Sharky Pete
Great White
Blaze up in smoke as owners walk away
Daniel Meers | 07:18am July 18, 2012
BASKETBALL Australia's insistence on the Blaze providing a $1 million bank guarantee -- which at least some existing clubs will not provide -- is poised to sink the Gold Coast franchise.
Blaze owners were left stunned last night when Basketball Australia rejected their submission to remain in the 2012-13 competition because they had not provided a $1 million guarantee. The club's directors claimed they had reached an agreement with the sport's governing body to produce a figure far less than that.
The move ignited fierce debate in the basketball world over the contentious guarantee. It is widely known that several clubs traditionally do not provide evidence they can produce the whopping seven-figure sum required to be used if a club reaches hardship.
BA yesterday gave the club until July 31 to provide further information on three key points of their submission -- the Blaze claim they have already meet two of them.
In a statement, Basketball Australia said the Blaze must provide:
* Irrefutable evidence that the club is able to put in place the current NBL required bank guarantee of $1 million.
* Detailed confirmation of major funding sources, as well as evidence of the working capital requirements of $500,000.
* Absolute and unconditional assurance that the debt outstanding to BA will be paid no later than August 31.
Co-owner Owen Tomlinson last night declared the club met two of the three points and conceded he was confused about the stance of the bank guarantee.
He maintained the club was ready to "rock 'n' roll" for next season.
"I'm disappointed and confused," he said. "We meet two of the three requirements, which they have said we did not meet. We've got the $500,000 working capital and we have given them an assurance that we will pay the debt as well."
"We want to be in the competition this year. We believe we are ready to rock 'n' roll. I'm seeking further clarification about the guarantee."
Basketball Australia refused to comment on whether other clubs would default on the $1 million guarantee and BA acting chief executive Scott Derwin again refused to comment publicly other than in a written statement.
"This proposal is a good start, which BA supports in principle -- but the reality is it needs to be fleshed out further.
"Ultimately, BA has a responsibility to the league and the broader basketball community to insist the Blaze moves forward with a viable and sustainable business model."
It was a shattering blow to contracted players Adam Gibson, Anthony Petrie and Chris Goulding, who remain in limbo.
BA has provided them with no assistance or communication during the tumultuous period.
http://www.goldcoast.com.au/article/2012/07/18/432391_gold-coast-blaze.html