Just two years after being on the brink of collapse, Cronulla are on the verge of becoming Sydney’s NRL super club after being granted approval for a $300 million redevelopment of the club’s land.
Cronulla chairman Damien Irvine said speculation over the Sharks’ future was a thing of the past after the NSW government gave the green light to the proposal – which will include retail and residential developments adjacent to the Sharks Leagues club – and which will prop up the club over the long-term.
No longer will they have to rely on ever-decreasing leagues club grants powered by poker machine revenue – a scenario which has left many of their Sydney rivals scratching their heads as they contemplate their survival.
“It’s massive,” Irvine told AAP.
“Just getting that security for a club that has never had genuine financial security or validity.
“There’s always been questions asked every time we have a bad few years – ‘will it survive, won’t it survive’.
“Once and for all it totally removes that from the equation.
“It gives us a great revenue stream outside of those traditional models which other Sydney clubs are battling with and we have battled with.
“The whole character of the club has changed from this decision today.”
The immediate benefit will be an injection of funds to pay off a $10 million bank loan – the same loan which almost destroyed the club two years ago when it was unable to service the repayments.
When sponsors also started deserting them on the back of bad publicity over a series of off-field incidents, the future looked bleak.
Irvine said the approval of the development application was the last step in a three-year plan he helped set up when he took over the club midway through 2009 – a remarkable accomplishment given some of the dark days the Sharks had to endure in the process.
“It’s something that going through it you don’t know, but you look back at some of the situations we were in and the work we had to do, (it was) real dark,” Irvine said.
“In hindsight you can appreciate how close were were to maybe not having a club.”
The first sod on the development – which will include refurbishments for Toyota Stadium – will not be turned for at least 10-12 months.
But while this is by far the biggest sign of change for the club – Irvine said it was the culmination of smaller developments on and off the field.
On the field they are once again a premiership force, an off-season recruitment drive netted Todd Carney, Isaac de Gois, Andrew Fifita, Bryce Gibbs and the unheralded Jeff Robson proving effective.
The notion the club struggled to attract top-line talent was further dispelled when they signed Australian Test backrower Luke Lewis for 2013 while also luring former NSW Origin player Michael Gordon.
“The positive changes have been going for two years,” Irvine said.
“It means players can come in with confidence with where we’re at.”
Crosscoder
Roar Guru
The value of the land is now(as a result of the PAC decision) approx $35m ,against a debt now reduced to $3.5m.That debt is serviceable on current revenue. The club secures $1m pa rental income on the retail development,which is first to be built. The retail development will adjoin the licenced club and in fact the current club The custom at the club ,will increase dramatically. So the club is getting benefits two ways,a drastically reduced interest bill and in a couple of years rental income of $1m. The funding for the project is left to the developers,who take all the risks.They(the developers) secure profits on the first 316 units to be built,the land has cost them SFA,and the club secures a share of profits on the remaining 284 units which could be anything from $10-$15m.And yes JVGO I understand 10% is the figure. .As developments go ,one block is built and sold at a time,and the cash flow is used to build the next stage. The developers don't need to stump up $300m at the start,that is the figure over the life of the project. Enough tenants in the shire, what the ,where people are screaming out for accommodation,more so with same near water and in some cases a water view,close to retail and medical facilities, a short walk away and close to Cronulla beaches.There will be units sold off the plan,it's not the Gold Coast.This is where people will be domiciled. It's the same old story for some its a blessing for others they look for the negatives.
JVGO
Guest
The land was valued at $4 million dollars I believe. They have immediately $10 million payed off their debt. Ongoing $1.5 million in rent or something on medical and retail facilities. Plus I believe they get 10% of the sale price on the units, a possible further $20 million??. That's my vague take on things and it seems a good return on the ownership of the land. Crosscoder will likely be across the exact outcome for the Sharks. Better than a poke in the eye with a blunt stick or getting shunted off to Perth or Gosford seems like.
Gareth
Roar Pro
Exactly right. I haven't followed this story closely, but last I remember, they were still trying to get a loan that wouldn't screw them out of a significant portion of the revenue once it's all completed. From (admittedly hazy) memory, plenty of developers were willing to stump up for the land and develop it themselves, but that wouldn't provide any ongoing return to the club. It's one thing to have the approval in place, quite another thing to have access to $300M dollars - and as the Gold Coast Titans have shown, there's no guarantee that they'll even get enough tenants to cover the loan repayments.
Crosscoder
Roar Guru
The small and vocal group following them LOL ?Obviously have not been keeping abreast of crowds of late :against Souths over 16,000 with the majority sharks fans. lets bring you up to date with a few averages up to rd 24 St George 16,895 Parramatta 14,161 Nth Qld 14,351 Cronulla 12,907 Roosters 12,187 Penrith 11,182 Canberra 9,920 Did you see the crowd at Win for the Dragons last weekend.The club that relies heavily on poker machine money. Grant does not have to say anything,as the commission are working on future planning at this very moment. The Sharks got off their backsides to make themselves self proficient,perhaps a few Sydney clubs could get off their large rear ends and do likewise,or relocate.
Crosscoder
Roar Guru
They may well be down 10% this year,but they will feature in the semis on FTA. be careful bagging Storm crowds Clipper, when one only has to look at heartland crowds for the Tahs and indeed Swans crowds..
Matt_S
Roar Pro
Well, that's Victoria's shame the crowd averages are not highter. We have educated sporting elite like Mick Malthouse, Tom haffey, not to mention celebrity icons such as Molly Meldrum follow the Storm with a passion and appreciate this special club (regardless of salary cap crap). Hopefully a fixed schedule and more money to promote the game can change this, Oh by the way, well done Sharkies. Have a soft spot for you since days of Steve Rogers, Sorenson brothers etc.
clipper
Guest
Also - the Storm average is down 10% from last year - and they're still near the top!
kapow
Guest
Yes it pays off the sharks debt but once they do build it whenever that is it will insure the club gets a guarantee 1$ million+ a year. Which as a sharks fan I'm ecstatic for them to get n just maybe we'll become a powerhouse club in the NRL and all the haters can finally stop saying the sharks need to move or be kicked out of the NRL :)
Jimbo
Guest
Morfs ... I think you just took my bait. 'Fans Fans Fans' .... yes, this is in line with the whole 'sporting capital of australia' bullsh*t. For Melb, 13,000 is rather pathetic when you folks attain +60,000 to AFL matches. But you don't mention one crucial element ... players, & getting kids to play NRL. There might be a trickle down Mexico way, but it is way not good enough for a Club which has had presence in the main comp for what must be approaching 20 years now.
Morfs
Guest
Relocate Storm? Get your hand off it, Jimbo! There are plenty of passionate RL supporters down here, most of them Storm supporters, but I know for a fact there is also a decent contingent of Dragons supporters based in Melbourne, and plenty of other NSW & QLD 'ex-pats' who come along to Storm games for a League fix. Regarding promoting the game down here, the Storm as a club do plenty to promote the game; it is Channel Nein & the NRL/ARLC that need to do more to promote the game. As an aside, 13,000 may not be a 'huge' crowd by most standard, but to get that number on a cold Melbourne Monday night, was fantastic. The noise of that crowd was easily equal to twice the size of the actual crowd, especially in the dying minutes. So don't write us off yet, my insular friend.
Jimbo
Guest
Fans, Growth etc ... & what is best for the League. Riiggghhhhtttt, but there's more to it than signing a sheet of paper & naming a franchuise ... it actually costs millions & millions & millions of dollars - & with the A$ being so high on current exchange rates, it'd be a difficult thing to attain foreign investment. And the mighty advertising dollar needs to be generated - which would be hard to do when nobody gives a crap about new teams for at least several years (ie: Gayer Western Giants) lol. Is it 'good for the code' to relocate a club with history & a strong junior base? To me, it'd be dumb to do this. For what it's worth, I suggest they relocate Melb Storm to Perth. Melb will never be a League town, has been subsidised for ages, & is in essence a 2nd Qld team ... & it's becoming obvious that Melb are not absorbing the RL culture. Perth has a growing interest in League, & I could imagine them taking some of their games to both Sth Africa & perhaps Adelaide. The other benefit of this is that Melb might just actually start kicking & screaming about losing their team that they might actually get their fingers out & start promoting the code down there in Mexico way. I don't feel they deserve a presence in the NRL.
hyland shark
Guest
i support the sharks allways have since i seen steve rogers play when i was about nine to think that they could set up in perth with a eight game schedule and play four games in cronulla each year would be great that way the sharks would be in nsw at least twelve times a year plus having the western sea board to themselves sounds freaken awesome ,,its a shame like i said i support the sharks ,the cronulla part not so much
B.A Sports
I agree with you Ronald Good luck to Sharks fans, they should be happy and the small but vocal troop that follow them everywhere, one can only feel but particularly happy for them.. But it will be a backward step (in the long term) for the league which needed a club for relocation purposes and to dilute the number of clubs in Sydney which is obviously too disproportionate for a national competition. Grant says expansion is not off the table, but only because he has to say it, otherwise the game shows itself to have no forsight, which it can't do. The last TV deal shows it is not on the radar for another five years unless a team relocates. Relocation options are now looking slim as the Sharkies were the ones struggling (most) on and off the field over a prolonged period of time and the most likely to be driven out.
Pot Stirrer
Guest
Not to burst anyones bubble but isnt the deal just to pay of the current debts for the sharks? The development still has to be built.
dishes
Guest
Great, now lets fill that trophy cabinet!
dishes
Guest
The Sharkies deserve their own team, the Sutherland Shire is the second most populous local government area in Sydney, and it is great for the code in NSW, and I don't think the AFL would be celebrating. Perth will get a team sooner rather than later, there is no doubt about that.
NF
Guest
keep on going oikee bring out your passionate Broncos support. You're going to Petro's last game on Friday you should because it could be the final game of the Broncos 2012 if they lose to Penrith of all teams. While the Cowboys could go up to 3rd/4th if results go there way & beat Cronulla if not 5th and home final so it's win/win for the Cowboys. 2 seasons in 21 years Broncos could miss out finals I struggle to have sympathy for Broncos.
oikee
Guest
Their would not be a Bronocs if that was the case, and their would not be no Bennett or Origin, so be careful what you wish for smarty pants. Or Lewis, Lockyer, Langer, you want me to keep going, or you had enough.
NF
Guest
Nice work Sharkies only thing missing is a premiership 44 years and counting. Broncos supporters couldn't handle that hey oikee.
Jimbo
Guest
Well done Sharkies. Been a fan since I was 12 years old, watching the great Rogers, Pearce, Hansard, Bourke, Kneen etc doing their all. And for the first time in probably 20years, I feel calm about the Shark's future. I recall old Rex Mossop on tv once saying that Cronulla were the envy of the League in that they owned their own ground. Prophetic, really - & those chickens are coming home to roost now. Mind you - it'd be crazy to get rid of them for the sake of expansion - massive junior base & a huge League culture in the district. St George, arguably the most famous RL club in Aus, gave virtually no relevance to their juniors development. And it seems that Cronulla were intended to pay for it. Expansion shouldn't be at the expense of established clubs. Period. Maintain tradition - and introduce clubs as opposed to culling them. That is true expansion. Nevertheless, I feel it's a great event for Sharks people - well done to all down there in the Shire.