Newcastle in financial strife

[Timmah]

Newcastle Knights face being booted out of EnergyAustralia Stadium By Todd Balym
March 31, 2009
Newcastle faces the prospect of being evicted from their home ground with Hunter Venues issuing the club a notice of default for $792,000 in outstanding rent.
Just five days out from their first home game of 2009 at EnergyAustralia Stadium, the Knights have confirmed they owe money and have until the end of next month to settle the debt.

But the Knights are refusing to pay and instead claim Hunter Venues owe them more than $1 million for maintenance and compensation due to the stadium redevelopment.

In an extraordinary move, Knights chief executive Steve Burraston went public with the negotiations because he believes Hunter Venues leaked the default notice to the media, breaking an agreement for private negotiations which have been ongoing since December.

Burraston recorded a video message to sponsors and fans on the club's website to reassure them that the club was still operating “business as usual''.

“We are of a belief that Hunter Venues owes the Knights money and we're of the understanding that we were still negotiating and would be for at least the next two months,'' he said.

“To receive the default notice was a surprise, but the breach of confidentiality by putting this in the public arena through the media is extremely disappointing.

“We have been in negotiations since December on not only this issue but also outstanding monies we believe Hunter Venues owes the Newcastle Knights.

“Our claim and invoice is for in excess of $1 million, a greater amount than the claim Hunter Venues has on the Newcastle Knights.

“As of our last meeting on the 23rd of March we were of the understanding we had two months to further negotiate these issues before any action would be taken.

“One can only guess at what games are being played, I don't want to speculate.''

http://www.foxsports.com.au/story/0,8659,25271804-23214,00.html

KNIGHTS EXPRESS DISAPPOINTMENT

Tuesday 31 March, 2009

The Newcastle Knights were extremely disappointed to learn today that Hunter Venues has leaked details of a ‘Notice of Default’ to the media with regards to the EnergyAustralia Stadium tenancy agreement.

This is a matter the Knights CEO and his board believed was still under confidential negotiation, along with claims the Knights have on Hunter Venues for maintenance and compensation due to the stadium redevelopment.

As the backbone of Newcastle’s flagship sporting organisation, CEO, Steve Burraston believes Newcastle Knights members and supporters deserve to hear the facts in full from their club.

Mr Burraston recorded a special message this afternoon assuring Knights members and supporters it’s business as usual despite what you will read tomorrow, and that all efforts will continue to negotiate a mutually beneficial outcome between the Newcastle Knights and Hunter Venues for the ongoing use of EnergyAustralia Stadium.

He said negotiations had been ongoing since last December for two amounts the Knights are claiming from Hunter Venues for over $1-million and the $792,000 claimed by Hunter Venues for outstanding rent from the Knights.

“ We are of a belief that Hunter Venues owes the Knights money and we’re of the understanding that we were still negotiating and would be for at least the next two months,” he said.

“ To receive the default notice was a surprise, but the breach of confidentiality by putting this in the public arena through the media is extremely disappointing.

“One can only guess at what games are being played, I don’t want to speculate.”

Knights media release

Video of Burraston here: http://bigpondvideo.com/NRL_Knights/117852

 

[KHunt]

This is a knightmare for all the fans up in the Newcastle.

 

[Solid]

Liquidate Paul Chief Harragon as an asset.

 

[Ladmate]

I feel for all Knights supporters.

 

[Charlie124]

Poor Newcastle

 

[bartman]

Are there any other venues of sufficient size in Newcastle, or is it a bit of a closed shop?

 

[Timmah]

Breakers Stadium (admittedly now a Greyhound track) would be the only one capable of holding 10k+ I think. They might have to look at Gosford if negotiations do come unstuck.

 

[Dutchy]

Nothing else in Newy

 

[Didgi]

Aha, we have the first club willing to relocate !

 

[bartman]

Breakers Stadium (admittedly now a Greyhound track) would be the only one capable of holding 10k+ I think. They might have to look at Gosford if negotiations do come unstuck.

Nothing else in Newy

Hmmm.... the NRL will be in strife unless it (eventually) works toward owning some grounds at some point in the future. Potential to be held for ransom.

 

[Dutchy]

Why would Newcastle want to relocate?

One team town, crowd average of 22-33k last season. One of the teams that should never relocate.

 

[Timmah]

They won't be able to average that without a home ground... their next closest hope is the Central Coast.

 

[Timmah]

BTW Dutchy, average '08 was 18,750. Last year was a terrible year for Newie crowds.

 

[Dutchy]

My bad, but still, more than a 2k average over any other NSW team and only behind Titans and Broncos.

 

[Didgi]

Why would Newcastle want to relocate?

One team town, crowd average of 22-33k last season. One of the teams that should never relocate.

Sorry, the smiley at the end of the post was supposed to indicate me being a total d!ckhead. Of course Newcastle shouldn't move, however, unfortunately, they may be forced to sometime down the track.

 

[Jobdog]

:lol: Yeah I'll believe it when I see it. Looks like its sucked you all in though :lol:

 

[redvscotty]

I f**king hate the word 'monies'.

 

[Solid]

NRL will bail them out

 

[Non Terminator]

BTW Dutchy, average '08 was 18,750. Last year was a terrible year for Newie crowds.

Still an amazing number. Look, as much as I dislike Newie, I'd hate to see them in strife financially. I think the same for all teams.

 

[perverse]

we'll get through it in one way or another. we always have in the past.. in spite of our clubs complete lack of management nous and practice.

anyone thinking that we'll relocate or disappear is sorely mistaken. we'll get bailed out by either partial of full privitisation before that happens. i, for one, would embrace that change.

the sad part about all of this is that the knights get absolutely and completely ripped in terms of the stadium lease costs in newcastle. we would have the highest bills in regards to stadium costs of any team in the league (or definitely right up there).. and it has suffocated us massively financially. what blows me away in all of this is that if they did kick the knights out and tear up the lease... the brand sparkly new stadium would sit there completely unused, as even the jets are sub-leasing it from the knights themselves.

basically what i'm saying is that this wont happen, for a great many reasons. it does make a good story though.