Its the clandestine meeting that could shape the future of the Cronulla Sharks.
Cronulla chief exeuctive Barry Russell met on Tuesday with Australian businessman Michael Ibrahim, who has made no secret of his desire to purchase an NRL club on behalf of cashed-up Middle Eastern ruling families.
Shire sale? Cronulla chief executive Barry Russell (left) sits down with Michael Ibrahim (right) on Tuesday.
Photo: James Brickwood
The Herald captured the secret gathering at The Promenade in the Sutherland Shire on Tuesday afternoon. Russell and Ibrahim were both were accompanied by an associate to discuss investment opportunities in the club.
The meeting lasted only an hour – Russell didnt stay for lunch – but the ramifications could be huge for the 2016 premiers. Sources have told the Herald that privatisation could be the end game for both parties, although Russell insisted the conversations were restricted to investment opportunities for the Sharks.
“Ive got an open mind in what we do as far as sponsorship goes,” Russell said.
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Negotiations: Michael Ibrahim outside Sealevel restaurant.
Photo: James Brickwood
“Im happy to talk to anybody, anytime, anywhere.
“I dont know if anything will come of it but there was an introduction through a third party who is doing some business with him.
“Im reaching out to a lot of contacts in particular, not only about our major [sponsorship] but all our properties.
“The best way to have success in the market were in is through introductions.”
Like almost all NRL clubs, Cronulla remains in the red. It was widely believed that the ongoing redevelopment of the precinct around Cronulla's leagues club would guarantee the Sharks future. However, sources claim it it will not provide as great a financial windfall as many believe and that privatisation is the best chance to extinguish a seven-figure debt.
Ibrahim has already attempted to purchase two NRL clubs. He made a $12 million pitch to buy Manly, a price industry experts believe is fair given the on- and off-field troubles plaguing the Sea Eagles. However, Manly chairman Scott Penn declined, declaring the club is not for sale. Ibrahims attempts to purchase the Dragons have also come to nought.
But after lucking out in Wollongong and the northern beaches, Ibrahim is believed to be interested in making an offer for their fierce rivals Cronulla.
Even if Ibrahims backers and Cronulla officials settled on a price, there are potential impediments to the sale. The clubs members will have the ultimate say on whether the franchise is privatised, with its constitution providing similar safeguards to South Sydney, which was ultimately sold to Russell Crowe and Peter Holmes a Court in 2006. The members may be swayed to green-light privatisation if they were concerned Cronullas financial position was precarious enough to threaten their long-term existence in the Shire.
On the move: Barry Russell leaves the meeting.
Photo: James Brickwood
The sale could allow the Sharks to tap into the incredible wealth of the Middle East. The next FIFA World Cup will be held in Qatar and the region wants to be known as one of the worlds major sporting hubs. Some of the worlds largest football clubs – including Manchester City and Paris St-Germain – have benefited from the sums pumped in from their owners.
As the co-founder of Aqeeq Holdings and MJ Masha, Ibrahim has experience in sealing big deals. He already ships up to 50 containers of Australian goods worth up to $25 million to the Middle East each month and has links with some of the worlds richest families. He is also a passionate rugby league fan behind a push to bring international matches, including those featuring the Kangaroos, to Qatar.
Its expected there will be further talks between Russell and Ibrahim.
“A good friend of mine knows him from doing business with him,” Russell said.
“It was just a quick meeting. Hes not personally looking to sponsor the club. But he may be able to help me by way of introductions.”
Asked about the prospect of the club being privatised in the future, Russell said: “I wouldnt have thought at the moment.
“Like any club we have our challenges but with some of the changes were making internally, were going to be in great shape.
“For me, the prospects of the club are awesome. We own our own ground, were going to have a brand new club. Its just taking a bit longer than wed like.
“The next 10 years could potentially be the best of its history.”
Adrian Proszenko is the Chief Rugby League Reporter for the Sydney Morning Herald.
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