http://www.theaustralian.com.au/new...ave-6m-honey-pot/story-e6frg7mf-1225898695395
Bears planning to have $6m honey pot
Brent Read
CENTRAL Coast officials hope to have $6 million in the bank as they look to mount an indisputable case for entry to the NRL in 2013.
Bears chief executive Greg Florimo, coach David Fairleigh and several board members attended a meeting with the NRL yesterday where they provided an update on their bid. It is expected to be finalised early next year.
It is understood part of their proposal centred on raising equity by selling a chunk of the team to the public or business identities.
While the plan is still in its formative stages, Florimo made it clear the Bears would attempt to build a substantial war chest to bolster their claims.
"It's all about building an equity base that the NRL needs to see," Florimo said.
"We have a very strong model that will make sure we're sustainable but we need to have a little bit of equity behind us.
"We set our own target of $6 million. We would like to think that would be enough to see us through any difficult times.
"Obviously any investment that is made is totally refundable if we don't get the licence. In between now and this time next year we will build up a capital base of at least $6 million.
"We think we have a model that will show our revenue will exceed our expenses. But again there may be some tough times and lean weeks, so there needs to be some sort of buffer to cover that."
The Bears already have private investors contributing up to $2 million in equity but that is unlikely to be enough to convince the NRL and its clubs of the merits of expansion.
The clubs in particular are reluctant to support expansion, given many of them are battling to return a profit.
Despite the promise of a financial windfall via the next television deal, the feeling among the clubs is any extra money should be used to shore up existing clubs rather than be directed towards new teams.
"They have made some good progress given they don't have the green light," NRL chief executive David Gallop said.
"I have said previously, the game is in position to look seriously at expansion in the middle of 2011. Any potential team needs to have a robust business plan as well as demonstrate that they can help grow the pie for everyone."
Six years ago, media magnate John Singleton, who owns the management and marketing rights to Bluetongue Stadium at Gosford, vowed to underwrite a Central Coast team.
However, he walked away when the NRL ruled out expansion. Florimo hasn't given up hope of convincing Singleton to play some part in the Bears' bid.
"We're just still trying to work out a way to approach Singo," Florimo said. "Obviously he's still very disillusioned with the NRL given the effort that he put in at his last attempt.
"We're at the point where we would like to go to him and say 'here is the licence, how would you like to be involved', rather than going to him cap in hand."
