yeah the gummy sharks are rolling in the cash, so much so they have to share their facilities with a high school
Cronulla Sharks delivered out of debt by pizza entrepreneur Paul Ellams
A pizza shop owner has emerged as the mystery investor who has freed Cronulla of the bank debt that once threatened to ruin the club.
Fairfax Media can reveal a debt of about $3.5 million has been mortgaged to the superannuation fund of Paul Ellams to discharge a long-standing loan from St George Bank. The club's home ground of Remondis Stadium has been given as security.
Ellams is a Cronulla resident and Sharks supporter who recently negotiated the deal with club officials. The 60-year-old is a local businessman and developer who has run a number of companies, including a concreting business and a laundromat, which he has sold off in recent years. He is a friend of former Shimano boss John Dunphy, a local identity who considered running at the last board elections, and friends with several directors.
The identity of the mystery man has been a closely guarded by the club. However, Ellams spoke candidly about his involvement while on a fishing trip to Port Stephens. ''I've spoken to the new board about the club and which direction it's going to go,'' he said. ''I have a lot of faith in the club, and I thought we'd get rid of St George Bank and go forward from there. There were some business [discussions] with those guys, they make a few bucks, I make a few bucks, and that's as far as it went.''
Cronulla were on the brink of collapse when they owed the bank $14 million, and their future was at the mercy of the lender. However, an advance of $10 million from the long-awaited redevelopment of the Remondis Stadium precinct in August 2012 wiped almost a $1 million a year in servicing fees, as the average interest rate was about 7.5 per cent.
Fairfax Media has obtained documents that show Remondis Stadium has been mortgaged to KPE superannuation, the private super fund for Paul and Kym Ellams. While Ellams wouldn't go into the details, he said the deal was a win for himself and the club.
''The commercial terms are I have first mortgage over the building, that's it really,'' he said. ''It helps the Sharks, and I've got a finger in the pie, too. It works both ways. They scratch my back, and I scratch theirs. That's as far as it goes.''
Cronulla insiders have raised concerns about the club being beholden to an unidentified figure, given the proposal wasn't communicated to members before the deal went ahead. It also raises questions about what could happen to the Sharks and their home ground if the loan were to be called in.
''What are the risks and the penalties? There's no security or terms around the deal that have been communicated to members,'' a source said. ''There have been a few concerns about the lack of transparency.''
The extra financial strength will help the Sharks in their bid to keep star prop Andrew Fifita, who has been the subject of significant interest from rugby and rival NRL clubs.
While he has sold out of most of his business interests, Ellams remains the owner of Al's Pizza, Pasta and Ribs on Kingsway. ''It's better the kids work there than in McDonalds; they earn more money there,'' he said. ''We bought that for something to do, and all the kids work there and my mates work there as well. It's a bit of a sideline for the kids.''
The Sutherland Shire entrepreneur was confident the Sharks had a bright future on and off the field. ''They've got a good young side that will go all right this year,'' he said. ''I don't think they will win the premiership but if in the next couple of years they keep recruiting young people they will be fine.''
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http://www.canberratimes.com.au/rugby-l ... 33r59.html
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