Football News : Newcastle owner pulls plug on A-League club

The owners of Newcastle Jets have returned their A-League
licence to Football Federation Australia, leaving the club without a backer for
the 2012/13 season.

Billionaire Nathan Tinkler's company,
Hunter Sports Group, who had invested almost Aus$ 12 million in the club since stepping in to save it 18 months ago,
announced the news at a press conference on Monday.

The company said they had lost confidence in FFA and were unable to resolve a
variety of issues with the governing body.

Among those are the Aus$ 5 million acquisition fee for the club, the saga over
the non-insurance of Jason Culina and combined club losses of Aus$ 27 million for
the 2012 financial year, with forecasts of a similar performance next year.

Hunter Sports Group chief executive Troy Palmer said the decision had been
forced upon the organisation.

"As a keen Jets and football fan this has been a tough decision and I am aware
the impact this will have on members, players, coaches, fans and the entire
football community,'' Palmer said.

"I am particularly saddened for members and supporters who have embraced our
community model, which has been accepted in so many areas as a successful and
unique way to engage the entire community and build the A-League brand.

"It is also frustrating to have invested so much time, energy and money to
save the Jets for the community at short notice and then continually hit road
blocks at the FFA.

"It should never be forgotten that when we stepped in to save the club it was
insolvent, there were only 500 members, diminishing crowds, minimal community
engagement, no merchandise programme and negligible corporate support.

"During the 2011/12 season we believe we turned this around to be seen as
leaders in all these areas.

"Unfortunately, having lost confidence in the FFA management and its ability
to find a resolution, it is clear we have no other option.''

FFA chief executive Ben Buckley claimed the Jets have no right to return their
A-League licence.

Buckley said there were no grounds for the move as Hunter Sports Group (HSG)
are tied into a club participation agreement until June 30, 2020.

"FFA has held countless hours of discussions with HSG on a wide range of
issues affecting the club and the A-League,'' he said.

"The Jets know very well that the Jason Culina matter is subject to
arbitration before an independent panel of arbitrators in accordance with the
grievance procedure and that a hearing is scheduled.

"The issues surrounding the operating model of the league and its clubs were
addressed just a fortnight ago when all clubs were shown a road map towards
sustainability.

"In addition, the clubs will have a greater say through the Joint A-League
Strategic Committee, which has equal FFA and club representation.

"The FFA chairman Frank Lowy and I have made numerous offers to meet in person
with Nathan Tinkler. Just two weeks ago a scheduled meeting was cancelled by HSG
at short notice.

"However, none of this provides a justification for today's announcement by
HSG or provides any grounds for the Newcastle Jets to relinquish their
licence.''