NRL extend Sharks a lifeline
By Josh Massoud | February 19, 2009 12:00am
THE NRL has extended Cronulla a lifeline by offering to advance its $3.5million grant for 2010 should the embattled Sutherland Shire outfit slump into deeper financial distress this year.
NRL chief executive David Gallop ventured to Toyota Park to discuss the worrying cash crisis with Sharks officials on Monday.
Gallop's visit came in response to Cronulla CEO Tony Zappia's call for the NRL to provide certain clubs with emergency assistance above and beyond the annual grant as they struggle to make ends meet in the current climate.
With NSW leagues clubs slashing their NRL grants because of higher poker machine taxes and smoking laws, several clubs are lurching toward crisis.
Cronulla reached that point last December when it approached St George Bank for a $1 million loan to pay wages over Christmas. The bank, however, would only approve a loan for $500,000.
After last season admitting certain Sydney teams faced extinction, Gallop is now willing to effectively "loan'' clubs part of their $3.5million grants ahead of schedule.
"From time to time we've agreed to advance clubs a portion of their annual grant (for the following season) and we are open to doing that now,'' Gallop said. "Particularly at this time of the year, there are clubs with the same expenses but no income from gate receipts.
"There's no doubt the economic downturn has the potential to have some impact on our clubs.''
Gallop refused to discuss Cronulla's situation in detail, but Zappia said the club had not yet taken up the NRL's advance. "We haven't said yes or no,'' Zappia said. "I just wanted to speak to David about the possibility of the NRL providing more help. I don't know if we will need it just yet.
"Our desire is definitely to get by without it, but there's no question that the next three to six months will be very tough."
Zappia said the club had not approached its bank for any further loans and stressed that all wages were being paid. But it's expected that a small number of jobs will be lost over the coming season as the club streamlines its business to cut back on costs.
Accounting firm and sleeve sponsor PKF recently completed an audit of both the football club and leagues club, which has been harshly hit by the NSW Government's poker machine taxes.
The league boss also spoke to new Sharks recruit Reni Maitua while in Cronulla about the former Bulldog's registration woes. The NRL has backflipped on Maitua's registration with the Sharks because certain documents are yet to be tendered by the Bulldogs.
