Cronulla Sharks facing financial oblivion

[carcharias]

funny how I got a 2009 membership email the same day this exclusive story breaks on the Daily Telegraph.

I wonder how they found out?

 

[griffo346]

maybe some of the sport writers are members of the sharks :lol:

 

[pommy shark]

The 2009 memberships should have been posted about three months ago - think 1,000 at $200 each is $200k in the bank - offer incentives to get 5,000 and we could be sat on a million bucks now. The club needs to get more commercial by doing what other companies do when they see a cash issue coming up.

 

[Stonecutter]

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

Obviously the club needed a loan now, they got it, you pay back a loan over time which is what will happen from the assests and general inflow of cash during the season. You don't get a house loan and pay it back in a couple days :roll:.

In other words, struggling a bit now, but future is safe and secure.

 

[Ronnie Dobbs]

Having to borrow to pay bills means Sharks are anything but secure. Cash flow is the oil that turns the wheels of any business & Cronulla obviously have massive problems in this area, ie - They have NO cash.

Borrowing money to pay bills.......I can't see any positives in that mate.

Being asset rich & cash poor, ultimately makes you poor unless you can liquidate your assets to cover your debts. The more you borrow & can't pay back is another chunk of your assets held as collateral against the debt, which increases with interest, ultimately shrinking your asset base to zero & the bank claiming it to cover the cash deficit.

Who are the groups looking at the land? It would seem the Sharkies won't be able to raise the capital to develop it themselves as planned & as they get more desperate & into debt, the weaker their negotaiting position becomes.

Things are certainly conspiring against your club. If ever there was a time to have cold hard currency in the bank, it is now.

I await the outcome with interest (no pun intended).

 

[carcharias]

Bring back Peter Gow!

who really cares if he carves up a few lesser teams jerseys?

They should have put a statue of him on top of the new grandstand for his trouble.

 

[Ronnie Dobbs]

And bring back Geoffrey Eddleston while you're at it.

Tha savior of the Sharks.

 

[griffo346]

bring back noddy :lol: oh wait he took ya money ummm bring back ET

 

[fatshark]

St George ARE in the same situation..$30 million my ass


"Ultimately the Dragons won't survive if finances don't improve, but they won't be the first to go because our leagues club has no debt and we can fund capital works, while other clubs have huge borrowings of more than $20 million.


http://stgeorge.yourguide.com.au/news/local/sport/rugby-league/tax-slays-the-dragons/777751.aspx

Im just wondering what happened to the money that was made by interest by the grant. Oh thats right, Ando, Raper other sh*t. piss Pierce off the bloke is out of control, the club throws money away, and the board should take the full blame.

 

[carcharias]

And bring back Geoffrey Eddleston while you're at it.

Tha savior of the Sharks.

NUH

Bring back Gowie...he cuts the jerseys up...he is a legend.

 

[Generalzod]

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

Just worry about how Souths are going....

 

[Russell Crowe's Band]

souths lost 1 million this year apparently.

better than the 4 million they lost in the first Hac year.

but they have a ssemingly bottomless pit. the DVD sales on gladiator alove would cover em.

 

[Dave Q]

Shane Richardson discusses the state of the rabbitohs late last season:-

Just to highlight the situation, I have listed below the statistics that confirm my comments regarding our status amongst the Sydney clubs.

1. CROWDS – Currently in the top 3.

2. TICKETED MEMBERSHIP – 6,641 Ticketed Members - FIRST.

3. MEMBERSHIP – 12,540 Members (all types) – FIRST.

4. CORPORATE PARTNERSHIPS – In excess of $6 million per annum – FIRST.

The highlight of this is the calibre of our major corporate partners such as NAB, Virgin Blue, De’Longhi and Trivest.

1. STADIUM – We have a 10 year deal at ANZ Stadium that offers the most attractive incentives in the NRL competition.

1. TRAINING FACILITIES – We are about to move into a $23 million, purpose built, state-of-the-art facility at our spiritual home Redfern Oval. It will be the best facility of all the Sydney Clubs.

1. JUNIORS – We have 3,500 juniors in the South Sydney district.

1. ON FIELD – Despite a disappointing start to the season, mainly due to injury and suspension of key players, we have won six of our last eight games and have unearthed some exciting talent in Chris Sandow, Luke Capewell and Jamie Simpson. We have recruited well so far for next season with the great Panthers fullback Rhys Wesser and one of the form centre/wings in the competition, Colin Best.

It is interesting to note that we have achieved all of the above with a business plan that excludes poker machine revenue. There is no doubt that many of the Sydney-based clubs will need to dramatically change the way they do business. We have already lived through that change.

In case anybody missed it, there is no financial crisis at South Sydney atm and as a result, while we must be vigilent, we have no genuine cause for concern.

The sharks arent about to fold either.

These stories cause a lot of unneccesary angst and suffering.

 

[King of the Hill]

This is all spin from the Sharks. There is no crisis.

What I don't understand is, instead of dicking around over this stupid development which hasn't happened despite announcement after announcement for about ten years now, why not just sell all the land and pocket the windfall? It would surely be worth tens of millions of dollars, then someone else can do the development themselves. If the Sharks want, they should be shareholders...but they way they've run that Leagues Club and for that matter the football team for over four decades, there's no guarantee that any development they do is going to be a winner. The Sharks running a nursing home and conference centre? They can barely manage a coffee shop. Sell it off now, FFS.

 

[Dave Q]

This is all spin from the Sharks. There is no crisis.

What I don't understand is, instead of dicking around over this stupid development which hasn't happened despite announcement after announcement for about ten years now, why not just sell all the land and pocket the windfall? It would surely be worth tens of millions of dollars, then someone else can do the development themselves. If the Sharks want, they should be shareholders...but they way they've run that Leagues Club and for that matter the football team for over four decades, there's no guarantee that any development they do is going to be a winner. The Sharks running a nursing home and conference centre? They can barely manage a coffee shop. Sell it off now, FFS.

Yeah its a good idea to keep an open mind.

Of course the property market is pretty flat atm, nobody quite knows what is going to happen next. Id say if they want to maximise the price, they will have to wait for awhile as goods and services remain expensive even though you are getting less dough from the sale.

But hey I dont have a crystal ball.

If the club doesnt have the neccessary expertise, it has to get people on board who do.

A lot of directors of clubs all over this state think they are would-be Donald Trump's.

They are good at brown-nosing thats for sure.

 

[Vossy]

how much did we pay noddy?

well over a million bucks..

his first 5 years he was on 450k roughly, 6th year 250k...

i blame this on noddy
------------

we have always been like this, no need to panic, every club is struggling at the moment, they just had to point out us and not others (except for those pesky sea eagles

 

[squiddy]

. The players arnt back yet

Yes they are - saw them yesterday at Sutho bike track tryin to impersonate Lance Armstrong.

to keep it on track - I'd add my voice to the bring back Peter Gow vote ! Guy is a financial wiz

 

[Stagger eel]

well over a million bucks..

his first 5 years he was on 450k roughly, 6th year 250k...

i blame this on noddy
------------

you recieve a grant of 3.5 mill from the NRL each year which basically covers player payments, why the f**k would you blame this on Noddy??

besides, your management and coaching staff agreed to sign Noddy, the guy is only doing what's best for himself..

blaming him is completely and utterly ignorant..

 

[Ausguy]

you recieve a grant of 3.5 mill from the NRL each year which basically covers player payments, why the f**k would you blame this on Noddy??

besides, your management and coaching staff agreed to sign Noddy, the guy is only doing what's best for himself..

blaming him is completely and utterly ignorant..

Stagger ur missing the running joke.... :lol:

 

[Inferno]

RONULLA chief executive Tony Zappia today moved to assure fans of the NRL club's future, saying the Sharks are not broke and will never move from Sutherland.

As The Daily Telegraph exclusively revealed today, the Sharks financial situation had got to a point where they had to take out a huge loan to pay players and staff over Christmas

Zappia insists the situation is no more dire than other clubs and quelled fears they would investigate the NRL's multi-million dollar package for relocation to the Central Coast.

"It is going to be tight, but other footy clubs are in the same position," Zappia said.

"We have never been one of those top two or three financially strong clubs. We're obviously affected a little bit more than some others.

"I think today running organisations on credit is standard practice.

"Our base for next year is solid. All our majors and top end sponsors are moving forward with us and are on board for next year. Now it is just a matter of going through and seeing if there are areas we can cost save.

"There is certainly no talk of relocation. That is not on any agenda. The club will stay exactly where it is."

Zappia confirmed sponsors, global accountants PKF, had conducted an independent review into the club's finances with a report due prior to Christmas.

But unlike some other NRL clubs, Zappia did not believe cutting funding to junior teams was the answer to Cronulla's financial woes.

"Junior rep teams are certainly part of the livelihood and future of our club. More importantly, the Cronulla Sharks were set up to propagate the game of rugby league and we need to ensure that continues to happen in the future."

While Cronulla battle for every penny the news for NRL premiers Manly was exciting today as the Sea Eagles signed a three-year major sponsorship deal with Quantum Energy Technologies worth more than $2.5 million.

It took the Sea Eagles less than two months to secure the deal as the club continues to reap the benefits of a premiership win.

Quantum specialises in renewable hot water and pool heating systems and the Sea Eagles are boasting they have become the NRL's first team sponsored by a "green" company.

"At a time of much financial gloom it is refreshing that the code and the Sea Eagles in particular can clinch such a significant financial partner," said Manly chief executive Grant Mayer.

"It is a tremendous fit for the club and also makes a statement that we take the issue of climate change seriously".

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