NRL clubs concerned about Titans
Wayne Heming
March 21, 2012 - 4:29PM
Rival NRL clubs are deeply concerned by Gold Coast's financial plight with some fearing the club could "fall over" unless the ARL Commission steps in and examines its viability.
Alarmed chief executives, who did not wished to be named, want the game's newly appointed ARL Commission to urgently carry out its own probe into the Titans amid talk the club is battling massive debts.
The Titans go back to court on Friday, this time to battle Reed Constructions, who are seeking $1.4 million for completing work on the $20 million centre of excellence at Robina.
Titans chief executive Michael Searle insists the club's property arm is totally separate from its rugby league operations, and that the football club is not in strife.
Searle called the players together late last week to update them on the club's situation.
There are growing concern within the NRL fraternity that the Titans are on shaky ground with creditors closing in.
"There's a great deal of concern and even fear among NRL clubs that the Gold Coast are going to collapse financially because of widespread debts," one chief executive told AAP.
Another club boss said the Commission had to act to assure other NRL clubs the Titans were viable into the future before the code - battling the AFL on two fronts on the Gold Coast and Sydney's outer west - was made to "look bad".
Commission chief executive David Gallop told AAP on Wednesday the situation was being closely monitored.
"We can appreciate some of the concerns being expressed by clubs when they see another suffering financial stress," Gallop said. "However the fact remains we have been monitoring the Gold Coast situation and been in constant dialogue with the club for some months.
"We've also had external consultants look into the club towards the end of last year to review the situation and we've asked them to do further work at this club this week."
Gallop said it was important to remember the court proceedings related to the property investment rather than the football club.
"Michael (Searle) is working extremely hard within the existing business that he has contributed significantly, and he deserves to be given every opportunity," Gallop said.
Significant debts hanging over the Gold Coast Titans (Property) Pty Ltd, and pending court action by creditors combined with speculation the bank may foreclose on its loans, have sparked concerns about the club's future viability.
Searle has given public assurances the Titans are sustainable and will continue to be so in the future.
Apart from the $1.4 million Reed Construction claim, the Titans are also in dispute with the centre's original builder Simcorp which says it's owed $4.2 million from work it carried out in 2010 on the multi-level building. Searle insists that debt has been paid.
In recent months the club has splashed out millions recruiting stars Jamal Idris, Nate Myles and Beau Champion on multi-year deals. This week they splurged close to $2 million to lure South Sydney giant Dave Taylor to the club next season, and they are rumoured to be already working on their next target, Melbourne halfback Cooper Cronk.
"They need to operate the footy club in the normal course - and the normal course includes recruiting players as long as they're within the salary cap rules," said Gallop. "At this stage we don't intend to interfere."
But the Titans' massive spending doesn't sit well with a lot of NRL clubs hearing they are being propped up financially.
"They (Titans) just keep signing marquee players while the vultures (creditors) are circling," said a concerned club official.
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