Easily, almost all businesses of any size have spending authorities within budgetary guidelines. I have worked with many organisations where the CEO wouldn't be aware of such a transaction if it was within budget and within approval limits.
Sharks under Salary Cap investigation
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HappilyManly
Journey Man
Not up to the CEO, more the CFO or Head Accountant to know the itemized Financial Reports.
I've written many financial systems and the CEO was always just presented with the summary reports. Their job is strategy and not operations
The classic alleged tax scam of 'forgiving loans' has been operational for eons. It's a zero sum expense to income ledger entry for the lucky few
NRL whistle blowers are unearthing some serious tax related anomalies at Sharkies and Parra
PS this is why most CEOs escape penalties in the corporate world but the minions go to jail
Last edited:
Hooper must be on parole or made bail
https://www.foxsports.com.au/nrl/nr...mprM_IUoi3AZk5emMxAovkayQKNJdlxpKnbt7Vyn2uLMw
The Sharks are believed to be circling Shane Flanagan, who remains off-contract beyond 2019
SHARKS
Cronulla coach Shane Flanagan is yet to be re-signed. Why?Source: News Corp Australia
There is increasing speculation about the future of premiership-winning Cronulla Sharks coach Shane Flanagan as the NRL’s salary cap investigation continues.
Could Flanagan be on borrowed time in the Shire? Surely not after becoming the first coach to finally smash Cronulla’s 50-year premiership drought two years ago.
Think again.
When all of the salary cap investigation is shaken out there is a very real chance the Sharks may have no alternative than to go in a different coaching direction.
As brutal as it sounds there is a view, given all the detail the NRL has uncovered in relation to payments being made outside of the salary cap, there may be no other choice.
Why else have Cronulla held off giving Flanagan a new deal?
He’s a premiership-winning coach who has been one of the cornerstones of the Cronulla Sharks for the past decade?
Surely he should be re-signed to a long-term deal by now.
Could it be as simple as Flanagan is going to have a lot of explaining to do when he gets interviewed by the NRL?
There is talk the Sharks have been discreetly exploring alternative coaching options for the past couple of months.
And we’re not talking about for 2020 when Flanagan’s contract finishes, we’re talking about for next season.
Current assistant coach John Morris has also been discussed as being given a shot in a caretaker role for 12 months.
The one saving grace for the Sharks is the fact CEO Barry Russell initially self-reported what was a relatively minor indiscretion around an undeclared third-party agreement.
Since then it’s believed the NRL has uncovered a wealth of information which looks likely to make the Sharks the fifth club since 2002 to be heavily sanctioned for breaking salary cap rules.
By self-reporting Russell will ultimately minimise whatever sanctions are imposed.
The 2016 premiership is not believed to be under threat. But a fine of anywhere up to $1 million would seriously hurt Cronulla.
They’re already in financial dire straits.
Shane Flanagan delivered the Sharks their first premiership in 2016.Source: News Corp Australia
In the season just finished, the Sharks only spent 95 per cent of their salary cap due to cash flow problems.
It’s interesting to note Sharks board member Craig Airey recently resigned as a director at the club.
Significantly, Airey had loaned the club $1 million while he was on the board of directors.
Go back to August when Todd Greenberg confirmed the Sharks were under investigation.
The NRL boss made reference to salary cap fines not keeping pace with how frequently clubs were breaking the rules.
The drums are now beating. Things could be about to get ugly in the Shire.
https://www.foxsports.com.au/nrl/nr...mprM_IUoi3AZk5emMxAovkayQKNJdlxpKnbt7Vyn2uLMw
The Sharks are believed to be circling Shane Flanagan, who remains off-contract beyond 2019
SHARKS
- November 27, 2018 11:06am
- JAMES HOOPER@jimmyhooper
- Source: FOX SPORTS
Cronulla coach Shane Flanagan is yet to be re-signed. Why?Source: News Corp Australia
There is increasing speculation about the future of premiership-winning Cronulla Sharks coach Shane Flanagan as the NRL’s salary cap investigation continues.
Could Flanagan be on borrowed time in the Shire? Surely not after becoming the first coach to finally smash Cronulla’s 50-year premiership drought two years ago.
Think again.
When all of the salary cap investigation is shaken out there is a very real chance the Sharks may have no alternative than to go in a different coaching direction.
As brutal as it sounds there is a view, given all the detail the NRL has uncovered in relation to payments being made outside of the salary cap, there may be no other choice.
Why else have Cronulla held off giving Flanagan a new deal?
He’s a premiership-winning coach who has been one of the cornerstones of the Cronulla Sharks for the past decade?
Surely he should be re-signed to a long-term deal by now.
Could it be as simple as Flanagan is going to have a lot of explaining to do when he gets interviewed by the NRL?
There is talk the Sharks have been discreetly exploring alternative coaching options for the past couple of months.
And we’re not talking about for 2020 when Flanagan’s contract finishes, we’re talking about for next season.
Current assistant coach John Morris has also been discussed as being given a shot in a caretaker role for 12 months.
The one saving grace for the Sharks is the fact CEO Barry Russell initially self-reported what was a relatively minor indiscretion around an undeclared third-party agreement.
Since then it’s believed the NRL has uncovered a wealth of information which looks likely to make the Sharks the fifth club since 2002 to be heavily sanctioned for breaking salary cap rules.
By self-reporting Russell will ultimately minimise whatever sanctions are imposed.
The 2016 premiership is not believed to be under threat. But a fine of anywhere up to $1 million would seriously hurt Cronulla.
They’re already in financial dire straits.
Shane Flanagan delivered the Sharks their first premiership in 2016.Source: News Corp Australia
In the season just finished, the Sharks only spent 95 per cent of their salary cap due to cash flow problems.
It’s interesting to note Sharks board member Craig Airey recently resigned as a director at the club.
Significantly, Airey had loaned the club $1 million while he was on the board of directors.
Go back to August when Todd Greenberg confirmed the Sharks were under investigation.
The NRL boss made reference to salary cap fines not keeping pace with how frequently clubs were breaking the rules.
The drums are now beating. Things could be about to get ugly in the Shire.
HappilyManly
Journey Man
All this shows is the failure of the NRL's regular Cap audit process
Question to Greenturd by Manly, Sharks and Eels must be 'why don't you audit the other 13 Clubs forensically as well'
Question to Greenturd by Manly, Sharks and Eels must be 'why don't you audit the other 13 Clubs forensically as well'
Because it hasn’t been their turn to win a compAll this shows is the failure of the NRL's regular Cap audit process
Question to Greenturd by Manly, Sharks and Eels must be 'why don't you audit the other 13 Clubs forensically as well'
Loobs
Living in the demountable.
Wait a sec - weren't they supposed to be a model of how to make money? How are they already in "financial dire straits"?Hooper must be on parole or made bail
https://www.foxsports.com.au/nrl/nr...mprM_IUoi3AZk5emMxAovkayQKNJdlxpKnbt7Vyn2uLMw
The Sharks are believed to be circling Shane Flanagan, who remains off-contract beyond 2019
SHARKS
- November 27, 2018 11:06am
- JAMES HOOPER@jimmyhooper
- Source: FOX SPORTS
Cronulla coach Shane Flanagan is yet to be re-signed. Why?Source: News Corp Australia
There is increasing speculation about the future of premiership-winning Cronulla Sharks coach Shane Flanagan as the NRL’s salary cap investigation continues.
Could Flanagan be on borrowed time in the Shire? Surely not after becoming the first coach to finally smash Cronulla’s 50-year premiership drought two years ago.
Think again.
When all of the salary cap investigation is shaken out there is a very real chance the Sharks may have no alternative than to go in a different coaching direction.
As brutal as it sounds there is a view, given all the detail the NRL has uncovered in relation to payments being made outside of the salary cap, there may be no other choice.
Why else have Cronulla held off giving Flanagan a new deal?
He’s a premiership-winning coach who has been one of the cornerstones of the Cronulla Sharks for the past decade?
Surely he should be re-signed to a long-term deal by now.
Could it be as simple as Flanagan is going to have a lot of explaining to do when he gets interviewed by the NRL?
There is talk the Sharks have been discreetly exploring alternative coaching options for the past couple of months.
And we’re not talking about for 2020 when Flanagan’s contract finishes, we’re talking about for next season.
Current assistant coach John Morris has also been discussed as being given a shot in a caretaker role for 12 months.
The one saving grace for the Sharks is the fact CEO Barry Russell initially self-reported what was a relatively minor indiscretion around an undeclared third-party agreement.
Since then it’s believed the NRL has uncovered a wealth of information which looks likely to make the Sharks the fifth club since 2002 to be heavily sanctioned for breaking salary cap rules.
By self-reporting Russell will ultimately minimise whatever sanctions are imposed.
The 2016 premiership is not believed to be under threat. But a fine of anywhere up to $1 million would seriously hurt Cronulla.
They’re already in financial dire straits.
Shane Flanagan delivered the Sharks their first premiership in 2016.Source: News Corp Australia
In the season just finished, the Sharks only spent 95 per cent of their salary cap due to cash flow problems.
It’s interesting to note Sharks board member Craig Airey recently resigned as a director at the club.
Significantly, Airey had loaned the club $1 million while he was on the board of directors.
Go back to August when Todd Greenberg confirmed the Sharks were under investigation.
The NRL boss made reference to salary cap fines not keeping pace with how frequently clubs were breaking the rules.
The drums are now beating. Things could be about to get ugly in the Shire.
Anyway, if they are, my heart is hardly bleeding. Perth Sharks sounds good though. Maybe get Flo on the line and see if he's interested in becoming a Bear Shark...
All this shows is the failure of the NRL's regular Cap audit process
Question to Greenturd by Manly, Sharks and Eels must be 'why don't you audit the other 13 Clubs forensically as well'
not until they have had time to cover all tracks ....
Loobs
Living in the demountable.
I think it's part of the grad rotation for the big accounting firms. If you can investigate an NRL team for months and find nothing, you are cleared to go audit large corporates...
Perth Sharks.. Hahahaha.
Thought they were going to be the next "Super Club"
Sacked! Blood in the water at Shark Park with redundancies
Phil Rothfield, The Daily Telegraph
an hour ago
The cash-strapped Cronulla Sharks have been forced to sack 10 staff members to slash costs across the business amid genuine fears of the club’s long term viability.
Under directions from the board, chief executive Barry Russell handed out the redundancies to employees from commercial, digital/media and events on Tuesday.
The staff members will leave before Christmas.
The Daily Telegraph understands the Sharks finished last season with a $3 million loss, despite a $13 million grant from the NRL.
Cronulla Sharks CEO Barry Russell handed out the redundancies this week. Picture: AAP
MORE SHARKS NEWS
LOAN SHARKS: ‘BOGUS’ DEAL PAID FOR TWO PLAYERS
The sacking will save around $1.5 million next year.
NRL boss Todd Greenberg and his finance staff are monitoring the situation closely.
The Sharks have no major sponsor for 2019. Only one of four sponsor positions on the Sharks’ jersey has been sold.
Revenue from unit sales at the development site next to Shark Park has been used to clear debts of more than $6 million rather being invested into football operations.
Cronulla’s financial plight is of a huge concern to the NRL.
Cronulla Sharks chairman Dino Mezzatesta directed the club, along with the rest of the board, to hand out the redundancies. Picture: Brett Costello
The club is also under investigation for salary cap rorting in 2015 and revelations of a fake invoice scam and bogus $100,000 loan to players.
The club is still paying off the loan and facing a huge fine from the NRL.
The Sharks have been unable to offer coach Shane Flanagan a coaching extension because of the financial crisis.
The sackings leave the Sharks with an administration staff of only 12 and all about 25.
Cronulla Sharks coach Shane Flanagan is still waiting to see how his future at the club unfolds. Picture: Damian Shaw
They have to compete against teams like the Brisbane Broncos who employ 80 staff members.
The NRL is refusing to offer Cronulla any financial assistance.
The situation is so diabolical that a recent request for new computer equipment from the coaching staff was rejected.
There are suggestions the NRL side will be forced to play under the salary cap next year to save more costs although it will not affect the signing of champion Kiwi half-back Shaun Johnson, who will be getting the money from Valentine Holmes’ departure.
The Daily Telegraph is seeking comment from the Sharks and the NRL.
Thought they were going to be the next "Super Club"
Sacked! Blood in the water at Shark Park with redundancies
Phil Rothfield, The Daily Telegraph
an hour ago
The cash-strapped Cronulla Sharks have been forced to sack 10 staff members to slash costs across the business amid genuine fears of the club’s long term viability.
Under directions from the board, chief executive Barry Russell handed out the redundancies to employees from commercial, digital/media and events on Tuesday.
The staff members will leave before Christmas.
The Daily Telegraph understands the Sharks finished last season with a $3 million loss, despite a $13 million grant from the NRL.
Cronulla Sharks CEO Barry Russell handed out the redundancies this week. Picture: AAP
MORE SHARKS NEWS
LOAN SHARKS: ‘BOGUS’ DEAL PAID FOR TWO PLAYERS
The sacking will save around $1.5 million next year.
NRL boss Todd Greenberg and his finance staff are monitoring the situation closely.
The Sharks have no major sponsor for 2019. Only one of four sponsor positions on the Sharks’ jersey has been sold.
Revenue from unit sales at the development site next to Shark Park has been used to clear debts of more than $6 million rather being invested into football operations.
Cronulla’s financial plight is of a huge concern to the NRL.
Cronulla Sharks chairman Dino Mezzatesta directed the club, along with the rest of the board, to hand out the redundancies. Picture: Brett Costello
The club is also under investigation for salary cap rorting in 2015 and revelations of a fake invoice scam and bogus $100,000 loan to players.
The club is still paying off the loan and facing a huge fine from the NRL.
The Sharks have been unable to offer coach Shane Flanagan a coaching extension because of the financial crisis.
The sackings leave the Sharks with an administration staff of only 12 and all about 25.
Cronulla Sharks coach Shane Flanagan is still waiting to see how his future at the club unfolds. Picture: Damian Shaw
They have to compete against teams like the Brisbane Broncos who employ 80 staff members.
The NRL is refusing to offer Cronulla any financial assistance.
The situation is so diabolical that a recent request for new computer equipment from the coaching staff was rejected.
There are suggestions the NRL side will be forced to play under the salary cap next year to save more costs although it will not affect the signing of champion Kiwi half-back Shaun Johnson, who will be getting the money from Valentine Holmes’ departure.
The Daily Telegraph is seeking comment from the Sharks and the NRL.
Loobs
Living in the demountable.
Let me dust off my favourite GIF - one sec...Perth Sharks.. Hahahaha.
Thought they were going to be the next "Super Club"
Sacked! Blood in the water at Shark Park with redundancies
Phil Rothfield, The Daily Telegraph
an hour ago
Subscriber only
The cash-strapped Cronulla Sharks have been forced to sack 10 staff members to slash costs across the business amid genuine fears of the club’s long term viability.
Under directions from the board, chief executive Barry Russell handed out the redundancies to employees from commercial, digital/media and events on Tuesday.
The staff members will leave before Christmas.
The Daily Telegraph understands the Sharks finished last season with a $3 million loss, despite a $13 million grant from the NRL.
Cronulla Sharks CEO Barry Russell handed out the redundancies this week. Picture: AAP
MORE SHARKS NEWS
LOAN SHARKS: ‘BOGUS’ DEAL PAID FOR TWO PLAYERS
The sacking will save around $1.5 million next year.
NRL boss Todd Greenberg and his finance staff are monitoring the situation closely.
The Sharks have no major sponsor for 2019. Only one of four sponsor positions on the Sharks’ jersey has been sold.
Revenue from unit sales at the development site next to Shark Park has been used to clear debts of more than $6 million rather being invested into football operations.
Cronulla’s financial plight is of a huge concern to the NRL.
Cronulla Sharks chairman Dino Mezzatesta directed the club, along with the rest of the board, to hand out the redundancies. Picture: Brett Costello
The club is also under investigation for salary cap rorting in 2015 and revelations of a fake invoice scam and bogus $100,000 loan to players.
The club is still paying off the loan and facing a huge fine from the NRL.
The Sharks have been unable to offer coach Shane Flanagan a coaching extension because of the financial crisis.
The sackings leave the Sharks with an administration staff of only 12 and all about 25.
Cronulla Sharks coach Shane Flanagan is still waiting to see how his future at the club unfolds. Picture: Damian Shaw
They have to compete against teams like the Brisbane Broncos who employ 80 staff members.
The NRL is refusing to offer Cronulla any financial assistance.
The situation is so diabolical that a recent request for new computer equipment from the coaching staff was rejected.
There are suggestions the NRL side will be forced to play under the salary cap next year to save more costs although it will not affect the signing of champion Kiwi half-back Shaun Johnson, who will be getting the money from Valentine Holmes’ departure.
The Daily Telegraph is seeking comment from the Sharks and the NRL.
Loobs
Living in the demountable.
Loobs
Living in the demountable.
They have long been in the **** mate. The sale of the apartments or whatever it was was supposed to bail them out permanently but they blew through it and the problems back.
It's like they were in a big financial hole, sold off all their assets which got them back to $0 then straight after they started digging a new hole.
Loobs
Living in the demountable.
Rescue plan to change the fortunes of scandal-plagued Cronulla Sharks
JOHN LEHMANN, Editor at Large, The Daily Telegraph
July 5, 2014 9:20am
Not even Todd Carney’s drunken antics can stop the Cronulla Sharks becoming one of the richest clubs in the NRL.
Sounds far-fetched, doesn’t it? Surely those scandal-scarred Sharks cannot suddenly morph into silvertails.
They’re stuck in a drug investigation that never ends. They’ve got a part-time coach. They’ve never won a premiership. Heck, they might not even be playing in Cronulla a season or two from now.
And when the Sharks tell you their secret weapon is a $500 million property development, you know it’s only a matter of time until the receivers padlock the gates.
One of the nice things is that 95 per cent of these sales were made to locals — they want to be a part of this
Ben Fairfax
Just ask the Balmain boys about property developments. It’s bound to end in tears. Not even Canterbury Bankstown could avoid trouble with their Oasis development dream.
Sharks club chairman Damian Keogh gets the scepticism. After 47 barren years, he admits that many fans are not quite ready to believe that fairy tales can come true in the Sutherland Shire.
“We’ve got this coming but until it all starts being built, it’s a bit out of reach for people to really see it will happen,’’ he told Saturday Extra.
But on February 1 this year, Sydney’s passion for real estate arrived at the Sharks’ door, and it will take more than any alcohol-fuelled, drug-tainted, urine-bubbling scandal to dampen enthusiasm.
Artist impression of the Woolooware Bay's Cove building.
Little more than a month after NRL chief Dave Smith announced that the club faced a $1 million fine over the 2011 supplements scandal, 250 people swarmed towards the Sharks’ home ground at Woolooware Bay.
Within eight hours, contracts had been signed on $110 million worth of apartments to be built neighbouring the Sharks’ Remondis Stadium. No one expected such a rush.
In the months since, 360 apartments worth $235 million have been sold — almost 80 per cent of the first two stages of the residential development.
“One of the nice things is that 95 per cent of these sales were made to locals — they want to be a part of this,’’ said Ben Fairfax, the man behind the Sharks’ improbable rags-to-riches quest.
WHAT DO YOU THINK?
Will the property development change the fortunes of the Sharks? Comment below
Barring a property meltdown on a GFC-scale, the Sharks are looking at an upfront windfall of between $40 million and $50 million.
Fairfax, 44, grew up in Grays Point, went to high school at Kirrawee and spent his weekends as a teenager cheering on Sharks legends like Gavin Miller, Andrew Ettingshausen and Mark McGaw.
He’s remained a Sharks fan ever since, but likes to remain out of the media spotlight, shying away from any suggestion he may be the club’s saviour.
“We’ve never once said this is about saving the Sharks,’’ he told me this week.
“It’s not about coming to the club with a cheque book — anyone can then go and spend the money and get into other problems.
“This is about delivering a new town centre for the Sutherland Shire and by doing that we can help deliver financial independence for the club and a long-term sustainable future in the community.’’
It was only four years ago that Fairfax’s fledgling development company, Bluestone Property Solutions, convinced the Cronulla Sutherland Leagues Club board to develop their land.
Cronulla Sharks chairman Damian Keogh looking over Sharks Stadium
The Sharks were in deep water. The club’s perilous financial state became public in 2009, with plans even being announced for a partial move to the Central Coast.
They had struggled for years to generate a positive cashflow, running up a $15 million debt.
A vicious cycle of poor financial results, dubious player signings and losing streaks added up to a string of off-field dramas, turning off supporters and sponsors.
Well before ASADA and Todd Carney, there had been player orgies in New Zealand, Reni Maitua’s two-year drug ban, Greg Bird’s domestic dispute and a club CEO allegedly hitting an employee while shadow-boxing. No wonder major sponsor LG walked away in 2010.
The club had no choice but to leverage the one advantage it has always held over every other club in the NRL — owning its home ground.
“The board made a big leap of faith and recognised the financial position they were in and realised they needed a partner to help them,’’ Fairfax said.
Under Bluestone’s council-approved plan, 600 up-market apartments, looking back towards the city skyline across Botany Bay, will be developed on the Shark’s 10ha land holding. Three-bedroom apartments are selling for up to $2.24 million.
The residential precinct has been designed by respected architectural firm Turner, which delivered leading Sydney projects such as Green Square Town Centre, Divercity in Waterloo and Australia Towers in Sydney Olympic Park.
On the other side of the stadium, a 17,500 square metre retail precinct will be developed, giving the area its first full-line supermarket, as well as specialty fresh food retailers, waterfront restaurants and cafes and a medical centre.
The Todd Carney photo scandal is the latest in a string of controversies to hit the Sharks.
The plan includes 770 car parks. The anchor supermarket tenancy is expected to be signed within weeks.
The licensed “Sharkies” club, which adjoins the grandstand, will be remodelled into a smaller, more efficient facility, sitting above part of the retail precinct.
All development approvals are in place and construction work will be begin on the residential development in September.
By 2018, 1200 people will be living on the Shark’s doorstep and 25,000 visits are expected to be made each week to the shops next door.
Fairfax, whose career highlights include the $300 million Woolloomooloo wharf project and the $1.2 billion Rhodes Waterside development, revealed to Saturday Extra financial details of the Sharks’ joint-venture deal.
Bluestone has agreed to give the club 10 per cent of the gross sales figure for all apartment sales. With the total sale expected to exceed $400 million, the Sharks stands to receive more than $40 million.
Of this, the Sharks have already received a $10 million advance from Bluestone, enabling them to pay out a debt to St George Bank and refinance. Their debt now stands at $5.1 million.
On top of that, the retail development is expected to be worth $150 million on completion.
Fairfax said the Sharks could expect to receive an ongoing dividend of between $750,000 and $1 million a year if the joint-venture decides to retain ownership of the shopping and medical precinct.
If it is sold, the club would receive $9 million, an interest payment and more than 20 per cent of the development’s profit.
“Things like what happened with Todd Carney really have no impact long-term on what we’re doing,’’ Fairfax said. “As a Sharks fan, I’m disappointed, of course, but what is happening here will bring a real, sustainable future.
“Imagine the opportunities when you have 25,000 people a week coming here to shop — the Sharks will become the centre of the entertainment and leisure destination for the eastern side of the Shire.’’
Sharks captain Paul Gallen has been with the club throughthe highs and lows.
Keogh expects money from apartment sales to begin flowing to the club in the second half of 2016.
The board is already seeking advice on how to ensure the property windfall is invested long-term to provide income for generations.
“We’ll be setting up a type of future fund — low-risk investments to produce a dividend stream,’’ Keogh said.
In the meantime, the board is trying to build revenues and, despite the ongoing ASADA investigation, is already bagged a $5.5 million in corporate sponsorships, 28 per cent ahead of last year.
Despite Carney’s urine prank, a new a six-figure jersey sponsorship was signed this week with Labour Health for the rest of the season.
When you consider the South Sydney Rabbitohs, one of the best supported clubs in the NRL, have corporate sponsorships of around $7 million, you realise the Sharks have been swimming hard trying to stay in touch.
The club and football operations would have broken even last year had it not paid $1.4 million responding to the ASADA drug probe and a $150,000 salary cap fine, financial documents show.
When you compare the Shark’s overall revenues to the Brisbane Broncos, who have the advantage of playing televised games almost every week, they are well behind — it’s $35 million versus $25 million.
But when the property developments are completed, the Shark’s assets might top the Broncos club, which listed assets of $35.4 million in its 2013 annual report.
The Sharks may never match the Bulldogs though, which is backed by the Canterbury Leagues Club, which holds assets valued at $153.4 million.
But Keogh, a former Sydney Kings and Australian basketball star, knows Cronulla will never achieve its full potential without a team of players who act professionally on and off the field. “I don’t think that’s too much to ask,’’ he said.
On the front counter of the “Sharkies” club sits a glossy 2014 membership brochure, promoting Todd Carney on the cover as the club’s pin-up player.
Inside the brochure, fans who pay to become club members are asked to promise to uphold a “membership code of conduct”.
“As a Shark Member I will conduct myself in a manner that ensures I am a great representative and ambassador for my team,’’ the pledge says.
“I won’t become intoxicated and understand that I risk being evicted if I do.’’
As Carney demonstrated over and over again before his eviction, all the money in the world does not guarantee long-term success.
JOHN LEHMANN, Editor at Large, The Daily Telegraph
July 5, 2014 9:20am
Not even Todd Carney’s drunken antics can stop the Cronulla Sharks becoming one of the richest clubs in the NRL.
Sounds far-fetched, doesn’t it? Surely those scandal-scarred Sharks cannot suddenly morph into silvertails.
They’re stuck in a drug investigation that never ends. They’ve got a part-time coach. They’ve never won a premiership. Heck, they might not even be playing in Cronulla a season or two from now.
And when the Sharks tell you their secret weapon is a $500 million property development, you know it’s only a matter of time until the receivers padlock the gates.
Ben Fairfax
Just ask the Balmain boys about property developments. It’s bound to end in tears. Not even Canterbury Bankstown could avoid trouble with their Oasis development dream.
Sharks club chairman Damian Keogh gets the scepticism. After 47 barren years, he admits that many fans are not quite ready to believe that fairy tales can come true in the Sutherland Shire.
“We’ve got this coming but until it all starts being built, it’s a bit out of reach for people to really see it will happen,’’ he told Saturday Extra.
But on February 1 this year, Sydney’s passion for real estate arrived at the Sharks’ door, and it will take more than any alcohol-fuelled, drug-tainted, urine-bubbling scandal to dampen enthusiasm.
Artist impression of the Woolooware Bay's Cove building.
Little more than a month after NRL chief Dave Smith announced that the club faced a $1 million fine over the 2011 supplements scandal, 250 people swarmed towards the Sharks’ home ground at Woolooware Bay.
Within eight hours, contracts had been signed on $110 million worth of apartments to be built neighbouring the Sharks’ Remondis Stadium. No one expected such a rush.
In the months since, 360 apartments worth $235 million have been sold — almost 80 per cent of the first two stages of the residential development.
“One of the nice things is that 95 per cent of these sales were made to locals — they want to be a part of this,’’ said Ben Fairfax, the man behind the Sharks’ improbable rags-to-riches quest.
WHAT DO YOU THINK?
Will the property development change the fortunes of the Sharks? Comment below
Barring a property meltdown on a GFC-scale, the Sharks are looking at an upfront windfall of between $40 million and $50 million.
Fairfax, 44, grew up in Grays Point, went to high school at Kirrawee and spent his weekends as a teenager cheering on Sharks legends like Gavin Miller, Andrew Ettingshausen and Mark McGaw.
He’s remained a Sharks fan ever since, but likes to remain out of the media spotlight, shying away from any suggestion he may be the club’s saviour.
“We’ve never once said this is about saving the Sharks,’’ he told me this week.
“It’s not about coming to the club with a cheque book — anyone can then go and spend the money and get into other problems.
“This is about delivering a new town centre for the Sutherland Shire and by doing that we can help deliver financial independence for the club and a long-term sustainable future in the community.’’
It was only four years ago that Fairfax’s fledgling development company, Bluestone Property Solutions, convinced the Cronulla Sutherland Leagues Club board to develop their land.
Cronulla Sharks chairman Damian Keogh looking over Sharks Stadium
The Sharks were in deep water. The club’s perilous financial state became public in 2009, with plans even being announced for a partial move to the Central Coast.
They had struggled for years to generate a positive cashflow, running up a $15 million debt.
A vicious cycle of poor financial results, dubious player signings and losing streaks added up to a string of off-field dramas, turning off supporters and sponsors.
Well before ASADA and Todd Carney, there had been player orgies in New Zealand, Reni Maitua’s two-year drug ban, Greg Bird’s domestic dispute and a club CEO allegedly hitting an employee while shadow-boxing. No wonder major sponsor LG walked away in 2010.
The club had no choice but to leverage the one advantage it has always held over every other club in the NRL — owning its home ground.
“The board made a big leap of faith and recognised the financial position they were in and realised they needed a partner to help them,’’ Fairfax said.
Under Bluestone’s council-approved plan, 600 up-market apartments, looking back towards the city skyline across Botany Bay, will be developed on the Shark’s 10ha land holding. Three-bedroom apartments are selling for up to $2.24 million.
The residential precinct has been designed by respected architectural firm Turner, which delivered leading Sydney projects such as Green Square Town Centre, Divercity in Waterloo and Australia Towers in Sydney Olympic Park.
On the other side of the stadium, a 17,500 square metre retail precinct will be developed, giving the area its first full-line supermarket, as well as specialty fresh food retailers, waterfront restaurants and cafes and a medical centre.
The Todd Carney photo scandal is the latest in a string of controversies to hit the Sharks.
The plan includes 770 car parks. The anchor supermarket tenancy is expected to be signed within weeks.
The licensed “Sharkies” club, which adjoins the grandstand, will be remodelled into a smaller, more efficient facility, sitting above part of the retail precinct.
All development approvals are in place and construction work will be begin on the residential development in September.
By 2018, 1200 people will be living on the Shark’s doorstep and 25,000 visits are expected to be made each week to the shops next door.
Fairfax, whose career highlights include the $300 million Woolloomooloo wharf project and the $1.2 billion Rhodes Waterside development, revealed to Saturday Extra financial details of the Sharks’ joint-venture deal.
Bluestone has agreed to give the club 10 per cent of the gross sales figure for all apartment sales. With the total sale expected to exceed $400 million, the Sharks stands to receive more than $40 million.
Of this, the Sharks have already received a $10 million advance from Bluestone, enabling them to pay out a debt to St George Bank and refinance. Their debt now stands at $5.1 million.
On top of that, the retail development is expected to be worth $150 million on completion.
Fairfax said the Sharks could expect to receive an ongoing dividend of between $750,000 and $1 million a year if the joint-venture decides to retain ownership of the shopping and medical precinct.
If it is sold, the club would receive $9 million, an interest payment and more than 20 per cent of the development’s profit.
“Things like what happened with Todd Carney really have no impact long-term on what we’re doing,’’ Fairfax said. “As a Sharks fan, I’m disappointed, of course, but what is happening here will bring a real, sustainable future.
“Imagine the opportunities when you have 25,000 people a week coming here to shop — the Sharks will become the centre of the entertainment and leisure destination for the eastern side of the Shire.’’
Sharks captain Paul Gallen has been with the club throughthe highs and lows.
Keogh expects money from apartment sales to begin flowing to the club in the second half of 2016.
The board is already seeking advice on how to ensure the property windfall is invested long-term to provide income for generations.
“We’ll be setting up a type of future fund — low-risk investments to produce a dividend stream,’’ Keogh said.
In the meantime, the board is trying to build revenues and, despite the ongoing ASADA investigation, is already bagged a $5.5 million in corporate sponsorships, 28 per cent ahead of last year.
Despite Carney’s urine prank, a new a six-figure jersey sponsorship was signed this week with Labour Health for the rest of the season.
When you consider the South Sydney Rabbitohs, one of the best supported clubs in the NRL, have corporate sponsorships of around $7 million, you realise the Sharks have been swimming hard trying to stay in touch.
The club and football operations would have broken even last year had it not paid $1.4 million responding to the ASADA drug probe and a $150,000 salary cap fine, financial documents show.
When you compare the Shark’s overall revenues to the Brisbane Broncos, who have the advantage of playing televised games almost every week, they are well behind — it’s $35 million versus $25 million.
But when the property developments are completed, the Shark’s assets might top the Broncos club, which listed assets of $35.4 million in its 2013 annual report.
The Sharks may never match the Bulldogs though, which is backed by the Canterbury Leagues Club, which holds assets valued at $153.4 million.
But Keogh, a former Sydney Kings and Australian basketball star, knows Cronulla will never achieve its full potential without a team of players who act professionally on and off the field. “I don’t think that’s too much to ask,’’ he said.
On the front counter of the “Sharkies” club sits a glossy 2014 membership brochure, promoting Todd Carney on the cover as the club’s pin-up player.
Inside the brochure, fans who pay to become club members are asked to promise to uphold a “membership code of conduct”.
“As a Shark Member I will conduct myself in a manner that ensures I am a great representative and ambassador for my team,’’ the pledge says.
“I won’t become intoxicated and understand that I risk being evicted if I do.’’
As Carney demonstrated over and over again before his eviction, all the money in the world does not guarantee long-term success.
Scorpio
Armchair Expert
To be honest, this should serve as a warning to our club's owners.
For next season we seem to be on the up, but I don't know how viable we will be in the medium term (say 5-10 years).
A potential premiership won't guarantee anything either, remember we won in 1996 and were out the door at the end of 1999. Only the work and leadership of some key people, plus some other circumstances, brought us back from the dead.
Maybe they can give coco-joy a ring?
... or Tirath Khemlani, ...
MadMarcus
Toovey for NRL CEO
May as well give Hoppa a ring. But who should they telephone?
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9 | 7 | 2 | 72 | 16 |
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9 | 7 | 2 | 49 | 16 |
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11 | 7 | 4 | 59 | 14 |
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9 | 6 | 3 | 57 | 14 |
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10 | 6 | 4 | -10 | 14 |
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10 | 6 | 4 | 115 | 12 |
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10 | 5 | 5 | -56 | 12 |
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11 | 5 | 5 | 30 | 11 |
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10 | 4 | 6 | 15 | 10 |
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10 | 5 | 5 | -13 | 10 |
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10 | 4 | 6 | -18 | 8 |
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9 | 3 | 6 | -71 | 8 |
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10 | 3 | 6 | -9 | 7 |
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9 | 2 | 7 | -69 | 6 |
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9 | 2 | 7 | -87 | 6 |
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9 | 1 | 8 | -180 | 4 |
