Medievalknight
Bench
- Messages
- 2,862
Deal or no deal: Knights takeover getting bogged down in the detail
BY ROBERT DILLON
25 Jun, 2011 04:00 AM
NATHAN Tinkler may need to ask the Newcastle Knights for more time to complete his takeover a prospect outgoing club chairman Rob Tew has indicated would be unacceptable.
Tinklers Hunter Sports Group had been expected to formally assume ownership of the Knights by Thursday, but HSG chief executive Troy Palmer revealed last night that logistical problems might torpedo the agreed June 30 handover date.
Knights members voted overwhelmingly in favour of a Tinkler buy-out on March 31.
It was anticipated the privatisation process would take three to five weeks. Almost three months later, the club is still in a transition phase and the Knights are waiting for Tinklers camp to get their affairs in order.
Speaking to the Newcastle Herald on Thursday night, Tew suggested the Knights board had already shown HSG enough largesse, having extended the original handover deadline of May 31 by a month.
He said the Knights had completed their obligations and there are no inhibitors from our end.
He said the onus was on HSG to uphold their end of the bargain.
What you can say is the Newcastle Knights have fulfilled all their responsibilities, Tew said.
Were now waiting for [HSG] to confirm the paperwork is completed from their end, and that the bank guarantee is in place in the form that we all agreed and that the cash is ready for completion.
Its time for them to finish their end of the deal.
Weve done all we can.
Tew said a further deadline extension would be unlikely.
This has taken a lot longer than I thought, Tew said.
I thought it would have been done long before now.
The previous deadline was May 31 and now were coming up to the end of June ... I dont think the board would be in a position or should extend it beyond June 30 given that weve already made a board decision to extend it from May 31.
But I dont anticipate that [HSG] would have any problems completing it on June 30.
Last night, however, Palmer admitted there was no guarantee HSG would be ready to meet their obligations by that date.
Were trying to get there, but theres still some work to be done, Palmer said. Were still working to get to that date, or as close as possible.
It was a date we all wanted to get to, in regards to being a nice, clean date as the end of the financial year.
But at the end of the day, we are relying on other people, like the NRL and sponsors ... some things are in our control, some are outside our control.
Palmer said he believed June 30 was not a deadline but a guideline.
There was never any hard and fast date ... the date is a little bit fluid, he said.
Were definitely working towards the end of June, but if its early July, theres not a problem at all.
Palmer insisted this deal will be done, theres not an issue in the world, but Tew was not so adamant.
This deals not completed yet, at all, Tew said.
Palmer was hopeful Newcastles directors would be understanding if the paperwork was not finalised by Thursday.
I dont think it will cause a big issue, but I cant speak on behalf of the Knights board, he said.
I suppose they have an element of risk and responsibility, as directors, so theyre obviously pushing to get it done as soon as possible.
And from my point of view I want to get it done as soon as possible, too.
But there are a lot of boxes to be ticked.
The Knights are still waiting for HSG to honour a number of fundamental commitments, including paying out the clubs debts, estimated to be worth $3.5million, and delivering a $20million bank guarantee.
Tew said HSG had thus far provided only a minimal cash injection, despite a spending spree that has secured master coach Wayne Bennett and star players Darius Boyd, Kade Snowden and Timana Tahu for next season.
Asked how the Knights had continued to trade and pay the wages of employees, Tew replied: The cash flow of the club, and there has been some modest assistance [from HSG], to date. They certainly havent put any sums in the millions in.
Palmer said HSG was contractually obliged to meet all financial commitments on the day the club changed hands.
You dont write the cheque until the day that completion occurs, he said.
Thats what the assets and sale agreement states.
But the day that occurs, well write a cheque in the vicinity of about $4.5million.
And weve already contributed some money in advance, on top of the loans that have previously been provided to the club.
Tew said the Knights were waiting for three critical elements for the transaction to be settled.
They need to provide certain sums into the trading entity which is the Newcastle Knights, Tew said.
And they need to provide the requisite paperwork and confirmation of key contracts and the novation of the NRL licence, and the existence and form of the bank guarantee.
http://www.theherald.com.au/news/lo...stigan-aiming-to-tackle-roosters/2206397.aspx
BY ROBERT DILLON
25 Jun, 2011 04:00 AM
NATHAN Tinkler may need to ask the Newcastle Knights for more time to complete his takeover a prospect outgoing club chairman Rob Tew has indicated would be unacceptable.
Tinklers Hunter Sports Group had been expected to formally assume ownership of the Knights by Thursday, but HSG chief executive Troy Palmer revealed last night that logistical problems might torpedo the agreed June 30 handover date.
Knights members voted overwhelmingly in favour of a Tinkler buy-out on March 31.
It was anticipated the privatisation process would take three to five weeks. Almost three months later, the club is still in a transition phase and the Knights are waiting for Tinklers camp to get their affairs in order.
Speaking to the Newcastle Herald on Thursday night, Tew suggested the Knights board had already shown HSG enough largesse, having extended the original handover deadline of May 31 by a month.
He said the Knights had completed their obligations and there are no inhibitors from our end.
He said the onus was on HSG to uphold their end of the bargain.
What you can say is the Newcastle Knights have fulfilled all their responsibilities, Tew said.
Were now waiting for [HSG] to confirm the paperwork is completed from their end, and that the bank guarantee is in place in the form that we all agreed and that the cash is ready for completion.
Its time for them to finish their end of the deal.
Weve done all we can.
Tew said a further deadline extension would be unlikely.
This has taken a lot longer than I thought, Tew said.
I thought it would have been done long before now.
The previous deadline was May 31 and now were coming up to the end of June ... I dont think the board would be in a position or should extend it beyond June 30 given that weve already made a board decision to extend it from May 31.
But I dont anticipate that [HSG] would have any problems completing it on June 30.
Last night, however, Palmer admitted there was no guarantee HSG would be ready to meet their obligations by that date.
Were trying to get there, but theres still some work to be done, Palmer said. Were still working to get to that date, or as close as possible.
It was a date we all wanted to get to, in regards to being a nice, clean date as the end of the financial year.
But at the end of the day, we are relying on other people, like the NRL and sponsors ... some things are in our control, some are outside our control.
Palmer said he believed June 30 was not a deadline but a guideline.
There was never any hard and fast date ... the date is a little bit fluid, he said.
Were definitely working towards the end of June, but if its early July, theres not a problem at all.
Palmer insisted this deal will be done, theres not an issue in the world, but Tew was not so adamant.
This deals not completed yet, at all, Tew said.
Palmer was hopeful Newcastles directors would be understanding if the paperwork was not finalised by Thursday.
I dont think it will cause a big issue, but I cant speak on behalf of the Knights board, he said.
I suppose they have an element of risk and responsibility, as directors, so theyre obviously pushing to get it done as soon as possible.
And from my point of view I want to get it done as soon as possible, too.
But there are a lot of boxes to be ticked.
The Knights are still waiting for HSG to honour a number of fundamental commitments, including paying out the clubs debts, estimated to be worth $3.5million, and delivering a $20million bank guarantee.
Tew said HSG had thus far provided only a minimal cash injection, despite a spending spree that has secured master coach Wayne Bennett and star players Darius Boyd, Kade Snowden and Timana Tahu for next season.
Asked how the Knights had continued to trade and pay the wages of employees, Tew replied: The cash flow of the club, and there has been some modest assistance [from HSG], to date. They certainly havent put any sums in the millions in.
Palmer said HSG was contractually obliged to meet all financial commitments on the day the club changed hands.
You dont write the cheque until the day that completion occurs, he said.
Thats what the assets and sale agreement states.
But the day that occurs, well write a cheque in the vicinity of about $4.5million.
And weve already contributed some money in advance, on top of the loans that have previously been provided to the club.
Tew said the Knights were waiting for three critical elements for the transaction to be settled.
They need to provide certain sums into the trading entity which is the Newcastle Knights, Tew said.
And they need to provide the requisite paperwork and confirmation of key contracts and the novation of the NRL licence, and the existence and form of the bank guarantee.
http://www.theherald.com.au/news/lo...stigan-aiming-to-tackle-roosters/2206397.aspx
Last edited:
