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WHEN this newspaper suggested Wests Tigers was vulnerable to being relocated Interstate over the weekend, the club recoiled and publicly denounced the idea.
We now wait with interest as to how the Tigers elect to respond on Wednesday afternoon, when the NSW Supreme Court decides whether Balmain Leagues Club should be placed into the hands of receivers.
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On death row since ambitious renewal plans for its Rozelle premises began to sour six years ago, the Leagues Club will be executed if Justice Paul Brereton rejects its bid for an injunction to stop the developer from calling-in an $8.7 million debt.
Operational since 1957, the Club needed upfront money from the developer in 2008, so it could payout staff and continue operating from two interim sites. Part of the advance was also used to help Balmain Football Club — a joint venture partner of Wests Tigers — uphold its financial commitment to the NRL franchise.
Martin Taupau of the Tigers celebrates with team mates. Source: Getty Images
But over the past two seasons the money has disappeared, along with any genuine hope of the NSW Government approving a high-rise construction on Victoria Rd.
The Court on Tuesday heard Balmain Leagues Club is carrying $7 million in liabilities, and has suffered a combined loss of $2.7 million over the past three financial years.
In that time the Leagues Club has been unable to assist the Football Club to meet its obligations to Wests Tigers. When the NRL team suffered an unexpected $2 million loss in 2012, Balmain could not cover its half of the shortfall and the black hole has only grown bigger since.
The other joint venture partner — Wests Group — had the money, but, in exchange, wanted boardroom control over Wests Tigers. Proud Balmain directors rejected that offer, more attracted to the NRL giving both stakeholders a loan to cover their outstanding debts to the joint venture.
Luke Brooks scores for the Tigers and is hugged by Braith Anasta. Source: News Corp Australia
In return for the money — believed to be about $8 million — the NRL has claimed three seats on the new seven-man board. Balmain and Wests split the remaining four spots, although Balmain's representatives cannot vote until their share of the NRL loan is repaid.
But there's an even more dire consequence if Balmain cannot cough-up the dough within two years. As revealed in Saturday's Daily Telegraph, Balmain's stake will revert to the NRL, dissolving the foundation club of any link to the elite competition.
If Balmain's capacity to maintain its commitments to Wests Tigers has vanished, what chance does it stand to raise $4 million in just two years?
One beacon of hope was the Leagues Club getting back on its feet in Rozelle. But that was destroyed last Friday, when the developer formally issued a demand for it's $8 million loan — plus $700,000 interest — to be handed back within 48 hours.
Martin Taupau scores during the Gold Coast Titans v Wests Tigers. Source: News Corp Australia
Regardless of Wednesday's outcome in the Supreme Court, the Leagues Club faces a grim future.
It's relationship with the developer is now clearly unworkable. For Balmain football club, and by extension Wests Tigers, that avenue of funding is now blocked.
The last chance for Balmain is raising $4 million from its own members and fans, with club directors optimistic that an extremely rich and extremely generous benefactor might answer the SOS. But should there be no response, the NRL will take control in two years time.
And do you really think it's in the NRL's interest to keep nine teams in Sydney?
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The snug fit of the 'Wests Tigers' moniker to a relocated team in Perth has not been lost on concerned figures close to the club.
CEO Grant Mayer was vehement in his rejection of any plans to move the team on Saturday, but should Balmain fail in their mission it won't be his decision to make.
That call will belong to Dave Smith, a banking whiz who has just delivered rugby league a $49.6 million surplus.
Smith is also watching TV ratings and crowds decline, particularly in Sydney's overcrowded market. He, like all realistic and rational observers, knows the squeeze cannot be tolerated much longer.
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