Loobs
Living in the demountable.
First the story (note: It's by Rothfield so keep a bucket handy):
$40M windfall turns Sharks one of the game’s financial powerhouse
MARCH 14, 2019
The Cronulla Sharks have secured a game-changing $40 million cash injection that will turn the NRL’s premiership paupers into a long-term powerhouse.
The Daily Telegraph can reveal the Sharks are poised to announce an agreement to fast-track tens of millions of property development dollars, killing off speculation of a forced relocation or merger as the game looks towards the hot topic of expansion.
Under the agreement being finalised by lawyers, the Sharks will receive an immediate $9 million payment to get rid of all debts and cover their recent salary cap fine and a projected $3 million football club loss in 2019.
Later this year another $18 million from developers Capital Bluestone will go into a future investments fund that will provide long term income for the football club, estimated at $1.5 million annually to support the NRL side outside of sponsorship, membership and gate takings.
A further $12 million will go into an escrow fund, money held by a third party that becomes available to the Sharks once building work begins on the new Leagues Club and shopping centre on their Woolooware Bay site. The $12 million which must specifically be used for the new Leagues Club, which is expected to be completed in 2021.
The Sharks have agreed terms with Capital Bluestone to sell their remaining interest in the Woolooware Bay Town Centre staged development to get the money advanced.
Cronulla, along with the Manly Sea Eagles and Wests Tigers, have for years been under threat of a relocation or merger as the game looks to expand and include Perth and a second Brisbane team before a new TV broadcast deal is finalised for 2022.
“We’re not going anywhere,” declared chairman Dino Mezzatesta, “This club will carefully invest the money to ensure we have long term income outside of football and poker machines. The board has put in place an investment committee to ensure the funds would be carefully invested.
“It places us in an absolute position of strength for the future and guarantees the Sharks’ future will always be in the Shire.
“We’ve been around for more than 50 years and will be around for another 50.”
The Sharks had been under enormous financial strain without a major sponsor, having to deal with the salary cap scandal, the termination payment to coach Shane Flanagan and calls to strip the club of the 2016 premiership.
This is despite the fact the Sharks were actually $130,000 under the salary cap when they won the competition, although the NRL have since found two non-compliant third party deals, collectively worth $70,000.
The club was hauled before an NRL finance committee late last year to explain their precarious position with a warning from CEO Todd Greenberg of no future bailouts for financially stricken clubs.
The new funding deal elevates the Sharks to a powerful position alongside the most secure of the nine Sydney based clubs.
Outside of the $40 million, the Sharks are poised to receive a further $16 million from the State and Federal governments for ground improvements and a high performance facility at the venue they own.
“We will be as strong and secure as any of our rivals in Sydney,” Mezzatesta said.
“We have undergone the most searching compliance overhaul and can now move forward with a new coach and a great roster capable of playing finals football.
“This agreement enables us to de-risk rather than divorce ourselves from the development.
“We acknowledge and thank our partner Capital Bluestone for working towards this successful outcome for both parties and for its ongoing support for the Sharks.”
OK, now a closer look at a few points.
The Sharks are getting 40M from selling the farm. How will this money be used so that they are now per Slothy's description - a long-term powerhouse?
*opens wallet* $40,000,000 woo-hoo **** yeah!!!! Time to get the epic bender crew back together to celebrate!!! Who's got some whizz???
Hold up now kiddo - $9,000,000 will be immediately spent to get them to a position of $0.00. To "...get rid of all debts and cover their recent salary cap fine and a projected $3 million football club loss in 2019."
OK fine! Who gives a ****? Money well spent! I'm debt free bitches!
So now the still kinda uber-rich Sharks have $31,000,000 left. Not 40M but still doing pretty good.
$18,000,000 goes into a future fund that will release ~1.5M annually to cover costs.
OK sure, but lets come back to this.
There's 13M left now if you're keeping track. Hmmm... *checks wallet... thinking...* I'm sure a second ago I had at least like 40 million... *scratching head*
So now the majority of the remaining cash goes in to escrow to pay for a leagues club. Now my local Sharks member colleague has told me on many occasions that area is a dead zone outside of game days so as this is outside of the Sharks football team - it's more dead money and now there is also nothing remaining.
*checks wallet again*
Wait... What the ****..?
So from this 40M windfall they really get 18M of which they will be drip fed about 1.5M a year. OK fine. But also didn't they mention some about 2019 losses..?
"...a projected $3 million football club loss in 2019..."
Oh yeah Buzz you did!
So they will need to slash operating losses by half, just to wash their face with the cash injection they will receive each year. Hmmm...
If they keep haemorrhaging cash EVERYTHING is gone again in 6 years but they have a new leagues club.
Or 12 if they break even, longer if they actually start making money, which is an entirely plausible situation because it's the Sharks and this is like totally a one off... Oh... Wait...
Foreclosure in 2009: https://en.wikipedia.org/wiki/History_of_the_Cronulla-Sutherland_Sharks
Property deal being their saving grace, again: https://www.dailytelegraph.com.au/n...s/news-story/93f314ce751fa51ceb1cc58e13f2b23a
As much as I'd like to think they're set and sorted and it's party time in the shire, me also thinks this 40M windfall may have been slightly exaggerated....
$40M windfall turns Sharks one of the game’s financial powerhouse
MARCH 14, 2019
The Cronulla Sharks have secured a game-changing $40 million cash injection that will turn the NRL’s premiership paupers into a long-term powerhouse.
The Daily Telegraph can reveal the Sharks are poised to announce an agreement to fast-track tens of millions of property development dollars, killing off speculation of a forced relocation or merger as the game looks towards the hot topic of expansion.
Under the agreement being finalised by lawyers, the Sharks will receive an immediate $9 million payment to get rid of all debts and cover their recent salary cap fine and a projected $3 million football club loss in 2019.
Later this year another $18 million from developers Capital Bluestone will go into a future investments fund that will provide long term income for the football club, estimated at $1.5 million annually to support the NRL side outside of sponsorship, membership and gate takings.
A further $12 million will go into an escrow fund, money held by a third party that becomes available to the Sharks once building work begins on the new Leagues Club and shopping centre on their Woolooware Bay site. The $12 million which must specifically be used for the new Leagues Club, which is expected to be completed in 2021.
The Sharks have agreed terms with Capital Bluestone to sell their remaining interest in the Woolooware Bay Town Centre staged development to get the money advanced.
Cronulla, along with the Manly Sea Eagles and Wests Tigers, have for years been under threat of a relocation or merger as the game looks to expand and include Perth and a second Brisbane team before a new TV broadcast deal is finalised for 2022.
“We’re not going anywhere,” declared chairman Dino Mezzatesta, “This club will carefully invest the money to ensure we have long term income outside of football and poker machines. The board has put in place an investment committee to ensure the funds would be carefully invested.
“It places us in an absolute position of strength for the future and guarantees the Sharks’ future will always be in the Shire.
“We’ve been around for more than 50 years and will be around for another 50.”
The Sharks had been under enormous financial strain without a major sponsor, having to deal with the salary cap scandal, the termination payment to coach Shane Flanagan and calls to strip the club of the 2016 premiership.
This is despite the fact the Sharks were actually $130,000 under the salary cap when they won the competition, although the NRL have since found two non-compliant third party deals, collectively worth $70,000.
The club was hauled before an NRL finance committee late last year to explain their precarious position with a warning from CEO Todd Greenberg of no future bailouts for financially stricken clubs.
The new funding deal elevates the Sharks to a powerful position alongside the most secure of the nine Sydney based clubs.
Outside of the $40 million, the Sharks are poised to receive a further $16 million from the State and Federal governments for ground improvements and a high performance facility at the venue they own.
“We will be as strong and secure as any of our rivals in Sydney,” Mezzatesta said.
“We have undergone the most searching compliance overhaul and can now move forward with a new coach and a great roster capable of playing finals football.
“This agreement enables us to de-risk rather than divorce ourselves from the development.
“We acknowledge and thank our partner Capital Bluestone for working towards this successful outcome for both parties and for its ongoing support for the Sharks.”
OK, now a closer look at a few points.
The Sharks are getting 40M from selling the farm. How will this money be used so that they are now per Slothy's description - a long-term powerhouse?
*opens wallet* $40,000,000 woo-hoo **** yeah!!!! Time to get the epic bender crew back together to celebrate!!! Who's got some whizz???
Hold up now kiddo - $9,000,000 will be immediately spent to get them to a position of $0.00. To "...get rid of all debts and cover their recent salary cap fine and a projected $3 million football club loss in 2019."
OK fine! Who gives a ****? Money well spent! I'm debt free bitches!
So now the still kinda uber-rich Sharks have $31,000,000 left. Not 40M but still doing pretty good.
$18,000,000 goes into a future fund that will release ~1.5M annually to cover costs.
OK sure, but lets come back to this.
There's 13M left now if you're keeping track. Hmmm... *checks wallet... thinking...* I'm sure a second ago I had at least like 40 million... *scratching head*
So now the majority of the remaining cash goes in to escrow to pay for a leagues club. Now my local Sharks member colleague has told me on many occasions that area is a dead zone outside of game days so as this is outside of the Sharks football team - it's more dead money and now there is also nothing remaining.
*checks wallet again*
Wait... What the ****..?
So from this 40M windfall they really get 18M of which they will be drip fed about 1.5M a year. OK fine. But also didn't they mention some about 2019 losses..?
"...a projected $3 million football club loss in 2019..."
Oh yeah Buzz you did!
So they will need to slash operating losses by half, just to wash their face with the cash injection they will receive each year. Hmmm...
If they keep haemorrhaging cash EVERYTHING is gone again in 6 years but they have a new leagues club.
Or 12 if they break even, longer if they actually start making money, which is an entirely plausible situation because it's the Sharks and this is like totally a one off... Oh... Wait...
Foreclosure in 2009: https://en.wikipedia.org/wiki/History_of_the_Cronulla-Sutherland_Sharks
Property deal being their saving grace, again: https://www.dailytelegraph.com.au/n...s/news-story/93f314ce751fa51ceb1cc58e13f2b23a
As much as I'd like to think they're set and sorted and it's party time in the shire, me also thinks this 40M windfall may have been slightly exaggerated....
