St George Illawarra could jeopardise future assistance funding packages from the NRL if it outlays millions of dollars on a new contract for Wayne Bennett.
The Dragons have expressed interest in rehiring Bennett after he announced he would leave Newcastle at the end of this year.
The seven-time premiership coach had committed to the Knights until the end of 2015 but the departure of the Hunter Sports Group, the club owner he was contracted to, effectively made him a free agent.
Dragons chief executive Peter Doust has expressed interest in Bennett, who famously steered the joint venture to its first premiership win in 2010.
Given the club has not appointed a long-term successor to the sacked Steve Price coupled with Bennett's preference for not taking a job currently occupied a reunion appears a natural fit.
However, an unexpected obstacle could come in the form of the NRL, which would probably take a dim view of a club it has provided emergency financial assistance to spending an exorbitant amount on a coach.
The Dragons went cap in hand to the governing body requesting advances on grant payments because of the spiralling costs, exacerbated by the decrease of funding from the St George Leagues Club.
The ARL Commission does not want to be seen as giving an artificial advantage to a struggling club's chase for Bennett when emergency funds were provided to help meet debts and expenses.
"The money provided to the Dragons was in line with their business plan, which was presented to the commission, to help ensure the club is financially stable moving forward," an NRL spokesman said.
St George Illawarra powerbrokers could argue that Bennett's return would increase marketing and sponsorship revenue. And there is the possibility several star Knights players would follow his move.
However, paying huge money for a coach who, by his own admission, did not deliver in his present role could strain the Dragons' relationship with head office.
Ironically, the NRL, which has taken control of Newcastle in its transitional ownership phase, was keen for Bennett to remain for that rebuild.
Another potential obstacle to Bennett's Dragons homecoming is the success of caretaker Paul McGregor.
The Red V have won four of their past five matches under McGregor's watch to raise hopes of an unlikely finals appearance.
Another advantage in appointing McGregor would be the cost savings the man dubbed ''Mary'' would probably be the lowest-paid head coach in the NRL if given the nod, an attractive option for a club struggling to make ends meet.
It is unlikely the club would have both Bennett and McGregor on the books at the same time the former Blues three-quarter was moved on from his position as strength and conditioning coach when Bennett arrived in 2009.
McGregor, who has growing support among some influential Dragons figures on and off the field, was philosophical when asked about Bennett's potential homecoming.
"There's a playing group that needs to be coached and we're doing that," he said.
"We've got a week off this week, so we'll refresh. It doesn't change anything for me short term. Long term, I can't control it. All I can control is the playing group I've got."
Gold Coast assistant Neil Henry and Kangaroos mentor Tim Sheens have also been linked to the Dragons job, but their odds have lengthened following Bennett's decision to quit Newcastle.
Should negotiations between Bennett and the Dragons fall through, possible destinations for the veteran coach include Brisbane, Gold Coast or North Queensland.
Bennett will become the first man to coach 700 first-grade games when the Knights take on Cronulla at Remondis Stadium on Sunday. The closest to Bennett of the serving clipboard holders is Craig Bellamy with 305 matches, while Sheens has coached 669 games.
''Wayne has been one of the game's most successful coaches and, through his leadership, is also a credit to the game," NRL chief executive Dave Smith said.
''While Wayne has announced he is leaving the Knights at the end of the season, I have no doubt he will continue to play a prominent role in the game.''
