THE Newcastle Jets have a month to finalise a new owner or face the prospect of folding.
Australian Professional Leagues (APL) chairman Stephen Conroy said on Tuesday morning that the body which runs the A-Leagues, would not prop up floundering clubs.
The Jets have been funded by the chairman of four rival clubs since former owner Martin Lee was stripped of his licence in January 2021.
However, they are not willing to continue bankrolling the struggling outfit and want out.
Negotiations are advanced with consortium FC32 to buy the club but the Newcastle Herald understands that a lack of clarity from the APL on matters including the salary cap and financial distributions has stalled the process.
The main sticking point appears to be the annual financial distribution. Each franchise received $2 million in grants this season, which was cut from $2.3 million.
The APL is yet to confirm what the dispersal will be for the 2024-25 campaign.
There is speculation that the club distribution, which is a critical part of the business, could be cut further.
"The sale of a licence, like any significant transaction, is a complex process and we are supporting the club as required," an APL spokesperson said in a statement to the Herald yesterday afternoon. "We've met with the prospective owner multiple times to provide detail on the strategy and financials of the League."
The A-League men salary cap is $2.6 million but clubs spend more than $3 million with the use of concessions. Some clubs spend more than $7 million on player wages. The women's program costs about $450,000 a year.
Conroy, speaking yesterday morning at the launch of the A-League All-stars games in Melbourne, indicated that Newcastle's future needed to be sorted within the next month to allow the league to plan for the 2024-25 season - and wouldn't rule out the possibility of the club folding if that didn't happen.
He dismissed the possibility of the APL propping up the club, like they did Perth, until a sale is complete.
"Newcastle's current owners didn't buy it to keep it permanently. They bought it to keep it alive and then sell it," Conroy said. "It's been three years, it's disappointing it hasn't been sold yet. The negotiations are reaching the very pointy end. The alternative ... we supported Perth (as they awaited their recent sale), and it's great to see Perth back and alive, but we're not in a position that we can underwrite another club.
"The Perth support showed that we shouldn't be part of an ownership group. We shouldn't be propping up one club. We don't have the financial capacity to do this for clubs as they go through their challenges.
"We've got to get our organisation in order and the clubs have got to do the same."
Football Australia, who ran the A-Leagues before the competitions were taken over by the APL, bankrolled the Jets for 12 months after Nathan Tinkler was stripped of his licence. Lee purchased the club before he too encountered financial difficulties in January 2021.
The Newcastle Herald has previously reported that the asking price for the Jets was in the vicinity of $15 million.
Having poured an estimated $8 million into the upkeep of the club in the past three years, the interim owners are of the belief they will not recoup their investment. But if the club folds, their return will be zero.
"We understand the Newcastle owners - who are leading the sale process - are still in advanced discussions with an interested party," an APL spokesperson said.
"We remain committed to supporting the club in their search for a buyer, as having the right club owners is a priority for the league.
"Newcastle is a fantastic football market. They're a foundation club with a storied history, and they have a great, and very loyal, fan base. We hope there can be a resolution in the coming weeks."
When contacted by the Herald yesterday, Jets executive chairman Shane Mattiske said he was not in a position to comment.
The Jets operate under one of the smallest budgets in the A-League.
First-year head coach Rob Stanton has rebuilt the squad with an emphasis on youth. Teenager Clayton Taylor has emerged as one of the finds of the season, striker Apostolos Stamatelopoulos has the second most goals in the competition and Lucas Mauragis and Mark Natta have been selected in the Australian under-23 squad.
The Jets, which have about 8000 members, have six games remaining this season.
