THE Seven Network-owned Telstra Dome rescued the Kangaroos from near-insolvency with an interest-free $1.5 million loan in 2002 as part of an arrangement that had the club transfer its social club facility and administration to the stadium.
And The Age understands that the loan, which came close to saving the club from being swamped by debt, has now been written off by Telstra Dome's new owners.
It is believed that Kangaroos chairman Graham Duff and stadium chief executive Ian Collins have agreed in principle to erase the debt, which has been on the North Melbourne Social Club's balance sheet for more than five years.
In a financial fillip for the club, Duff negotiated the settlement with Collins as part of the Kangaroos move from the Docklands precinct to attempt to find a new home for its social club closer to the soon-to-be-redeveloped Arden Street.
The club's administration will also move out of Telstra Dome and back to Arden Street by the start of 2009, although the club's long-term future remains in the balance with private consultants soon to complete a feasibility study that will decide whether the club relocates to the Gold Coast by 2010.
Duff, who addressed his second membership forum this season three days ago at Telstra Dome, suggested that the club had had a liability worth a minimum $1.5 million removed from its social club balance sheet but would not elaborate on the issue when contacted by The Age. Collins also refused to comment last night.
However, it is believed that Duff and previous chairman Allan Aylett have been attempting to negotiate their way out of the loan for some time. The $1.5 million was forwarded to the Kangaroos by Melbourne Stadiums Limited, a subsidiary of the Seven Network that ran Telstra Dome in early 2002, as part of a deal put together by former club chief executive officer Michael Easy and Collins. It took place without the initial knowledge of the AFL, which now contributes $1.4 million annually to the club.
Duff also assured several hundred supporters at the forum that they would be kept abreast of the club's plans, including whether it would relocate to Queensland. The AFL has told the club it intends to establish a second team in southern Queensland by 2010.
Football director Ron Joseph told the forum he had been a "doubting Thomas" regarding coach Dean Laidley but was now convinced by his ability as a coach. But Duff and Joseph stressed that they would not bow to pressure from the media or other clubs to re-sign Laidley before the end of the season.
