Sharks Combat Relocation Talk With $40 Million Deal
With the recent announcement by the NRL to relocate financially troubled clubs, the Cronulla Sharks have secured their financial future with a landmark agreement.
The Cronulla Sharks Leagues Club has agreed to a $40 million term with partner Capital Bluestone, to sell the clubs remaining interest in the Woolooware Bay Town Centre mixed-use development.
A highly experienced investment committee will be responsible for the strategic re-investment of funds, which will coincide with the redevelopment of the Leagues Club which is expected to be complete in 2021.
“This agreement enables us to de-risk rather than divorce ourselves from the development,” Sharks Chairman, Dino Mezzatesta, said in a letter to sharks members.
“Of the final amount payable to the Sharks for our remaining interest in the development, $12 million will be held in an escrow account for use specifically to deliver the Leagues Club refurbishment.
“By selling our remaining interest to focus on the future, we’ve been able to strengthen our immediate financial position, secure our future through a revitalised Club premises to provide a strong recurring income stream and, importantly, realise investment returns on our capital.”
This deal will also help the club cover the $750,000 fine for the recent salary cap breaches.