NRL - Cronulla's future uncertain

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NRL - Cronulla's future uncertain

Post by Redszone on Sat Mar 26, 2011 8:25 am

NRL club Cronulla face uncertain future after plan to merge Sharks leagues club was killed off
By Joe Hildebrand

A plan to save the debt-ridden Cronulla Leagues Club by amalgamating it with the flush Sutherland District Trade Union Club has been unanimously voted down by the Tradies Board.
The highly respected Sutherland club was the only one to genuinely consider an amalgamation and a club industry insider predicted the move would spell the death of the Sharks within three years.
Tradies chief executive Tim McAleer said his club had done everything it could to try to save the Sharks but after advice from top accounting firm KPMG, and concerns about its $300 million development proposal, it could not go ahead with the white knight move.
"We have scrutinised the opportunity from every angle with a view to saving the Shire's rugby league team," he said on Thursday night following the board meeting.
"Unfortunately, the significant drain on our resources that would have been required to address the issues at Cronulla Sharks may well have placed our own development at risk.
"Quite simply, that is a risk we just weren't prepared to take."
Tradies are also planning their own far more modest $15 million redevelopment, which may have been put under threat if the merger went ahead.
The club said it needed to put the interests of its 32,000 members first, as well as community groups such as Lifeline, the Salvation Army and Meals on Wheels, who rely on more than $500,000 a year from the club.
The move is expected to come as a shock to Sharkies, which as late as Thursday night was preparing to announce the opposite.
The merger was seen as vital to ensure the security of the Sharks football club, which has been starved of cash from the leagues club - which is now $12 million in debt to St George Bank.
"Their rejection will almost certainly kill off any interest other clubs may have had in playing the white knight role to Cronulla," the insider said.
"It's very hard to see the Sharks surviving either as a registered club or a football club beyond the next three years with the level of debt they have."
Both now face an uncertain future, with a $300 million development at Toyota Stadium facing a potential challenge by Sutherland Shire Council and the new O'Farrell Government having vowed to give planning powers back to local councils.
It was reported this week that Reverend George Capsis, the club's former chaplain, had raised concerns over the planned shopping precinct and residential complex, which has been touted as key to the club's long-term future.

http://www.foxsports.com.au/league/nrl-club-cronulla-face-uncertain-future-after-plan-to-merge-sharks-leagues-club-was-killed-off/story-e6frf3ou-1226027825971?from=public_rss

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Re: NRL - Cronulla's future uncertain

Post by Redszone on Sat Mar 26, 2011 9:24 am

The Cronulla club has been dealt a smashing blow after a plan to merge their struggling leagues club was killed off at the 11th hour.

The highly respected Sutherland club was the only one to genuinely consider an amalgamation and a club industry insider predicted the move would spell the death of the Sharks within three years.

Tradies chief executive Tim McAleer said his club had done everything it could to try to save the Sharks but after advice from top accounting firm KPMG, and concerns about its $300 million development proposal, it could not go ahead with the white knight move.



"We have scrutinised the opportunity from every angle with a view to saving the Shire's rugby league team," he said on Thursday night following the board meeting.

"Unfortunately, the significant drain on our resources that would have been required to address the issues at Cronulla Sharks may well have placed our own development at risk.

"Quite simply, that is a risk we just weren't prepared to take."

Tradies are also planning their own far more modest $15 million redevelopment, which may have been put under threat if the merger went ahead.

The club said it needed to put the interests of its 32,000 members first, as well as community groups such as Lifeline, the Salvation Army and Meals on Wheels, who rely on more than $500,000 a year from the club.

The move is expected to come as a shock to Sharkies, which as late as Thursday night was preparing to announce the opposite.

The merger was seen as vital to ensure the security of the Sharks football club, which has been starved of cash from the leagues club - which is now $12 million in debt to St George Bank.

"Their rejection will almost certainly kill off any interest other clubs may have had in playing the white knight role to Cronulla," the insider said.

"It's very hard to see the Sharks surviving either as a registered club or a football club beyond the next three years with the level of debt they have."

Both now face an uncertain future, with a $300 million development at Toyota Stadium facing a potential challenge by Sutherland Shire Council and the new O'Farrell Government having vowed to give planning powers back to local councils.

It was reported this week that Reverend George Capsis, the club's former chaplain, had raised concerns over the planned shopping precinct and residential complex, which has been touted as key to the club's long-term future.

http://www.foxsports.com.au/league/nrl-club-cronulla-face-uncertain-future-after-plan-to-merge-sharks-leagues-club-was-killed-off/story-e6frf3ou-1226027825971

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