CARLTON President Richard Pratt announced at the officialpre-match dinner last Friday one of the biggest off field deals in footballhistory for Carlton.In a deal that has been structured in such a way there is no risk or liabilityfor Carlton, the club is set to make anywhere between $5 and $10 million in thenext four to five years.

“I am pleased to report a Carlton-friendly investor haspurchased a portfolio of nine hotels in Victoria– nine hotels,” a delighted Pratt said.

“The deal has been structured in such a way that some Carlton directors and other club premier financiers willbe providing the equity on behalf of Carlton.This will allow the club to attain revenue generated from the propertyportfolio whilst at the same time occurring no liabilities. And I didn’t putany money in. This is very exciting for the Carlton Football Club.

“It will result in Carltonreceiving millions of dollars in non-football revenue in coming years with nodownside risk or liability,” Pratt added.

Carlton CEO Greg Swannsaid this week the hotel portfolio will help wipe the club’s existing debt(expected to be reduced from $8million in November 2006 to around $5million atthe end of October this year) as well as set up the club as a financialbenchmark by the time Richard Pratt ends his presidency. The deal was broughtto the club by director Mark Harrison and has been financed by Mark and fellow directorsZac Fried and Richard Newton along with many other ‘Carlton-friendly’businessmen.

“A group of Carlton-friendly people bought this portfolio,and they approached the club to be involved and we have taken a 50 per centstake in the group. Importantly our stake is being funded by Carltondirectors and other Carltonpeople,” Swann said this week.

“There is no exposure to the club and we receive 50 per centof the net profit. They are putting in their money and getting 10 per cent.After that, whatever is over and above that, comes to the club. I was asked ifwe should get involved and we went through the numbers and it was a no-brainerfor us,” Swann added.

The nine hotels in the portfolio are: Berwick Hotel, RoyalOak Hotel (Cheltenham), Croydon Hotel, Long Beach Hotel (Chelsea), KealbaHotel, Waterloo Cup Hotel (Moonee Ponds), Foresters Arms Hotel (Oakleigh),Templestowe Hotel and the Angler’s Tavern (Maribyrnong).

The deal is expected to take up to nine months to befinalised and will be part of an estimated $300 million portfolio involving theleases and freeholds of the hotels. While the figure is to be finalised the Carlton half share willcost somewhere between $15million and $20million. The freeholds will beincluded in a property trust and Carltonwill be involved in the leaseholds.