Creditors have voted to liquidate the remaining assets of the Illawarra Hawks after the team was placed into administration for the second time in five years. Administrator Michael Jones reported that the Hawks could not meet outstanding debts exceeding $2 million and recommended the company be wound up. Staff and players stood down since April are owed approximately $750,000.
The National Basketball League (NBL) currently holds the franchise license after taking it back from former owner Simon Stratford and has committed to paying outstanding player salaries. However, there has been no word on whether the league will honor contracts of other staff, including coach Matt Flinn, who was one year into a three-year deal.
The Hawks ended the 2019/20 season with a record of 5 wins and 23 losses, the worst in franchise history. Despite a historic crowd of 17,514 for a game against the Sydney Kings, boosted by the signing of 18-year-old LaMelo Ball, injuries limited Ball to just 12 appearances, providing only a marginal financial boost. The franchise recorded a net loss of almost $100,000 despite increasing gross profit by nearly half a million dollars, and has failed to turn a profit in the past four years, suffering a $1.7 million loss over the previous two financial years.
Former captain Oscar Forman noted the challenges regional teams face competing with capital city franchises financially. The NBL is in talks with several parties interested in taking over the Hawks' license, including a bid reportedly led by Ball. Flinn expressed hope for a quick solution to keep the team in the Illawarra.
