DRAGONS captain Mark Gasnier lost more than $100,000 in a controversial property investment gone sour - the massive financial hit coming at a critical time when he was assessing his future in the NRL.
The Herald can reveal the Kangaroos and NSW centre was furious to have ended up in the property investment at a Hillsdale apartment block - set-up by his manager, George Mimis - which is threatening to ensnare a handful of his St George Illawarra teammates and other leading players.
Gasnier, 27, bought a two-bedroom, 14th-floor luxury apartment off the plan for $573,000 in 2003. He took a loan for the property, which was settled in September 2005, for nearly the entire amount to maximise his negative gearing options.
Almost straight away, Gasnier and the other players realised the value of the investment had dropped sharply in the post-2004 Sydney property slump, but could not get out of honouring the purchase without losing their deposits of more than $50,000.
Midway through last year, Gasnier decided to cut his losses and sold out for $505,000 - a $68,000 loss on the selling price and a total loss of about $100,000, with stamp duty and other transfer costs included.
Asked if this was one of the reasons Gasnier and some of his other clients were leaving the NRL, Mimis replied yesterday: "No. Not at all."
Gasnier and the other players were encouraged to invest in the unit block when they were offered $15,000 off each of their units from the developer.
Mimis was also offered a personal discount of $15,000 for each sale to a footballer, an incentive which the players say wasn't divulged to them at the time.
Documents seen by the Herald showed the developer offered Mimis his unit for $620,000 rather than the $770,000 asking price. Mimis did not settle on the unit after triggering a put-and-call option on the deal. The developers sold the same unit later for $750,000.
The Herald can also reveal Gasnier's Dragons teammate Jason Ryles - who will also depart this year to play with Les Catalans in the UK Super League - took a bigger hit, selling his $563,000 unit for $490,000 in July last year. Ryles had his apartment on the market for more than a year and initially tried to sell it for $559,000. Former Kangaroos centre Matt Gidley, who was forced out of the NRL at the end of 2005 and signed a lucrative deal with St Helens in England, had bought and sold for the same price as Ryles after attempting to sell if for $545,000. Both men have lost more than $100,000 each on the deals.
Sharks captain Brett Kimmorley has his unit - bought for $553,000 - up for sale for $510,000 through Cramer Property agent Seham Assad. The sales pitch says the 12th-floor Bunnerong Road investment unit has "two bedrooms, plus combined lounge and dining areas, with views to the airport".
Kangaroos and Broncos captain Darren Lockyer, Newcastle representative back-rower Steve Simpson and Tigers halfback John Morris also have unsold units in the apartment block - all of them underpinned by hefty mortgages.
Mimis's influence at the Dragons has been questioned because he represents outgoing coach Nathan Brown and has a close relationship with chief executive Peter Doust. He acts for many of the club's players.
The relationship between Kimmorley and Mimis hit rock-bottom last year when he lost $100,000-a-season after knocking back the Sharks' initial offer of $700,000 for two years.
Mimis earlier this season was forced to renegotiate for Kimmorley a new two-year deal with the Bulldogs after he was pushed out of the Sharks. Morris dumped Mimis as his agent last year, as did former Sharks centre Phil Bailey, who is the only player to make a profit on the units.
He reluctantly paid $573,000 for his property but immediately put it on the market and sold for $595,000, just covering the purchase price and stamp duty. He dumped Mimis following the deal.
