Media mogul Craig Hutchison’s empire has taken another hit with reports claiming new investors are desperately needed to save the radio giant.
Hutchison in September shrugged off ongoing suggestions of doom and gloom surrounding the Sports Entertainment Group, the owner of the SEN radio network.
Hutchison and the group is reportedly at the mercy of the Commonwealth Bank, with the financial institution in a position to call for immediate settlement as a result of breached loan conditions.
The uncertainty surrounding the $28.7m line of credit comes after it emerged the company posted a $9.2m loss last financial year.
Sports Entertainment Group’s preliminary final report stated that the company has just over $1 million available from the loan, but had to ask for “covenant relief” from the bank in the June quarter.
The Age has now revealed the network’s future has slipped further into uncertainty with a director’s note in its annual report, released in late October, declaring its status to be “material uncertainty” with significant doubts about its ability to continue to operate.
The pressure is building on the executive to find answers with the majority of its debt due in August, 2024.
Because of that deadline, SEG is seeking new investors, diluting Hutchison’s position as the company’s second-largest shareholder.
Hutchison however defended his company’s financial position while stating they’ve “never been in better nick” when details of the company’s situation emerged in September.
“We are an incredibly strong business, we’ve never been in better nick,’’ Hutchison said on his Off The Bench program on Saturday morning.
“Our year just gone, we made $4.8m EBITDA (earnings before interest, tax, depreciation and amortisation) there’s some accounting losses and some adjustments that get made in evaluation … we would have liked to have done better.
“Our finance position is no different than what it was 3-4 years ago. Health of the business has never been stronger. In fact we turned over a tick under $128m.”
Hutchison added it was on him to ensure the job is done better and the company will only go from strength to strength now.
“It’s just a tax on living in this town at times unfortunately,’’ he said.
“I saw (the story) drop on my phone and I was in LA and I had about a 15-hour ride, I thought my phone is going to go off like a pinball machine here.
“It was a good insight into what would happen if you were still alive to see your own funeral (with) condolences texts.
“We are in an incredibly strong spot and have never had more momentum than we do now.
“It’s my job to do a better job so I will.”
SEN has made a number of significant investments since being taken over by Sports Entertainment Group.
The company expanded into New Zealand under the SENZ brand, and purchased the New Zealand National Basketball League team the Otago Nuggets in November 2021 – the SENZ division was the primary contributor to the loss, ending the financial year $5.5m in the red.
The company formerly held a 20 per cent stake in Victorian NBL franchise Melbourne United, which was sold off to finance the purchase of the Perth Wildcats.
Hutchison also bought out Brisbane’s 4KQ radio network to rebrand as SENQ, bringing on names such as former Australian Test cricketers Ian Healy and Matthew Hayden as part of the operation.
Notably, after the collapse of the Collingwood Super Netball franchise, SEN was responsible for buying up the vacant eighth licence, based in Melbourne’s southeast and operated by Netball Australia in 2023 before transferring to SEN control in 2024.
He is one of the biggest personalities in Australian football media, and currently presents Nine’s Footy Classified on Monday nights, having worked as a journalist since 1994.
He started media content provider and public relations company Crocmedia in 2006 alongside fellow journalist James Swanwick before rebranding the company as Sports Entertainment Network in 2020.
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