FFA strips Tinkler of Newcastle Jets licence

Football Federation Australia will assume control of the embattled Newcastle Jets after it terminated Nathan Tinkler's A-League licence for failing to pay players and staff and the 'failure to meet standard operational requirements'.

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After it emerged that Tinkler had placed the Jets into voluntary administration with debts of $2.7 million - FFA released a statement that declared the 'immediate termination of the Hyundai A-League licence held by Newcastle Jets Football Operations Pty Ltd, a subsidiary of the Hunter Sports Group (HSG).'

While cash-strapped Tinkler declared that the sale of the club to Scottish Premier League club Dundee United for $5 million is imminent, FFA acted swiftly to put an end to uncertainty.

"A new licence will be issued to a new entity owned and controlled by FFA. A club from Newcastle will remain a member of the Hyundai A-League and current players of the Newcastle Jets will be offered contracts with the new entity," the FFA statement read.

"The termination is based on material breaches of the A-League licence held by Newcastle Jets Football Operations Pty Ltd, in relation to non-payment of players and staff, and an ongoing failure to meet standard operational requirements.

"FFA notes that HSG placed the Newcastle Jets into voluntary administration today, which in itself is an act of insolvency and a breach of the A-League licence conditions."

FFA CEO David Gallop said HSG had been given every opportunity to continue as the owner and operator of the licence, but it was unable to meet the conditions required to do so.

"FFA has taken this action to protect the interests of the football community in Newcastle and the Hunter Valley, and to safeguard the image and reputation of the A-League and its member clubs," Gallop said.

"Newcastle needs a club operating in a stable environment with certainty of resources in order to be successful and competitive in the A-League and to properly represent the community. HSG has proved to be incapable of meeting these requirements.

"HSG has behaved in a deplorable way towards the players and staff of the club in failing to meet basic obligations to pay wages. Anyone who takes control of a sporting club has an obligation to respect the people and the traditions of that club.

"HSG has failed miserably to in this regard. Today’s action to terminate the licence is the first step to restoring the proud traditions of football in Northern NSW."

While contracted Jets players will be offered new deals to remain part of the Newcastle club, it remains to be seen what the future of coach Phil Stubbins and other backroom staff will be.

Gallop said FFA will continue talks with several parties interested in the future ownership structure of the A-League club in Newcastle.