Tuesday 1 October 2024

Northern Beaches Heat Basketball Club Official Statement

Dear Cairns Basketball Community, Heat players, and families,

As President of the Northern Beaches Heat Basketball Club, I, David Thomas, am addressing recent inquiries about our club’s legal structure. We value transparency and believe in managing expectations, so I’d like to provide clarity on our current structure and operations.

Club History and Structure

When we assumed responsibility for the Heat after its inaugural season, there was no formal structure in place. Club fees were being processed through the Newman Catholic College bank account. To facilitate transactions legally in Australia, we linked newly created Australian bank accounts associated with the Club President’s family trust to Basketball Connect and Stripe.

Current Legal Structure

• The club operates through the D & B Thomas Family Trust.
• David Thomas is the Sole Director of the corporate trustee, Havi Group Pty Ltd.
• Havi Group Pty Ltd manages multiple brands, including Northern Beaches Heat Basketball Club.
• The Club runs as a separate business entity with its own accounts and books, managed through Xero.

Financial Responsibility and Transparency

As a private entity, Havi Group Pty Ltd has funded the Club’s growth. While sponsorships have been crucial, additional cash injections were required to cover shortfalls for jerseys, merchandise and equipment. Currently, the Club operates at a net loss.

For those interested in reviewing our financial statements, please email info@nbheatbasketball.com.au. A signed NDA will be required before sharing this information.

Incorporation Status

We have consulted with our accountant regarding incorporation. The decision was made to prioritise additional uniforms and equipment over the cost of incorporation for now. While there is currently no legal obligation for the Club to be incorporated, we will comply with any future mandates.

Insurance

Havi Group Pty Ltd holds both Public Liability and Professional Indemnity Insurance specifically for the Club’s operations.

Sponsorships

We are grateful for our current sponsors, all of whom have legal, binding contracts with Havi Group Pty Ltd:

• Blackchrome Sports Apparel (contra/in-kind to an agreed annual value/cap)
• Twomey Schriber (cash)
• Hutchinson’s Builders (cash)
• Newman Catholic College (in-kind/contra)
• Casual CMO (in-kind/contra)
• Berther Group (McDonald’s) (cash/awards)
• Marlin Coast CrossFit (partnership)
• Mojo’z Espresso (partnership)

We welcome additional sponsorship opportunities to support the Club’s growth and development.

Commitment to Basketball in FNQ

Our primary goal remains supporting the growth of basketball in Far North Queensland and providing opportunities for children to participate in a sport they enjoy. We are committed to doing whatever is in the best interests of the Cairns Basketball Inc Junior Competition.

Moving Forward

While we can only speculate on the reasons for interest in our legal structure, we assure you that we operate with integrity and in compliance with all relevant regulations. As we grow, we continually reassess our structure to ensure it best serves our community and players.

If incorporation is mandated in the future, or if it becomes the best course of action for our club’s development, we will take the necessary steps to do so. Our focus has been and will continue to be on providing quality basketball programs and opportunities for our players.

We appreciate the trust placed in us by our players, families, and the broader Cairns basketball community. If you have any further questions or concerns, please don’t hesitate to reach out.

Sincerely,

David Thomas
President, Northern Beaches Heat Basketball Club