CAIRNS Regional Council's million-dollar guarantee for the Cairns Taipans basketball team - essential for its acceptance into the 2010-11 NBL draw - could be withdrawn if the club's position proves as bleak as rumoured.
Cairns Mayor Val Schier did not want to speculate on whether the council’s bank guarantee would continue next season but urged community support "so we don’t need to be reconsidering the guarantee".
Pictures: Cairns Taipans 2009-10
"The Taipans have said that they will work their bums off for these 12 months to make the team viable because they don’t want to jeopardise council’s guarantee at all," Cr Schier said.
"At this stage, council officers are working closely with them to look at their viability.
"Rather than speculate upon what might happen, I’m just urging people to support the team so we don’t need to be reconsidering the guarantee."
Fears for the club were sparked by the leaking of financial documents that reportedly showed the club could be trading insolvent by the end of the season. Both the club and the league have rejected that assessment.
As reported in The Cairns Post yesterday, the NBL has called for expressions of interest for inclusion in its 2010-11 draw but clubs must meet strict financial criteria for acceptance.
The requirements include $500,000 in working capital and the $1 million bank guarantee.
"If we get to the end of the year and it looks like there are issues then I think that would come back to council," Cr Schier said.
"If the Taipans are trading well then I would think that councillors will be comfortable about continuing that guarantee."
The Taipans raised the capital last year through the sale of foundation memberships but has ruled out another revenue-raising membership drive.
