Netball: Concern over Pulse's spending

Recruit Joline Henry will be part of the Pulse's strongest team yet for 2012. Photo / Brett Phibbs

Fresh questions have arisen over the Central Pulse's financial practices following allegations that the franchise has overspent on next year's roster despite posting six-figure losses for the first four seasons of the transtasman league.

The Pulse have recruited their strongest team yet for 2012, with Joline Henry and Paula Griffin joining fellow Silver Ferns Katrina Grant and Camilla Lees in Wellington, with highly rated defender Te Huinga Reo Selby-Rickit. Australian shooter Caitlin Thwaites also returns next season as an import.

But they have failed to attract any new sponsorship to pay for these acquisitions, with outgoing chief executive Chris McNay apparently leaving that job for the next boss to deal with.

While most are pleased to see the Pulse have been able to assemble a competitive team, the manner in which they have done so has raised eyebrows.

Several franchise heads are curious as to how a team that is consistently on the verge of insolvency can commit so much money on their roster with no guaranteed revenue streams.

Over the first couple of seasons there was sympathy for the Pulse's struggles. The step-up to a new professional environment was a difficult adjustment to make and a bit of bleeding was to be expected.

But patience is wearing thin, particularly in light of the Pulse's recent attitude to spending. Some say the time has come for the board to be removed and an independent director appointed to run the franchise.

Rival New Zealand franchises are disgusted by the attitude of McNay, who admitted at a recent conference in Melbourne that the Pulse knowingly committed money they have not got on next year's roster.

While there is no suggestion that they are operating outside of the $300,000 salary cap, it is believed they have committed to spending money they cannot afford on accommodation and vehicles for players, as well as performance bonuses.

"It is one thing to go into deficit because of unforseen circumstances or your ticket sales are down on what you forecast, but to knowingly put yourself in deficit is quite another," said Southern Steel chief executive Julie Paterson. "There has been no discussion around how they plan to support that deficit and I just can't understand how that has been allowed to happen."

Pulse chairman Nigel Kirkpatrick is overseas and could not be reached this week, while phone calls to McNay went unreturned. But it is believed the Pulse have taken a gamble that if they sign a couple of big names, the sponsors will come.

ANZ Championship boss Anthony Everard admits he has some reservations over this approach. "I'd be very concerned given the outstanding amounts owing [to Netball New Zealand], if significant commitments have been put in place in the hope that would translate into revenues, because I wouldn't have thought that is a good way to run your business."

Northern Mystics chief executive Mark Cameron is baffled by this strategy. "If you expect that just because you've signed up a good team that sponsors will come knocking on your door, you're dreaming. That doesn't happen in this economy," he said.

But in their gambling, the Pulse have a backer. If they can't find the cash, Netball New Zealand will bail them out - again.

This is a source of frustration for other Kiwi franchises who are disappointed that the national body continues to foot the bill for the Pulse's free-spending ways.

It is believed Netball NZ have bailed the Pulse out to the tune of $400,000 in 2008/09, $300,000 in 2009/10 and $150,000 in the latest financial year. And with the Pulse on track to post another deficit next season, Netball NZ are understood to be concerned about the situation.

Netball NZ chief executive Raelene Castle appears reluctant to publicly criticise the Pulse, particularly given the national body have to work closely with the board to right the ship. She understands the frustration of the other franchises, but points out that Netball NZ's help comes at the cost of the Pulse's independence.

"What I will say to that is that it is not free. It means there will be a lot of Netball New Zealand engagement and we ask 100 times more questions of the Pulse than we do any other franchise," said Castle.

"No CEO would choose to have us peering over their shoulder."

But Cameron and Paterson think Netball NZ need to be doing more than just peering over the shoulder of the Pulse. They believe unless changes are made at board level the downward spiral will continue.