AS NEWS goes, it's up there with the Hawks' bombshell of coming precariously close to not footing it in the National Basketball League four years ago.

The bombshell -- HBS Bank Hawks coach Paul Henare will mentor the Southland Sharks in the NBL next year after just two seasons in Hawke's Bay.

"There'll probably be a lot of eyebrows raised at my decision," the former Tall Black said yesterday after handing in his resignation to the Rodney Earnshaw-owned Bay Hawks Ltd franchise on Monday.

Henare, who led the New Zealand Breakers to their maiden Australian National Basketball League (ANBL) title in 2010-11 before retiring from playing, signed with the southern franchise on Monday, replacing long-time coach Richard Dickel.

"I was keen to sign with the Hawks but other opportunities came up so it was the best decision for me," the former Hawks captain said after assuming the mantle of coach here fulltime last year amid much hoopla about luring back Bay-born players to instil some pride and offer the fans a sense of identity.

However, the 33-year-old emphasised he was leaving amicably, mindful the Bay franchise was in good health and not in debt for the past two years.

"I leave on good terms and the franchise is in a great financial situation.

"The owners are moving on and leaving the club in a good place and structure," he said, indebted to Earnshaw for giving him the opportunity to kick-start his coaching career.

BP petrol station franchise owner Earnshaw, who also owns Napier Basketball Association, is scheduled to step down on Tuesday with new NBL franchise, Hawke's Bay Basketball Development Foundation, taking over.

However, Basketball Hawke's Bay general manager Paul Trass, who has the short-term responsibility of setting up the structure and staff of the new franchise, said Henare's decision was disappointing.

"I could swear right now but I won't. It's disappointing that Paulie decided he didn't want to continue here.

"He certainly had every indication that there would be no impediment to extending his contract or keeping the similar terms and conditions.

"It's really disappointing because his job, as far as I'm aware, was created as the first fulltime coach in the NBL by Rod."

Other NBL franchises tend to appoint coaches with joint roles such as helping run the amateur organisation in their regions.

Trass felt he was in a twilight zone phase of the ownership, frustrated he couldn't say anything until everything transpired with "due diligence to go through with the existing governance".

Henare said he wasn't privy to some of the talks between the outgoing franchise and the incoming one so therefore he wasn't keen to comment on that side of the issue, preferring to leave such matters for Earnshaw to clarify.

What made Henare uncomfortable was finding himself in limbo - he was going to be out of his two-year contract when the NBL tips off next year.

"Obviously I was looking for a job and talking to the Hawks. My contract was expiring on April 2013 so it didn't make sense.

"I wasn't going to be coaching. I was going to have a new contract or look for a job post-April," he said, not comfortable about where he stood in the change.

"Waiting didn't fit in well with me so I looked down south and they gave me a job and we're ready to start a new adventure."

Primarily the former Napier Boys' High School pupil said the proposed changing of the ownership had nothing to do with his decision to switch allegiances.

"I was very confident with serving in my hometown but a part of me wanted to get out of that comfort zone to improve my career."

Henare is still a Hawks employee and has a few things to tidy up after the four-week notice to resign.

He will carry on with the non-profit 2012 Paul Henare & Paora Winitana Basketball Academy which the Hawks pair established in February.

"We plan to stay here in the first year at least," he said as co-director with 2012 Hawks captain Winitana.

Henare, who has a two-year contract with the Sharks, said he wanted the academy to say here.

In late 2008 the then Hawks franchise, Jump Start, hit the financial doldrums amid speculation they would not field a team in the NBL.

Basketball stalwart and hotelier Jeremy Bayliss came to the rescue with the help of Earnshaw, Earnshaw's junior business partner Mark Smith, and Ngati Kahugnunu to support Henare, Winitana and Everard Bartlett as Bay-born players.

Former Hawks coach and Hastings Boys' High School relief teacher Curtis Wooten had assumed the mantle of general manager to ensure a team was entered into the 2009 campaign.

In 2006 the Hawks won their maiden and only NBL title under Australian coach Shawn Dennis, who is now assistant coach with Perth Wildcats.

However, despite assurances from Bayliss, Henare and ex-Tall Black point guard Winitana were staying after the 2008 crisis, the Hawks pair migrated to the then newly formed Christchurch Cougars replacing the old franchise Canterbury Rams.

Henare returned to the Hawks in 2010 and Winitana returned last year after the Cougars shut shop following the February earthquake.

The departure of Henare and Winitana had caused consternation among the Hawks faithful who questioned their allegiance to the province while chasing the dollar.

Trass said the new Hawks franchise, which would be based at the Basketball HB HQ in Onekawa, would be autonomous with the amateur side of the code in the province.

However, the goal is to field a women's team in the national WNBL within 2-3 years to ensure talent such as Josie Stockill who has plied her trade for a New Plymouth franchise for the past three years before heading off to the United States last week on a scholarship at Colgate University in New York.

Trass said talks were already under way for a Bay second division men's team to play in curtain raiser matches before the Hawks' games in the NBL next season.

Fears have emerged of an exodus of players following Henare south, especially budding forward Morgan Nantanahira who followed him from the Breakers academy.

However, Trass said Henare's contract carried a "non-soliciting" clause preventing him from actively recruiting Hawks although he wasn't certain over what time frame.

Not wanting to "knock" previous Bay franchises and lauding Earnshaw for his stellar effort, Trass said the new governance would ensure full-time people were investing time in the semi-professional code.

Earnshaw, he felt, always had a string of petrol stations to take care of while running the basketball franchise.

Basketball HB regional development manager and ex-Hawk forward Ben Valentine, who Henare didn't want this year, has resigned to move to Palmerston North. "Ben's wife has a got a major job over there," Trass said, commending Valentine for doing a tremendous job of nurturing youngsters.

Several Hawks players have indicated an interest in the regional development manager's job.

The Hawks coaching job will be advertised, as soon as the new franchise takes over on Tuesday at the Basketball HB HQ, to allow for the incoming coach to start recruiting players.