BASKETBALL Australia has reiterated its warning to the Cairns Taipans that they should not expect to remain in the NBL without raising $500,000 in working capital.
The Taipans are still about $310,000 short of the working capital target Basketball Australia has set for clubs to compete in the 2010-11 league.
Basketball Australia was due to announce next season’s teams on February 16, but it has been
delayed because of negotiations over a licence agreement.
Basketball Australia chief executive Larry Sengstock has been unavailable for comment in recent weeks, but yesterday
released a statement in which he discussed the future of the league.
In an indication the Taipans may be running out of time to raise the cash, Sengstock said he was committed to establishing a league with "no more teams going broke mid-season and damaging the NBL brand’’.
"With Cairns, in particular, we understand they currently have an issue with one component of our criteria in the working capital,’’ he said.
"We’ve asked them to submit to us how they
expect to do so in
the near future.
"Ultimately, however, it is up to all clubs to prove to the board’s satisfaction that they are financially sound and any club that can’t do so shouldn’t expect to be issued with a licence for next season.’’
Sengstock said the league would not budge on its financial requirements.
"To go through an independent review process, as we did, then discard their key recommendation for those financial criteria would have been ludicrous and was never entertained by the BA board.’’
Taipans general manager Mark Beecroft said the club was confident it could run a financially viable team next season.
"We didn’t embarrass the league this year and we met all of our
financial commitments, but in saying that, we know that part of the criteria is re-establising our working capital and we think can do that, given time,’’ he said.
