorship contracts had expired after the Classic TT. Can the government negotiate one year contracts or longer term on behalf of V9? Link to comment Share on other sites More sharing options...
Numbnuts Posted October 18, 2016 Share Posted October 18, 2016 I believe most issues have been dealt with roll over contracts to existing providers Link to comment Share on other sites More sharing options...
NoTail Posted October 18, 2016 Share Posted October 18, 2016 Correct But ...... Link to comment Share on other sites More sharing options...
notwell Posted October 18, 2016 Share Posted October 18, 2016 Having admitted liability for the contract being unworkable, have we been exposed to a claim for costs to date and loss of profits? Vision Nine had raised venture capital to fund their foray into TT promotion, I imagine their backers will be expecting a return on that money by the end of 2017? We also have an issue for 2017 where all major sponsorship contracts had expired after the Classic TT. Can the government negotiate one year contracts or longer term on behalf of V9? Lost profits? Move in to the real world please. Link to comment Share on other sites More sharing options...
Max Power Posted October 18, 2016 Share Posted October 18, 2016 Having admitted liability for the contract being unworkable, have we been exposed to a claim for costs to date and loss of profits? Vision Nine had raised venture capital to fund their foray into TT promotion, I imagine their backers will be expecting a return on that money by the end of 2017? We also have an issue for 2017 where all major sponsorship contracts had expired after the Classic TT. Can the government negotiate one year contracts or longer term on behalf of V9? Lost profits? Move in to the real world please. Whatever, interest will have to be paid on borrowings. Link to comment Share on other sites More sharing options...
notwell Posted October 18, 2016 Share Posted October 18, 2016 I doubt that. If they raised or sourced any kind of debt funding (questionable ) then they wouldn't or shouldn't be taking that funding until the deal is signed. All they've done to this point is throw together a proposal. Link to comment Share on other sites More sharing options...
Max Power Posted October 19, 2016 Share Posted October 19, 2016 A company which makes a loss such as V9 would find it difficult to raise a loan of £2.5m from a conventional bank, I would assume this would be venture capital? I guess the terms and conditions are a matter for V9. In making the proposal they have incurred significant costs and been awarded the contract, again incurring significant costs in preparation for 2017. Being fair to the DED, the contract was available prior to tendering, if there were any issues they should have been raised then. Link to comment Share on other sites More sharing options...
notwell Posted October 19, 2016 Share Posted October 19, 2016 A company which makes a loss such as V9 would find it difficult to raise a loan of £2.5m from a conventional bank, I would assume this would be venture capital? I guess the terms and conditions are a matter for V9. In making the proposal they have incurred significant costs and been awarded the contract, again incurring significant costs in preparation for 2017. Being fair to the DED, the contract was available prior to tendering, if there were any issues they should have been raised then. Ah right, so you've no idea what costs they've incurred. Let's be clear. They tendered for a contract. That's a written document and at best a presentation alongside it. I'm not sure how the costs are "significant". What costs will they have incurred "preparing for TT 2017" when they were advised of the issue so far in advance? How do you know they've borrowed money and how much? Link to comment Share on other sites More sharing options...
Manx Bean Posted October 19, 2016 Share Posted October 19, 2016 Its not often I support you Notwell, but here I do. Link to comment Share on other sites More sharing options...
woolley Posted October 19, 2016 Share Posted October 19, 2016 I'm not sure how the costs are "significant". Me neither. It's just that when our government is involved they have a habit of being. Link to comment Share on other sites More sharing options...
Max Power Posted October 19, 2016 Share Posted October 19, 2016 A company which makes a loss such as V9 would find it difficult to raise a loan of £2.5m from a conventional bank, I would assume this would be venture capital? I guess the terms and conditions are a matter for V9. In making the proposal they have incurred significant costs and been awarded the contract, again incurring significant costs in preparation for 2017. Being fair to the DED, the contract was available prior to tendering, if there were any issues they should have been raised then. Ah right, so you've no idea what costs they've incurred. Let's be clear. They tendered for a contract. That's a written document and at best a presentation alongside it. I'm not sure how the costs are "significant". What costs will they have incurred "preparing for TT 2017" when they were advised of the issue so far in advance? How do you know they've borrowed money and how much? Costs of spending a lot of time on the island with senior staff, after the acceptance by Tynwald, planning etc during this years TT.. The TT doesn't just happen and planning begins even before the previous years event is over. Contrary to what you believe, ten months is not 'far in advance'. The tender documents and rationale for acceptance were in the public domain and discussed in Tynwald. It was clear how much would be borrowed and the companies financial position was brought up by Juan Turner, Kate Beecroft and John Houghton. Link to comment Share on other sites More sharing options...
notwell Posted October 19, 2016 Share Posted October 19, 2016 You don't borrow money in advance of a deal without it being signed. End of chat. They can state how they are going to meet the plan (i.e with debt funding) but you are not going to even have access to the money until the deal is signed and delivered. It's very simple really. If you think they would somehow have grounds for litigation or costs you are not aware of how business works. Link to comment Share on other sites More sharing options...
Lxxx Posted October 19, 2016 Share Posted October 19, 2016 The more pertinent fact is that we are looking to give a contract to promote the most well known motorcycle event on the planet to a company whose claim to fame is hosting a surfing and music festival in Cornwall. Link to comment Share on other sites More sharing options...
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