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Titans statement on the club's financial position
The following is a statement from Jetstar Gold Coast Titans Managing Director Michael Searle in relation to the media speculation about the financial position of the club and its related entities.
The Titans have been working with NRL Management and the newly formed Australian Rugby League Commission (ARLC) since September on a funding submission to assist the club's related entities with cash flow pressures.
The pressure on the property arm came about because of the original Centre of Excellence building dispute which caused an escalation in costs relating to the completion of the building, additional rectification works and legal and funding costs totalling $6 million on top of the original contracted building amount.
Our initial discussions with the NRL revolved around the safeguarding of both the Property Trust and the Football Club. After consultation with the ARLC, there are now two strategies in relation to the Football Club and the Property Trust.
In relation to the property arm, we will consider all options to sell the asset in a managed and transparent process with our bankers. We have received two formal expressions of interests to date which we are considering.
Despite cash flow projections showing a current shortfall of approximately $2.5 million dollars, The Football Club is projecting a profit in season 2012.
The current is shortfall is a result of poor home crowds on the back of a disappointing 2011 season, the ongoing servicing costs associated with the building dispute in 2010 and the overall economic downturn on the Gold Coast.
Going forward the Football Club on its own, is profitable and sustainable. Our current discussions with the ARLC are focused only on the Football Club funding to ensure its longevity and sustainability.
The ARLC has been fully briefed on this situation throughout and we are confident that with the full support of the Commission we will ensure the Titans remain a viable and competitive force in the NRL for many years to come.