Friday, Mar 02 2012
News and Analysis
's related-party transactions always fascinate me. And the recitation of these deals in Form 10-K for 2011 is no exception. The most interesting are the company's sponsorships of the baseball Athletics via in-stadium signage and the yacht of Captain, NetSuite funding father and Oracle chairman Larry Ellison.
Both were renewed last year. But the sheer volume is intriguing.
The section in the 10-K has reached 2,818 words: past deals are repeated, new ones added. Paychex's related-party transactions took 90 words. Thinking there might be a threshold of materiality I checked recent 10-Ks for other companies. The smaller Edgewater Technology stated it had no policy on reporting these. The roughly comparable Deltek had 315 words, but all completed. The pre-merger Epicor had none. In April, the NetSuite extended its agreement with the Oakland Athletics through 2013 and agreed to pay $473,000 for sponsorship benefits. William Beane III, the Athletics GM, joined the NetSuite board in April 2007. In November, NetSuite signed on to sponsor the Oracle Racing team for another 40 months and will pay about $342,000 for logo placement and other advertising services (but less than half the 2009 amount). Ellison also loaned NetSuite founder and chief technology officer Evan Goldberg slightly more than $4.5 million, all paid off in 2010. Last year, Goldberg purchased a property from an Ellison-related entity for $8 million with the seller financing the deal over nine years. There is also a deal for perpetual licenses of Oracle database and application server software, ongoing through 2014, along with support services NetSuite owed a balance of $4.1 million on a note held by Oracle Credit at the end of 2011.
Last modified on Sunday, 16 June 2013
Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.