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Nathan Tinkler's Hunter Sports Group (HSG) has thrown the the 2012-2013 A-League season into disarray by returning the Newcastle Jets licence back to Football Federation Australia.
In a fresh blow to the A-League after Gold Coast became the third club in the competition's short history to fold last week, HSG said it has been forced into the decision after being unable to resolve a variety of issues with FFA, who have not been available for comment on the news so far.
Some of these issues include: believing they had been overcharged when they forked out $5 million for a licence acquisition fee, the on-going Jason Culina insurance matter and "continued requests to address the competition's unsustainable financial model".
But the group has moved to reassure fans of Newcastle Knights that the decision has no impact on the NRL club and that their future is 'absolutely assured'.
Newcastle Knights will continue to be owned and managed by the Hunter Sports Group.
In a media release from the Hunter Sports Group, CEO Troy Palmer said it was a difficult decision but one forced by having lost confidence in FFA's administration.
"As a keen Jets and football fan this has been a tough decision and I am aware the impact this will have on members, players, coaches, fans and the entire football community,'' Palmer said.
"I am particularly saddened for members and supporters who have embraced our community model, which has been accepted in so many areas as a successful and unique way to engage the entire community and build the A-League brand.
"It is also frustrating to have invested so much time, energy and money to save the Jets for the community at short notice and then continually hit road blocks at the FFA.
"It should never be forgotten that when we stepped in to save the club it was insolvent, there were only 500 members, diminishing crowds, minimal community engagement, no merchandise program and negligible corporate support.
"During the 2011-2012 season we believe we turned this around to be seen as leaders in all these areas.
"Unfortunately, having lost confidence in the FFA management and its ability to find a resolution, it is clear we have no other option.
"It is about removing ourselves from an administration in which we have an untenable relationship.''
Jets player Michael Bridges has taken to Twitter to express his disappointment.
"WOW. Did not see that coming," Bridges tweeted. "Devastated for everyone involved at the Jets. Players, employees and fans.#staystrong #jetsfamily."
Tinker's group stepped in to save the club almost 18 months ago after it was on the verge of folding under former owner Con Constantine.
The announcement throws FFA's plans of a 10-team competition for next season into doubt after it had announced it would bankroll a new western Sydney franchise.
The Jets' survival will likely hinge on FFA finding new owners.
The company said it would also continue to support soccer in the Hunter region by investing invest in a high performance academy to develop young players.
It said it would invest $1 million annually to encourage local children to play football and propagate the game in the region.
"This decision by the Hunter Sports Group is not about walking away from football and we will continue to meet and grow our local commitments,'' Palmer said.
"We will now invest in local junior talent and help reduce the burden on their families.
"We would rather proactively support youth and our local community at the expense of the huge wastage in the A-League.''
As much as I hate them, we still need them in the comp.
Football Federation Australia Limited (FFA) was today informed by the Hunter Sports Group that Newcastle Jets Football Operations Pty Ltd (Newcastle Jets) is seeking to relinquish its license to operate the Newcastle Jets football club in the Hyundai A-League.
FFA does not accept that the Newcastle Jets have the right to return their A-League licence.
FFA expects that the Jets will continue to honour the Club Participation Agreement with FFA, which is for a term expiring on 30 June 2020.
FFA also expects that the Jets will continue to honour the playing contracts in place with each of their players.
FFA CEO Ben Buckley today expressed his dismay at HSG’s announcement.
“HSG has made repeated undertakings to the people of the Hunter Valley about their commitment to building football and helping the community in Newcastle and the region,” Mr Buckley said.
“There are players, coaches, members and supporters who put their heart into making the club a vibrant part of the Hunter Valley.
“Today’s announcement makes no sense for all those people and for the other clubs in the Hyundai A-League. They can rightfully feel let down.”
Mr Buckley said that no grounds exist for the Newcastle Jets to unilaterally walk away from its obligations.
“FFA has held countless hours of discussions with HSG on a wide range of issues affecting the club and the A-League,” said Mr Buckley.
““The Jets know very well that the Jason Culina matter is subject to arbitration before an independent panel of arbitrators in accordance with the Grievance Procedure and that a hearing is scheduled.
“The issues surrounding the operating model of the league and its clubs were addressed just a fortnight ago when all clubs were shown a road map towards sustainability.
“In addition, the clubs will have a greater say through the Joint A-League Strategic Committee, which has equal FFA and club representation.
“The FFA chairman Frank Lowy and I have made numerous offers to meet in person with Nathan Tinkler. Just two weeks ago a scheduled meeting was cancelled by HSG at short notice.
“However, none of this provides a justification for today’s announcement by HSG or provides any grounds for the Newcastle Jets to relinquish their licence.”
This is far from over! Stay tuned for more clubs to support the Tinkler/Palmer moves. There are a few clubs loyal to the FFA, you dont need to be smart to work them out!! Perth will be next to jump ship.What comp? This is shit. As much as it urks me, im leaving my table and going to sit with Mick & NB. f**king football kents with their f**ked up egos. Optimisim can suck a big fat one.
1.The FFA has restricted the clubs ability to generate funds through external partners.Please explain?
2.The clubs have lost confidence in the FFA and Ben Buckley.Which clubs? FFA organise/assists buyouts for Adelaide, Brisbane,Wellington,Perth, Newcastle (to a person with a long history of arguments with partners eg ask Anthony Cummings)Part own Mariners. The point, if left unassisted by FFA the comp would be gone already. Unfortunately someone has to make one of these clubs work as a finanical model for the rest to copy. And im available to take control.