Browsing through the latest edition of Construction News Online (as you do) I came across this starting story about Leisurecorp, the Dubai-based developers who have bought - I mean "forged a lasting and mutually beneficial sponsorship partnership" with - the European Tour. I believe the figure was £100m over five years; plus a nice new European Tour headquarters in sunny Dubai. Or possible not.
Suffice to say, it looks like things might get ugly for the Tour, as it already has done for those other folks who are counting on getting their money from Leisurecorp.
CN reports this (gulp):
Master developer Leisurecorp confirmed that it is involved in the renegotiation of contracts with suppliers and contractors on its Jumeirah Golf Estates development.
"In response to the current global economic climate, Leisurecorp is having discussions with long-term suppliers to realign contracts to these new market conditions," a Leisurecorp spokesperson said.
And this (double gulp):
Some developers have been seeking a reduction – believed to be up to 30% – on money owed to long-term suppliers and contractors in return for accelerated payment.
The European Tour's chief executive George O'Grady insists the deal with Leisurecorp is secure. Maybe it is - but at what terms? After all, if the developers in Dubai are asking plumbers and sparkies to take a 30% pay cut, then they might be tempted to ask at least the same of the Sergio Garcías and Ernie Els of this world.
