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Daniel Lane | May 6, 2007
THE Sharks are $1 million in the red and facing another financial crisis after it was revealed a federal government grant was used to bolster the club's coffers. The Sharks, who have faced a number of financial difficulties in their 40-year existence, are reeling after paying out hundreds of thousands of dollars to axed coaches.
After a $9.6 million grant to redevelop Toyota Park is removed from the balance sheet, the combined loss of the leagues and football clubs - the Sharks Group - since 2004 was $1 million. The grant, supported by the Sharks' No.1 ticket holder Peter Costello, can be used only to revamp the club's ground. It can't be used to pay off debts or wages. Neither can the $194,942 interest accrued while the grant sits in the Sharks' St George bank account.
At the heart of the problem were the big payouts to axed coaches Chris Anderson (2003) and Stuart Raper (2006). They also had to pay big money to recruit Test coach Ricky Stuart this year. Adding to the financial strain is the Sharks' pledge to contribute $800,000 of their own to the ground refurbishment.
The Sun-Herald documented the Sharks' financial woes in September. The just released football club's annual report confirms:
The leagues club showed a low $44,000 profit.
The leagues club's annual grant to the football club had increased by $300,000 to $1.8 million.
The money paid to the football club's staff - coaches, players, management - increased by $1 million in 2005.
Match-day revenue in 2006 dropped by $300,000.
The football club had to borrow another $600,000 from the bank.
The leagues club's report was just as alarming:
In just two years the Sharks Group had turned a $1 million profit into a $1 million loss.
The club paid $300,000 in poker machine tax. That figure will increase next year.
The leagues club plans to borrow $800,000 to construct "smoking decks" for when the government bans smoking in all licensed premises.
The Sharks' poor 2006 campaign had a major effect on the club's coffers. When the team failed to make the finals it missed out on a $150,000 bonus from their main sponsor, plus an NRL bonus. Added to the loss was the $15,000 fine imposed on the club when it did not register Leon Bott mid-season. It paid the Mercury Group an estimated $10,000 to review the club's performance. The million-dollar increase in money paid to football staff could be attributed to the payouts to Raper and his assistant Adrian Lam, and the cash needed to recruit Stuart.
Daniel Lane | May 6, 2007
THE Sharks are $1 million in the red and facing another financial crisis after it was revealed a federal government grant was used to bolster the club's coffers. The Sharks, who have faced a number of financial difficulties in their 40-year existence, are reeling after paying out hundreds of thousands of dollars to axed coaches.
After a $9.6 million grant to redevelop Toyota Park is removed from the balance sheet, the combined loss of the leagues and football clubs - the Sharks Group - since 2004 was $1 million. The grant, supported by the Sharks' No.1 ticket holder Peter Costello, can be used only to revamp the club's ground. It can't be used to pay off debts or wages. Neither can the $194,942 interest accrued while the grant sits in the Sharks' St George bank account.
At the heart of the problem were the big payouts to axed coaches Chris Anderson (2003) and Stuart Raper (2006). They also had to pay big money to recruit Test coach Ricky Stuart this year. Adding to the financial strain is the Sharks' pledge to contribute $800,000 of their own to the ground refurbishment.
The Sun-Herald documented the Sharks' financial woes in September. The just released football club's annual report confirms:
The leagues club showed a low $44,000 profit.
The leagues club's annual grant to the football club had increased by $300,000 to $1.8 million.
The money paid to the football club's staff - coaches, players, management - increased by $1 million in 2005.
Match-day revenue in 2006 dropped by $300,000.
The football club had to borrow another $600,000 from the bank.
The leagues club's report was just as alarming:
In just two years the Sharks Group had turned a $1 million profit into a $1 million loss.
The club paid $300,000 in poker machine tax. That figure will increase next year.
The leagues club plans to borrow $800,000 to construct "smoking decks" for when the government bans smoking in all licensed premises.
The Sharks' poor 2006 campaign had a major effect on the club's coffers. When the team failed to make the finals it missed out on a $150,000 bonus from their main sponsor, plus an NRL bonus. Added to the loss was the $15,000 fine imposed on the club when it did not register Leon Bott mid-season. It paid the Mercury Group an estimated $10,000 to review the club's performance. The million-dollar increase in money paid to football staff could be attributed to the payouts to Raper and his assistant Adrian Lam, and the cash needed to recruit Stuart.
