Grassroots sports set to be hit hardest by financial crisis facing apparel giant BLK
ELITE sporting clubs are confident they will avoid a major commercial hit from the financial crisis facing apparel giant BLK but others might not be so lucky.
AFL
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QUEENSLAND’S elite sporting clubs are confident they will avoid a major commercial hit from the financial crisis facing apparel giant BLK but the plight of grassroots sports is far more uncertain.
BLK, sponsors of the Lions, Suns, Titans, Reds and Queensland Cricket, is the trading name for World Rugby Specialists and World Rugby Specialists Group, and both of those companies have been plunged into receivership.
Cash strapped Brisbane Lions are still owed about $10,000 from 2016’s deal with BLK and must find a sponsor to replace the $150,000 in cash as well as the playing, training gear and merchandise owed for 2017.
The Suns’ have been paid for 2016 but are waiting on training gear and playing strips and have a two-year $400,000 deal at stake.
Both clubs said they had been canvassed by several companies looking to replace BLK and were hopeful 2017’s bottom line would not be affected.
BLK are the major sponsor of the QAFL competition and also sponsor AFL Queensland’s Q Schools Cup.
AFLQ CEO Dean Warren said his organisation was conducting an audit of its needs for next season and dealing with the receivers.
“There will be some impact there for us,’’ he said.
“It is really disappointing for them because they have been great supporters of footy.’’
Rumours of BLK’s troubles began to circulate earlier this year when word leaked that senior staff had been asked to take significant pay cuts.
Both the Lions and Suns sought assurances at the time their deals were not in jeopardy and were told the delays were due to a halt in production due to the devastation caused by Tropical Cyclone Winston on Fiji, where the BLK’s manufacturing plant is based.
“The Suns are aware of the developments facing BLK. We are currently working with the appropriate parties to understand the implications of our club,’’ a Gold Coast spokesman said.
The AFL also confirmed its commercial and licensing departments were in talks with the receivers.
The Titans season launch planned for next week was set to be held at a BLK store at Harbour Town.
Titans chief executive Graham Annesley said the NRL-controlled club was exploring contingency plans.
“We are currently dealing with the NRL through their own merchandise division to determine our next steps,’’ he said.
“Most of it is a contra arrangement so it’s not so much that we are out of pocket. It’s just whether our gear turns up or not.’’
BLK are also the major suppliers of apparel to club rugby in Queensland. It is unknown what level of disruption the situation will cause to next year’s competitions.
“We will know a lot more when we sit down with the administrators next week, no doubt a lot of rugby clubs at this time of the year are looking to get their orders in for 2017,’’ a QRU spokesman said.
Originally published as Grassroots sports set to be hit hardest by financial crisis facing apparel giant BLK
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