Townsville Crocodiles surrender NBL licence

The owners of NBL's Townsville Crocodiles are to surrender the club's licence after crippling financial losses.

The club's future in the NBL remains uncertain with their backers, Barrier Reef Basketball, pulling giving up the licence after losing almost $3 million in the past six years as once league leading crowds declined.

Barrier Reef Basketball Chairman George Colbran told AAP that he feared for the Crocodiles' future unless a new backers emerge to pick up the licence for the 2013/14 NBL season.

In a statement, Colbran explained "this decision is a result of the company suffering sustained losses from participating in the competition over the past six years totalling in excess of $2.5 million.

"At last year's AGM, the board gave a commitment to the shareholders that the company could not sustain another year of significant losses and warned at that time of this potential decision.

"Sadly, this year's financial result has determined this decision.

"It is indeed a sad day for Townsville, and for the passionate and loyal Crocs supporters, players, employees, volunteers, sponsors and partners notwithstanding the directors and shareholders who've financially supported the club over the past 20 years and more significantly over the past six years as it struggled financially to keep a team in the competition."

Basketball Australia confirmed Barrier Reef Basketball Pty Ltd - trading as the Townsville McDonald's Crocodiles - had surrendered its licence to the NBL on Monday (8th April).

Its only comment was that the board and management of BA would hold talks with all NBL clubs to consider the implications and look at its position in the coming days.

Townsville was the envy of NBL clubs several years ago, selling out a record 61 games straight at its home stadium 'The Swamp' - the 5,257 capacity Townsville Entertainment and Convention Centre.

If the club fails it will be the third Queensland both NRL foundation club to leave the league, following the Brisbane Bullets in 2008 and the Gold Coast in 2012, and leaving only Cairns Taipans to fly the Queensland flag.