The Peel Thunder WAFL club could become the first Australian victim of the global financial crisis after asking the Western Australian Football Commission (WAFC) for a significant assistance package on Friday.
The club, based at Mandurah an hours' drive south of Perth, has reported to the WAFC it has a projected revenue shortfall of around $300,000 for the 2007-08 financial year.
And, although neither the club nor the WAFC mentioned the recent dramatic financial situation in statements released on Friday, it is believed Friday's $90 billion dollar Australian stockmarket downturn has badly affected club investments and forecasted income targets.
Club president Mike Wilson and chief executive Cadell Buss have both resigned as a result of the shortfall, with interim President John Ditchburn advising the WAFC of the club's situation on Friday afternoon.
"This is obviously a very significant issue for the Peel Thunder Football Club however we are very confident that it will not impact on the club's long term position within the West Australian Football League," Ditchburn said.
"I would very much like to assure our players, supporters and sponsors that we intend to be around and a force to be reckoned with in the near future."
While Peel's WAFL licence required it to keep the WAFC informed of its ongoing financial position, previous papers had not identified any substantial impending budget variations, suggesting the downturn rapidly affected the club's finances.
WAFC chief executive Wayne Bradshaw said Peel's situation was an extremely serious issue for the league's governing body.
"The WAFC is extremely concerned at this development and will be taking immediate action to ensure the ongoing viability of the Peel Thunder Football Club," Bradshaw said.
"Included in the WAFC's immediate support will be the provision of a $300,000 loan to Peel Thunder to ensure it has the ability to continue operations and address any immediate issues of cash flow."