STATE’S NRL FUTURE STILL LOOKS ROSY DESPITE DEBT WOES
Written on the 23 March 2012
THE hopes of three Queensland National Rugby League (NRL) expansion bids were boosted today as the Gold Coast Titans’ debt woes deepened, but club boss Michael Searle is adamant it has a future.
The Titans property arm faces a bankruptcy hearing next month after a Federal Court ruling today allowed a major creditor to begin wind-up proceedings.
The court gave Reed Constructions permission to seek $1.046m from the Titans' property arm placing further strain on the Gold Coast NRL club, which reportedly has debts totalling $35 million.
The court set the matter to be dealt with on April 20, which gives the Titans’ property group less than 30 days to prove its solvency and avoid being declared bankrupt.
External auditors appointed by the ARLC have reportedly found the club’s debts stretch further than the property arm and are intertwined with football club operations.
However, NRL boss David Gallop says he is determined to keep the Titans afloat while admitting the organisation is under ‘considerable financial stress’.
“We are working through the options,’’ he says.
Titans boss Michael Searle this afternoon released a statement saying the football club was sustainable and projected to achieve a profit this year.