BREAKING: Nathan Tinkler’s Hunter Sports Group has announced a shock decision to hand back the Newcastle Jets A-League licence to Football Federation Australia, effective immediately.
The move comes after long-running battles between the billionaire mining magnate and football’s governing body.
The crux of the issue appears to be the acquisition fee paid by Tinkler, with rumours that Hunter Sports Group (HSG) paid millions more to acquire the club than Clive Palmer had to pay for Gold Coast United.
ABC Newcastle football commentator Aaron Kearney was stunned by the news, telling The Roar:
“This is the most critical fork in the road for Australian Football since the disbanding of the NSL.
“The next move could decide the state of football for the next 50 years”.
Tinker’s decision comes after Palmer’s Gold Coast United was removed from the A-League by the FFA, and a new Western Sydney team announced for the competition.
The FFA have announced they are preparing a response to the Hunter Sports Group’s announcement of intention to return the Newcastle Jets A-League license, and will issue a statement later today, with no further comment available.
Update: FFA CEO Ben Buckley has told Fox Sports that a club cannot hand back a licence, noting: “The HSG has a legally binding contract to June 2022 to field a team in the A-League”.
It is unclear how the legal terms will be dealt with by HSG and the FFA.
Buckley further highlighted his disappointment with the decision, stating the FFA were very surprised and very disappointed by the action taken by HSG. We were only informed 15 minutes before press announcement.”
The announcement throws plans of a 10-team A-League competition for next season into doubt after it had announced it would bankroll a new Western Sydney franchise.
Full statement from Hunter Sports Group:
The Hunter Sports Group (HSG) will not be fielding a Newcastle Jets team in the 2012/13 A-League season, effective immediately, following a decision by the HSG to return the Jets A-League licence to the Football Federation Australia (FFA).
The HSG has invested almost $12 million since stepping in at short notice to save the ailing club less than 18 months ago.
During this period the club has been unable to resolve a variety of issues with the FFA including a $5 million acquisition fee, the Jason Culina insurance matter and continued request to address the competition’s unsustainable financial model.
These frustrations have been highlighted with the FFA’s own report identifying combined club losses in excess of $27 million for the 2012 financial year. Projections of similar losses are forecast for next year.
The Hunter community has been engaged with family friendly membership packages, increased crowds, major investment in junior development, youth team participating in the local competition, W-League and strong community engagement programmes. The decision to return the club license was made more difficult because of a community model highly regarded by many as a leader in the A-League that features industry best practices.
CEO Troy Palmer said this was a difficult decision but one forced upon the HSG through an irrevocable breakdown in confidence of the current FFA management and its refusal to provide clear and transparent answers about the Jets acquisition fee and a variety of other issues.
“As a keen Jets and football fan this has been a tough decision and I am aware the impact this will have on members, players, coaches, fans and the entire football community,” Palmer said.
“I am particularly saddened for members and supporters who have embraced our community model, which has been accepted in so many areas as a successful and unique way to engage the entire community and build the A-League brand.
“It is also frustrating to have invested so much time, energy and money to save the Jets for the community at short notice and then continually hit road blocks at the FFA.
“It should never be forgotten that when we stepped in to save the club it was insolvent, there were only 500 members, diminishing crowds, minimal community engagement, no merchandise programme and negligible corporate support.
“During the 2011/12 season we believe we turned this around to be seen as leaders in all these areas.
“Unfortunately, having lost confidence in the FFA management and its ability to find a resolution, it is clear we have no other option.
“It is about removing ourselves from an administration in which we have an untenable relationship.”
A critical factor for the Hunter Sports Group has been the impasse and an inability to have clear communication to discuss the Club’s controversial acquisition fee.
“We have attempted to organise meetings with the FFA to discuss our $5 million acquisition fee, with our only condition being we must be advised what other clubs have paid, if anything, why acquisition fees vary, how much of a success fee was paid to the FFA’s agent and how the money was used,” Palmer said.
“Having rejected our terms on every occasion we had no confidence a consistent and rational explanation for the fee would be forthcoming, particularly after inflammatory media comments from the FFA.”
The decision made by HSG was taken after much consideration to the impact on the game, general consultation and formal discussion with key stakeholders.
To ensure continued support of football in the Hunter region, the HSG will invest in a high performance academy to develop young players and provide a pathway to showcase their abilities and maximise their talent and potential.
Under the revised strategy of the HSG, $1 million will be invested annually to encourage local children to play football and propagate the game in the region.
“This decision by the Hunter Sports Group is not about walking away from football and we will continue to meet and grow our local commitments,” Palmer said.
“We will now invest in local junior talent and help reduce the burden on their families.
“We would rather proactively support youth and our local community at the expense of the huge wastage in the A-League.”
The decision takes effect immediately however the Hunter Sports Group youth team will continue to play in the local NBN competition and be provided quality coaching and training.
This decision has no impact on the Newcastle Knights and other Hunter Sports Group activities.
What are your thoughts? Share your opinion below, or submit an article to The Roar
j binnie
Guest
Kasey- This is a very good question.To answer I may have to go back as well & say that my biggest worry about GCU, was that the men who were running that club, appeared to be doing very little to "sell" the club as a local identity preferring instead to get as much media time as possible in an attempt to promote the club but always the same 2 faces appearing & being quoted with the result they were becoming the personalities,not the players that they should have been wanting the public to pay to come & see. The team performed well in most of it's short life in the HAL so blame could not be aimed at the playing staff & while I was aware that with no increase in crowd participation there was obviously something wrong I knew that would ultimately become a problem.Perhaps, as some critics have pointed out, the GC is in fact a "graveyard" for professional sporting teams & if that is true then the end was inevitable. The Jets are a totally different proposition for something has happened there in the last 12 months & it may just be co-incidence that Tinkler took over then. Now I am too far removed to know what actually happened but with crowds increasing by a huge 50% (they only had one gate under 5 figures) & actually outdrawing their "big brothers" from the "big smoke" (& I am to also believe memberships increased dramatically) then it has to be assumed something was being done correctly "behind the scenes" so to speak. So where does that leave the Jets? As I have indicated before I have a little experience in running an NSL club & as the HAL is another step higher up the scale costs will escalate accordingly. It will not be an easy task but I would have imagined that the figures that could be generated from the Jet's performances this year would go a long way to achieving some sort of ownership for next year. A simple calculation would show that their 12,000 average crowd over 13 home games should have returned them around $4 million.Not being party to their other sources of income or their expenditure I cannot take that train of thought any further.With Tinkler reportedly owning the stadium the fact that he had it being used every weekend during the year would surely be more beneficial to him than for only the winter months with his other interest,the Knights. As you know I have often written about our State League clubs actually combining to become owners or part owners of an HAL identity thereby giving then a connecting interest in summer,a natural progression for their young talented players, & of course a transfer system whereby they could be expected to be recompensed for their "work" should another identity wish to sign one of their players.It would be a system that would not be threatened by any individual protest but would go a long way to achieving some sort of balance between our 'grass roots" & our top football teams.I could go on to list more benefits but I think you will get the drift of what I am suggesting. The Jets appear to have been on an upward path & it would be a pity to see those gains lost to football for we need to maintain improvement if we are to attain our true place in World Football. jb
Kasey
Guest
jbinnie:3 months ago my gut feel was that GCU would be allowed to die (either suicide by Palmer or culled by the FFA) and that eventually occurred. My gut feel is that the Jets will play again next year. Perhaps not with HSG in charge, but IMO Newcastle is just too important a market to be without a football team. With your experiences, what is your gut feel on the Jets survival chances?
jbinnie
Guest
Dillan - There was much discussion over this matter at the time and the problem appeared to be that Jason was APPARENTLY playing with the Socceroos at the time the injury occurred and it was opinionated by some that this should have meant the insurance cover to come into play should have been the cover taken out by the FFA. The FFA reported that they had instructed all "Socceroo players" be included in the HAL club's mandatory policies. ???? GCU and Jets were at this time negotiating Jason's transfer and no problem was envisaged but it turned out his injury was much worse than first stated causing him to be unavailable to play for the season just closing. So the debate began,who should have had the lad insured when was he injured,what club was he playing with when the injury happened,what club was he signed with when the injury was re-diagnosed as worse than first thought,and hence the matter is now in arbitration.That is as close as I can get to answer your question,how accurate?, I don't know, but it may help.jb
jbinnie
Guest
Axelv "they"- singular??????? back to the bottom of the class for you my boy !!!!! jb
Dillan
Guest
I still can't see why NJ are trying to blame FFA for Culina's insurance..?
Qantas supports Australian Football
Guest
You too, yours is much bigger
Mark Richmond
Roar Guru
According to the NBN news last night they did run it past the existing owners; they were not in favour. Looks like it has blown up in FFA's face.
Mark Richmond
Roar Guru
So did Clive Palmer........it works both ways
jamesb
Guest
I admire your optimism striker, but for the first time today, I am starting feel like Kellett1992. The A-league may not be around especially when you have clowns like Buckley in charge.
Bludger
Guest
Well, get down to the FFA and offer yourself to run the joint then if it is such a safe 'investment'. Personally, I wouldn't touch an A-League franchise even if I was the Brewster's Millions bloke and I had to lose money.
Realfootball
Guest
And what is the alternative to private ownership? Bingo and chook raffles? The much vaunted Center for Excellence has all but bankrupted the Mariners.
Realfootball
Guest
Keep polishing that tinfoil hat. It's all you've got left.
Whites
Guest
It's good to see people paying attention to spelling and grammer. Now if only some could get their heads around the concept of a paragraph.
Titus
Guest
Tony Sage couldn't give a rats about the NRL.
Luke
Guest
If Tinkler and HSG are upset over the Cullina and acquisition fee matter, they should have done their due diligence. These are big boys who have access to vast resources and they couldn't even get the basics right. Live up to your agreement and stick with the Jets.
Qantas supports Australian Football
Guest
You bet, you were showing your tin foil hat with glee when it was rumoured that Clive Palmer was going to save the Roar who were in danger of being cut from the HAL...
Jon stevens
Guest
Tony sage won't say boo. He wants that nrl license. Tinkler can't have access to other owners fees paid without their consent,he knows that. The big issue here was when the ranga got up on national tv and handed over $8m to WS grassroots football that he probably thought was his money(ie mining & carbon tax). Now that's how you upset a billionaire. What he just did is crazy.All the other sideshow issues were not reason enough too hand back the license.
Geoff Lemon
Expert
Laugh @ Cattery. Chris, I'll play.
Davo
Guest
FFS tinkler. There is a difference with the acquisition fee depending on the value of the club, your blithering idiot. Do you reckon that the acquisition fee for buying Manchester United or Queens Park Rangers are the same. Yet another billionaire screwing over football in this country.
Fussball ist unser leben
Roar Guru
It was 68-0 prior to his fight to lift the FFA's termination of his licence, which he lost. As some wag said "a female judge presided over the hearing and there's no way she would have wanted Palmer to score 69 from her" ;-) I think Palmer also recently lost in court in an action against The Hyatt Hotels .. so, he's 68-2. He may be destined to never get 69?