NRL's $1.6m bailout for Titans, Sharks and Knights to pay wages

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NRL's $1.6m bailout for Titans, Sharks and Knights to pay wages
Staff Writer From: The Sunday Telegraph July 25, 2010 12:01AM

THE precarious state of finances in rugby league has never been more evident, with the revelation three clubs have required emergency assistance from the NRL to pay their players this season.

We can reveal the Titans, Sharks and Knights have all asked for - and been granted - a total of $1.6 million in advances from their monthly grants because of serious cash flow issues.

The Titans had to get $1 million paid up front and the Sharks and the Knights $300,000 each to pay football club staff, coaches and players their monthly salaries.

The three clubs are also servicing interest on huge bank overdrafts just to stay afloat.

While there is no immediate danger of any of the clubs collapsing, officials at NRL headquarters are quietly concerned - particularly in a climate when the salary cap is going up and players are demanding more money.

NRL chief executive David Gallop says he will continue to monitor all three clubs.

"They didn't ask for the money in advance just to put in the bank," Gallop said. "It's all to do with cash flow problems.

"It's a reminder in this current climate about the importance of a salary cap to protect all the clubs and ensure their long-term survival."

Of all the clubs, the Sharks are probably in the most delicate situation, but the new board has slashed spending and is pressing ahead and looking for equity partners to redevelop land they own around the leagues club.

Asked yesterday to rate the club's financial position out of 10, Sharks chairman Damian Irvine answered: "We'd be a six - but 12 months ago, when the new board came in, we were a three."

Knights boss Steve Burraston has revealed the club has lost $1 million in ticket sales this season from demolishing the main grandstand.

"We had some cash flow problems, but we are still aiming to make a small profit this year," Burraston said.
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Source: http://www.dailytelegraph.com.au/sp.../story-e6frexnr-1225896464994?from=public_rss

The sooner this grandstand is built, the better...
 
I don't think I've heard the outcome of that...has anyone heard the outcome of that case?
 
bigdan said:
I don't think I've heard the outcome of that...has anyone heard the outcome of that case?
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we will be fine, the MOU is fine and they are just sorting out some details in the settlement documents - but we havent actually recieved any compensation yet, hence the cashflow issues.
 
bigdan said:
I don't think I've heard the outcome of that...has anyone heard the outcome of that case?
Click to expand...

We settled the matter out of court.

But our crowd figures aint gonna increase for the rest of the season, we've had a poor record at home and Monday night game next week...you'd be lucky to get 10k.
 
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