Perth Glory in lease dispute
 with City of Fremantle

THE ink is still not dry on the Fremantle Oval lease and the City of Fremantle and Perth Glory are calling offside on the sweetheart deal.
Details of the lease dispute are contained in a confidential attachment to the report on overdue debtors (as at June 30) presented tonight behind closed doors at the audit and risk committee meeting.
Outstanding debts totalled $1,111,207, of which StreetWise understands the soccer club owes the City about $180,000 in outstanding rent plus GST, one of the biggest debts outstanding after more than 90 days.
Perth Glory initially proposed to use 1250sqm on the ground floor of the 2322sqm building space at $250 a square metre under a three-year contract, with a two year option to extend. The City would contribute $350,000 to $400,000 to upgrade the building for about 20 administration and coaching staff and about 70 players and Perth Glory would pay $312,500 a year or $26,041 a month plus outgoings.
City officers last year recommended to FPOL that Perth Glory provide a bond or bank guarantee to the value of three months rent and a personal guarantor.
The minutes of the September 8 FPOL show only one ‘essential term’ in the lease was changed by elected members. The guarantee. No bond or bank guarantee, but Perth Glory would pay six months rent in advance ($156,246) at the start of its lease on January 1 this year.
“The ‘guarantee’ terms are amended to include an upfront payment of six months’ rent to mitigate the fit-out costs,” the officers state. That was September.
By late October, the goalposts shifted when the council was presented with ‘updated’ lease terms officers described as “some minor changes” negotiated with Perth Glory.
“The Perth Glory Football Club is now seeking to use approximately 1528sqm (previously 1250sqm) at $185 per sqm (previously $250 per sqm) which would provide the City with income of up to $282,680 per annum (previously $312,500 per annum). The club will pay $7500 exclusive of GST per month for outgoings.”
Under these terms, Perth Glory would pay $141,342 up front (six months rent) and provide a personal guarantor and bank guarantee of three months rent.
In return, Glory has gained 278sqm of extra space for $29,820 less in annual rent.
StreetWise understands Perth Glory was not happy with the building at Fremantle Oval because it was not ready when it moved in despite the City’s commitment to have the space refurbished.
It is unclear whether Perth Glory has paid its rent instalment (which would have ‘mitigated’ the fit-out costs) or asked the City for a waiver given the confidential attachment is part of the outstanding debtors report. StreetWise has contacted Glory for comment.
Amounts of more than $50,000 have to be written off by council resolution, which can be rescinded and the debt reinstated if circumstances change. The Glory lease issue will be discussed at the next full council meeting.
The dispute also raises questions over the City’s $37m redevelopment of Fremantle Oval, which includes new clubrooms and grandstands, improved spectator facilities, lighting upgrades and realignment of the playing field to reconnect the oval to the heritage-listed Victoria Pavilion.
Additional stories at www.streetwisemedia.com.au.