Cronulla Sharks facing mass redundancies due to financial distress

[planchetflaw]

https://www.dailytelegraph.com.au/s...s/news-story/cf286ba8471021afbb31ab9a8ded0b97

Under directions from the board, chief executive Barry Russell handed out the redundancies to employees from commercial, digital/media and events on Tuesday.
The staff members will leave before Christmas.
The Daily Telegraph understands the Sharks finished last season with a $3 million loss, despite a $13 million grant from the NRL.
The sacking will save around $1.5 million next year.
NRL boss Todd Greenberg and his finance staff are monitoring the situation closely.
The Sharks have no major sponsor for 2019. Only one of four sponsor positions on the Sharks’ jersey has been sold.
Revenue from unit sales at the development site next to Shark Park has been used to clear debts of more than $6 million rather being invested into football operations.
Cronulla’s financial plight is of a huge concern to the NRL.
The club is also under investigation for salary cap rorting in 2015 and revelations of a fake invoice scam and bogus $100,000 loan to players.
The club is still paying off the loan and facing a huge fine from the NRL.
The Sharks have been unable to offer coach Shane Flanagan a coaching extension because of the financial crisis.
The sackings leave the Sharks with an administration staff of only 12 and all about 25.
They have to compete against teams like the Brisbane Broncos who employ 80 staff members.
The NRL is refusing to offer Cronulla any financial assistance.
The situation is so diabolical that a recent request for new computer equipment from the coaching staff was rejected.
There are suggestions the NRL side will be forced to play under the salary cap next year to save more costs although it will not affect the signing of champion Kiwi half-back Shaun Johnson, who will be getting the money from Valentine Holmes’ departure.
The Daily Telegraph is seeking comment from the Sharks and the NRL.

 

[HaroldBishop]

So many assumptions. Very poorly written.

 

[Milkshark]

Pretty big saving for just 10 people

 

[Jaz]

What the **** happened with the development?

 

[Mark^Bastard]

I hope whoever came up with the idea of super imposing players onto clouds like a cheesy memorial shot, despite them being alive, is one of the ones made redundant.

 

[kiwishark]

Real news or fake???

 

[Mark^Bastard]

Buzz Rothfield wrote it, so a bit of both no doubt.

 

[SF]

Sad to hear for the staff and not a great sign. Though hopefully some of it is just for rational business reasons, e.g. we produce more digital content and more community/fan events than even most hardcore Sharks supporters can keep up with.

 

[Thresher]

The bit he put about the NRL refusing economical assistance would be on the mark. They announced earlier this year that there were too many Sydney teams and for that reason they wouldn't bail out any Sydney clubs from then on.

They'd be hoping to relocate us I reckon.

 

[kotwben]

Pretty decent savings from just 10 staff.

 

[Tiger Shark]

It wasn't that long ago I ran into a guy who works in the marketing department, pretty senior. Might be one of the guys getting the boot. Something interesting he said when I asked about Barry is that he was putting the broom through the place, getting rid of Liam's "guys". He elluded to them being on way too much money, not needed or not good enough.

This was about 6 months ago. So whether the redundancies are anything to do with that I'm not sure but wouldn't be surprised if it was part true and it's not just about us saving money, it's about us not spending excess money where it's not needed.

 

[Gards]

isn't most of that 13 million $ 'grant" salary cap?

he try's to make it sound like we spent the 13 million $ on stippers for buzz and hoops

 

[Western Sharkie]

isn't most of that 13 million $ 'grant" salary cap?

he try's to make it sound like we spent the 13 million $ on stippers for buzz and hoops

And that's how they repay us??? Ungrateful bastards!!!

 

[Mark^Bastard]

Even with on costs, that sounds like a lot of salary for 10 people.

I would be more than fine with the team going a little more bare bones in certain areas. The media stuff is dreadful anyway, and pissing in the wind compared to the **** that the DT throws at us. May as well give up.

 

[CHOGM]

The bit he put about the NRL refusing economical assistance would be on the mark. They announced earlier this year that there were too many Sydney teams and for that reason they wouldn't bail out any Sydney clubs from then on.

They'd be hoping to relocate us I reckon.

One of sharks/tigers/dragons will go in the next few years IMO. The other Sydney clubs are all too strong financially. The smart play by the sharks, and I’ll cop a lot of stick for saying this, would be to merge with one of the other two, isolating the third club and creating a strong position to resist relocation. Let’s face it, if one goes, we’d be favourites, even though the financials at the dragons and tigers are no better and long term look even worse.

If the sharks get the boot, I’ll Be a tigers fan because I live nearby and I like the club, so personally I’d be favouring the Tigersharks. A blue shark with orange stripes. Play 3-5 games a year at Leichhardt, train out of shark park. If the sharks relocate or merge with the dragons, I’m done.

I’d love a miracle, but I can’t see it.

 

[Gards]

Tigers are already merged , can't see them ever getting on board with a third entity. Balmain don't place nice with Wests as it is

I don't think a merge with souths would happen now which was on the cards when NRL took over from ARL. St George wouldn't work, Titans a smokey...

We would prob get setup in Perth as the WA team, at least wouldn't be merged but yea jumping the gun a bit here lads

We are in financial trouble, no **** nothing has changed, BAU - just a **** stirrer articles for clicks

Footy clubs don't make profit with the exception of a few, there will always be massive challenges around staying afloat, gotta play it smart

 

[bort]

Even with on costs, that sounds like a lot of salary for 10 people.

Without knowing the actual jobs I agree. There's probably one person there on a good salary whose job it is to supervise the others.
The following numbers and roles are all completely made up, but as an example...
If you have one person on 400k in charge of three people on 250k in charge of another 12 people on about 60k (and you sack 6 of them) then you're left with 6 people doing the work of 12 people for 360k instead of 1.87mil
halves productivity but at a massive saving

We would prob get setup in Perth as the WA team

While I don't want it to happen it is my preference
at least I could attend games...

 

[Blue_Eyes84]

Feels like the bad old days are back...

 

[planchetflaw]

Today's the first day in my life that I've actually got a bad feeling and I don't know why. It's not the article (we get hammered with these all the time). It's just something.

 

[common]

The talk of "The club is also under investigation for salary cap rorting in 2015 and revelations of a fake invoice scam and bogus $100,000 loan to players." really makes me laugh. Every other team has done it, yet when it come to the Sharks we seem to have the boot stuck into us more so. You really only need to think back to the whole Broncos thing with Gee at the Broncos where it was something like 300K missing, yet nothing came of that. Can call it conspiracy theory or whatever you like, but it does appear that some clubs are able to get away with things, or be let off without a fine etc while others such as the Sharks cop it.

As for the whole development thing, major disappointment if they have cocked that up. If the Sharks were to be relocated or merge with another team, nah, would be done with the sport. Cronulla Sharks or nothing.