Russell Crowe's exit may give South Sydney fans a stake
BY: STUART HONEYSETT From: The Australian November 20, 2012 12:00AM
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South Sydney's CEO says the club won't be relocating, despite Russell Crowe's decision to sell his shares.
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Rabbitohs fans could be offered the chance to become shareholders in their team. Source: Getty Images
SOUTH Sydney has always been regarded as the people's club - now fans could be given the chance to become shareholders in it, similar to NFL franchise the Green Bay Packers, following the decision by actor Russell Crowe to sell his stake by the end of next season.
The concept was floated by Souths chairman Nicholas Pappas yesterday as one of the solutions available to members, with The Australian informed the club could be worth anything from $7 million to $14m. Crowe and co-owner Peter Holmes a Court paid $3m for it in 2006.
Pappas and chief executive Shane Richardson held a media conference yesterday to stress it was business as usual despite the club facing life without Crowe when he withdraws his financial clout at the end of next year.
The actor may not be the only owner heading for the exit, with Holmes a Court expected to decide by the end of the week whether he will follow suit. The duo took 75 per cent ownership of the club in 2006.
Under the terms of agreement, Crowe and Holmes a Court have the right to sell the club to anyone they wish if the football club elects not to exercise its right to buy them out.
Pappas yesterday said the club might look at offering members shares as a way of buying Crowe's stake in the club. Green Bay is the only community-owned franchise in US professional sports but no dividends are paid to shareholders.
"One of the outcomes of this is that members may be invited to become shareholders in their own right," Pappas said.
"That's something we'll need to look at, depending on price and depending on what is actually being sold, because at the moment we don't know if Russell is just disposing his half share in (supporter company) Blackcourt or whether it's Russell and Peter together. The important thing is at any level members have the right to participate."
Both Crowe and Holmes a Court could profit handsomely if they go to market to find another private backer, with suggestions the Rabbitohs brand could fetch as much as $14m. That is a far cry from when they bought into the club in 2006. The Rabbitohs had finished last three times since being readmitted to the competition in 2002.
Crowe and Holmes a Court are owed additional money they have ploughed into the club - $1.2m and $4.5m respectively - but they have negotiated a generous repayment scheme which requires no interest until 2014 and no maturity until 2024.
Pappas said yesterday he was confident Crowe would not do anything to hurt the club and any decision about the sale would not be purely financial.
"I think Russell wants to work in a collaborative way, if I can read him," Pappas said.
"He has spoken about re-enfranchising members by letting members participate again through this process.
"It might be that is what is in his mind - in other words, returning the club to members as part of this process. But he does have the right to put it on the market if members say no."
Crowe cited personal reasons behind his decision - the actor split from his wife, Danielle Spencer, a year ago and has two young sons, Charles and Tennyson - but Richardson maintained he would not be lost to the club or the game.
"One thing about Russell Crowe is that he won't disappear," Richardson said.
"He'll still be there and he'll still be coming to training, he'll still be involved with the players, he'll still be involved with what we're doing because that's what he was doing before he became an investor.
"From his own personal point of view, he's making decisions about his personal life, which I totally respect.
"Because I can tell you something, without family, you've got nothing, and you've got to make those decisions in life. He'll always be red-and-green and passionate for the club."
http://www.theaustralian.com.au/spo...ney-fans-a-stake/story-fnca0von-1226519903784
