Sharks' $2m crisis
By Brad Forrest Aug. 6, 2013, 6 a.m
CRONULLA Sharks will need to keep winning if the club hopes to fill an estimated $2 million black hole in its finances.
While a new round of Australian Sports Anti-Doping Authority (ASADA) interviews starts today, a $3 million downturn is looming in the club’s fortunes. At the end of 2012, after two years of rationalisation and cost cutting, the Sharks’ estimated profits would be about
$1 million for season ending October 2013.
But now a combination of the ASADA crisis, change of board directors, the club’s failure to secure a major sponsor, delays in signing a ground sponsor (Remondis) and other sponsors, together with big legal bills and other costs, has hurt their bottom line.
The Leader also understands the Sharks’ insurance policy has only a $5 million cover.
A worst-case scenario is if the 10 players and staff being questioned by ASADA are suspended and then all decide — together with other ex-Sharks who were there in 2011 — to take legal action against the club (some lawyers believe the club would also have a case for taking action against players, and/or football club staff).
It would all add to the considerable legal costs, and two years before the leagues club can hope to recoup any of the profits from the $300 million Woolooware Bay redevelopment.
So the club will almost certainly have to rely on the generosity of the National Rugby League to bail it out.
After tying up their big names, it is no surprise there has been just one new signing for 2014 (Wests Tigers centre Blake Ayshford).
Chief executive Steve Noyce will seek to cut pay discrepancies among its lower-paid 10 players next year by offering them all identical salaries.
Despite injuries, the Sharks gutsy 18-14 win over the Warriors on Saturday — their fifth from the last seven games - means Cronulla will likely make the finals.
