A loan covenant is a condition in a commercial loan or bond issue that requires the borrower to fulfill certain conditions or which forbids the borrower from undertaking certain actions, or which possibly restricts certain activities to circumstances when other conditions are met.
17-468: Sports Entertainment Network (SEN), formerly Crocmedia , is an Australian radio and television distribution company established in 2006. SEN's parent company is Sports Entertainment Group (SEG), formerly Pacific Star Network. Sports Entertainment Network was established in 2006 as Crocmedia by journalists James Swanwick and Craig Hutchison . The company was originally formed in the United States as
34-433: A public relations company selling entertainment and news content before shifting to focusing on sports. Crocmedia entered the mainstream in late 2009 when it was announced that it would operate a live AFL radio service that would be syndicated throughout regional areas. Many regional broadcasters, including Ace Radio stations, 3BA , 3NE and Edge FM , replaced their existing feed – typically 3AW or Triple M – with
51-425: A borrower as part of a term loan agreement. Their purpose is to help the lender ensure that the risk attached to the loan does not unexpectedly deteriorate prior to maturity. From the borrower's point of view covenants often appear to be an obstacle at the time of negotiating a loan and burdensome restriction during its term. Proponents of the use of covenants, emphasizing the early warning function of covenants, take
68-728: A number of name changes in the 1990s and early 2000s, the company was known as Pacific Star Network for 16 years. In December 2014, Pacific Star Network acquired Morrison Media Services, the publisher of Frankie Magazine and Smith Journal . They sold Morrison Media Services to Nextmedia in September 2018. In January 2018, Pacific Star Network acquired 100 per cent of equity in Crocmedia . In September 2020, Pacific Star Network rebranded Crocmedia as Sports Entertainment Network (SEN). Two months later, Pacific Star Network changed its name to Sports Entertainment Group (SEG). In September 2023, it
85-521: A second WNBL club. On 13 June 2024, the Perth Lynx 's WNBL licence was transferred to Perth Lynx Pty Ltd, an organisation owned by SEN Teams investors Christian Hauff and Jodi Millhahn. In July 2024, SEG agreed to sell 90% of their 95% shareholder ownership of the Perth Wildcats to MT Arena Capital Investment at an estimated value of $ 40 million. On 14 August 2024, SEG officially sold 52.5 per cent of
102-467: Is the owner of six clubs as of June 2024. Under Pacific Star Network and Crocmedia, the company owned 25 percent of National Basketball League (NBL) team Melbourne United between 2018 and 2021. In July 2021, SEG purchased rival NBL team the Perth Wildcats for roughly $ 8.5 million. In November 2021, SEG's New Zealand subsidiary purchased New Zealand National Basketball League (NZNBL) team
119-728: The Otago Nuggets . In March 2022, SEN unveiled the Southern Hoiho for the inaugural Tauihi Basketball Aotearoa season. SEN Teams purchased Women's National Basketball League (WNBL) team the Bendigo Spirit in April 2022 and acquired a Super Netball team licence in July 2023, which became the Melbourne Mavericks . In May 2024, Basketball Australia granted SEN Teams permission to run
136-458: The case further by arguing that well-designed covenants provide not only timely performance indicators but also open up lines of communication between borrower and lender. Typical covenants for real estate related loans are the Loan to Value Ratio (LTV), the debt service coverage ratio (DSCR) and Interest Service Coverage Ratio (ISCR). Covenants can potentially have negative consequences as well. As
153-468: The club for $ 21 million to WA businessman Mark Arena . SEG subsequently shifted to the position of minority shareholders of the Wildcats. Arena will provide another payment of $ 15 million in 2026 to receive an extra 37.5 per cent and can then buy the entire club in 2028. Loan covenant Typically, violation of a covenant may result in a default on the loan being declared, penalties being applied, or
170-402: The creditor is imposing restrictions on how the debtor should conduct business, the debtor's economic freedom is restricted. This may lead to decreased efficiency. When a covenant is broken and additional equity should be contributed, the debtor might not be able to provide it or at least not adequately. This results in making the whole loan due; a resulting fire sale may lead to high write-offs on
187-418: The loan being called . The legal provision in the loan agreement providing for the loan to be "called" is the " acceleration clause ": once the buyer defaults, all future payments due under the loan are "accelerated" and deemed to be due and payable immediately. Covenants may also be waived, either temporarily or permanently, usually at the sole discretion of the lender. Covenants are undertakings given by
SECTION 10
#1732877303738204-660: The merger of the metro Sports Today and regional Sportsday programs. From January 2017, Sportsday, with Sports Today hosts Gerard Healy and Dwayne Russell , aired weeknights on 3AW and across regional Victoria and Tasmania. Sportsday later expanded across the country. Crocmedia received attention in January 2015, after the Federal Circuit Court fined the company $ 24,000 for breaching the minimum wage conditions of two employees. Judge Riethmuller branded Crocmedia's actions as 'exploitative'. In January 2018, Pacific Star Network ,
221-476: The new Crocmedia feed. Crocmedia achieved further publicity by signing veteran broadcasters Sandy Roberts and Rex Hunt to provide commentary. Crocmedia generated controversy in Albury-Wodonga in 2010 when 2AY announced that it would replace the popular 3AW program Sports Today with Sportsday. In November 2016, Crocmedia announced program partnership agreements with a number of radio broadcasters, which saw
238-451: The owner of SEN radio, confirmed it had acquired 100 per cent of equity in Crocmedia. Under the plan, existing Crocmedia CEO Craig Hutchison became the largest shareholder and CEO of the merged company. In July 2019, Crocmedia purchased 23 narrowband radio licences across Australia including Sydney , Brisbane , Perth , Gold Coast , Darwin and Alice Springs . In October 2020, Crocmedia
255-440: Was rebranded Sports Entertainment Network, with the media and content business to share an acronym with its SEN radio stations. In March 2021, Sports Entertainment Network announced that it would expand into New Zealand, and subsequently acquired TAB NZ's 30 AM and FM broadcast licences. SENZ launched on 19 July 2021. In May 2022, SEN purchased Brisbane radio station 4KQ from its previous owners HT&E . In November 2023, SENZ
272-551: Was reported that SEG posted a $ 9.2 million loss in the 2022–23 financial year. The company reportedly asked for covenant relief from the bank in the June quarter. In November 2023, it was reported that SEG required a cash injection or new investors in the next nine months to survive. To finish the year, SEG sold 3.75 per cent of their sporting teams business, SEN Teams, and received $ 1.5 million in investor funds from new individual shareholders. SEG's sporting teams business, SEN Teams ,
289-498: Was sold to TAB NZ . The transaction included the SENZ brand, app and website and its network of 28 radio frequencies. SENZ was rebranded as Sport Nation on 19 November 2024. Sports Entertainment Group Sports Entertainment Group ( SEG ), formerly Pacific Star Network , is an Australian sports media content and entertainment business. SEG is the owner and parent company of Sports Entertainment Network (SEN). After going through
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