Four Gold Coast businesses "are waiting in the wings" to take the Titans off the National Rugby League’s hands, according to Margie McDonald of THE AUSTRALIAN. The consortium "is keen for the NRL to issue its prospectus so the sale can become a reality." Long-time Gold Coast Dir Darryl Kelly, a building materials supplier who has poured close to A$5M ($3.8M) into the club since joining the board in '13, "would not name members of his proposed consortium." But he guaranteed that "they were a bona fide group of potential owners with great plans for the Titans’ future." Kelly: "Our model is based on members of the local community to form a Gold Coast-based consortium. We’re working on a structure to leverage off the IP (intellectual property) of the Titans to create more income streams, otherwise the NRL won’t sell to a consortium unless they’re confident there is money in the bank." Kelly "found it fanciful" that reports were circulating that the North Sydney Bears, who left the elite competition in '98 after the Super League was settled, "were flirting with the idea" of a A$7M ($5.3M) takeover of the Titans. Under that scenario, the new club would be known as the Gold Coast Bears. Kelly: "I find that very hard to believe that the NRL would even be thinking along those lines. Three things are non-negotiable as far as I’m concerned: the colors, the name and taking three games out of the Gold Coast." Kelly believes the consortium is "strong enough financially and there would not be a need to make members shareholders," as 25% of South Sydney’s members are. He said, "We have thought about that but while local membership has some merit, I’m not working on that model at the moment" (THE AUSTRALIAN, 3/15). In Sydney, Dean Ritchie reported rival clubs "have laughed off that figure -- claiming it would be a stratosphere short of what was required for the new club’s long-term financial sustainability." One NRL club CEO said, "There wouldn't be much left if they lost A$4 million ($3M) to A$5 million in the first year. That's what most clubs lose. You would need regular income of around A$15 million ($11.4M) each year and around A$100 million ($75.7M) for long-term sustainability. The A$7 million would quickly run out." Clubs offered "mixed responses" when asked what the Titans would be worth. One CEO claimed A$10M ($7.6M), another said well in excess of A$20M ($15.1M) and a third said "nothing," given Gold Coast "went into voluntary administration" in Feb. '15. Bears officials, led by GM Greg Florimo and Chair Perry Lopez, have "opened dialogue with the NRL about acquiring the financially-struggling Titans" (DAILY TELEGRAPH, 3/14).
