The giant Wests Illawarra club has thrown a lifeline to its struggling northern counterpart Corrimal Leagues, offering to take the smaller club under its wing and help it trade out of trouble.
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Corrimal Leagues Club has been under administration and struggling to keep its head above water.
In an effort to avoid liquidation, other clubs were asked to consider amalgamating with Corrimal.
Wests Illawarra chief executive Luke Walker said his club was interested in taking over Corrimal Leagues' remaining debts and assets, which include 50 poker machine entitlements.
Without a suitable offer, the club would be forced to close, owing creditors - many of whom are local businesses - more than $1 million.
"We don't want to see this proud rugby league club suffer the same fate as many before it, so we have lodged a proposal with the liquidators," Mr Walker said.
"A key component of our offer is to keep the club open for the remaining lease period, and see if we can help it trade profitably.
"As a rugby league club ourselves, we also want to help support the Corrimal Cougars, and hence, help maintain the strength of the Illawarra Coal rugby league competition."
A meeting of creditors is expected to be held next week to consider the plan, which has the support of Corrimal Leagues Club president Paul Balfour.
"If what they're proposing comes to fruition it's probably the best outcome for the leagues club," Mr Balfour said yesterday.
"It's got to be the best outcome for the whole community."
Mr Balfour said support from the community was needed over the next few months.
"We've been making money but obviously not enough to satisfy the administrators or the creditors," he said.
After the administrators were appointed four years ago, and with $5 million in debt, the club site was sold to Sutherland-based developer Sam Hanna, who leased it back to the club.
In 2011, Mr Hanna had plans approved for a 66-unit residential development on the site, but these plans were described as "insurance" in case the club went under.
Mr Walker said an extension of the club's lease would be sought, and if the club was returned to profitability, Wests Illawarra would also investigate a new site in the Corrimal area - perhaps building a new club.
"We hope that together with the Corrimal members we are given the chance to make this work," Mr Walker said.
"We would hate for a club to march in, strip the club of its assets, and close it down. That would not be a good outcome for the Corrimal community.
"Our aim is to put Corrimal Leagues Club back in the hands of its members and to try and keep this community asset running."
