Embattled law firm Slater and Gordon pulls Western Bulldogs sponsorship

[BulldogBelle]

April 20, 2016 8:32pm
ANTHONY GALLOWAYHerald Sun

The Western Bulldogs no longer list Slater and Gordon as one of its “Platinum Partners”.

EMBATTLED law firm Slater and Gordon, which has 10 days to convince lenders not to call in its loans, has pulled its platinum sponsorship of the Western Bulldogs.

The AFL club no longer lists the class action law firm among its “Platinum Partners”, though the firm is understood still to be a sponsor.

Slater and Gordon, which posted a six-month loss of nearly $1 billion until December, has had a long association with the Bulldogs and it is understood it is still a significant sponsor of the club.

It is unclear whether Slater and Gordon has pulled back on other sponsorships.
Slater and Gordon has had a long association with the Bulldogs. Picture: Michael Klein.

In recent years, the law firm has had a significant advertising presence at AFL stadiums, been the naming rights sponsor of the Football Integration Development Association and was the major game day sponsor of the Robert Rose Cup between the Bulldogs and Collingwood.

It was also announced last year the company would be the “official law firm” of the Australian Olympic Team at Rio.
Other Stories

A spokesman for Slater and Gordon declined to comment.

The law firm has until the end of this month to satisfy its bankers — including National Australia Bank and Westpac — that it can remain viable.

If the banks do not agree with the firm’s proposal, they can demand that loans are repaid within 12 months.

About 3000 shareholders have signed with rival firm Maurice Blackburn for a class action, while Sydney-based firm ACA Lawyers has also secured funding for its own action on behalf of aggrieved Slater and Gordon shareholders.

ACA Lawyers principal Bruce Clarke said he hoped Slater and Gordon came to an agreement with the banks to refinance its loans.

Slater and Gordon’s share price, which last year topped $8, closed yesterday at 27c.


http://www.heraldsun.com.au/news/victoria/embattled-law-firm-slater-and-gordon-pulls-western-bulldogs-sponsorship/news-story/49a8961e57c74fafd809d561f5815fec

[ledge]

How do you lose 1 billion in 6 months ?? Wow

[Twodogs]

How do you lose 1 billion in 6 months ?? Wow


Invest in a dodgy investment. It's the market mate.

[bulldogtragic]

Shit. Ok, let's use a sophisticated weather machine known as a 'laser'. We will use this 'laser' to threaten to destroy the protective barrier around the world known as the 'ozone layer'. Thereby rincreasing the risk of skin cancer. That is of course, unless the world sports businesses pays us hefty new sponsorships.

[Throughandthrough]

How do you lose 1 billion in 6 months ?? Wow


Purchase a UK business for 1.3 Bill, and then revalue the business to just about nothing within 12 months




http://www.businessinsider.com.au/slater-and-gordon-posts-a-958-3-million-half-year-loss-with-heavy-writedowns-2016-2

[Greystache]

Shit. Ok, let's use a sophisticated weather machine known as a 'laser'. We will use this 'laser' to threaten to destroy the protective barrier around the world known as the 'ozone layer'. Thereby rincreasing the risk of skin cancer. That is of course, unless the world sports businesses pays us hefty new sponsorships.

Um... That has already happened sir.

[bornadog]

Purchase a UK business for 1.3 Bill, and then revalue the business to just about nothing within 12 months




http://www.businessinsider.com.au/slater-and-gordon-posts-a-958-3-million-half-year-loss-with-heavy-writedowns-2016-2

That was a disgraceful move and has really stuffed the whole organisation. The whole board needs to be sacked including the CEO.

[bulldogtragic]

That was a disgraceful move and has really stuffed the whole organisation. The whole board needs to be sacked including the CEO.

There's not going to be a Slater & Gordon soon. Once the current class action against them really heats up, it will be wound up. Peter Gordon made yet another astute decision to sell his considerably interest a few years back.

This also means the posters in the coaches box won't have them on it. I wonder if we can get WOOF on the poster... :D

[bornadog]

There's not going to be a Slater & Gordon soon. Once the current class action against them really heats up, it will be wound up. Peter Gordon made yet another astute decision to sell his considerably interest a few years back.

I wonder if we can get WOOF on the poster... :D

Of course you can just cough up the platinum sponsorship amount.:D

[Twodogs]

That was a disgraceful move and has really stuffed the whole organisation. The whole board needs to be sacked including the CEO.

They reckon they can't sack the CEO because the role takes specialist knowledge and experience to carry out, seriously! I don't know how much more specialist knowledge and experience the company can withstand though.

[bornadog]

Slaters almost folded in the late 1980s. However, the head partner at the time raised funds (personally with big risk to himself), bought out the other partners and saved the group. My wife was embroiled right in it, as she was the PA to the head partner. Once they got going again and won some big asbestos and other cases, the head partner brought back in other partners and got his money back. It was a stressful time.

Hopefully the group can hold together and somehow get out of its current predicament.

[Eastdog]

$8 to 27c - a dramatic decrease in the share price. What do you reckon the main reason for the huge dip?

[bulldogtragic]

Of course you can just cough up the platinum sponsorship amount.:D

We got Tom Boyd. Got the club to permit to collect members packs to go to local kids. Created a walk to The G. And do all the research for the footy 'journos' across the sector. Stuff platinum... That's got to be worth major sponsorship! :D

The WOOF & Mission Western Bulldogs Football Club. Has a good ring to it.

[jeemak]

Slater and Gordon will make great case study fodder for international business students.

[Twodogs]

$8 to 27c - a dramatic decrease in the share price. What do you reckon the main reason for the huge dip?


They bought out a large English law firm which had a lot more debt attached to it than they realized/had been told about. It looks to me that they saw the sale price and forgot to do their due diligence


Its another shining example of why companies should stick to their core business (what they are supposed to be doing) and leave money making to the banks and financial institutions.

[Eastdog]

Thanks for that TD. So where do you see it going from here for Slater and Gordon?

[bornadog]

They bought out a large English law firm which had a lot more debt attached to it than they realized/had been told about. It looks to me that they saw the sale price and forgot to do their due diligence


Its another shining example of why companies should stick to their core business (what they are supposed to be doing) and leave money making to the banks and financial institutions.

The British Government is changing the laws on compensation from traffic accidents which has severely dented income. The majority of income for the UK firm comes from compensation recovery, but the British government has lowered the threshold and this has impacted the earnings dramatically.

Now S&G are writing off the goodwill they paid for the UK arm. Mainly because it is not worth the amount they paid for it. They paid $1.3 billion and writing off over $800k.

Yes debt in the UK firm has increased dramatically and they are finding it hard to service due to lack of cashflow.

[jeemak]

Here's something useful Eastdog.

http://www.smh.com.au/business/workplace-relations/more-to-slater--gordons-problems-than-just-the-uk-20151224-glup2a.html

TD's right, but it's also a matter of acquiring a whole bunch of businesses that don't have the capacity for growth that's forecast to the market.

[Throughandthrough]

The Slater and Gordon brand is completely shot. And I don't know but I guess that Peter Gordon has or will take a large haircut from the collapse. I guess questions will be asked whether he's still allowed to be a president of a footy club. As an example (and not saying that he will) if he went bankrupt things would be bad in many levels. Don't take this the wrong way, I idolise PG, just talking hypothetically.

[dadsgirl16]

I didn't think PG was the "Gordon" part in the Slater and Gordon??

[bornadog]

The Slater and Gordon brand is completely shot. And I don't know but I guess that Peter Gordon has or will take a large haircut from the collapse. I guess questions will be asked whether he's still allowed to be a president of a footy club. As an example (and not saying that he will) if he went bankrupt things would be bad in many levels. Don't take this the wrong way, I idolise PG, just talking hypothetically.

Peter is not on the board, is not an employee and I don't believe he is a shareholder, so your statement is not correct.


I didn't think PG was the "Gordon" part in the Slater and Gordon??

Correct.

[jeemak]

According to this he took 5.94m shares with him as he departed as director in 2010.

http://www.crikey.com.au/2016/03/03/mayne-who-can-rescue-slater-gordon/

Hopefully he didn't hang on to them!

[Webby]

Peter Gordon has nothing to do with Slater & Gordon apart from being a former partner. He is not "the Gordon" in the name. (I believe they were called Slater and Gordon since before PG was born, btw!) He had a good career with them. (Remember he is just a kid from West Footscray, so there was no inside rail given to him!) He became a senior partner and won a large class action with them several years ago. That was prior to him cashing in his chips and starting his own firm, Gordon Lawyers.... Or is it Gordon Legal?

Anyhow, he obviously has contacts at Slater & Gordon and I guess would've been influential in them sponsoring us. He did, to my knowledge, receive shares in them upon departure and, indeed, hopefully he disposed of them over the past few years. I expect he would have cashed out at least some, if not all of them.

Talk about his presidency being affected by this is sheer hysteria. Uneducated pub talk, I'd expect!

[bulldogtragic]

I didn't think PG was the "Gordon" part in the Slater and Gordon??

He wasn't, isn't. But he was a partner when they floated it. Coincidental surname.

[Greystache]

The Slater and Gordon brand is completely shot. And I don't know but I guess that Peter Gordon has or will take a large haircut from the collapse. I guess questions will be asked whether he's still allowed to be a president of a footy club. As an example (and not saying that he will) if he went bankrupt things would be bad in many levels. Don't take this the wrong way, I idolise PG, just talking hypothetically.

Western Mining is in real trouble too, it's share price has dropped 99% in the past 12 months. Does that mean there's doubts to the viability of the Western Bulldogs as a going concern, we both share the name Western?

[Greystache]

He wasn't, isn't. But he was a partner when they floated it. Coincidental surname.

Hugh Gordon founded Slater & Gordon along with Bill Slater in 1935.

[Axe Man]

Media reports are incorrect, Slater & Gordon still a platinum sponsor!

Club Statement: Slater + Gordon Partnership (http://www.westernbulldogs.com.au/news/2016-04-21/club-statement-slater-gordon)

Please find below a statement from the Western Bulldogs Football Club:

As was publically announced by the Western Bulldogs at the Club's Season Launch in March, Slater + Gordon will once again be one of the Clubs’ platinum partners in season 2016.

In January, the Club agreed on a new three-year agreement which will once again see the law firm be one of the Club’s most important corporate supporters.

Slater + Gordon provided its Footscray offices free of charge for the three weeks of the campaign in 1989 to save the Footscray Football Club.

Since that time, it has contributed millions of dollars in sponsorship to the Club and it remains a vital cog in the Club’s resurgence on and off the field.

Most of the law firm’s support has been in the area of the Club’s community services ranging from the Care for Kids campaign of the early 1990s right through to the Robert Rose Cup and #disabilityinclusion games between the Bulldogs and Collingwood over the last three years and extending to the next three.

The Bulldogs regret the inaccurate reporting of this matter yesterday.

[bulldogtragic]

According to this he took 5.94m shares with him as he departed as director in 2010.

http://www.crikey.com.au/2016/03/03/mayne-who-can-rescue-slater-gordon/

Hopefully he didn't hang on to them!

I recall he sold them, but I'm not 100%.

[Ghost Dog]

Someone just got egg on their face.....
Another victory for the Western Bulldogs! Keep racking them up people....

[bornadog]

Anyhow, he obviously has contacts at Slater & Gordon

His son works there.

[Cyberdoggie]

They bought out a large English law firm which had a lot more debt attached to it than they realized/had been told about. It looks to me that they saw the sale price and forgot to do their due diligence


Its another shining example of why companies should stick to their core business (what they are supposed to be doing) and leave money making to the banks and financial institutions.

Hehe yeah, you would think being lawyers to begin with would suffice. Those guys charge you just to read an email.

[Axe Man]

His son works there.

Patrick Gordon works for Robert Stary I believe, not Slater & Gordon.

http://www.starylaw.com/melbourne-1/patrick-gordon

[Twodogs]

Thanks for that TD. So where do you see it going from here for Slater and Gordon?

Don't really know Easty.



I didn't think PG was the "Gordon" part in the Slater and Gordon??

I believe the original Gordon died when his plane went down during a bombing raid in WWII.

[GVGjr]

I'm glad some clarity around the S&G sponsorship has been sorted out for everyone. It just goes to prove that one inaccurate report can lead to a heap of speculation.

[F'scary]

They bought out a large English law firm which had a lot more debt attached to it than they realized/had been told about. It looks to me that they saw the sale price and forgot to do their due diligence


Its another shining example of why companies should stick to their core business (what they are supposed to be doing) and leave money making to the banks and financial institutions.

I thought what did them in was a stroke of the pen change in a compensation law in the UK that cut the lawyers out.

[Eastdog]

Some background about Slater and Gordon

https://www.slatergordon.com.au/firm/our-history

[Eastdog]

Hehe yeah, you would think being lawyers to begin with would suffice. Those guys charge you just to read an email.

Yes I've heard that they do charge quite a bit.

[Greystache]

I thought what did them in was a stroke of the pen change in a compensation law in the UK that cut the lawyers out.

Yeah that's a pretty accurate back of the envelope assessment. Which lead to a write down of the goodwill on the UK investment and led to S&G being critically over leveraged. This obviously raised concerns with the banks about their ability to service debt, which could in turn lead to a call on it.

[Twodogs]

Yeah that's a pretty accurate back of the envelope assessment. Which lead to a write down of the goodwill on the UK investment and led to S&G being critically over leveraged. This obviously raised concerns with the banks about their ability to service debt, which could in turn lead to a call on it.


Not many companies would recover to hit like this I wouldn't think.

[Greystache]

Not many companies would recover to hit like this I wouldn't think.

It's going to be very difficult, especially as it's a highly mature business with limited revenue upside prospects in its primary markets. The positive is its core business is still profitable which could make it an acquisition target, or they may be able to do some debt restructuring with their syndicated debt providers, but in reality they're in some trouble. The biggest problem is they would have nothing like the assets required to cover their obligations, and that's a problem for all parties involved.

[bulldogtragic]

It's going to be very difficult, especially as it's a highly mature business with limited revenue upside prospects in its primary markets. The positive is its core business is still profitable which could make it an acquisition target, or they may be able to do some debt restructuring with their syndicated debt providers, but in reality they're in some trouble. The biggest problem is they would have nothing like the assets required to cover their obligations, and that's a problem for all parties involved.

Getting hit with a class action by Maurice Blackburn isn't going to help.

[Greystache]

Getting hit with a class action by Maurice Blackburn isn't going to help.

I don't take that to seriously. Ambulance chasers trying to get publicity over their ambulance chasing peer. You don't have a case just because you lose your investment, but I doubt the sort of people signing up would get that.

There's questions about whether they willfully ignored the advice of their M&A advisor, but that's not a crime, and you could easily argue their EBITDA multiple of 6.9 is insane, but again that's not necessarily a crime. MB would need to prove they knew Quindell had questionable accounting practices that could impact its market value, but it's unlikely they did given it's crippled S&G in turn, whether they ignored some obvious warning signs is probably what will be tested in a hearing.

[bulldogtragic]

I don't take that to seriously. Ambulance chasers trying to get publicity over their ambulance chasing peer. You don't have a case just because you lose your investment, but I doubt the sort of people signing up would get that.

There's questions about whether they willfully ignored the advice of their M&A advisor, but that's not a crime, and you could easily argue their EBITDA multiple of 6.9 is insane, but again that's not necessarily a crime. MB would need to prove they knew Quindell had questionable accounting practices that could impact its market value, but it's unlikely they did given it's crippled S&G in turn, whether they ignored some obvious warning signs is probably what will be tested in a hearing.

The major distraction, bad PR, the costs, time of personnel to defend it, barristorial costs etc... win, lose or draw that's just one more problem. If MB can cripple SG, that leaves them the biggest, strongest and major trade union lawyer firm by a fair way. There's great money with union clients.

[Remi Moses]

Ambulance chasers . Feels like I'm reading an Andrew Bolt article

[Greystache]

Ambulance chasers . Feels like I'm reading an Andrew Bolt article

What a valuable contribution. Perhaps should could draw upon your incredible intellect and business experience to enlighten the WOOF community as to the situation at S&G?

[hujsh]

Ambulance chasers . Feels like I'm reading an Andrew Bolt article


What a valuable contribution. Perhaps should could draw upon your incredible intellect and business experience to enlighten the WOOF community as to the situation at S&G?


https://www.youtube.com/watch?v=BnuR3y8HUm8

[Remi Moses]

I know someone who works at one of the firms, and take umbrage at being referred to as an "ambulance chaser" .

[Remi Moses]

https://www.youtube.com/watch?v=BnuR3y8HUm8

Shows plenty of character ( or lack of it)to hide behind the anonymity of an Internet forum to personally insult a fellow poster.
( I'll leave it at that)

[F'scary]

But there is the "no win, no fee" (but if you win, we'll take most of it) business strategy...

[Axe Man]

Embattled law firm Slater and Gordon has avoided bankruptcy by reaching an 11th-hour agreement with its bankers.

[bulldogtragic]

Embattled law firm Slater and Gordon has avoided bankruptcy by reaching an 11th-hour agreement with its bankers.

They've blown it all out of proportion. Can't you see what they're are doing? 'Embattled'. Take out the words 'embattled' and 'respected magistrate'.

[Throughandthrough]

Current share price
.6 Have been as high as 6.75 this year, Embattled is polite!

[Twodogs]

Is that point six of one cent?

[ledge]

6 cents I would say .. Now they have survived maybe a good idea to snatch a heap up.

[bulldogtragic]

6 cents I would say .. Now they have survived maybe a good idea to snatch a heap up.

I remember saying something similar when Jamie Packer & Lachie Murdoch bought OneTel when it was about to head to bankruptcy. 'They wouldn't save a dying company, not with their pedigree. And it's dirt cheap'... Turns out they both lost a billion or so each. Lucky I invested a small amount in a small mining company than went 6-8 multiple over night about two months after I got them. They've also got Maurice Blackburn commencing a class action to try to destroy their brand and tie up their resources. Just as long as they have enough cash to keep sponsoring us that's all that really matters! :)

[Axe Man]

6 cents I would say .. Now they have survived maybe a good idea to snatch a heap up.

May be a bit late unfortunately. The share price doubled from $0.30 to hit over $0.60 yesterday after the deal with the banks. Back to $0.56 now.

[Eastdog]

Is that point six of one cent?

0.01 dollars = 1 cent

[Axe Man]

0.01 dollars = 1 cent

You don't say!:confused:

Read my post above, T&T meant $0.60 (60 cents using your formula;))

[Eastdog]

You don't say!:confused:

Read my post above, T&T meant $0.60 (60 cents using your formula;))

Am I confused Axe Man yes $0.60 is basically 60 cents which is 40 cents less than 1 dollar. Thats mean $0.10 is 10 cents.

[Axe Man]

Am I confused Axe Man yes $0.60 is basically 60 cents which is 40 cents less than 1 dollar. Thats mean $0.10 is 10 cents.

:eek:
Inside your head must be a wondrous place Eastdog!

I feel like your whole account may be an elaborate hoax, but here goes anyway.

T&T said that Slater's share price is .6
Twodogs asked if that meant $0.006
Ledge speculated that it meant $0.06
In fact T&T meant $0.60

Got it?

[Eastdog]

:eek:
Inside your head must be a wondrous place Eastdog!

I feel like your whole account may be an elaborate hoax, but here goes anyway.

T&T said that Slater's share price is .6
Twodogs asked if that meant $0.006
Ledge speculated that it meant $0.06
In fact T&T meant $0.60

Got it?

Get it now.

[Eastdog]

What do you mean by a hoax Axe Man?

[Axe Man]

What do you mean by a hoax Axe Man?

Just a joke Easty. Sometimes I can't tell if you are joking or serious.

[Eastdog]

Just a joke Easty. Sometimes I can't tell if you are joking or serious.

Ok cool. All good mate :)