AusLeisure

Football Federation Australia (FFA) has terminated the Newcastle Jets' A-League licence after owner Nathan Tinkler placed the club in voluntary administration.

The club owes players and staff hundreds of thousands of dollars in unpaid wages and Tinkler had been given until 4pm on Wednesday (20th May) to settle the debts.

FFA said the team would continue in the short term under a new entity that it would control.

Earlier, Tinkler told News Corporation that Scottish club Dundee United was prepared to buy the Jets for just under $5 million, but the Scottish club later advised that its chairman was pursuing a "personal venture" and the club was not involved in the talks.

Tinkler said a sale was imminent if the FFA did not seize the club's licence and block the sale.

Tinkler told Sydney newspaper The Daily Telegraph "I've been in negotiations with the FFA over the last few days and wasn't able to get them to guarantee the licence and I haven't been willing to pay wages unless they guaranteed that so I've put the club into administration just now."

In a statement issued shortly afterwards, the FFA announced the "immediate termination" of the licence.

It said a new licence would be issued to a new entity owned by the FFA, a Newcastle-based club would remain in the league and Jets players would be offered contracts with the new entity.

FFA Chief Executive David Gallop said Tinkler's Hunter Sports Group (HSG) had "behaved in a deplorable way towards the players and staff of the club in failing to meet basic obligations to pay wages.

"Anyone who takes control of a sporting club has an obligation to respect the people and the traditions of that club

"HSG has failed miserably to in this regard.

"(The FFA's) action to terminate the licence is the first step to restoring the proud traditions of football in northern NSW."

The troubled license apparently owes $500,000, with ultimatum being the second given to the Jets this year.

In a statement, Dundee United said suggestions it was involved in talks with the Jets were incorrect.

The statement explained "this is a personal venture for the chairman as part of a consortium.

"Any involvement of (Stephen) Thompson in this or any other venture is entirely his prerogative."

Jets supporters group President Grant Furner said many supporters were feeling disenfranchised.

Furner told the ABC "they're sort of at the end of their rope, really," he said.

Tinkler has had difficulty meeting his financial obligations since the end of the mining boom brought about a decline in his personal wealth.

His decision to place the Jets into voluntary administration came a day after he settled an unrelated lawsuit with another creditor, agreeing to pay $2.7 million to GE Commercial Australasia.

Last year he claimed he would “walk away” from Australian sport after the once ambitious HSG lost their licence for the Newcastle Knights NRL club.

7th February 2015 - NATHAN TINKLER PAYS NEWCASTLE JETS’ DEBTS, NAMES NEW CHIEF EXECUTIVE

23rd August 2014 - NATHAN TINKLER TO QUIT AUSTRALIAN SPORT AS INTENTION TO SELL NEWCASTLE JETS CONFIRMED

23rd May 2014 - NATHAN TINKLER GIVES UP ON NEWCASTLE KNIGHTS, SAYS HE SAVED CLUB FROM LIQUIDATION

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