CRONULLA ARE STUFFED!
Posted: Wed Jul 31, 2013 7:27 pm
Oh dear so much for a media rights windfall - looks like if Cronulla are to survive it's going to take a large monetary commitment from NRL HQ, with teams from Perth to Wellington trying to gain admission to the NRL there seems to be some tuff decisions to come - or will they simply let them die like Norths, Newtown, Hunter Mariners, Perth Reds, Queensland Crushers etc etc?
Cronulla Sharks' plea for help
JOSH MASSOUD AND JAMES HOOPER
THE DAILY TELEGRAPH
JULY 31, 2013 12:00AM
Sharks put ASADA aside with win over PanthersCronulla have overcome another emotional week with ASADA dealings, to post a comfortable 38-10 win over Penrith.(2:08 / 12.3MB)
Video Quality 3GWi-Fi
CRONULLA asked the NRL for a $7 million guarantee to safeguard against financial ruin within a month of being engulfed in the ASADA scandal.
The Daily Telegraph can reveal Cronulla conducted doomsday scenario budgeting after contemplating the suspension of 10 players and subsequent legal action before approaching the NRL for funding assurances.
The figure was calculated to be $7 million over the coming three years, but club bosses were also fearful that player lawsuits could increase financial damage even more.
And now the nightmare scenario has begun, with ex-winger Isaac Gordon preparing to sue over severe bruising and emotional anguish he suffered as an alleged result of the 2011 supplement program.
In response to the pleas, NRL boss Dave Smith gave verbal assurances that he would support the club.
But he refrained from giving any written guarantees until the NRL conducted its own financial modelling.
Given his ongoing support, Smith was left with a bitter taste in his mouth over Monday's decision to reinstate trainer Mark Noakes and leave the door open for three other sacked staff - Darren Mooney, David Givney and Konrad Schultz - to return.
The four were dismissed by the former Sharks board on March 8 after an independent investigation found "serious management failures" in relation to the club's 2011 supplement program.
Shortly after the new board was elected in late April, Smith travelled to the Sutherland Shire to address chairman Damian Keogh and his directors.
It's understood Smith told the meeting he'd need highly compelling evidence to be convinced that the sackings should be overturned.
The NRL maintained that attitude throughout, preferring the Sharks to wait until the ASADA investigation was complete to change the status quo.
The exit of interim CEO Bruno Cullen - disgusted over the lack of consultation - was a sign of the NRL's disappointment, given the former Broncos boss was on a subsidised salary as part of measures to aid the club.
As early as February, the Sharks conducted forecasting on the worst-case financial scenarios for the ASADA investigation.
Preliminary estimates ran to around $1.5 million, putting Cronulla in distinct jeopardy of insolvency given the club's $3 million debt to St George Bank and lack of Leagues Club support.
Former directors reached out to Smith, who gave them a verbal guarantee League Central would cover any shortfall.
The promise remained as the predicted cost skyrocketed, particularly when 10 Sharks players were believed to have been on the verge of accepting six-month bans in exchange for financial guarantees in March.
Smith felt he had Cronulla's back, but is now disappointed the club failed to heed his recommendations in return.
Keogh spoke with Smith about the backflip Tuesday, but would not respond to suggestions his club owed the NRL a unique debt of gratitude.
"That's your view," Keogh said.
"We, like every other club, if we require help we'll talk to them.
"But at the end of the day the NRL's position is correct: it's up to the clubs to run themselves."
Gordon's lawyer, James Chrara, on Tuesday said Gordon had suffered ongoing emotional stress and public abuse as a result of the revelations.
While Gordon is being viewed as a test case, at least one other player who was at the club in 2011 is believed to be considering legal action.
Cronulla Sharks' plea for help
JOSH MASSOUD AND JAMES HOOPER
THE DAILY TELEGRAPH
JULY 31, 2013 12:00AM
Sharks put ASADA aside with win over PanthersCronulla have overcome another emotional week with ASADA dealings, to post a comfortable 38-10 win over Penrith.(2:08 / 12.3MB)
Video Quality 3GWi-Fi
CRONULLA asked the NRL for a $7 million guarantee to safeguard against financial ruin within a month of being engulfed in the ASADA scandal.
The Daily Telegraph can reveal Cronulla conducted doomsday scenario budgeting after contemplating the suspension of 10 players and subsequent legal action before approaching the NRL for funding assurances.
The figure was calculated to be $7 million over the coming three years, but club bosses were also fearful that player lawsuits could increase financial damage even more.
And now the nightmare scenario has begun, with ex-winger Isaac Gordon preparing to sue over severe bruising and emotional anguish he suffered as an alleged result of the 2011 supplement program.
In response to the pleas, NRL boss Dave Smith gave verbal assurances that he would support the club.
But he refrained from giving any written guarantees until the NRL conducted its own financial modelling.
Given his ongoing support, Smith was left with a bitter taste in his mouth over Monday's decision to reinstate trainer Mark Noakes and leave the door open for three other sacked staff - Darren Mooney, David Givney and Konrad Schultz - to return.
The four were dismissed by the former Sharks board on March 8 after an independent investigation found "serious management failures" in relation to the club's 2011 supplement program.
Shortly after the new board was elected in late April, Smith travelled to the Sutherland Shire to address chairman Damian Keogh and his directors.
It's understood Smith told the meeting he'd need highly compelling evidence to be convinced that the sackings should be overturned.
The NRL maintained that attitude throughout, preferring the Sharks to wait until the ASADA investigation was complete to change the status quo.
The exit of interim CEO Bruno Cullen - disgusted over the lack of consultation - was a sign of the NRL's disappointment, given the former Broncos boss was on a subsidised salary as part of measures to aid the club.
As early as February, the Sharks conducted forecasting on the worst-case financial scenarios for the ASADA investigation.
Preliminary estimates ran to around $1.5 million, putting Cronulla in distinct jeopardy of insolvency given the club's $3 million debt to St George Bank and lack of Leagues Club support.
Former directors reached out to Smith, who gave them a verbal guarantee League Central would cover any shortfall.
The promise remained as the predicted cost skyrocketed, particularly when 10 Sharks players were believed to have been on the verge of accepting six-month bans in exchange for financial guarantees in March.
Smith felt he had Cronulla's back, but is now disappointed the club failed to heed his recommendations in return.
Keogh spoke with Smith about the backflip Tuesday, but would not respond to suggestions his club owed the NRL a unique debt of gratitude.
"That's your view," Keogh said.
"We, like every other club, if we require help we'll talk to them.
"But at the end of the day the NRL's position is correct: it's up to the clubs to run themselves."
Gordon's lawyer, James Chrara, on Tuesday said Gordon had suffered ongoing emotional stress and public abuse as a result of the revelations.
While Gordon is being viewed as a test case, at least one other player who was at the club in 2011 is believed to be considering legal action.
