On Thursday, the Gold Coast Titans’ already troubled financial condition worsened as an NRL accounting team revealed millions of dollars in hidden debt within the beleaguered football club.
Despite Titans boss Michael Searle’s long-standing assertion that the club’s troubles are limited to its property arm and Centre of Excellence, NRL chief executive David Gallop indicated that an audit conducted this week has identified “considerable financial stress” across all facets of the business, with total debt estimated at $35 million.
This revelation comes amid growing speculation that Storm halfback Cooper Cronk has already inked a three-year contract with the Titans, despite considerable concerns regarding the club’s prospects.
Although Gallop could not assure that all members of the Titans’ current playing roster would be compensated, he expressed confidence that contract payments would be fulfilled.
“We received reports from our external accountants today confirming that the entire structure at the Titans is under considerable financial stress,” Gallop stated. “We are evaluating options, but it must be recognized that the various divisions of the group’s business are interconnected regarding the level of debt, which will have consequences as we consider future options.”
Sources indicate that the external accountants found the football club indebted to suppliers by millions, including those supplying merchandise, catering, and venue hire.
The Titans will find themselves back in court following two affidavits filed by Reed Constructions, the company behind the contentious Centre of Excellence project, in the Federal Court this week.
The NRL cannot permit the club to collapse, as it is essential for fulfilling their television agreement, which stipulates eight matches per week.
“The game’s clear objective is to keep a viable football club at the Titans,” Gallop noted. “The complications surrounding the building are creating a troubling distraction from what could otherwise be a successful expansion of our sport into a critical area.”
Nevertheless, the Titans are forging ahead.
After the surprising signing of Souths heavyweight Dave Taylor, it is thought that the Titans are in a prime position to land Cronk on a lucrative three-year contract valued at around $800,000 per season, despite their financial chaos.
The Storm had feared that South Sydney would snatch Cronk away due to the influence of Craig Bellamy’s former assistant, Michael Maguire.
However, the situation has shifted significantly, leading to a strong belief within the Storm that the Titans have emerged as “frontrunners” to secure their halfback, who has been performing exceptionally well.
Searle, who did not respond to calls on Thursday night, maintains a close relationship with Cronk’s manager, Chris Orr, based in the Gold Coast.
Aiding the Titans is Orr’s ability to line up multiple lucrative third-party agreements.
by Buford Balony
