The Wollongong Hawks are on their death bed.
Hawks chairman Richard Clifford claimed the financial requirements of the "NewNBL" would almost certainly cripple the club and force it to fold after 30 years.
The existing National Basketball League released the criteria for the revamped league yesterday and expect to have an eight-team league. The 2009-10 competition will start in October and run for 18 weeks.
It is believed all clubs will be obligated to provide a $1 million bank guarantee up front, in addition to $500,000 in capital and other annual costs.
"Things don't look good because we can't go near either one of those figures at the moment," Clifford said.
"I'm very concerned about the future of the Hawks. We need substantial new funding and new equity, the league is demanding and requiring that."
"We're not just talking about an extra $1.5 million. You're looking at another $125,000 per annum in administration costs, so we're talking a lot of money which is far different to the existing NBL.
"We need someone with deeper pockets who can make a substantial commitment of money."
The Hawks are the NBL's last remaining original club after Brisbane folded at the end of last season. The Sydney Kings and Singapore Slingers also bit the dust in 2008, while the Sydney Spirit and Cairns Taipans were placed in the hands of administrators this season.
Wollongong - known as the Illawarra Hawks until 1998 - have always been one of the league's poorer clubs. They almost collapsed a year ago before the community rallied to save them from extinction. But it appears the three-year rescue plan the club devised last year will merely be a 12-month stay of execution.
"We're already operating at a loss, and unless we increase sponsorship dramatically and get a substantial injection, I'm not overly optimistic," Clifford said.
Basketball Australia chief executive Scott Derwin said the new league would provide an opportunity for successful applicants to "play a leading role in the return of basketball as a premier sport in Australia".
"All current NBL clubs will be given the opportunity to obtain a licence to field a team in the new league providing they meet all criteria for admission," Derwin said. "The new criteria sets out specific minimum compliance in terms of working capital and financial guarantees which have been set to a commercially viable level to ensure a stable and sustainable league, now and into the future."
The NBL's 10 existing clubs will be given the chance to enter submissions, while new clubs applying for a licence will incur a fee of $1 million.
Clubs have until February 27 to lodge their submissions, with BA planning to settle on the successful franchises by late March.
The Hawks will delay making their submission.
Clifford said the club wouldn't be throwing in the towel without a fight.
"We need to consider it as a board then discuss it with our shareholders to see if anyone has any great ideas to increase funding and determine a way forward," Clifford said.
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