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Cronulla Sharks - Source: Photosport -
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The Cronulla Sharks are an endangered species with the club
facing financial ruin and the Central Coast Bears prepared to step
into the NRL by 2010.
Already 18 months from extinction, the Sharks plunged further into
crisis on Thursday with major sponsor LG Electronics pulling their
$700,000 support from next year, casting major doubts on Cronulla's
ability to continue in 2010.
Cronulla have now lost almost $1 million of sponsorship and also
have an existing $9 million debt, prompting NRL chief executive
David Gallop to call for urgent talks about how to save the
club.
Gallop said he could not guarantee Cronulla would be involved in
the 2010 season, but knows the NRL may have to help financially as
the code is contracted to provide eight games per week for
broadcasters.
"I cannot guarantee anything at this point," said Gallop when asked
if Cronulla would be playing in 2010.
"Certainly part of our broadcast deal is that we provide eight
games a week and that will be something we take into account as we
go forward looking at their financial position.
"Obviously they've got some big issues ahead of them. We need to
get in and talk to them about the strategies to solve their
problems.
"I've said for some time we don't have a blank cheque for any club.
But certainly we will do what we can to look at their financial
situation to see if there is a way through it."
Bears bid committee chairman, former North Sydney great Greg
Florimo, said his consortium preferred a start in an expanded NRL
in 2013, but could be ready to go next season if the opportunity
presented itself.
"I've got to take the position that yes, we'd make ourselves
ready," Florimo said.
"It's not our preferred option but going on the momentum and the
rate at which this thing has built over the last six months, it
wouldn't surprise me that we could get on the field in another six
months."
Gallop said "we are not at that stage yet" of calling upon the
Bears to replace the Sharks, the NRL boss hoping Cronulla can still
be saved and find a new major sponsor for 2010.
"I would certainly hope that down the track someone else will seek
to have an association with them," Gallop said.
"Many of their sponsors have stuck by them, some haven't. That is
an inevitable consequence of some of the things that have gone
on."
LG's marketing director David Brand said the recent controversies
involving the club were behind the decision not to renew their
long-running deal with Cronulla.
"We no longer see the benefits of an ongoing sponsorship given the
evolution of our brand ..... the recent controversies around the
NRL, and the Sharks in particular, were certainly a significant
element in our decision.....," said Brand in a statement.
Sharks CEO Tony Zappia admitted earlier this week the club would
only survive another 18 months unless their financial situation
improved.
It's a situation that has become more dire with LG's withdrawal but
Cronulla did take a step towards the future Thursday by announcing
a new sponsorship agreement with car park management company
InterPark for the rest of the 2009 NRL season.
The value of the deal was not disclosed but both Cronulla and
InterPark hope the partnership can grow significantly in the
future.
"We hope it will lead to a long and fruitful partnership between
us," said Sharks chairman Barry Pierce.
InterPark managing director Peter Stewart said he believed Cronulla
was a club with "integrity" who had been "proactive" in dealing
with player behaviour despite the horrendous headlines of 2009
which include the positive test to performance enhancing drugs for
new recruit Reni Maitua.
"We look forward to developing a relationship with the club which
will lead to much larger sponsorships in the years ahead," Stewart
said.
