Discussion in 'St George Illawarra Dragons' started by Alec's-saints, Jul 4, 2018.
Can't open, not a subscriber.
f**k me at least provide something in either the title or the first post..
ST GEORGE Leagues Club is set to pay out the $6 million debt the Dragons owe the NRL which could pave the way for St George to eventually take 100 per cent control of the joint-venture.
The latest development is another twist in the ongoing discussions to sell 50 per cent of the St George Illawarra Dragons.
St George Illawarra are still almost $7 million in debt — with $6 million needed to be repaid to the NRL and the $700,000 remainder to a private benefactor.
Despite WIN Corporation publicly distancing themselves from purchasing the club in April, it is understood protracted negotiations are still happening behind the scenes.
There is at least one other party in deep discussions about purchasing the Steelers’ share of the joint venture.
There is no suggestion Illawarra will be removed from the NRL club’s name.
But St George Leagues Club’s involvement sets up a whole new dynamic.
The move would essentially remove the NRL from discussions about ownership and leave the Dragons’ destiny in their own hands. Because of the debt the Dragons owe the NRL they are at the governing body’s mercy when it comes to finding a suitable partner.
While St George Leagues Club has no intentions of controlling the franchise long-term, they could potentially have significant ownership of the club by the end of this year.
Unless there is a sell-off the Steelers will almost certainly be unable to contribute the repayments of the debt by October. Their stake of the club would then be handed over to St George — giving the Kogarah-based club complete control like they had before the 1999 merger.
If the Steelers can’t keep up their repayments their shares will be drip-fed over time to St George, who will then assume full ownership and control of the joint-venture.
It is understood the proposal whereby St George Leagues Club assumes the debt carried by St George Illawarra Dragons to the NRL was put to the Steelers board this week.
Should the move go ahead and the Steelers fail to find a suitor, St George Leagues Club would assume complete control of the joint venture. They then may opt to begin their own discussions about selling a stake in the club, or keep control of it.
St George have no control regarding the sale of the Steelers but do have a say in any potential joint-venture partner.
Media mogul Bruce Gordon distanced himself from purchasing the club in April but the two parties are back at the negotiating table. His son Andrew had toyed with the idea of purchasing the club outright, but it is likely any deal between the Gordons and the Dragons will be done via the WIN Corporation.
WIN was given a seat on the Dragons board after paying about $9 million to allow the Illawarra Steelers Leagues Club to pay back its debts to St George Leagues Club. The Dragons owe the NRL less than $6 million after making a $600,000 repayment to the governing body last October. Another repayment is due in three months.
Outgoing chief executive Peter Doust’s final task before leaving at the end of the NRL season is to close out the deal.
Meanwhile, applications to replace Doust have closed with interviews expected this month. It is understood a number of internal candidates have applied for the role, including Doust’s understudy Michael McDonald.
WHAT IT MEANS
— St George Leagues Club assumes the debt carried by St George Illawarra Dragons to the NRL.
— The respective St George Dragons and Illawarra Steelers clubs must re-pay the debut to St George Leagues Club.
— If the cash strapped Steelers are unable to make the repayments, their shares will be transferred to St George Leagues Club, potentially giving the St George side of the joint-venture complete control.
— The club is still hopeful of selling the Steelers share to another party including WIN.
— St George Dragons and Illawarra Steelers formed in 1998 before playing their first season the following year.
— They have split their home games in Sydney and Wollongong while training has been based in Wollongong for about a decade.
— WIN was given a seat on the Dragons board after paying about $9 million to allow the Illawarra Steelers Leagues Club to pay back its debts to St George Leagues Club. WIN secured a 20 per cent share of the Steelers Club and assets as a result.
— Dragons loaned — and are in the midst of repaying — more than $6 million loan from the NRL plus $700,000.
— Currently the Dragons board consists of four representatives from St George, three from Illawarra and WIN representative Andrew Gordon.
haha sorry mate was driving. thought I'd copy and paste
There are more paradoxes in this fluff-piece than your typical packet of Twisties.
And of course, there is the final indignation (and complete misuse) of the word "merger".
In short, this mish mash is your atypical Daily Telegraph piece of nonsense.
Give us back our premierships.
Mod intervention has rectified this for all.
Then get off your phone.
A ‘forum scoop’ can wait...
In fairness they did say 'joint venture' at the top of the article, but unfortunately they can't seem to tell the difference between that and a merger. So yeah, probably just another News Corp fluff piece.
The potential for being called St George again is there, or it's just a maneuver to get another party to show their hand. Either way, I'll believe when I see it.
While this would be fantastic for my heart, the fact is that neither the leagues club nor St George side of the JV have the managerial competency to bring this club into the 21st century unless it comes with a complete restructure (as can be said about any deal).
News ltd articles are the hardest to read. Sifting through the bullshit to find the small pieces of fact can be awfully tiresome.
The same thing occurred to me though, that this may be a hardball move to push WIN, Gordon or another buyer into action.
This has taken so long that I don't know what to believe anymore. The whole process seems to be dragging on to Plan F version 8.
Do the Steelers still have a heartbeat or any assets worth selling?
The first thing which popped into my mind is the dwindling grant the Football Club receives from the Leagues Club.
Hasn't this been the result of the so-called "poker machine tax" first implemented by the Carr Government many years ago?
If correct, how is it in the position to wipe out all of SGI's alleged debt to the NRL?
This is only one thing (of many) which makes me doubt the article's veracity.
There's more activity with our interchange bench than anything that's happened relating to any sale. As others have pointed out its likely a way to see if there are any bites or its the DT running a story because they have no story.
On a side note, what do we know of Michael Mcdonald?
Is he just another Doust clone?
I hope we go with an external applicant rather than internal.
The suggestion the Leagues Club has 10 million available contradicts the common view here that the Club is broke
I know it’s probably your usual DT crap but if that is the case it would be a sad day for Illawarra rugby league
Even if St George do take over fully they will never drop the Illawarra from the name.
I had heard they were broke, dwindling poker machine returns, poor sales etc, but I’ll admit I haven’t seen the balance sheet for a couple of years.
They want to do something I would suggest turning the old Sizzler into an outdoor family bistro beer garden
Separate names with a comma.