Sharks chairman Damian Keogh says the club isn’t leaving Sutherland Shire - and the club’s board is working on a strategic plan to ensure the club is financially viable for the next 50 years. In a series of questions put to him by the Leader, Mr Keogh made it clear the club was staying put but needed increased support from members, fans and sponsors
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While the Sharks were one of rugby league’s real success stories on the field this year, the club has continued to struggle off-field, transcended by the ASADA investigation, with findings expected after this year’s NRL grand final.
The club is still burdened by debt, and cannot rely on income from the yet-to-be built $400 million Woolooware Bay retail and unit development for at least two to three years.
Q: Are you confident the Sharks can become financially viable and not force the NRL to make a decision to move the Sharks in future?
A: Yes, we have a strategic plan for the next four years which will cultivate the Sharks 50th anniversary year, and so ensure the Sharks are still in the shire for the next 50 years, too.
There is just no truth to the [Wednesday] media speculation about us being relocated to Queensland. In fact, the Sharks club has never been stronger. Sure, we have short-term [financial] problems, but they don’t affect the viability of this club. In fact, if it wasn’t for the costs associated with the ASADA investigation and the [NRL] salary cap fine, the club would have broken even.
Q: What financial plan has been put in place to cover any future NRL fine of $1 million or more if the ASADA investigation goes badly for the club?
A: Any future fine is speculative, of course, and we have met with the NRL several times ... and there is nothing more we can do. The club has paid a high price already, for an investigation of something that might have happened for 10 weeks, in 2011, by a group who had no intent to cheat in any way. But if we face a fine, then I’m confident it won’t impact on the club’s [financial] viability.
Q: Has the club gained major and minor corporate sponsors, or gained pledges of increased support, to back the Sharks financially at Woolooware next year?
A: We secured OneSolution, Remondis and a number of new sponsors late this season. A number of big companies were obviously reluctant to back us with the [ASADA] investigation going on. But I believe our commercial department has more support now than at any time in the history of the club, and we’re hopeful of those big sponsors signing up before the new season begins. Everyone is working hard, and we appreciate the tremendous support we received from local companies this year, which we want to grow.
Q: Does the club plan to save money by not spending their full salary cap for $2014?
A: No, the performance of the team on the field is paramount to the Sharks. The way they banded together under coach Shane Flanagan in a very difficult year was inspiring, and the on-field success they had, led by Paul Gallen and blokes like Todd Carney and Luke Lewis, touched all fans, not just the Sharks. That’s why we won’t be compromising on our salary cap. We’ll be spending the full cap.
Q: Is the club paying off its $3.3m bank loan?
A: It is a $3 million bank loan which we hope to pay off by around January. We’re working on various payment options, we have financial experts on our board ... refinancing and/or working in with the developers are some of the options.
Q: In the financial arrangements made with the NRL to cover legal costs of the ASADA process, has the NRL given the club any guarantees about its future?
A: The NRL has helped us and other clubs financially. The unbudgeted debt from the cost of the ASADA investigation was about $650,000. Our future isn’t being discussed, as the NRL CEO [David Smith] made clear, and as our own CEO Steve Noyce pointed out. We are now aiming for future annual annuity revenues of between $3m to $5m, and later once development revenues come on stream, a future fund to provide for the long-term survival of the club. We have had tremendous support from the shire with membership doubling to more than 10,000. That was great. But I will stress the ongoing support from the area will dictate our future. The support of fans, and members, is paramount to the Cronulla Sharks ... and our club membership for 2014 is now open.
What do you think of the Sharks future? Will they be moving north?
