$2m debt not big enough to quit yet for Wollongong Hawks
|Apr 1, 2015|
Debt: ~$2 million On-Court production: 8th of 8 New Import: Fail Next Season: STILL POSSIBLE No, nothing priceless here.
Administrators have revealed that the Hawks' debt tally has reached almost two million dollars, as statistics shown from (administrator) Nicols and Brien have the club owing $1,965,034, including $673,000 to employees and players.
Well isn't that a nice hefty fee to continue playing basketball...no not to play next season, just to get back on par, and then pay some more to play next season.
However, the most surprising thing out of this, is that it's been said that it's TOO EARLY to rule out the Wollongong Hawks from playing next season.
As many may already be aware of, sponsors in the Wollongong region can be hard to come by. Wollongong Coal was one of the most stable organisations the club could have scored, until the entire coal industry took a turn for the worse, ending that venture in a heartbeat.
According to the report that was released last Monday, 'trading losses' incurred by the company and employee claims that have 'crystallised on the appointment of the administrator' are where it's all gone wrong for the Hawks.
Those claims were majorly due to termination of player contracts as well as leave entitlements of the employees of the company. In general terms: yes General Manager, if you let someone go with payment still left on the contract, you do in fact, still have to pay them.
In more unsurprising events, the club owe the NBL over half a million dollars ($550,155 to be exact).
So, in conclusion of the run down of how not to run a successful basketball club, the answer was there in writing:
"On the basis of there being no proposal to put to creditors, the administrator recommends that it is in the best interests of creditors that the company be placed into liquidation."
The Wollongong Hawks will most likely go into liquidation.
In light of some good news out of all this, the Hawks have scored some financial relief with up to 30 pledges of sponsorship since being placed in voluntary administration about a month ago.
The bottom line out of all of this: Don't rely on having to pay creditors when you don't have the financial backing, you'll always fall into a hole that gets deeper and deeper.
While fans hope to see the Hawks in action next season, you really can't imagine what shape they may be in if they take the court.