Insane Knights Board Rejects 10M Tinkler Offer !!!

[BunniesMan]

All sounds pretty sane to me.

You'd be mad to accept the first offer.


Makes souths seem like a bargain though

I'm sick of people saying that. Crowe and Holmes a Court basically paid 3 million dollars just for the oppurtunity to put millions more into the team. The figure is meaningless, whether it's their 3m or Tinkler's 10m. Noone pays an NRL to make a profit, it's an emotional decision, not a financial decision.

Well if he's serious, he'll have to increase his offer, because at this stage they have said no.

And they're idiots for it, he doesn't have to increase anything because he isn't competing with anyone, he can just wait for them to get desperate.

do you guys realise his worth 500 million dollars...and prob will be worth a billion in a few years...

he will be pouring more of his money in ....

Exactly, just like our owners but don't bother arguing with stupid people kmav23, they drag you down to their level and beat you with expierience.

If they believe the manipulative spin from Tinkler and his cronies, maybe. Those who take time to analyse the situation will realise it's not the best deal for the Knights.

If you think that Tinkler won't make another increased offer (if this one is turned down by everyone) you're a fool.

He doesn't have to increase anything, and why would you want him to. He's not trying to steal the club, his involvement won't start and finish with this 10m, he wouldn't be buying the club just they have enough money to get by day to day. He'd make sure they have what they need to be a success, like what Crowe and HaC have done.

Absolutely, but none of that should mean they need to settle for the chump-change Tinkler is offering.

$10 million sounds like a lot of money to the uneducated but it's nowhere near enough, the Knights deserve more.

Chump change? Are you listening to yourself? The figure means nothing, whether it's 1m or 10m or 20m or 50m, he's paying for the oppurtunity to put even more money into the club. Their board is being painfully idiotic about this.

 

[Slackboy72]

Hey kmav,
Have you done maths at primary school yet?
The knights pull in $7.5m in sponsorship every year. That's $75m over ten years.
This clown wants to buy the club for less than $13m over ten years.
Does this sound like a good deal to you?

 

[TooheysNew]

The big issue here is the clubs commitee and board. They have the club going downhill.

No they don't...

 

[kmav23]

Hey kmav,
Have you done maths at primary school yet?
The knights pull in $7.5m in sponsorship every year. That's $75m over ten years.
This clown wants to buy the club for less than $13m over ten years.
Does this sound like a good deal to you?

The club is on the brink of bankruptcy every year...

they needed 500k emergency loan from tinkler...

after he buys it he will be putting more of his money in...

 

[Alex28]

The $1 Million a year that Tinkler wants to buy the club for is equivalent to the $1 Million a year that Coal & Allied sponsor the club for. There is no doubt that Coal & Allied will bail on the club - they are after all a competitor of Tinkler.

There are no guarantees that the club will have sufficient working capital to run adequetly. There is no guarantee that this could turn in to the Newcastle Jets all over again. He wants to buy the club and use those same funds to run the club for the next 10 years.

It could potentially turn in to a very good deal for the club, however as it stands it was right for Tew to knock it back without going to the board or the members. He has the right and power to do that if it is not good for the club in the long term.

What is clear now is that Tinkler is determined to get the club for a low ball offer and is relying on the public - majority of which have no financial acumen like our clueless friend kmav23 - to pressure the club in to accepting the deal.

 

[big country]

No they don't...

it's a mystery that they are presiding over a club that is turning over a very healthy $20mil each year (or so we're told) - it must be among the healthiest tunrovers in the league - my query is where is the money going for them to still be $2.75mil in debt? tinkler seems to see this hence unless he can turn around their fortunes he is limiting his losses to $1 mil per year (less the initial $2.75m)

 

[kmav23]

If the business is indeed in that situation, why buy it at all??

those millionaires that own proffesional sports team dont buy to make money..as they often run at a loss. they pour more millions into the club they want to win cause they are fans...
english premier teams nba/nfl teams.... etc

Skase and Bond also went from zip to multi millionaires in a short period of time as well.

Not saying Tinkler is dodgy like that pair, but saying he went from nothing to millions in a short period of time doesn't always mean he's a good businessman, he may have had his fare share of mistakes and borrowing of money to help him through.?

are you kidding.... from nothing to 500 million dollars in a few years and you dont consider him a good business man.... you have crazy logic...

He can't be that smart if he wants to buy peanuts for a company making nothing but financial loss. What is smart about that transaction?

all the proffesional teams in america are privately owned by millionaires.. businessman... new and old money.....the teams often dont make much or lose money.... they dont buy it to make money...

 

[kmav23]

The $1 Million a year that Tinkler wants to buy the club for is equivalent to the $1 Million a year that Coal & Allied sponsor the club for. There is no doubt that Coal & Allied will bail on the club - they are after all a competitor of Tinkler..

tinkler will pour more money in as all the other millionaires in america and england sports teams... his has 500million..he wants newcastle to be no.1

500m he can buy all the clubs in the nrl...

they will find new sponsors easily when they start winning...

There are no guarantees that the club will have sufficient working capital to run adequetly. There is no guarantee that this could turn in to the Newcastle Jets all over again. He wants to buy the club and use those same funds to run the club for the next 10 years.

HELLO they club is turning into newcastle jets.. they are always in debt... borrowing money to get by...you are worrying about something thats already happened..

It could potentially turn in to a very good deal for the club, however as it stands it was right for Tew to knock it back without going to the board or the members. He has the right and power to do that if it is not good for the club in the long term.

What is clear now is that Tinkler is determined to get the club for a low ball offer and is relying on the public - majority of which have no financial acumen like our clueless friend kmav23 - to pressure the club in to accepting the deal.

the board have run the knights into the ground.... under the watch

 

[BunniesMan]

The $1 Million a year that Tinkler wants to buy the club for is equivalent to the $1 Million a year that Coal & Allied sponsor the club for. There is no doubt that Coal & Allied will bail on the club - they are after all a competitor of Tinkler.

There are no guarantees that the club will have sufficient working capital to run adequetly. There is no guarantee that this could turn in to the Newcastle Jets all over again. He wants to buy the club and use those same funds to run the club for the next 10 years.

It could potentially turn in to a very good deal for the club, however as it stands it was right for Tew to knock it back without going to the board or the members. He has the right and power to do that if it is not good for the club in the long term.

What is clear now is that Tinkler is determined to get the club for a low ball offer and is relying on the public - majority of which have no financial acumen like our clueless friend kmav23 - to pressure the club in to accepting the deal.

Do you really believe that he wouldn't put any more money into the club? So he's going to spend millions just so they can get along by the skin of their teeth while being continuously mediocre. Look at Souths for an example, the owners financial commitment doesn't begin and end with the money they initially buy the club with.

Tinkler isn't buying this club as a financial move, some financial adviser somewhere is crying at the thought of him buying the club. The guy loves the Knights, if you give him the opportunity he'll give the club everything they need to be one of the best clubs in the league. To get stuck up on a figure as meaningless as the 10m buyout, is beyond ridiculous.

 

[Raider_69]

The $1 Million a year that Tinkler wants to buy the club for is equivalent to the $1 Million a year that Coal & Allied sponsor the club for. There is no doubt that Coal & Allied will bail on the club - they are after all a competitor of Tinkler..

Just on this point, what do you think tinkler is going to do? Have the knights run out with his name plastered across the jersey? Allied will leave, no arguements but tinkler would obviously replace them with another major sponsor, and I could argue with his profile and business acumen he'd probably be able to secure a better sponsor for more $$, is also argue tinkler would have contacts that would open the 3rd part door for the knights. This is potentially something that could turn the knights into not only a financially viable club but a legitimate power house.

On the deal itself, I have no idea if this is a good enough deal for the knights, and I doubt many do, I trust those in control have a better idea of the knights value than us, and they should endeavor to get the best deal possible, if they don't feel like this is it, so be it, but eventually a deal needs to be done, as imo privatisation via Tinkler is the best and tbh maybe only way forward for the knights.

If this is as good an offer as he'll mske, they should take it and run, but they are not stupid for rejecting this offer in hopes of securing a better deal

 

[kmav23]

tinkler is involved in the mining industry worth billions..

you think he cant get another sponsor....1m is peanuts...to them...

 

[Alex28]

kmav23 and BunniesMan - how do you know that he won't put money in? Where are the guarantees? Just because it has worked one way for the Bunnies does not mean that every buyout of an NRL club will work the same way.

I'm sure that Con Constantine loved the Newcastle Jets - do some googling and work out how that finished.

kmav23 - you have no idea what you are talking about. The Knights aren't $2.5 Million in debt. The loan by Tinkler was not "emergency funding" - it was an interest free loan and was a better option that their normal sources of funding. Stop reading the press and believing every word that is printed.

 

[BunniesMan]

kmav23 and BunniesMan - how do you know that he won't put money in? Where are the guarantees? Just because it has worked one way for the Bunnies does not mean that every buyout of an NRL club will work the same way.

I'm sure that Con Constantine loved the Newcastle Jets - do some googling and work out how that finished.

kmav23 - you have no idea what you are talking about. The Knights aren't $2.5 Million in debt. The loan by Tinkler was not "emergency funding" - it was an interest free loan and was a better option that their normal sources of funding. Stop reading the press and believing every word that is printed.

How do I know? Because of common sense. Tinkler has the money to take care of the Knights properly and why wouldn't he. Why would he buy the Knights in the first place just to keep them mediocre. It certainly isn't a financially based decison, it's an emotional one. From what I've heard Tinkler loves the Knights the way Crowe loves Souths, so I'm sure he'd do whatever it takes to make them great.

And it's not as if the Knights are falling over themselves with options. They're not in a great place on or off field, off field they might only be better than Cronulla. I don't see any other rich people offering to buy them. If Tinkler doesn't raise his offer the Knights just get deeper into debt until they have no choice but to accept his offer.

 

[Dingus]

http://img.nrl.sportal.com.au/site/_content/document/00000948-source.pdf


Page 30 to 32 has the financial accounts.

They accrued a small profit in 09 (havn't released 2010). You can see they have net negative balance of around 2.5million which is gradually decreasing in size. In terms of operating - its certainly sustainable, and there seems to be no forseeable large scale costs for debt to increase.

Many business operate under debt, it is part of business - small companies - large companies - governments - private schools often have a debt balance.

Logical decisions not to sell for $10mill.

this thread...

 

[Alex28]

http://img.nrl.sportal.com.au/site/_content/document/00000948-source.pdf


Page 30 to 32 has the financial accounts.

They accrued a small profit in 09 (havn't released 2010). You can see they have net negative balance of around 2.5million which is gradually decreasing in size. In terms of operating - its certainly sustainable, and there seems to be no forseeable large scale costs for debt to increase.

Many business operate under debt, it is part of business - small companies - large companies - governments - private schools often have a debt balance.

Logical decisions not to sell for $10mill.

You may also note that of the liabilities the club has, $2.58 Million of it is "income in advance" - so membership fees, season tickets, sponsorship income that on an amortised basis they are not entitled to yet, however have already been paid.

The $2.5 Million debt thing is a massive furphy.

Raiduh - I have no doubt that Tinkler COULD make the club into something brilliant, and I think the majority of members and fans want to see that happen. However it has to be on the right terms, with appropriate guarantees in place that it will occur and that appropriate funding will be provided to make that happen, and that if it all goes wrong that the club can be returned to the people. None of those things are really set in stone under this current offer.

 

[madunit]

those millionaires that own proffesional sports team dont buy to make money..as they often run at a loss. they pour more millions into the club they want to win cause they are fans...
english premier teams nba/nfl teams.... etc

You're funny. Why would you buy something that will consistently cost you money, where's the value in it, fan or not.

I put it to you this way, if you were financing a starving family in ethiopia directly (not through a charity or donations) and you suddenly become unemployed, will you continue to support that family, or look after you're own welfare first?

are you kidding.... from nothing to 500 million dollars in a few years and you dont consider him a good business man.... you have crazy logic...

I never said that did I. I was saying that not only good businessmen can make a lot of money. I thought that was pretty f**king clear.

all the proffesional teams in america are privately owned by millionaires.. businessman... new and old money.....the teams often dont make much or lose money.... they dont buy it to make money...

You just keep getting funnier.

 

[madunit]

And they're idiots for it, he doesn't have to increase anything because he isn't competing with anyone, he can just wait for them to get desperate.

But they won't get desperate and they have said no.

That the means there is no door ajar for him. Either he puts in a better and more realistic offer or he gets nothing.

Competition wise, I believe the Knights current sponsor are a major competitor.

 

[BunniesMan]

You're funny. Why would you buy something that will consistently cost you money, where's the value in it, fan or not.

Because the size of the losses an NRL team makes, even when their significant for a club, are a drop in the ocean compared to what people like Tinkler make. And they'll be far outweighed by the satisfaction he'll get from trying to turn them into a champion team. Rich people don't buy sporting clubs as a financial investment, it's not for the money, it's for the personal satisfaction, and the glory of winning trophies.

 

[kmav23]

You're funny. Why would you buy something that will consistently cost you money, where's the value in it, fan or not.

I put it to you this way, if you were financing a starving family in ethiopia directly (not through a charity or donations) and you suddenly become unemployed, will you continue to support that family, or look after you're own welfare first?

happens all the time with sports teams... the rich owners lose millions every year to be number 1....

you dont buy a sports team to make money...

one of the richest men in the world

http://en.wikipedia.org/wiki/Roman_Abramovich
In the year ending June 2005, Chelsea posted record losses of £140 million (€165 million) and the club is not expected to record a trading profit before 2010, though this did decrease to reported losses of £80.2 million (€94.3 million) year ending June 2006.[45]

 

[hrundi99]

Because the size of the losses an NRL team makes, even when their significant for a club, are a drop in the ocean compared to what people like Tinkler make. And they'll be far outweighed by the satisfaction he'll get from trying to turn them into a champion team. Rich people don't buy sporting clubs as a financial investment, it's not for the money, it's for the personal satisfaction, and the glory of winning trophies.

Most are bought by corporations and they do so to make profit...that's why they are sold, moved, etc when the results aren't what they planned.