Bid to take over Broncos - From SMH.COM

[Joe's Magpies]

Bid to take over Broncos

Mitchell Murphy | October 5, 2007 - 12:46PM

Two wealthy, high-profile supporters are on the verge of making a takeover bid for the Brisbane Broncos.
While Brisbane Broncos CEO Bruno Cullen today categorically denied the club would be sold, it is understood an official offer will soon be made to purchase News Limited's 68 per cent controlling interest.
The men, one of whom is believed to be John Geaney, are members of The Thoroughbreds - a powerful Broncos supporters group.
"I have heard the rumours and I am aware they are gaining momentum," Cullen told brisbanetimes.com.au.
"However, at the club's AGM in May this year, the club's chairman (Darryl Somerville) stated News Limited would retain its ownership.
"Obviously in my role, I talk to News Limited executives on a regular basis - and nothing has changed."
Geaney, who made his fortune in property development, already owns about 10 per cent of the club through his associated companies.
If the bid is made, it would be the second occasion this year the Broncos have been the subject of a takeover attempt.
Cullen today confirmed an official offer to purchase the club had been made in writing to News Limited about eight weeks ago.
It's believed the offer - which was quickly rejected - was around $25 million.
There are one million Broncos club shares currently listed on the Australian Stock Exchange. This morning, they were trading at 21 cents per share.
When asked to put a total value on the club, Cullen - a board member of the Queensland Country Credit Union - said: "Around $40 million."
The Broncos' number one ticket holder, Lachlan Murdoch, and wife Sarah Murdoch, are late scratchings from tonight's club presentation dinner.
However, brisbanetimes.com.au understands Murdoch would have publicly put up the not-for-sale sign had he attended.
News Limited, which owns 50 per cent of the National Rugby League (NRL), recently sold its controlling interest in the North Queensland Cowboys.
Speculation has linked News Limited with a future sale of 2007 NRL premiers Melbourne Storm, of which it owns 100 per cent.
However, it's understood Murdoch's personal love for the club - combined with a desire for News Limited to retain a controlling interest in a marquee club - would prevent a future sell-off of the Broncos.
Private ownership of NRL clubs has been in the spotlight, particularly with the successful takeover of the South Sydney Rabbitohs by actor Russell Crowe and businessman Peter Holmes a Court.
In other news, it's believed the Broncos are on the verge of announcing WOW Sight and Sound - a prominent electrical and hi-fi chain - as its new major sponsor.
Energex's association with the club ended last season

http://www.leaguehq.com.au/news/news/bid-to-take-over-broncos/2007/10/05/1191091334602.html

 

[sherrinator]

How many times can this 'club' sell itself out?

 

[marshall stalin]

1 million shares trading at 21 cents and the club spokesperson says they are worth 40 million - i would love to be selling a business with such an amount of goodwill

 

[Godz Illa]

Anything that would lead to the surrender of News Ltd's ownership of club(s) is good for the game.

 

[Muffdaddy]

I guess it goes to show what a steal the Souths deal was......

 

[axl rose]

According to Roy Masters Bennett is silent boss of this Thoroughbreds group. Looks like he will not be going silently into the night. It was laughable that the Broncos said they would seek a new coach. Although puppet Cullen backed down from that statment a few months ago. The Broncos board was almost acting like they ran the show up there. Nope, still Bennett.

 

[Mr Saab]

I agree Axl.
Bennett rules that place...

 

[Kurt Angle]

1 million shares trading at 21 cents and the club spokesperson says they are worth 40 million - i would love to be selling a business with such an amount of goodwill

:lol:

That's a good one.

 

[Kurt Angle]

In all seriousness, rich guys around the entire country would be looking at what Crowe and HaC are doing with the Rabbitohs, and seeing if they can then come in and extract value out of other clubs.

The Broncos run by guys who love RL, doing the equivalent to them could make a fortune.

 

[LeagueLegend]

I guess it goes to show what a steal the Souths deal was......

Souths wasn't a "steal", it was the red light special in a $2 junk shop.

 

[dallymessenger]

In all seriousness, rich guys around the entire country would be looking at what Crowe and HaC are doing with the Rabbitohs, and seeing if they can then come in and extract value out of other clubs.

The Broncos run by guys who love RL, doing the equivalent to them could make a fortune.

not a bad point.

ive always thought the broncos dont do enough to promote RL in queensland, given their position as one of the elite clubs in the NRL (hate to admit that).

with their crowds back on the up, it would be nice for the club to be more pro active in queensland.

and we need a 2nd NRL side in brisbane fairly soon too

 

[Junior Bunny]

Souths wasn't a "steal", it was the red light special in a $2 junk shop.

In all honesty, you are probably dead right. The best thing that could have EVER happened to my club, being bought by an entrepreneur and a hollywood actor. A perfect mix of smart business sense and loads of free publicity.

 

[salivor]

I can't see News Ltd letting go of it's grip on the club, it'd be fantastic if true to show them the door and hand the club over to wealthy supporters but it's never going to happen IMO.

 

[NK Arsenal]

1 million shares trading at 21 cents and the club spokesperson says they are worth 40 million - i would love to be selling a business with such an amount of goodwill

oi marshall, maybe ur mate roman abromavich will take over :roll:

 

[LeagueLegend]

I can't see News Ltd letting go of it's grip on the club, it'd be fantastic if true to show them the door and hand the club over to wealthy supporters but it's never going to happen IMO.

While the "Thoroughbreds" are wealthy and supporters of the club, I'm sure I've read where they have been at odds with the management of the club. Perhaps some one in Brissy can clarify that.

If true, I see a couple of scenarios. 1. News won't sell so as to keep stability - they have been quoted in the past as saying they won't pull out of a club if it will be to the clubs detriment. 2. The "Thoroughbreds" buy in (News sells) and run the club how they want it to be run now that News is no longer involved - perhaps with some wholesale changes.

 

[S.S.T.I.D]

I guess it goes to show what a steal the Souths deal was......

As a business the club wasn't worth a cent, a $100,000 handout from Russell Crowe was needed at the end of 2005 just to allow us to compete in 2006. That is how desperate things became. $3mil was a gesture of goodwill, they would've had my vote if they didn't offer anything.

 

[t-ba]

New Ownership is a start.

New Ownership that recognises trying to monopolise all of Brisbane is stupid and pointless and that a local rival is worth more to the Broncos in the future is what is required. Logan is pretty much throwing its lot in with the Titans despite being a part of Brisbane...

 

[Kurt Angle]

Sydney seriously needs something like a pan-Sydney club Thoroughbreds.

A business friendly, business savvy group of Pro RL guys to help with things like media and sponsorship.

It helps that the Broncos are the biggest team in town, but it has a lot of potential.

 

[Misty Bee]

Lol Kurt. Aren't News Ltd supposeed to be that?

Brisbane will never be a real club unless they build a Leagues club on top of the Caxton, fill it with pokies, offer a $4.5 bistro, and get a club stalwhart like Mark Hohn to be CEO.

I'll put my hand up with the $210 000 required to buy all the shares at market value.

 

[DeeJ]

Yes we all know pokie machines are the heart of rugby league.