Cronulla Sharks facing financial oblivion

[Lungfish]

IT'S the uncertainty no one in the Sutherland Shire wants to relive.

Just 15 years after their beloved footy side staved off insolvency, the Cronulla Sharks have again been forced to seek financial aid as the leagues club struggles to deflect the ravages of soaring poker machine taxes and indoor smoking bans.
The Daily Telegraph has learned Sharks officials requested a $1 million loan from St George Bank in September to pay wages and bills over Christmas. The football club needed the liquidity because Sharkies Leagues Club no longer has the means to drip-feed it cash on demand over the slow-trading summer period.
St George Bank, however, could only approve $500,000. In addition, the bank asked the Sharks to conduct an independent financial review of both the leagues and football clubs.
The global economic crisis has tightened lines of credit to all lenders. Plus, the entire Sharks group no longer boasts enough financial surety to command a $1 million loan.
As auditors from sleeve sponsor and global accountant PKF yesterday interviewed staff at the Sharks base in Woolooware, group chairman Barry Pierce conceded "hard calls" would need to be made.
Possible measures could include staff redundancies, player salary cuts and the axing of junior teams.
But the $500,000 loan will maintain the status quo over the short-term, as will a bonus from major sponsor LG and NRL prizemoney for finishing in the top four last season.

"We have got PKF in at the moment - they are doing a review of both the football club and the leagues club and St George Bank is supportive of that," Pierce said.
"I want to stress that we've got the full support of the bank - they've been behind us for 18 years."
Despite receiving a $1.5 million licensed club grant and finishing equal first in the minor premiership, the football club is still expected to record a $500,000 loss for 2008.
Pierce was involved when Cronulla flirted with insolvency during the early '90s, and suggested the current climate was even tougher for Sydney-based clubs. "It was hard times 15 years ago, but we didn't have smoking bans and gaming taxes to contend with back then," he said.
On the positive side, Cronulla have retained all their sponsors for 2009 and will earn big money from the South Australian government for transferring a home game to Adelaide.
The leagues club is also sweating on offers from two builders interested in building a nursing home and retail complex in land surrounding the club.

http://www.news.com.au/dailytelegraph/sport/nrl/story/0,26799,24647225-5006066,00.html

 

[gunnamatta bay]

our kogarah neighbours are not fairing too well either.

 

[cb4]

anyone who got the telegraph this morning
is that reece robinson standing next to cu2??

 

[samshark]

Its Travis Robinson and its an old picture. The players arnt back yet

 

[carcharias]

how much did we pay noddy?

 

[cb4]

Its Travis Robinson and its an old picture. The players arnt back yet

cheers bud

 

[Qld-Sharkie]

Where's our rich, hollywood sugar daddy????

 

[effnic]

Ben Ross

 

[CHRIS SANDOW]

IT'S the uncertainty no one in the Sutherland Shire wants to relive.

Just 15 years after their beloved footy side staved off insolvency, the Cronulla Sharks have again been forced to seek financial aid as the leagues club struggles to deflect the ravages of soaring poker machine taxes and indoor smoking bans.
The Daily Telegraph has learned Sharks officials requested a $1 million loan from St George Bank in September to pay wages and bills over Christmas. The football club needed the liquidity because Sharkies Leagues Club no longer has the means to drip-feed it cash on demand over the slow-trading summer period.
St George Bank, however, could only approve $500,000. In addition, the bank asked the Sharks to conduct an independent financial review of both the leagues and football clubs.
The global economic crisis has tightened lines of credit to all lenders. Plus, the entire Sharks group no longer boasts enough financial surety to command a $1 million loan.
As auditors from sleeve sponsor and global accountant PKF yesterday interviewed staff at the Sharks base in Woolooware, group chairman Barry Pierce conceded "hard calls" would need to be made.
Possible measures could include staff redundancies, player salary cuts and the axing of junior teams.
But the $500,000 loan will maintain the status quo over the short-term, as will a bonus from major sponsor LG and NRL prizemoney for finishing in the top four last season.

"We have got PKF in at the moment - they are doing a review of both the football club and the leagues club and St George Bank is supportive of that," Pierce said.
"I want to stress that we've got the full support of the bank - they've been behind us for 18 years."
Despite receiving a $1.5 million licensed club grant and finishing equal first in the minor premiership, the football club is still expected to record a $500,000 loss for 2008.
Pierce was involved when Cronulla flirted with insolvency during the early '90s, and suggested the current climate was even tougher for Sydney-based clubs. "It was hard times 15 years ago, but we didn't have smoking bans and gaming taxes to contend with back then," he said.
On the positive side, Cronulla have retained all their sponsors for 2009 and will earn big money from the South Australian government for transferring a home game to Adelaide.
The leagues club is also sweating on offers from two builders interested in building a nursing home and retail complex in land surrounding the club.

http://www.news.com.au/dailytelegraph/sport/nrl/story/0,26799,24647225-5006066,00.html

Central Coast here you come lol.

 

[carinashark]

We have assets in development so we will be fine but maybe we should be looking at our banking partner a bit more closely . We ask for 1m and they offer 500,000 , I think we can do better and they are now Westpak , different people at the helm.

 

[CHRIS SANDOW]

We have assets in development so we will be fine but maybe we should be looking at our banking partner a bit more closely . We ask for 1m and they offer 500,000 , I think we can do better and they are now Westpak , different people at the helm.

I don't understand if you have so many assets that they only loaned 500k, I think the sharks are in BIG trouble!

 

[Ronnie Dobbs]

our kogarah neighbours are not fairing too well either.

You have no idea. Do you?

Whilst our Leagues club (along with everyone else in NSW) is struggling & on-going grants have been cut, Saints have 8 million $$$$$ in the bank & have just had the remaining 2.5 million $$$ owed by the Steelers since 99 repaid to them via multi Billionaire Bruce Gibson, who has a vested interest in keeping the merger alive so that he can have a team use his stadium in Wollongong without having to fork out his own money (ala Delmege) to keep the club afloat.

To my simple mind, that adds up to $10,500,000.00 in the bank, with not a cent of debt & assets worth around $30,000,000.00.

Add Bennett to the mix & the sponsors he will bring, along with the fact that our major sponsor are the ones you are turning to in the hope of being bailed out..........AGAIN.

Whereas the Sharks will either be flying the coup to Adelaide, Saints are simply flying.

 

[CHRIS SANDOW]

You have no idea. Do you?

Whilst our Leagues club (along with everyone else in NSW) is struggling & on-going grants have been cut, Saints have 8 million $$$$$ in the bank & have just had the remaining 2.5 million $$$ owed by the Steelers since 99 repaid to them via multi Billionaire Bruce Gibson, who has a vested interest in keeping the merger alive so that he can have a team use his stadium in Wollongong without having to fork out his own money (ala Delmege) to keep the club afloat.

To my simple mind, that adds up to $10,500,000.00 in the bank, with not a cent of debt & assets worth around $30,000,000.00.

Add Bennett to the mix & the sponsors he will bring, along with the fact that our major sponsor are the ones you are turning to in the hope of being bailed out..........AGAIN.

Whereas the Sharks will either be flying the coup to Adelaide, Saints are simply flying.

St George Leagues Club is massive, they are doing a little bit better than the sharks, that money in the bank is mad.

 

[Ausguy]

who wrote the article? probably will swanton was it? Comeon will if it was you i know your on the LU forums... thats where u get all your news... comeon its ok to come out. And if it wasnt u Will.... then who ever it was is in here to, show yourself. Gutless.

its a very slow news day oboviously.... hahaha have to laugh at the comment below the article some people comment dont know much about the game...

Thanks for posting it lungfish in our forum so these trolls can come raoming in saying we are gone... come back when it happens. Next time post it in the storm forum.

 

[Ausguy]

St George Leagues Club is massive, they are doing a little bit better than the sharks, that money in the bank is mad.

Of course they are they have a bigger supporter base. Do they have 2 leagues clubs by the way?

and Kograh is it still 24 hours? that would help.

The government have screwed the clubs... and where is the benefit... its not on the roads or public transport i use.

 

[CHRIS SANDOW]

Do you reckon the sharks will collapse mid-season next year due to finances?????

 

[cb4]

...no

 

[griffo346]

here lies the question

if the sharks where to relocate to Adelaide would the NRL give them cash to do that ? as they are if you go to central coast?

BTW the banking merger is in the power hands of the st george not westpac

 

[Bastard Squad]

Niether Westpac or StGeorge Bank would want to do anything that puts the merger in a bad light, for the short term at least.

But it looks like I'll have to buy some more Sharks merchandise.

 

[cheese]

I don't understand if you have so many assets that they only loaned 500k, I think the sharks are in BIG trouble!

You are the worst poster in the history of foruming.

You spam
You're plain
You seem like a dopey merkin
You type in gay large text
You make me hate life ...alot
Please for the love of god keep your mind numbing primary school shyt out of this once respectable sub-forum.