A bombshell document has revealed just how close the Cronulla Sharks came to going broke and being forced out of the NRL – just two years after their fairytale 2016 premiership victory.
The Sunday Telegraph has obtained a secret show-cause notice sent from former NRL chief
executive Todd Greenberg to the Sharks in 2018, calling on the club to provide evidence it was financially sustainable to continue to hold a licence.
A relocation to Perth was even put on the table.
“The situation was as grim as it gets and not what you expect when joining a board,” says chairman Steve Mace, “we were showing annual multimillion-dollar underlying trading losses.”
Over an eight-year period the club had combined losses of more than $20 million, dealing with the crippling costs from the peptide scandal, salary cap cheating and football club overspending.
The Sharks of 2018 were in dire straits off the field. Picture: Mark Kolbe/Getty Images
Mace is quick to praise his board and management team for the stunning turnaround – a story of an astonishing financial comeback in which the club now has assets of almost $90 million – plus the support of billionaire U.S. businessman Mike Dorrell, who recently donated $5 million to the club.
Back in 2018 the situation was so bad that the board was even presented with a plan to relocate to Western Australia.
“Perth Venues did come and meet with us but we quickly hit that on the head,” Mace said, “No way was that ever going to happen.”
The huge annual losses were hidden from members in balance sheets masked with funds from sales of the Woolooware Bay development used to camouflage the heavy losses.
When Barry Russell quit as chief executive and Mace installed himself as the acting head of administration and Dino Mezzatesta, then Chairman and now CEO, headed up a substantial rebuild.
Then-NRL CEO Todd Greenberg addressing the Sharks’ salary cap situation in 2018. Picture: AAP Image/Dan Himbrechts)
The fightback began in earnest.
“First we had to prove we were financially capable of holding onto our licence,” Mezzatesta said.
“It’s nice to win a premiership but not when the business is going broke.
“We had to provide a plan that we could sustainably build our way out of it.
“We had to roll the sleeves up and make it happen.”
Importantly the Sharks had independent commission chairman Peter Beattie and a then new commissioner – Peter V’landys – in their corner.
While the show cause notice came from Greenberg and the NRL’s chief financial officer Tony Crawford, V’landys and Beattie were determined to save the club.
“We have sure come a long way,” Mezzatesta said, “The support from Peter V’landys and the commission was rock solid when we really needed them.”
Mace is a highly successful businessman, believed to be worth several hundred million dollars in his own right.
Sharks chairman Steve Mace and Dino Mezzatesta in front of Allegiant Stadium for the recent Las Vegas games. Credit: Supplied
He refuses to be critical of the previous administration and only agreed to comment in the story to give context around the show cause notice.
“You can’t pass judgement unless you were in their shoes at the time,” Mace said, “The off-field problems they were dealing with have been well documented.
“I have personally treated the club like it was my own business. That’s how important it is.
“We reengineered the whole structure and were very fortunate to build a board and management team led by Dino (Mezzatesta) capable of making the smart and strategic decisions that have led to where we are now.”
The Sharks now have $25 million cash in the bank.
They have purchased Kareela Golf club (worth $15 million), a retail site $8 million and own the leagues club and home ground (combined $40 million).
And as Mace and Mezzatesta now insists – they are here to stay.
What’s The Buzz: How close the Sharks came to Perth move
