NRL to sell Newcastle Knights this week in bid to turn the club into rugby league powerhouse
Phil Rothfield, Sports Editor-at-large, The Daily Telegraph
an hour ago
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The NRL is on the verge of selling the struggling Newcastle Knights in a multi-million dollar deal that will ensure the club becomes a long-term rugby league powerhouse.
The Daily Telegraph understands the purchasers — the thriving Wests Leagues club group which made a $23 million profit last year — will commit up to $10 million to new centre of excellence and a cash injection into grassroots football in the Hunter as part of the agreement.
The deal is being finalised by lawyers and is expected to be announced before the end of the week.
Wests Group is a flourishing business with a $143 million turnover that makes regular multi-million dollar profits with assets including six thriving licensed clubs and two accommodation hotels.
With the NRL’s annual $13 million funding agreements to kick in from November, the Knights will relaunch under new ownership with no debts and with the opportunity to become one of the most powerful sporting organisations in the country.
The Daily Telegraph understands the new buyers will support coach Nathan Brown and his long-term strategy for sustained success.
Wisely, the NRL is trying to get the game strong in Newcastle rather than grab a large lump sum payment. It’s why they pushed for a sale model involving the centre of excellence and grassroots funding.
Despite two years on the bottom of the ladder, the Knights still enjoy phenomenal support in the Hunter.
Their average home crowd is 15,753 this year which puts them fourth in the NRL behind the Broncos, Melbourne Storm and Sydney Roosters, who are bumped up by the 40,000 plus crowd on Anzac Day.
With funding of $3 million more than the salary cap combined with the management expertise of the Wests Group, they are certain to run a profitable business.
Earlier this year with potential buyers reluctant to come to the table, even a relocation to Ipswich was one of the options considered.
“We wanted to hold out for the right buyer for the club and for the game,” an NRL source said.
“And we all want the Knights to be owned locally so there is community ownership of the club.
“The deal is not quite done yet but this proposal will get the fans the strong club they need, on and off the field.”
The Daily Telegraph understands the NRL rejected bids from other parties with more lucrative offers for the Knights. Instead it wanted a buyer who would strengthen rugby league in an old heartland.
http://www.dailytelegraph.com.au/sp...e/news-story/70217ae0602e46f695eca4dd74e539bf
