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http://www.theherald.com.au/news/lo...ers-knights-takeover-a-done-deal/2249900.aspxTinkler's Knights takeover a done deal
BY BRETT KEEBLE
06 Aug, 2011 04:00 AM
COMPLETE: Ken Edwards watches as Rob Tew and Troy Palmer shake hands.
HUNTER Sports Group chief executive Troy Palmer said Nathan Tinklers ownership of Newcastles NRL club would ensure Knights members and supporters could feel confident of challenging for a premiership every year.
Tinkler settled his acquisition of the Knights yesterday by paying out more than $6million in debts and implementing a $20million bank guarantee, five days before an August 10 deadline, which had been extended from June 30.
Palmer handed over to outgoing Knights chairman Rob Tew the bank guarantee, power of attorney allowing the Knights Members Club to ensure we keep our end of the bargain, and the heritage share enshrining the Knights name, emblem, colours and where they play. He then declared the Knights were poised to become a perennial powerhouse.
I would like to know at the start of the year, every year, that weve got a chance of winning the grand final, Palmer said.
Whether we win the grand final or not, I want to make sure were very optimistic at the start of each season, and with the base we have this year and what were building for next year, I think youll find that we will be competitive.
Youd like to think youre going to be in the top four every year, and whether that can happen, thats a big ask, but well definitely be trying.
Tinkler did not attend the media conference at HSGs new Tudor Street headquarters Palmer said he was interstate on other business but the mining, racing and sporting tycoon was relieved the deal had finally been completed.
I think Nathan would be relieved, Im relieved and Newcastle would be relieved to see its done, Palmer said.
Tew said he was confident the Knights would prosper under Tinklers ownership, but he and the clubs board had to be vigilant to secure the financial future of a much-loved community asset.
I look forward with anticipation at a positive future, a prosperous future, and the opportunity for the Hunter Sports Group to lead this club into an exciting new era, Tew said. I trust that they will look after this very, very much-loved community asset and this icon of this local region.
Palmer conceded HSG underestimated the complexity of the transaction when they said on March 31, moments after 97 per cent of Knights members voted to hand Tinkler the reins of their club, that the deal would take three to five weeks to complete.
It was never not going to occur, but we just needed to go through the process and make sure it was done correctly, but most importantly Newcastle will now see the benefits of what this will bring, Palmer said.
He said the Knights were now free of debt for the first time in their existence and HSG could focus on daily business operations.
We advanced the Knights $3.5million in the first week of July to help them with some creditors, one being a substantial tax bill, so that was used to pay most of those creditors, Palmer said.
The rest of those funds were used to pay out all outstanding liabilities, so as of today there are no liabilities that are due and payable.
Theyve all been paid out, plus weve obviously handed over the $20million bank guarantee.
Its a moving target, because there will be numbers coming in and creditors coming in over the next couple of weeks, but as of today all creditors have been paid out paid in full and we estimate that the total amount will be well in excess of $6million by the time its all finalised.
Now that this is complete we can concentrate on generating income, dealing with sponsors, finalising our player roster, increasing memberships, just general day-to-day running of the club and ensuring that we are a powerhouse in Newcastle and the NRL, and a team and a club that Newcastle can be proud of.
