Gold Coast Titans drugs saga: Millionaires line up to buy embattled club
Peter Badel
The Courier-Mail
March 02, 2015 12:00AM
A SECRET consortium of multi-millionaires will meet with the NRL to discuss buying Gold Coast’s licence after devising a blueprint to make the Titans a rugby league powerhouse.
In a huge boost for the embattled Titans, a group of Queensland-based corporate white knights are ready to launch a fresh bid after the NRL’s takeover on Tuesday provided greater certainty.
The team of bankers and finance experts are described as “seriously wealthy”.
The consortium first approached the NRL in 2012 during the Titans’ debt crisis and made it clear providing start-up capital of $15 million would not be problematic.
At the time, the NRL opted for a restructure, but the ostensible collapse of the Titans has convinced the governing body to seek external investment once they stabilise the club.
Now the consortium are back on the radar. While co-owner Darryl Kelly will reinvest in the Titans, the 64-year-old does not want to own the club outright after losing at least $5.3 million trying to salvage the wreckage.
That opens the door for the new team of investors, whose interest was legitimate enough for a representative to contact Titans boss Graham Annesley three weeks ago.
The consortium were set to walk away following the cocaine crisis that hit the club, but the NRL’s decision to step in has given the business tycoons confidence in the Titans brand.
The potential investors have spent recent months performing due diligence, even drawing up an ownership model that includes the Titans having a leagues-club style facility to provide additional revenue streams.
A consortium spokesman confirmed the group is ready to ramp-up negotiations with the NRL, who are also helping Newcastle recover from Nathan Tinkler’s ownership saga.
“These people are seriously wealthy, start-up capital is not an issue,” the spokesman told The Courier-Mail.
“When we initially met (in 2012), we looked at around $12 million to $15m (to rebuild the club) and that wasn’t a problem.
“It’s hard to say what they would pay for a NRL licence now the Titans have been taken over, but $3m to $5m would be small fry for these investors.
“Committing funds would not be a problem, but it’s whether the Titans are a viable investment and where and how the funds would be allocated.”
A key plank of the investors’ plan is for the Titans to have diverse income streams. The NRL-controlled club is set to move to Parkwood International golf course in coming weeks as part a $100m redevelopment plan that would cater for a community club.
“The Titans model moving forward has to have more diverse revenue streams than just football,” the spokesman said.
“The NRL are aware of our consortium. Once we can put forward our model and the desire to drive a proper leagues club, hopefully the NRL are interested and then can move forward with some talks.”
The NRL is taking a cautious approach but will consider a buyout package at the right time.
“Our first priority is to stabilise the Titans and rebuild the club so it has a secure financial future,” an NRL spokesman said.
“At an appropriate time, the NRL will welcome approaches from private investors interested in taking over the running of the club.
“However, we have a duty to the players and fans to secure the club’s future first and that is what we will do.”
Kelly, who owned 47.2 per cent of the Titans, welcomed financial aid from the powerful group of businessmen.
“I hope there are some other investors out there but we still have some work to do,” he said.
“Hopefully someone will come on board eventually.”
