Sharks Cash Bonanza!

Discussion in 'Rugby League Forum' started by Loobs, Mar 15, 2019.



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  1. Loobs

    By:LoobsMar 15, 2019
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    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....
     
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    • Harvies elbow

      By:Harvies elbowMar 15, 2019
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      Haven't they done this before?
      The 40m would ( and I doubt that's what they'll get considering the awfur of the column) be p*ssed up against the bar like their last 'windfall'.
      Hey Buzz...d8f3b0b79762e547fc66f01051c7f061.jpg
       
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      • Mark from Brisbane

        By:Mark from BrisbaneMar 15, 2019
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        And haven’t we heard this 5 times before!!
         
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        • Spartan Eagle

          By:Spartan EagleMar 15, 2019
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          The only windfall i see is the one coming out of rothtools arse.
           
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          • Loobs

            By:LoobsMar 15, 2019
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            Easy work for Rothfield because he's written that article so many times now, he just has to change the amounts.

            Also, great time to be embarking on a huge property development. The arse has begun* to fall out of the apartment market and retail is following.

            *I say begun because there is a ways to go here.
             
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            • Supreme Leader

              By:Supreme LeaderMar 15, 2019
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              Not as many times we have heard about an upgrade at Brookie Mate!
               
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              • globaleagle

                By:globaleagleMar 15, 2019
                SGF0IHJ1bGVzIGFsbCE=
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                There was so much drool coming from Phil, my laptop shorted out.
                 
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                • lsz

                  By:lszMar 15, 2019
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                  This is their version of brookie oval upgrades....
                   
                • Jigzkiller

                  By:JigzkillerMar 15, 2019
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                  Whenever the sharks need a good news story they contact Buzz and he writes about this developmant so sad. I guess we can't throw rocks though how often have we dredged up the old brookie upgrade plans and we all know that aint happening.
                   
                • Terry Zarsoff

                  By:Terry ZarsoffMar 15, 2019
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                  Yes, joining Superleague was a big financial windfall for them as well.

                  How long did that sugar fix last?
                   
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                  • Peter C

                    By:Peter CMar 15, 2019
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                    That's right, when News Limited decided to divest itself of the Super League Clubs it no longer wanted to own, they were each paid around 25-28 million as settlement' and that was 20 years ago, big money in those days.
                    Cronulla quickly pi$$ed that up against the wall
                     
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                    • Top End Eagle

                      By:Top End EagleMar 15, 2019
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                      Remember that time they had some beneficiary millionaire with a terminal illness who was going to leave everything to the club. Then it turned out it’s was just some schlob who lived with his mum and wanted attention but the sharks had held press releases and everything.
                       
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                      • Woodsie

                        By:WoodsieMar 15, 2019
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                        The real issue here is ...

                        Buzz NoLightBeer has again shot himself in the foot by highlighting just how incompetent and uninformed he is ..... it was less than 2 weeks ago that he wrote a story saying Cronulla were broke and that no money was forthcoming from the development ... now it is all champayne, cigars and happy days

                        His lack of shame and embarrassment can only be attributable to an alcholic haze .....
                         
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                        • bob dylan

                          By:bob dylanMar 15, 2019
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                          This story made me sick to my stomach.

                          download.jpg
                           
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                          • Shoe1

                            By:Shoe1Mar 15, 2019
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                            4E1B89F2-C32C-4285-A860-576350AE8B04.png
                             
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                            • The Who

                              By:The WhoMar 15, 2019
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                              Does anyone know how the Cronulla Sharks originally came to own so much swamp land?
                               
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                              • Terry Zarsoff

                                By:Terry ZarsoffMar 15, 2019
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                                It was cheap swampland.

                                It was plentiful swampland.

                                They have been stuck in or near a financial swampland ever since.
                                 
                                Last edited: Mar 15, 2019
                              • HoldenV8

                                By:HoldenV8Mar 15, 2019
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                                All this pipe dream crap at Cronulla has been happening since about 1986 when Dr. Geoffry Edelsten (remember him? Former Swans owner) was supposed to buy the club.

                                It never ended up happening.

                                And since then, the Sharks have won one very tainted premiership and have lurched from one bankruptcy scheme to another.
                                 
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                                • Terry Zarsoff

                                  By:Terry ZarsoffMar 15, 2019
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                                  I will never forget the Magilla quote from 1978ish, when he opined ‘Over there they have a $5million leagues’ club and over here they have 10c dressing sheds.’

                                  Or words to that effect.

                                  Of course since then their ground (including the changing rooms) has improved considerably, which is a credit to them.
                                   
                                • Harvies elbow

                                  By:Harvies elbowMar 15, 2019
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                                  Then up through the ground came a bubblin crude...
                                   
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