The Cronulla Sharks have secured a game-changing $40 million cash injection that will turn the NRL’s premiership paupers into a long-term powerhouse.
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The Daily Telegraph [/COLOR]can reveal the Sharks are poised to announce an agreement to fast-track tens of millions of property development dollars, killing off speculation of a forced relocation or merger as the game looks towards the hot topic of expansion.
Under the agreement being finalised by lawyers, the Sharks will receive an immediate $9 million payment to get rid of all debts and cover their recent salary cap fine and a projected $3 million football club loss in 2019.
Cronulla look set to keep going up, up. Image: AAP Image/Dan HimbrechtsLater this year another $18 million from developers Capital Bluestone will go into a future investments fund that will provide long term income for the football club, estimated at $1.5 million annually to support the NRL side outside of sponsorship, membership and gate takings.
A further $12 million will go into an escrow fund, money held by a third party that becomes available to the Sharks once building work begins on the new Leagues Club and shopping centre on their Woolooware Bay site. The $12 million which must specifically be used for the new Leagues Club, which is expected to be completed in 2021.
How the Sharks’ new development will look.The Sharks have agreed terms with Capital Bluestone to sell their remaining interest in the Woolooware Bay Town Centre staged development to get the money advanced.
Cronulla, along with the Manly Sea Eagles and Wests Tigers, have for years been under threat of a relocation or merger as the game looks to expand and include Perth and a second Brisbane team before a new TV broadcast deal is finalised for 2022.
Cronulla chairman Dino Mezzatesta has ever right to be excited by the news. Image: Brett Costello“We’re not going anywhere,” declared chairman Dino Mezzatesta, “This club will carefully invest the money to ensure we have long term income outside of football and poker machines. The board has put in place an investment committee to ensure the funds would be carefully invested.
“It places us in an absolute position of strength for the future and guarantees the Sharks’ future will always be in the Shire.
“We’ve been around for more than 50 years and will be around for another 50.”
The sun will continue to shine on Cronulla. Image: Tony Feder/Getty ImagesThe Sharks had been under enormous financial strain without a major sponsor, having to deal with the salary cap scandal, the termination payment to coach Shane Flanagan and calls to strip the club of the 2016 premiership.
This is despite the fact the Sharks were actually $130,000 under the salary cap when they won the competition, although the NRL have since found two non-compliant third party deals, collectively worth $70,000.
The club was hauled before an NRL finance committee late last year to explain their precarious position with a warning from CEO Todd Greenberg of no future bailouts for financially stricken clubs.
The new funding deal elevates the Sharks to a powerful position alongside the most secure of the nine Sydney based clubs.
Outside of the $40 million, the Sharks are poised to receive a further $16 million from the State and Federal governments for ground improvements and a high performance facility at the venue they own.
“We will be as strong and secure as any of our rivals in Sydney,” Mezzatesta said.
“We have undergone the most searching compliance overhaul and can now move forward with a new coach and a great roster capable of playing finals football.
“This agreement enables us to de-risk rather than divorce ourselves from the development.
“We acknowledge and thank our partner Capital Bluestone for working towards this successful outcome for both parties and for its ongoing support for the Sharks.”
