A recent financial shortfall at the Titans, required the National Rugby League to step in and advance a payment of $2 million to the club to keep the wheels turning.
Hot on the heels of financial trouble at the Cronulla Sharks, for the Titans – the bank denied a payment of around $4 million to them, which was required for developments at Skilled Stadium.
The Titans ambitious plans to build ‘TitansWorld’ on the Gold Coast would cost around $30 million, which is why the club so desperately needed funds. The new development they believed would ultimately bring them strong revenues in the mid-long term.
With $18 million in secured funding from banking institutions, the Titans were on track to embark and complete their ambitious plans. However, the financial crisis gripping the world has seen banks tighten their lending criteria and as such the Titans were left holding their cap in hand.
Titans CEO Michael Searle yesterday confirmed to the NRL and the public that they were only provided with $14 million in loans from the banks, leaving the Gold Coast club $4 million astray.
With no other lenders prepared to provide the money, the Titans had no alternative but to approach the NRL for an advance on their payments.
It’s believed the NRL has only provided $2 million to the Gold Coast Titans at this stage.
“The NRL board agreed to advance the remainder of this year’s grant two weeks ago,” NRL boss David Gallop confirmed.
This latest financial shortfall is yet another reminder at how NRL clubs are flying close to the wind in terms of viability. The current situation may shelve expantion plans for quite some time until some stability returns.