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Basketball Australia has confirmed that the ownership of the Gold Coast Blaze has taken the decision to withdraw from the National Basketball League (NBL).
After going into voluntary administration earlier this year, the club's owners were given until last Friday 2012 to demonstrate they could meet all necessary licensing requirements – including financial terms that are understood to have included a $1 million guarantee.
The club's owners proposed a community partnership model involving significant and necessary cost savings – which the Basketball Australia (BA) Board strongly welcomed and supported in principle, pending confirmation of funding streams by the extended deadline of 31st July 2012.
However, as of Tuesday night, the club's owners advised Basketball Australia that they had decided to withdraw from the NBL.
BA acting Chief Executive Scott Derwin explained "to be frank, this is hugely disappointing – it's unfortunate for the club's players and fans that the owners have made the decision to withdraw from the NBL.
"Basketball Australia has been consistent in every step of this process as to what the requirements are for the Blaze to play in the 2012/13 NBL season – and we've done that to maintain the integrity of the league.
"The BA Board appreciates that the club's owners have put in enormous effort to keep the Blaze alive under difficult circumstances, and we were extremely supportive of the community partnership model they proposed.
"But we make no apologies for insisting on tangible and detailed confirmation of funding streams or for holding the Blaze accountable to the same financial scrutiny applied to all of our NBL clubs.
"The Blaze had advised they had a $500,000 capital investment from a mystery supporter – but were unable to provide any further detail on the funding source or stream. There were also projected revenue lines from sponsors and other sources of over $1 million that could not be verified at this time and for which we requested further evidence by 31 July.
"Ultimately, a mystery funding source won't cut it. Given the club's recent financial uncertainty, it is not unreasonable to expect solid and detailed financial modelling.
"Despite reports to the contrary, BA and the NBL have been in continual contact with the club's players, coach and staff to ensure their welfare.
"Naturally, we all would have preferred to see the Blaze in the NBL, but the reality is the club could only move forward with a viable and sustainable business model."
Blaze co-owner Owen Tomlinsons told the Gold Coast Bulletin "we thought we were ready to enter the season, we thought we had the finances and we thought we were going to get the green light.
"Sadly, there are just too many hurdles that we are being made to jump. And we can't do it anymore.
"We desperately want a team on the Gold Coast. We love the Blaze and we loved what it brought to the community. I don't understand why they are enforcing the bank guarantee, but it's too much for us."
The club becomes the second Gold Coast national sporting team to fold this year after A-League side Gold Coast United, owner by billionaire Clive Palmer, was stripped of its licence by Football Federation Australia. The Gold Coast Titans' NRL team has also been the subject of speculaton over its finances.
The decision means the NBL will go ahead with just eight teams in the 2012-13 season.

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