Debt crisis: Netball Australia rejects $6.5 million bailout from private equity consortium

Netball Australia has taken the extraordinary step of ignoring offers to privatise the sport despite crippling debt threatening the existence of the game. Read their statement on why they did it.

Netball Australia has missed out on a $6.5 million lifeline after refusing to engage with the private equity consortium, which included former Diamond Liz Ellis, keen to buy the Super Netball competition.

Tier 1 global private equity group, which manage $125 billion worth of funds, put forward the $6.5 million bid to buyout the sport’s debt and takeover the competition in July but on Monday night confirmed to News Corp they had formally withdrawn their offer.

But Netball Australia has fired back, stating it won’t be rushed into making a deal before completing its State of the Game review or considering all options.

Matt Berriman, the chair of Mental Health Australia, entrepreneur and avid netball fan is the lead on the bid and pulled together the funds, proposal and several backers including Ellis, in the weeks after learning of Netball Australia’s dire financial situation.

As previously reported by News Corp, Netball Australia sold the rights to host the grand final to the Western Australian Government in a bid to recoup some of its $4.5 million debt.

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Netball Australia rejected offers from a private equity consortium.

Berriman said he tried his hardest to get the bid across the line but Netball Australia refused to engage.

“We pulled together the best team, significant funds and tried our hardest, all with a sole intent to recapitalise and grow the great sport of netball,” Berriman said.

“We simply asked for genuine good faith engagement, and despite having been assured of it repeatedly over the last six weeks, no such engagement has been forthcoming.”

Netball Australia chair Marina Go has previously said they were not against privatising the competition but not before the full process had been conducted.

A Netball Australia spokesman said it just wanted what was best for the game.

“Netball Australia has already made clear that it has spoken with a number of people and organisations about wanting to support the sport which shows the strength of the netball brand,” the spokesman said.

“In line with the State of the Game Review, Netball Australia is reviewing the Suncorp Super Netball League which continues to be a huge asset for the sport.

“Netball Australia went to market earlier this year seeking proposals from qualified agencies to support this process. Alacria has been chosen to lead this work.

“Netball Australia will go through the relevant process regarding any approach from a private equity firm but will not be drawn into a public debate on its merits, nor will it be rushed into making decisions that have not been fully contemplated.

“It is imperative we have the correct operating model for the Suncorp Super Netball League. The approach we are taking will ensure the interests of the sport are best served by the outcome of this process.”

The bid wasn’t just about relieving Netball Australia’s debt – Berriman’s plans included improved mental health and wellbeing services for athletes and future expansion – a move which had the backing of the Players’ Association.

Mental Health Australia chair Matt Berriman. Supplied image

“It’s unfortunate for the game but in the absence of any meaningful engagement, we have now been left with no option but to withdraw our bid,” Berriman said.

“The inability of Netball Australia to even engage in a proper process is actually quite an exposure for the sport.

“You would have thought that in response to netball’s self-declared financial crisis, and faced with a going concern warning from its auditors, its leaders would consider the offer of a consortium that only wants the best for the sport.

“The only other conclusion is that Netball Australia has alternative plans and sources of funding that will allow the sport to address its debts, and invest in its League and the Diamonds now and over the years ahead, to ensure that they remain viable and competitive in an increasingly challenging marketplace, here and abroad.

“We wish Netball Australia all the best with those plans.”