Cash-strapped Gold Coast Titans facing scrapheap
by: Brent Read
From: The Australian
March 22, 2012 12:00AM
GOLD Coast managing director Michael Searle last night insisted his resolve was as steely as ever as it emerged the Australian Rugby League Commission was in the process of weighing up what to do with the financially stricken club - including the extreme measure of allowing the Titans to fall over before starting a new team from scratch.
ARLC chief executive David Gallop yesterday confirmed the commission had engaged a major accountancy firm to gather as much information as possible on the Titans' financial picture, which has been the source of conjecture for months.
Gallop declined to discuss possible solutions to the Titans' woes but it is understood the club's financial position and future occupied much of the discussion at Tuesday's meeting of the independent commission.
Among the alternatives believed to be discussed by the commission was the slim prospect of allowing the club to collapse before setting up a new team on the tourist strip. Commissioners are also believed to have discussed the option of the NRL taking over the existing licence.
Searle, however, insists that won't be happening. He has acknowledged the club's financial issues, which are related to loans taken out to build the Centre of Excellence. The building has also been the subject of legal action, the latest involving The Reed Group. The construction company has begun court proceedings over claims it is owed more than $1 million.
Searle disputes the figure. However, he has confirmed he will sell the building to alleviate the financial squeeze on the Titans. There have been suggestions the property arm's debt could exceed $25m. Searle denies it is that high.
Searle also confirmed he made a request to the ARLC late last year for further funding as the club jostles for space on the Gold Coast with a cashed-up AFL.
"We put a request in for consideration around the AFL," Searle said. "Which club in western Sydney hasn't done the same? All we're saying is that yes, we need some support. It's not rocket science when the AFL gives the (Gold Coast) Suns $20m.
"What we have to do is very different to what other clubs have to do. I think our club is entitled to some form of support.
"If anything, my resolve is more steely now than it has ever been. I fought for a long time to have a football team on the Gold Coast, I will fight for a long time to keep it here on the Gold Coast.
"As I said last week, we will do whatever it takes to make sure this football club is sustainable in the long term."
Searle has, however, given up on the idea of retaining the Centre of Excellence. He said last night he would definitely off-load the facility, a move that he believes will remove any doubts over the club's future.
"We have had a heap of people approach us about wanting to buy the building," Searle said.
"Some are investors, some are football fans. I will make a considered decision at the appropriate time. Suffice to say, as a club we're willing to consider selling the building if it increase the club's profitability by $1.5m.
"The property arm costs the football club money. By us getting rid of the property arm, the football club's profits will increase by $1.5m a year."
Searle also insisted the Titans would make a significant profit this year despite disappointing crowds for their home games against Canberra and Melbourne.
"We will be profitable this year," Searle said. "We're forecasting a profit of $1m. Our budgets for Canberra and the Storm were met."
The Gold Coast club is stepping up its bid to sign Melbourne star Cooper Cronk.
Gallop confirmed the ARLC was in talks with Searle and awaiting a report on the club's finances.
"We have got some outside people assisting us with that. Hopefully that information will be available in the next few days," Gallop said.
