Borrowed time? 'Broke' Sharks facing financial crisis

Peter Cassidy | 14/11/08 | 0

The Cronulla Sharks are reportedly feeling the pinch of the economic crisis, with reports suggesting the Shire club is racking up enormous debts just to pay players.

News Ltd reports reveal the Sharks - despite finishing equal first in the 2008 NRL minor premiership - requested a $1 million loan from St George Bank in September after crippling poker machine taxes and indoor smoking bans left them with little cash for wages and bills over the slow summer period.

That loan was denied.

Instead the club was given a loan of $500,000, and was ordered by the bank to conduct an independent financial review of both the leagues and football clubs.

That review is currently underway and could result in staff redundancies, player salary cuts and the axing of junior teams.

But Sharks chairman Barry Pierce insists it's not panic stations just yet.

"We have got PKF (sleeve sponsor) in at the moment - they are doing a review of both the football club and the leagues club and St George Bank is supportive of that," Pierce told News Ltd.

"I want to stress that we've got the full support of the bank - they've been behind us for 18 years."

The club will reportedly record a $500,000 loss for year, despite receiving a $1.5 million club grant and minor premiership prize money.

"It was hard times 15 years ago, but we didn't have smoking bans and gaming taxes to contend with back then," Pearce said, referring to the club's financial crisis which almost left them insolvent.

It was hard times 15 years ago, but we didn't have smoking bans and gaming taxes to contend with back then... Sharks chairman Barry Pierce