Cronulla Sharks set to purchase Kareela Golf Club in major statement for securing financial future
David Riccio, Exclusive, The Daily Telegraph
November 2, 2019 11:01am
Subscriber only
The Cronulla Sharks are poised to produce one of the most strategic moves in their history by purchasing an 18-hole golf club in the Sutherland Shire and it’s surrounding land.
The acquisition of Kareela Golf Club has been described by club executives as a major investment in both the Sharks future and so too that of the local community.
Backing-up their promise to invest part of the $40 million accrued from the development of land around Shark Park, the Cronulla board have approved the purchase of the golf club, which will provide the NRL side with a guaranteed income outside of rugby league.
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Kareela Golf Club will soon by part of the Sharks portfolio.
Cronulla’s bid to strengthen their assets is a similar path to what the Roosters have achieved
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through property investment and Penrith, who boast four other “Panthers” clubs throughout NSW.
With their high-profile brand within the Shire and by combining their membership base with that of Kareela, the Sharks believe the golf club has the potential to provide an additional income stream of $1 million per year.
“You can only start investing if you’ve got a balance sheet to be able to do it,’’ Sharks chief executive officer Richard Munro said.
“And effectively the transaction that we did to develop Woolooware Bay has given us the balance sheet to deploy capital.
“We have zero debt to anybody and we own our assets here, in terms of PointsBet Stadium and the club.
“So what we’re doing now is deploying capital into expanding the footprint of our club and giving members a diverse product.
“We’ll have a summer and winter product with golf and rugby league.
“We’re here for the long-term and we’re investing into the Shire with the view of being here for the long-term.
“I had five hours with Tony Crawford (NRL chief financial officer) the other day taking him through the whole plan.
“He was amazed at the amount of work being undertaken and the diversification of our product.
“We’re not just there (Kareela) while the league’s club is being built, we have a long-term strategy for Kareela and we’ll be consulting with their members.’’
Funds from the Sharks development of their leagues club and car park into a retail and residential space will be used to refurbish the current golf club, locker room, car park and course for golf members.
Fans can look to a secure future long after Paul Gallen has departed.
The Kareela golf club is situated 6.5km west of Cronulla Leagues Club and Shark Park and geographically the golf club would provide locals, members and supporters with a Sharks club at opposite ends of the Shire.
The purchase from ‘Sporties’ who currently own and manage the golf club, is dependent on the approval of both Sharks and Kareela golf club members.
The deal has transformed as a result of the Sharks looking to use Kareela golf club as their “home club” for next two years during the re-development phase of Sharkies Leagues Club and the surrounding area of Woolooware Bay.
Sharkies will close on December 16 with the completion of the $250 million retail and residential development due for October 2021.
However, instead of only using Kareela Golf Club short-term, “Sporties” are prepared to relinquish ownership of the golf club to the Sharks for an undisclosed figure.
“We’ll also be investing in the car park and locker room and other key areas of the business. We want to see the course improve also,’’ Munro said.
“By mid-January we’re hopeful it can be all done.
“We believe we’re a really good fit for them. What the members at Kareela will get is a local brand and club that is invested in the long-term.’’
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https://www.dailytelegraph.com.au/s...e/news-story/79aeb32a1a8b3f7298285012a479544e
