Rugby League club Balmain Tigers, the backer of one of Australian rugby league’s foundation clubs, "stands on the precipice of failure with property developers attempting to have it placed in receivership," according to Leo Shanahan of THE AUSTRALIAN. In a move "threatening the future viability" of Balmain and its involvement in National Rugby League joint-venture Wests Tigers, lawyers acting on behalf of property developer Rozelle Village "are attempting to have a receiver appointed to the club, claiming it is trading while insolvent." The leagues club has moved to two new sites in Sydney, but still owes Rozelle Village a total of about A$8M ($7.3M), including an individual loan of A$4M (THE AUSTRALIAN, 3/19). In Sydney, Brad Walter reported Balmain greats "have vowed not to let the famous club die." A wealthy benefactor has told Balmain officials that "he would be willing to provide a letter of credit to ensure the survival of the Tigers as a stand-alone entity." Should that fail, former Balmain player Steve Roach said that he and former teammates such as Wayne Pearce, Paul Sironen and Ben Elias "would rally to help the club" (SYDNEY MORNING HERALD, 3/18).
CONSEQUENCES ON WESTS TIGERS: Also in Sydney, Hall & Proszenko reported Balmain's "perilous financial situation could have serious consequences" for the Wests Tigers. Counsel for the Tigers, Robert Newlinds, SC, said if the developer succeeded in having the leagues club placed into receivership, it could ''potentially bring to an end a 106-year-old football club.'' Newlinds said it would have serious ''knock-on effects'' on the Wests Tigers and a number of people, including the players, "could lose their jobs." He said the leagues club's ''reason for being'' was to financially support the football club. However, he made an undertaking that the leagues club would immediately cease making payments and admitted ''it is highly unlikely the receiver [if appointed] will continue to make grants to the football club'' (SMH, 3/19).
