Gold Coast Blaze restructure to firm up future

The Gold Coast Blaze are confident that they will remain part of the National Basketball League, saying their move into voluntary administration this week is the best way to ensure the long-term future of the club.

Gold Coast Blaze Pty Ltd appointed W. Roland Robson of Aggs Robson Chartered Accountants as voluntary administrator on Wednesday to control the affairs of the Club. This appointment will allow the current owners the opportunity to finalise negotiations with a new equity partner and to engage in a process of promoting its restructuring plans.

They are the latest Gold Coast sporting side to expereince financial troubles after the demise of A-League side Gold Coast United and the financial troubles plaguing the NRL's Titans.

Blaze owner Owen Tomlinson said in a statement the failure to secure an extension from former coach Brendan Joyce on a statutory demand for more than $350,000 in unpaid wages prevented the club from finalising negotiations with an investor.

Brisbane's Supreme Court awarded Joyce $310,316.48 in December after he was axed two years into a four-year coaching deal and Joyce's lawyers were threatening wind-up action against the club if they failed to pay.

In a statement released on Thursdayy, Tomlinson said Joyce's refusal to delay enforcement proceedings had forced the club's hand.

The statement read "we are in discussions with an investor who wants to proceed however our former coach (Joyce), who has obtained a Supreme Court judgment against the company, had refused to delay enforcement proceedings before the required deadline, to enable us to finalise negotiations with this investor."

Under voluntary administration, Joyce would be a priority creditor as a former employee.

Secured creditors would be next in line with unsecured creditors getting the remainder.

Basketball Australia interim Chief Executive Scott Derwin explained that the National Basketball League "understands that the Blaze took this difficult decision in order to act in a responsible, legal and ethical manner to try and find an appropriate way past their present financial difficulties.

"Basketball Australia's priority is to find an appropriate solution quickly to the club's current situation that allows the Blaze to continue to play in the NBL and we will explore all reasonable options in our power to assist them in this process.

"The NBL is now seeking to meet with the Administrator as a matter of urgency in order to gather more information so we can formulate an appropriate position on the matter. Once we have reached this position we will communicate it publicly in due course."