It was reported on Wednesday morning that Newcastle Jets owner Nathan Tinkler was at risk of losing his license to own the A-League club unless he raised $500,000 by Wednesday.
Crisis meetings were held by Football Federation Australia (FFA) on Tuesday afternoon, the result of which was instructions being handed down to Tinkler that he would have 24 hours to resolve his obligations.
The money required is to pay a large umber of past and present Jets players and staff, including both monthly wages and superannuation that is three years overdue.
Newcastle University is also believe to be owed $40,000 in fees for the Jets’ training facilities.
The FFA has demanded that these debts be settled by Wednesday.
If Tinkler failed to comply with the demands the FFA made it clear it was prepared to revoke his ownership of the club.
An FFA spokesman said on Tuesday night that, “This situation needs to be resolved urgently. FFA is preparing to take steps to address this matter.”
David Gallop had previously warned Tinkler that he must honour his commitments in February.
UPDATE – 3:01pm: Tinkler places Jets into administration
On Wednesday afternoon is was confirmed that Tinkler has placed the Jets into voluntary administration, with debts totalling $2.7 million.
However, in a statement Tinkler told News Corp that a $5 million sale of the club to Scottish club Dundee United was imminent, pending permission from FFA.
“I have been in negotiations with the FFA over the last few days and wasn’t able to get them to guarantee the licence
“And I haven’t been willing to pay wages unless they guaranteed that so I have put the club into administration just now.
“We have had an offer in for a couple of weeks from Dundee United.
“That offer is well in excess of the debts of the club and I have asked the administrator to get that sale done and that will see everyone get paid.
“Then I can move on.
“The only risk to that is if the FFA decide to act in a morally bankrupt manner and take the licence and that presents a whole bunch of other issues.”
UPDATE – 4:27pm: FFA terminates licence of Newcastle Jets.
FFA has announced the immediate termination of the A-League licence held by Newcastle Jets Football Operations Pty Ltd, a subsidiary of the Hunter Sports Group (HSG).
A new licence will be issued to a new entity owned and controlled by FFA. A club from Newcastle will remain a member of the A-League and current players of the Newcastle Jets will be offered contracts with the new entity.
The termination is based on material breaches of the A-League licence held by Newcastle Jets Football Operations Pty Ltd, in relation to non-payment of players and staff, and an ongoing failure to meet standard operational requirements.
FFA notes that HSG placed the Newcastle Jets into voluntary administration today, which in itself is an act of insolvency and a breach of the A-League licence conditions.
FFA CEO David Gallop said HSG had been given every opportunity to continue as the owner and operator of the licence, but it was unable to meet the conditions required to do so.
“FFA has taken this action to protect the interests of the football community in Newcastle and the Hunter Valley, and to safeguard the image and reputation of the A-League and its member clubs,” said Gallop.
“Newcastle needs a club operating in a stable environment with certainty of resources in order to be successful and competitive in the A-League and to properly represent the community. HSG has proved to be incapable of meeting these requirements.
“HSG has behaved in a deplorable way towards the players and staff of the club in failing to meet basic obligations to pay wages. Anyone who takes control of a sporting club has an obligation to respect the people and the traditions of that club.
“HSG has failed miserably to in this regard. Today’s action to terminate the licence is the first step to restoring the proud traditions of football in Northern NSW.”
Gallop said that FFA will continue talks with several parties interested in the future ownership structure of the A-League club in Newcastle.
“First of all, we will listen to all the key stakeholders in Newcastle and the Hunter Valley,” said Gallop.
“This region has incredibly strong community values and any future ownership needs to have people at the heart of things.
“That’s a core value for football in Australia and something we are very committed to in relation to the A-League club in Newcastle.”
pete
Guest
I notice on tonights news that they reckon Nathan Tinkler had a go at a reporter. Truth is if you look at the clip carefully, the split second Nathan (who was a few metres away from cameraman) turned around, the gutless cameraman cowered and jerked his own camera.He wasn't attacked at all. Another blunder and lie by the press.
duecer
Guest
I thought it was a fairly innocuous comment. I was merely commenting on Fussball's link and thought that AFL would be slightly ahead of Rugby League because of it's more national spread, but below the other sports because of no international exposure, which in this increasingly globalised world, is a valued commodity. I did not expect both sides to try and talk up or talk down each other. Can't both figures be impressive - Football with a 10 year old league is ahead of 2 other codes and AFL, with no international exposure is ahead of the other 3.
clipper
Guest
But how have they monopolised in NSW or QLD - they aren't the biggest sport there, so I don't see the point - there certainly hasn't been 100+ years of VFL/AFL history there and if you're including VFL, you could argue you could include the other Football incarnations, which does make it a long history.
Hulk
Guest
There is so much wrong with this comment, on so many levels. Flashbacks of kingswood country. I'll see your wetback and raise you a redneck.
Hulk
Guest
These AFL guys are hilarious. Woah big numbers guys. One Spanish football club can spend your measly $250 mill AUD AFL money on a couple of players. Jokers
The artist formerly known as Punter
Guest
I think you do Mister Football, I think you do. But most of the football tab wants to talk football not AFL. I mean your assumption that AFL $250M in sponsorship is similar to the 250M that watched the A-League GF World wide.
Mister Football
Roar Guru
Punter We are all reasonable people having a civilised discussion about an interesting topic. On the question of relevance, my first post appears above this particular conversation and was 100% on topic. Immediately below my post from yesterday, Fussball introduced this sponsorship discussion, which, we would agree is of marginal relevance, nevertheless.... The article quoted actually mentions the two rugby codes (even if the claim made is only a half-truth, as I pointed out above). As it turns out, the article actually refers to the AFL as well. deucer made the statement that the AFL numbers were impressive. I added the obvious point that the numbers are even more impressive than what the article states because the article is only referring to the governing bodies, whereas the 18 and 16 clubs of the AFL and NRL respectively bring in decent sponsorship coin in their own right. I then referred to the AFL's 16th club, Port Adelaide, pulling in $12 million in sponsorship year to date, and I put up some other numbers, one of the most interesting being Collingwood earning $20 mill on its own in sponsorship revenue last year. You are incorrect to think I have put that up as some form of oneupmanship - I have not - the figures were relevant to underscore the point that the article is only half-right in what it claims because it is only referring to the revenues of the governing body, not the clubs themselves. Part of my brief on this board is to clarify and help others get across the various issues discussed, and I think I do an admirable job.
The artist formerly known as Punter
Guest
Yes Bondy, it's amazing that despite the competition he follows being the 4th most followed competition in the world, with history of 150 years, he wastes all his time defending his provincial competition against the A-League, which probably struggle to get into the top 50 & with only a 10 year history. With comment like yeah but you have fans who crossed against a red light....yeah but my competition is bigger.... yeah but the finals series is the only way.... Go to a game & enjoy your sport AR, we can look after ours without your spin.
Horto Magiko
Roar Rookie
Yep like the 18k at docklands last Sunday
AR
Guest
"The problem is nobody’s there ." That's right Bondy. According to articles this week, they're all at the games.
Bondy
Guest
Punter The problem is nobody's there .
The artist formerly known as Punter
Guest
Hey guys all wonderful for this great game of yours, mind taking to the AFL tab where there might be some people interested in these facts.
The artist formerly known as Punter
Guest
Ian on a football tab? Come on, you are an AFL fan as well as football fan & I doubt you mention it once every 50 posts on the football tabs. He is rather boring with his inference to another sport all the time.
AR
Guest
MF, for sponsorship-only revenue those numbers are mighty impressive. Even your club, the Bulldogs, last year made a profit of about $330k (from a total revenue of $38M) in what was a pretty lean football year for the Dogs. Whilst it's some way off the larger clubs like Collingwood and Hawthorn which have revenues of around $80M and $70M respectively, it's good signs that your club can turn a buck even when near the bottom of the ladder. We all know how hard it is to make a football club break even, let alone make a profit.
Fussball ist unser leben
Roar Guru
It's all about exposing the sponsor's brand. Once ALeague clubs learn how to fully embrace the ACL and Asia ... oh boy. 4 thousand million potential consumers across Asia for sponsors to market their brands... compare that to the paltry figure of 23 million Aussies.
Fussball ist unser leben
Roar Guru
Well if the AFL TV rights are worth $225m/year and ALeague TV rights worth $40m/yr, we can start by saying we'd expect AFL clubs sponsorship revenue to be in the vicinity of 5-6x that of ALeague clubs? So, are ALeague clubs getting around $1-1.5m/yr sponsorship? Yes they are.
Mister Football
Roar Guru
I was just noticing that even a small club like the AFL's newest club, GWS, made nearly $8 mill in sponsorship revenue last year. Glass half empty or half full? Even the Gold Coast Suns, a small regional club is managing sponsorship revenue of $6.6 million - that seems ok for the AFL's 17th club. My own club has a low $7.5 million, but we expect low numbers from the dogs. The Eagles are around the same level, which is a bit baffling since they generate millions of dollars in profit annually. They would be generating double from membership sales as they generate from sponsorship, which is probably unusual.
Fussball ist unser leben
Roar Guru
Apart fro the Top 7 who get over $10m/yr, I'm shocked by how low the sponsorship revenue is for the bottom 11 clubs when you consider the AFL gets huge crowds, huge TV ratings and media exposure. I guess sponsors understand that, despite the crowds, ratings & media exposure, when they adverttise with AFL their brand is only going to be noticed by a maximum of 23 million consumers.
Mister Football
Roar Guru
deucer It's even more impressive than you first imagine. These are the sponsorship dollars for the governing bodies. In relation to the AFL and NRL, you have significant sponsorship dollars for the 18 and 16 clubs respectively. For example I was reading just the other day that Port Adelaide's sponsorship revenue for the current season has hit the $12 million mark. You can be assured that the other big clubs are making something similar (if not more). I would estimate that the total sponsorship revenue for the AFL and the 18 clubs is closer to $250 million per annum. In fact, I just found these sponsorship dollars for last year for these 14 clubs (courtesy of good friend to the Roar, the Wookie): Collingwood - $19,326,637, down from $19,650,141 Essendon - $17,690,850, up from $16,837,899 Sydney - $17,089,855, up from $14,645,407 Geelong - $16,251,281, down from $17,039,348 Hawthorn -$15,093,510, down from $15,226,374 Carlton - $13,602,675, up from 12,217,695 Brisbane - $11,207,630, down from $11,225,023 North - $7,856,770, up from $7,431,89 GWS - $7,808,396, down from $9,195,289 Bulldogs - $7,519,934, up from $7,183,310 West Coast - $7,498,870, down from $7,656,558 Melbourne - $6,970,924, up from $6,368,135 Gold Coast - $6,620,920, up from $5,839,834 St Kilda - $5,560,928, down from $7,081,080
albatross
Roar Pro
Here's the actual link: http://www.theherald.com.au/story/3093044/terminated-licence-led-to-voluntary-administration/