Nathan Tinkler relinquishes ownership of the Newcastle Knights

[Burwood]

People seem to forget that Tinkler wasn't the only one making a play for Newcastle back in 2011. There was also a consortium of local businessmen, a patrons' trust model, who were looking to assist the club financially. But as history shows, Tinkler was the preferred option.

Donating between $6million and $10million to the NRL club in the next four years, the trust has been convened in the past two days as a funding alternative after Tinkler, frustrated that Knights management had queried details of his reported 10-year, $100million privatisation proposal, withdrew his offer on Monday.

Knights chief executive Steve Burraston said a patrons’ trust model was initially investigated more than a year ago, was explained to members at the club’s annual general meeting in May last year, and was considered by the board on January 19 when they agreed Tinkler’s proposal was the preferred model to investigate and present to members.

http://www.theherald.com.au/story/466664/poole-invites-tinkler-to-join-patrons/

 

[Cletus]

In return, the Members’ Club will sign over the $10.52 million guarantee currently sitting in a joint bank account to Tinkler’s Hunter Sports Group as part of their exit agreement.

As part of the deal reached between the NRL and HSG, more than half the money will be used to pay off existing Knights debts while Tinkler has agreed to provide a $5 million sponsorship of the club over the next five years.

So he essentially doesn't have to hand over the guarantee. It will be interesting to see how punctually he coughs up the sponsorship money.

 

[Frederick]

NEW KNIGHTS: It’s a done deal as NRL boss comes to town
By ROBERT DILLON June 12, 2014, 10 p.m.

NRL chief executive Dave Smith will appear in Newcastle today to formally announce the new Knights ownership model.

Eleven weeks after the Newcastle Herald exclusively revealed Nathan Tinkler’s reign was in jeopardy because of a problematic $10.52million bank guarantee, the process of removing Tinkler’s Hunter Sports Group from control reached full-time last night.

The Herald has been told Smith will hold a media conference at Wests Mayfield to confirm the details of what will be, initially at least, an NRL takeover.

The governing body will manage and fund the club for an unspecified interim period until it is ready to consider expressions of interest from prospective owners.

Despite weeks of speculation that the affluent Wests Group would be the most likely candidate to replace HSG, it appears Wests is in no rush to become involved and is content to wait until the dust has settled.

Under the deal brokered over the past three months during negotiations between HSG, the NRL and the Knights Members Club, it is expected:

● the new Knights entity will kick off with $4 to $5million in its coffers, which is what remains of the bank guarantee that Tinkler forfeited, but the NRL will also contribute towards running costs;

● the rest of the bank guarantee will be used to help pay selected HSG liabilities, in particular trade creditors and employee entitlements;

● HSG will be left to deal with other liabilities believed to run into millions of dollars;

● a Tinkler-affiliated company will receive signage rights for five years on the back of Newcastle’s jerseys, which HSG insiders have described as a ‘‘sponsorship’’ but which other sources say was a sweetener to relinquish the bank guarantee;

● Smith and NRL legal counsel Nick Weeks will be the founding directors of the new entity, a company called Knights Rugby League Pty Ltd. But, eventually, a seven-person board of directors will be sourced and appointed, including an unknown number from outside Newcastle and at least one woman;

● the members’ club, which ran the Knights from creation in 1987 until privatisation in 2011, will be given a token 20per cent ‘‘B-class’’ shares in the new entity that will be relinquished after a transitional phase;

● there will be no elections for positions on the new board, but members will have the option of nominating a ‘‘community representative’’ director, who will have to be ratified by the NRL;

● the members’ club eventually will be wound up and its 15,500 constituents will become ‘‘ticketed members’’ of the new Knights entity;

● a new chief executive officer, replacing Matt Gidley, and other key administrative staff will be appointed;

● the Knights will retain their colours and logo and will not be moved from Newcastle.

Today’s press conference is expected to be attended by members club representatives, headed by deputy chairman Allan McKeown, as well as Smith and other NRL officials.

Knights Members Club chairman Nick Dan, who has spent countless unpaid hours in negotiations over the past few months, flew out for Europe yesterday on a holiday he booked last year.

Dan and McKeown were liaising with the NRL until late on Wednesday night and the deal merely needed to be rubber-stamped.

HSG had agreed to terms more than a week ago.

It is considered unlikely HSG representatives will be at today’s press conference.

● There was speculation last night the Knights had signed North Queensland Cowboys prop or second-rower Tariq Sims, whose brother Korbin plays for Newcastle.

The 24-year-old from Gerringong has played three games for Country Origin and at the World Cup for Fiji.

LINK

 

[Cletus]

That sounds like a pretty good outcome for the Knights.

 

[Frederick]

Excellent outcome for the knights. Removing voting privileges will prevent all the genius fans out there voting in horribly unqualified people like chief to the board.

The days of the old boys club are finally over!

 

[El Diablo]

Excellent outcome for the knights. Removing voting privileges will prevent all the genius fans out there voting in horribly unqualified people like chief to the board.

The days of the old boys club are finally over!

Clint Dogg for CEO

 

[Ronnie Dobbs]

Clint Dogg for CEO

:lol::lol:

 

[RUG13Y]

Happy independence day Knights

 

[Apey]

Everyone whose ownership issues have been resolved with an announcement expected soon, please step forward.

... not so fast Knights.

http://www.theherald.com.au/story/2...ncement-delayed-for-more-negotiations/?cs=303

NRL's Knights announcement delayed for more negotiations

By ROBERT DILLON

June 13, 2014, 11:09 a.m.

See your ad here

NRL chief executive Dave Smith has cancelled a trip to Newcastle to announce the new Knights entity after an unexpected 11th-hour delay.

The Herald was told on Thursday night that Smith would appear at a press conference at Wests Mayfield on Friday to discuss the end of Nathan Tinkler’s reign and the handover to new management, to be run by the NRL for an interim period.
The function was cancelled about 10am on Friday.
The Herald has been told that both the NRL and Knights Members Club were happy for the media briefing to proceed but Tinkler’s Hunter Sports Group – who had reportedly agreed to all terms and conditions more than a week ago – were still perusing documents one last time.
‘‘It’s disappointing,’’ one source said.
The delay is mystifying, given that NRL head of club services Tony Crawford said last week the NRL and HSG had ‘‘agreed on a package which would make the Knights financially secure’’ and HSG chief executive Troy Palmer said eight days ago: ‘‘The NRL and HSG have been agreed for weeks.’’
It was still hoped there would be a statement issued by Friday afternoon, confirming the deal has been done, but Smith is now not expected to visit Newcastle until early next week.
The process of removing Tinkler, the Knights’ first private owner, kicked off almost three months ago when the Herald revealed he was struggling to raise a mandatory $10.52 million bank guarantee.
After protracted negotiations to remove HSG, the NRL has elected to assume control of the franchise until a new owner can be sourced.

 

[BunniesMan]

You get the feeling the current NRL regime hopes to one day have control like this of every club. It is worrying because I feel too little independence in the game is not good for the game.

 

[Canard]

● the rest of the bank guarantee will be used to help pay selected HSG liabilities, in particular trade creditors and employee entitlements;

This will upset a certain Knights Fan, whose felt that people were picking on poor Tinks just because he wasn't paying tradies!

You get the feeling the current NRL regime hopes to one day have control like this of every club. It is worrying because I feel too little independence in the game is not good for the game.

Gee you've leaped a long way there, Im surprised you didn't mention Hitler or Nazis

 

[Hutty1986]

You get the feeling the current NRL regime hopes to one day have control like this of every club. It is worrying because I feel too little independence in the game is not good for the game.

Don't worry, no-one wants anything to do with souffs.

 

[Hello, I'm The Doctor]

You get the feeling the current NRL regime hopes to one day have control like this of every club. It is worrying because I feel too little independence in the game is not good for the game.

Can you articulate why total ARLC ownership would be a bad thing??? or is it just a gut feelings we should trust....

 

[eozsmiles]

You get the feeling the current NRL regime hopes to one day have control like this of every club. It is worrying because I feel too little independence in the game is not good for the game.

The clubs should start a breakaway competition separate from the governing body.......oh, hang on, been there before.

 

[TheDMC]

This will upset a certain Knights Fan, whose felt that people were picking on poor Tinks just because he wasn't paying tradies!



Gee you've leaped a long way there, Im surprised you didn't mention Hitler or Nazis

You may have quantum outleaped Bunniesman...

 

[Cumberland Throw]

Why are the nrl an members still talking to hsg ?

 

[Frederick]

It's official

NRL takes over Newcastle Knights as Nathan Tinkler departs
By MATT CARRJune 14, 2014, 10:19 a.m.
The NRL has officially taken control of the Newcastle Knights.


NRL Knights chairman Paul Harragon and NRL chief executive Dave Smith announce the league will take control of the Knights. Pic: Brett Keeble
In a rescheduled announcement on Saturday morning, NRL chief executive Dave Smith said the move would offer certainty players, fans and sponsors were seeking.

The Knights will continue to play out of Newcastle with their traditional jersey and logo.


“The Knights will continue to be Newcastle through and through,” Mr Smith said in a statement on the Knights' website.

“The team will look the same, they will continue to be based in Newcastle and they will represent this region proudly like they have for the last 26 years."

“The difference is that, financially, they will be one of the top tier clubs in the competition.”

The agreement follows talks between former owner Nathan Tinkler's Hunter Sports Group, the NRL and the Newcastle Knights Members Clubs.

The club's assets have been transferred to new entity Knights Rugby League Pty Ltd, which the Members Club will hold a 20 per cent stake in.

Mr Smith said keeping the Knights competitive was always the goal of the discussions and thanked HSG for their contribution to the club.

“Our first objective was to resolve the ownership dispute in the interests of the Newcastle Knights, their players, staff, sponsors, members and fans – and that has been achieved,” Mr Smith said.

“Our next task is to stabilise the business and, when the time is right, we will consider appropriate longer term ownership options for the business to position it for the future.”

The new Knights board will comprise seven members, including one community representative initially nominated by the Members Club.

Two shareholder representatives from the NRL will also be on the board, with another four independent directors.

The $10.52 million bank guarantee will be used to pay Hunter Sports Group's existing employee and supplier debts and to provide $5.1 million to the new club.

The arrangements will also fund ligitation between the Members Club and promoters Rock City.

No changes will be made to the Knights' business for the rest of the 2014 season, Mr Smith said.

Knights chief exeuctive Matt Gidley said he was pleased with the result.

“We now have an opportunity for a fresh strong start and that will be welcomed by our proud rugby league community,” he said.

Members Club director Allan McKeown said other options were considered but the Members Club, but the final choice was aimed at securing the club's future.

“While there were a range of options available to the Members Club we wanted to end the uncertainty surrounding the Knights and give the players, staff, fans and members a strong future,” he said.

Hunter Sports Group chief executive Tory Palmer said the company was proud of its legacy at the Knights.

“We have invested more than $20 million and the Knights now have a stable building platform which is reflected in the world class training and coaching structure from the NRL down through the elite junior programs.

“We will continue our involvement as a major sponsor for the next five years and support the Knights from the sidelines.”

LINK

 

[Rosetta]

The Members Club did a good job, every appointee to the board will either live currently or be originally from the Newcastle/Hunter region, the NRL only has control of 2 seats, 4 will be independent, last will be Members Club appointed(?).

This is from Dave Smith on radio Triple M atm.

 

[insert.pause]

TINKLER REPLACES BAARTZ AS NEWCASTLE JETS CHAIRMAN

The ex-owner of the NRL outfit Newcastle Knights added: "And being involved in soccer, it's nice to wake up on a Monday morning and not have to worry about who my players have beaten up and done for DUI or whatever. In a corporate sense it's a lot better to be involved in soccer than rugby league."

http://theworldgame.sbs.com.au/article/2015/01/09/tinkler-replaces-baartz-newcastle-jets-chairman

Seems a little vindictive.

 

[Canard]

Not as worrying as waking up in the morning to find your owner is broke.