Cave in for Shark light at end of tunnel
Posted: Thu Jun 06, 2013 9:13 pm
Cronulla Sharks face paying big payouts and compensation payments to any players charged with doping
REBECCA WILSON
THE DAILY TELEGRAPH
MAY 13, 2013 12:00AM
The Cronulla playing group has been under pressure. Picture: Brett Costello Source: The Daily Telegraph
THE impact of the Cronulla doping allegations could be far-reaching for the football club because it faces huge payouts and compensation payments to any players charged with doping. NRL sources claim the club has already spent more than $500,000 on legal fees in an effort to head off the impact of the scandal. The legal advice to the Sharks has been that the financial fall-out will be crippling for a club already on its knees with debt. Any player charged with doping violations is likely to sue the club for a breach in its duty of care and will also be paid out until the end of his contract. That alone could end up costing the Sharks up to $10 million. "Those players will argue they did not know they were taking illegal substances and that the club is culpable," the source told The Daily Telegraph. "The old board could face huge payouts and the club's insurance simply won't cover it." Any players suspended will also have to be replaced. "The Sharks could run into huge payments to a new crop of players just to keep the team running on to the field," the source said. "They also face the prospect of being sued by the bigger-name players for loss of future earnings. "The club's risk management insurance does not cover that contingency." To add to their already substantial woes, NRL insiders are deeply concerned about the impact of any large-scale doping violation on the new billion-dollar television deal. If Cronulla faces financial ruin, the NRL may be faced with a huge rescue package just to maintain the 16-team competition, a prerequisite of the television contract. "The team may have to be relocated," he said. "This has huge ramifications for the entire league."Cronulla's football general manager Steve Noyce yesterday admitted that he was unsure what happens next. "ASADA's solicitors advised our legal representatives that they will not be proceeding with the (player) interviews," Noyce said. "That's all I really know. "The investigation is still ongoing and processes are still in place and have to be correctly followed."
http://m.dailytelegraph.com.au/sport/nr ... 6640667197
Unlike Essendon who have money, massive membership and sponsors, this club doesn't have a major sponsor
With them reducing their debt of 13.5 mil last year with Bluestone Capitol handing over 10 mil as part of the 400 mil Shark Park redevelopment, they were expecting to turn over a 1 mil profit this year http://www.theleader.com.au/story/11465 ... r/?cs=1633. That estimate must be in jeopardy now with its future again uncertain. Bluestone Capital no doubt will also be considering their position. No doubt along with Penrith this is another club with serious issues.
REBECCA WILSON
THE DAILY TELEGRAPH
MAY 13, 2013 12:00AM
The Cronulla playing group has been under pressure. Picture: Brett Costello Source: The Daily Telegraph
THE impact of the Cronulla doping allegations could be far-reaching for the football club because it faces huge payouts and compensation payments to any players charged with doping. NRL sources claim the club has already spent more than $500,000 on legal fees in an effort to head off the impact of the scandal. The legal advice to the Sharks has been that the financial fall-out will be crippling for a club already on its knees with debt. Any player charged with doping violations is likely to sue the club for a breach in its duty of care and will also be paid out until the end of his contract. That alone could end up costing the Sharks up to $10 million. "Those players will argue they did not know they were taking illegal substances and that the club is culpable," the source told The Daily Telegraph. "The old board could face huge payouts and the club's insurance simply won't cover it." Any players suspended will also have to be replaced. "The Sharks could run into huge payments to a new crop of players just to keep the team running on to the field," the source said. "They also face the prospect of being sued by the bigger-name players for loss of future earnings. "The club's risk management insurance does not cover that contingency." To add to their already substantial woes, NRL insiders are deeply concerned about the impact of any large-scale doping violation on the new billion-dollar television deal. If Cronulla faces financial ruin, the NRL may be faced with a huge rescue package just to maintain the 16-team competition, a prerequisite of the television contract. "The team may have to be relocated," he said. "This has huge ramifications for the entire league."Cronulla's football general manager Steve Noyce yesterday admitted that he was unsure what happens next. "ASADA's solicitors advised our legal representatives that they will not be proceeding with the (player) interviews," Noyce said. "That's all I really know. "The investigation is still ongoing and processes are still in place and have to be correctly followed."
http://m.dailytelegraph.com.au/sport/nr ... 6640667197
Unlike Essendon who have money, massive membership and sponsors, this club doesn't have a major sponsor
With them reducing their debt of 13.5 mil last year with Bluestone Capitol handing over 10 mil as part of the 400 mil Shark Park redevelopment, they were expecting to turn over a 1 mil profit this year http://www.theleader.com.au/story/11465 ... r/?cs=1633. That estimate must be in jeopardy now with its future again uncertain. Bluestone Capital no doubt will also be considering their position. No doubt along with Penrith this is another club with serious issues.
