Sharkies going, going...? (D/T)

[bartman]

What will this mean for the NRL as a whole? :crazy:

http://www.news.com.au/dailytelegraph/story/0,22049,24647225-5001021,00.html

Cronulla Sharks facing financial oblivion


Exclusive by Josh Massoud
November 14, 2008 12:00am


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.

 

[joshreading]

I told you already 'Southern Sharks' - 4 games to adelaide and secure your future.

 

[bartman]

Two things....

1. How funny is it that the Sharks are being bailed out by St George (bank) :lol:

2. Surely the fact a successful team like the Sharks this year ran at a $1/2 million loss should once and for all shut people up - fans and media and players/managers - about the need to raise the salary cap - just to keep our pampered spoilt money-hungry professional athletes happy to still keep playing the game that made them stars and gave them a "market value" in the first place?

THERE'S JUST NO MONEY IN THE GAME PEOPLE. It is dying because of the greed for nonsense big contract deals that I trace back to when Joey and his manager Fordham held the Newcastle club hostage to extract absolute maximum coin no matter the cost, rather than just accept a fair and reasonable - and sustainable - offer.

 

[God-King Dean]

The Daily Telegraph has learned Sharks officials requested a $1 million loan from St George...

I will read no more.

 

[C u next time]

Two things....

1. How funny is it that the Sharks are being bailed out by St George (bank) :lol:

2. Surely the fact a successful team like the Sharks this year ran at a $1/2 million loss should once and for all shut people up - fans and media and players/managers - about the need to raise the salary cap - just to keep our pampered spoilt money-hungry professional athletes happy to still keep playing the game that made them stars and gave them a "market value" in the first place?

THERE'S JUST NO MONEY IN THE GAME PEOPLE. It is dying because of the greed for nonsense big contract deals that I trace back to when Joey and his manager Fordham held the Newcastle club hostage to extract absolute maximum coin no matter the cost, rather than just accept a fair and reasonable - and sustainable - offer.

you cannot be serious
that would have to be the dumbest thing ive ever read.
Go back to April 1 1995 a little concept called super league thats what created all of this

 

[BrisVegas]

Two things....

1. How funny is it that the Sharks are being bailed out by St George (bank) :lol:

2. Surely the fact a successful team like the Sharks this year ran at a $1/2 million loss should once and for all shut people up - fans and media and players/managers - about the need to raise the salary cap - just to keep our pampered spoilt money-hungry professional athletes happy to still keep playing the game that made them stars and gave them a "market value" in the first place?

THERE'S JUST NO MONEY IN THE GAME PEOPLE. It is dying because of the greed for nonsense big contract deals that I trace back to when Joey and his manager Fordham held the Newcastle club hostage to extract absolute maximum coin no matter the cost, rather than just accept a fair and reasonable - and sustainable - offer.

That is rubbish, there is plenty of money in the game in areas other then Sydney. The QLD clubs, Melbourne and NZ can all afford to pay players larger wages (NZ getting busted for it a few years ago). Those clubs that have made their primary source of income running a football team will be fine, those that rely on gaming will be in for hard times.

The game is "dying" :roll: because for far to long Sydney clubs have been run in a "jobs for the boys" fashion, and were only viable due to massive Poker Machine payouts.

If all Sydney clubs were subjected to the same entry criteria the Gold Coast faced, how many would be awarded an NRL licence? Three or Four at most.

There was a terrific article in a SMH/DT earlier this year analysing how the Sydney clubs are in the exact same position as they were in 1994 - being rapidly outgrown by their one city team rivals. Back in the 90's SuperLeague gave the struggling clubs a decades reprieve when Optus, News Ltd and the ARL threw money at the clubs to buy their loyalty. I doubt most will be so lucky this go round.

Some hard questions have to be asked. If clubs such as Cronulla and Manly finish equal first and can't turn a profit, has the game outgrown theses clubs and their niche regions of support? Can 9 Sydney clubs survivie playing out of the same city in a national competition, or are they canabilizing one another? And how will clubs that are cutting back on spending (Cronulla, Penrith, Souths) compete with clubs such as the Broncos, Titans and Storm who are outspending them 3-to-1 in football departments?

Looking back at the makeup of the competition over the past 15 years shows how rapidly things can change, I'd expect 15 years from now people to look back and be supprised at the changes that have occured once again.

 

[Southernsaint]

Great news.

But I wish there were no more handouts for that filthy club, all they do is bite you on the hand whenever any generosity is shown.

 

[shane1970]

It is dying because of the greed for nonsense big contract deals that I trace back to when Joey and his manager Fordham held the Newcastle club hostage to extract absolute maximum coin no matter the cost, rather than just accept a fair and reasonable - and sustainable - offer.

.
Have you only just started following league?????? Because surely your above statement relates to Joey's last contract he signed well and truly after a thing called SUPER LEAGUE started where he wasn't even the HIGHEST paid player going around.
.
But go ahead blame it on Joey - it's all his fault - got any unsolved murders you'd like to blame him for as well???? What about the World economy - That's Joeys fault as well. And the price of petrol. The list goes on - God damn you Joey:crazy:

 

[Teddyboy]

How many clubs can the NRL have to be a success
Bronco's
Cowboys
Gold Coast
another Queensland club
Newcastle
Central Coast
and 3 Sydney teams.
And thats it or just merge with New Zealand Rugby Union as the ass is dropping out if that code.

No need for 2 codes yet the aussie want League but the rest of the world wants Union.

 

[Bulldog Force]

Low fans despite being a top 4 team. Not good for the Sharkies.

Ps - if they flunk, we'll take Corey Hughes back thanks

 

[Delboy]

In NSW we have to thank the Carr/Egan regine for this, increased taxes with no relief for grants . A major leagues Club I am aware has paid an extra $19 million in extra taxes since the introduction 3 years ago, and consequently cannot provide the sort of support to the local community (inc junior league and NRL) that they were set up for.

We can expect more of this and we need to look no further than the useless and greedy State Govt., the club is unable to support some school projects it has for years provided for, and the Govt does not give a cent of this extra tax back to community. Junior RL Clubs can expect to have to fund their shorts and socks thanks to the tax, at least the gamblers contributed something to the community and now nothing.

 

[BrisVegas]

In NSW we have to thank the Carr/Egan regine for this, increased taxes with no relief for grants . A major leagues Club I am aware has paid an extra $19 million in extra taxes since the introduction 3 years ago, and consequently cannot provide the sort of support to the local community (inc junior league and NRL) that they were set up for.

We can expect more of this and we need to look no further than the useless and greedy State Govt., the club is unable to support some school projects it has for years provided for, and the Govt does not give a cent of this extra tax back to community. Junior RL Clubs can expect to have to fund their shorts and socks thanks to the tax, at least the gamblers contributed something to the community and now nothing.

But clubs were given plenty of forward notice that this was coming, this didn't happen overnight.

Where was the forward planning? Where was the development of alternate revenue streams?

If clubs such as the Gold Coast, N-QLD and Brisbane can be profitable without poker machines (yes I'm aware Brisbane has pokies, but they account for approx 2% of revenue) why haven't the Sydney clubs adopted similar business practices to move beyond a reliance of Pokies?

Blaming the state government is a cop-out, short sighted NRL club administrators and board members should be shouldering the blame.

 

[cb4]

Low fans despite being a top 4 team. Not good for the Sharkies.

Ps - if they flunk, we'll take Corey Hughes back thanks

haha
u have ennis
we will be sweet

 

[bobmar28]

East Coast Sharks? (Roosters/Dragons/Sharks).

 

[Mayor_Quimby]

I hope $250k of that million is being given back to Manly after we bailed them out in the 90's

 

[CHRIS SANDOW]

Low fans despite being a top 4 team. Not good for the Sharkies.

Ps - if they flunk, we'll take Corey Hughes back thanks

The sharkies won't survive.

 

[CHRIS SANDOW]

I told you already 'Southern Sharks' - 4 games to adelaide and secure your future.

It won't be enough.

 

[Pierced Soul]

ennis >hughes

i think clubs need tot ake some repsonsibility. as has been mentioned they enw about the pokie taxes and have had time to prepare for them.

any other business has to start looking at alternate revenue streams but it seems football clubs didnt think that would be necessary and then get confused when they run at a loss

 

[Ausguy]

The sharkies won't survive.

Your just lucky u have Uncle Russ or u would already be gone.

I think everyone is missing the point.... you read this in the TELEGRAPH.

 

[drake]

Just give the shire back the team they originally had pre '67.

I'm sure that will make them happy, they can finally have an army.