Official Cronulla Sharks Board + Management

[Matty C of the Shire]

Sharks Leagues Club hit by unforeseen costs and industry woes​

By Murray Trembath
Updated April 11 2023 - 6:38pm, first published 4:30pm
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Computer generated image of the club showing the north-facing deck. A small pool has since been added to plans.
Unexpected construction costs and procurement delays have impacted the new Sharks Leagues Club.
The fit-out cost has risen to between $28.5 million to $30 million, and the opening pushed back to February 2024 best case scenario, and August 2024 worst case scenario.
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The club had hoped the project would by completed by mid to late 2023.

Sharks chief executive Dino Mezzatesta said, "We are working hard to find solutions to a roof replacement and facade replacement that have contributed to the time blow out".
"Both were not provisioned or accounted for as works required to be done and there are long procurement lead in times and designs to be completed for both projects.

Computer generated image of the redeveloped leagues club. Picture supplied
"It was never envisaged that we would have to replace the entire roof on the building.
"Once it was realised that the roof was going to be new, the secondary problem that arose was flashing a new roof to the old facade. Our engineers advised us it was best to replace it to ensure the building is water tight and not compromised with an old structure.
"We have also been impacted by cost escalations across the industry."
Mr Mezzatesta said in the club's annual report Sharks at Kareela had "again proved to be the ideal home-away-from-home during the 2022 season".
"As we were upon acquiring the club, we remain delighted with the facilities and service Sharks at Kareela offers and have no doubt it will continue to be a valuable asset in complementing our new Sharks Leagues Club at Woolooware once construction has been completed," he said.
"We also revealed discussions had taken place last year surrounding another potential amalgamation with a licensed Club in Coffs Harbour, the Park Beach Bowling Club, in what were plans to add to our licenced club and property portfolio.
"While our initial amalgamation proposal was rejected by their board, our approach was noted in their Annual Report and with the success of our football partnership with the Coffs Harbour region we haven't ruled out the possibility of exploring similar opportunities in the future."
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The annual report said membership figures remain strong, now numbering over 27,000.
Meanwhile, Sutherland Shire Council has approved the development application for new features in the leagues club at Woolooware Bay, which have been added since earlier approvals.
They include a family play area and "small" pool on the north-facing deck and to have amplified live music, including bands, on the deck until 10pm.
A 24-month trial period and other conditions on the deck operations were imposed.
The total number of patrons on the premises at any time must not exceed a total capacity of 3170. The maximum number on the deck will be 850.
The approval states the premises are not permitted to be used as a nightclub.

 

[CrazyMatt]

Well….****.

 

[Walley_01]

They should have knocked down the entire old club to start with

That building was fkd

 

[HaroldBishop]

They should have knocked down the entire old club to start with

That building was fkd

Yeah was pretty average. No idea what that would have cost though.

 

[Western Sharkie]

Yeah was pretty average. No idea what that would have cost though.

Sometimes (just sometimes) it works out better and cheaper overall!

 

[Gumby]

why wouldn’t they turn it into a club after 10pm :? Money lost right there imo.

 

[Western Sharkie]

why wouldn’t they turn it into a club after 10pm :? Money lost right there imo.

Maybe liquor licence issues?
Local council and or Noise regulations?

But you would hope that we would look into it and consider any possible application

 

[HaroldBishop]

Maybe liquor licence issues?
Local council and or Noise regulations?

But you would hope that we would look into it and consider any possible application

It's only for amplified music on the deck.

 

[Western Sharkie]

It's only for amplified music on the deck.

Fair enough.

So After 10 can still be used but no live or loud music.
Therefore must be Noise regulations.

 

[SF]

They should have knocked down the entire old club to start with

That building was fkd

Yeah I questioned this a while back, there were a few replies in this thread:

Official - Shark Park & Woolooware Bay Development

On a side note, I was in the shire on the weekend for the first time in a long time, I drove passed Shark Park and there was a banner that said something like 'Your new home in 2023" Did I miss something? I thought we were back in 2022. I think that might be for the Leagues Club, not the...

sharksforever.com

 

[Jaz]

It's ****ed that it's taking so long, and that we're seeing no real improvements to the ground itself.

 

[HaroldBishop]

It's ****ed that it's taking so long, and that we're seeing no real improvements to the ground itself.

Agree but I think funding for ground improvements should come from a third party. I'd prefer we invested our cash in something that will make money.

 

[Jaz]

Agree but I think funding for ground improvements should come from a third party. I'd prefer we invested our cash in something that will make money.

I know what you're saying but it's hard to cop them buying shopfronts in the mall for however many million when they won't even fix the toilets.

Can't blame the govt for knocking us back when we're spending all this money elsewhere.

 

[Western Sharkie]

I know what you're saying but it's hard to cop them buying shopfronts in the mall for however many million when they won't even fix the toilets.

Can't blame the govt for knocking us back when we're spending all this money elsewhere.

I’m a bit curious with this decision as well.

Not sure a shop front for Sharks merchandise (exclusively) is going to churn a decent ROI.

I’d rather that we lease it out to generate rental income from it.
I think we generate a positive income from rent, whereas we potentially see a loss as a merchandising store.

I’d imagine you‘d get more sales from sell merchandise at the ground on game days and at the leagues club when it’s up and running (use a van in the interim in need) than casual thoroughfare foot traffic in a mall (Hope I’m wrong).

 

[Proud Shark]

I know what you're saying but it's hard to cop them buying shopfronts in the mall for however many million when they won't even fix the toilets.

Can't blame the govt for knocking us back when we're spending all this money elsewhere.

I think about it a bit differently.

The government isn't giving us any money, so we need to work on generating more ourselves. We could either spend that cash on upgrading parts of the ground, and it would be gone. Or, we could spend it on investment, and hopefully generate an income stream in the future that could upgrade the ground consistently. It will be a slow burn, but I think they are making the right call.

 

[Matty C of the Shire]

I’m a bit curious with this decision as well.

Not sure a shop front for Sharks merchandise (exclusively) is going to churn a decent ROI.

I’d rather that we lease it out to generate rental income from it.
I think we generate a positive income from rent, whereas we potentially see a loss as a merchandising store.

I’d imagine you‘d get more sales from sell merchandise at the ground on game days and at the leagues club when it’s up and running (use a van in the interim in need) than casual thoroughfare foot traffic in a mall (Hope I’m wrong).

They need someone where to house their front of house staff. Renting in the shire for the amount of staff the club has would not be effective, efficient and economical use of funds.
the purchase is sound and keeps the front of house staff, merchaise and membership more accessible to public, then being located either at Kareela or at a rented facility near the stadium.
would produce more revenue and could help wirh funding with other government departments, should we give access to other community groups, which could be seen as part of our Corporate social responsibility plan.

 

[Walley_01]

Yeah I questioned this a while back, there were a few replies in this thread:

Official - Shark Park & Woolooware Bay Development

On a side note, I was in the shire on the weekend for the first time in a long time, I drove passed Shark Park and there was a banner that said something like 'Your new home in 2023" Did I miss something? I thought we were back in 2022. I think that might be for the Leagues Club, not the...

sharksforever.com

I’m hindsight when that decision was made construction costs probably weren’t at an all time high and they wouldn’t have foreseen the rising costs (even though it should have been considered)

 

[HaroldBishop]

I’m a bit curious with this decision as well.

Not sure a shop front for Sharks merchandise (exclusively) is going to churn a decent ROI.

I’d rather that we lease it out to generate rental income from it.
I think we generate a positive income from rent, whereas we potentially see a loss as a merchandising store.

I’d imagine you‘d get more sales from sell merchandise at the ground on game days and at the leagues club when it’s up and running (use a van in the interim in need) than casual thoroughfare foot traffic in a mall (Hope I’m wrong).

Agree but there's nothing to say we won't lease it out in the future.

 

[Gumby]

They really need to upgrade the ammenities ect at the ground. It’s ****ing embarrassing that they haven’t done this already.

 

[Jaz]

I think about it a bit differently.

The government isn't giving us any money, so we need to work on generating more ourselves. We could either spend that cash on upgrading parts of the ground, and it would be gone. Or, we could spend it on investment, and hopefully generate an income stream in the future that could upgrade the ground consistently. It will be a slow burn, but I think they are making the right call.

I hear ya, and it sounds like the Kareela purchase has been great for us. I'm skeptical of the cash generating potential of the mall site, but then I was skeptical about Kareela too.

Upgrading parts of the ground can also generate cash though. How many people are smuggling in flasks after missing half the game in the beer line? And more importantly, how many women are never coming back after waiting 20 mins to go to the toilet?

I'm not suggesting we pour every cent we have into improving the stadium ourselves. But it doesn't have to be all or nothing. There is some basic **** that needs to be fixed, and we can't wait another few years in the hope the govt will fix it for us.