Newcastle in financial strife

[Danish]

The knights should just tell em to get f**ked and they'll pay when they please.

Are the owners of this stadium honestly going to toss their biggest (and only) client?? Un-f**king-likely.

Frankly they shouldn't even be paying rent given the amount of income they'd be bringing that stadium each year.

 

[El Diablo]

http://www.leaguehq.com.au/news/lhq...ver-stadium-row/2009/03/31/1238261580022.html

Knights threaten to leave Newcastle over stadium row

Greg Prichard and Matthew Kelly | April 1, 2009

KNIGHTS chief executive Steve Burraston says it is possible the club will be forced to take the extraordinary step of playing home games away from Newcastle if their dispute with the Hunter Venues Authority over licence fees for the use of EnergyAustralia Stadium cannot be resolved.

"I would like to think that wise heads will prevail, but if they [the HVA] make it too hard for us to play there, or if we go to arbitration and they decide against us, then we might have to consider other venues," Burraston said last night. "We might have to look at relocating to Bluetongue [Stadium, at Gosford], or playing at one of those other stadiums that are prepared to pay teams to play at their venues, in order for us to survive."

Sydney venues ANZ Stadium and the SFS have deals in which they pay clubs to play some games at those grounds.

What were already difficult negotiations between the the Knights and the HVA exploded yesterday when the authority issued the club with a default notice for $792,000 in unpaid debts for the use of the ground.

Burraston said he realised the issuing of the notice had been made public when he was contacted for comment by the Herald, and he reacted by issuing a media release in which he said the Knights were "extremely disappointed to learn today that Hunter Venues has leaked details of a notice of default to the media".

The club boss also recorded a video message to assure fans the Knights would continue to try to reach a "mutually beneficial outcome" with the authority, and posted it on the club's website.

But the two parties are way off reaching an agreement at this stage, with the club claiming that if the authority was serious about which party owed the other money, then it would be the authority in debt to the Knights.

"We have the issue where we have invoiced the authority for some stadium maintenance we undertook, which they haven't paid, and we are also seeking compensation because part of the stadium, on the western side of the ground, isn't available," Burraston said.

Redevelopment work on the western grandstand area is not due to be finished until late next year. Burraston described the entry into the public arena of the default notice as a "breach of confidentiality", and said he could "only guess at what games are being played".

"We last met with the authority on March 23, and once the meeting had ended we walked out with the belief that we would still be negotiating for another two months before any action would be taken, by either side," Burraston said. "I don't know what has happened since then."

Authority chief executive Mark Zundans said the notice of demand stemmed from unpaid 2008 licence fee invoices that were issued in November, December and January.

"It was always our attempt to try and work our way through this but, at the same time, it's got to the point where we need to draw a line in the sand," he said. "They have indicated they may have sources where they could get the money, it's a matter for them."

Burraston said the Knights had a lease on the stadium for another 10 years but that because the club depended so heavily on money made from staging games they had to be very careful about the decisions they made.

"It obviously wouldn't be palatable to the people of Newcastle for the Knights to play anywhere but at EnergyAustralia," Burraston said. "And I would think that the Knights having been the only viable tenant the ground has had for 21 years would stand us in good stead. But it now becomes a month-by-month proposition. Nothing can change until the end of April, but at this stage I'm not sure what will happen after that."

Burraston said the drama would not affect the club's ability to pay its players.

 

[TeamSatan]

Just small town politics or yokell preening.

Newcastle have quit the big league before......Will they do it again ????

 

[Perth Red]

So who is the company that owns the stadium and how come they own it? Didn't the Govt put alot of money into redeveloping it?

 

[knaus]

the stadium owners should probably think about how the upgrades being done now and the 'andrew johns stand' would not have been done if it werent for the knights

 

[macavity]

ok the background

until last year EAS was owned by the ISC Trust - an independent trust with members appointed by the State Govt.

last year management of EAS (and surrounds), the Newcastle Entertainment Centre and the Newcastle Showgrounds was all given to a new wholly-owned state govt. owned corporation, Hunter Venues.

they recruited some Perth nuffy to be CEO, Mark Zundans.

said Perth nuffy has NFI about Newcastle or Rugby League. Probably hates both. Has already had a go at the Knights (in favour of the Jets, who still owe the Knights considerable sums, it must be said) in the local papers. Not a good start to a working relationship with the Hunter's sporting flagship.

Zundans is given the brief of making as much money as possible through Hunter Venues for the incompetent state govt.

Zundans sets about making as much money as possible, chiefly by trying to screw the Knights.

The Knights already pay the highest stadium rental in the comp. Yes, higher than the Broncos, Titans, anyone.

The Knights spend 20yrs lobbying to get funds spent on EAS. Finally succeed, with no help from Hunter Venues (and very little from the Jets). The upgrades will benefit all parties - in the long term.

In the short term, the Knights suffer massive financial hits as they lose half of their corporate facilities, 20% of their season ticket holders, and 6,000 capacity for a year or two.

Knights seek fair rent abatement (approx 1mil) for the period. I have not seen the lease, but I know the general terms and I know the Knights legal team believe they are in a very strong position to claim this amount.

Hunter Venues, charged with screwing their tenants, offer them $120k.

Knights owe 720k. Knights are owed approx 1mil.

As any business would, Knights offset what they owe against what they are owed. Negotiations are ongoing.

To try to bully the Knights, Hunter Venues issue notice of breach.

Whispers around town are that Zundans wants HV to manage the stadium themselves, and lease to the Knights and Jets as tenants - so HV controls all stadium advertising, catering, etc.

This would bankrupt the Knights, put a dent in the Jets finances too. Zundans, not seeing the forest for the trees, appears not to care. Constantine sees this as an opportunity for him to take control.

HV lose the Knights as a tenant, EAS is a white elephant and Jets take the bill for all the running costs - they pay about 20% now (and think they get a bad deal...)

State Govt needs to step in now, sack Zundans, and work this out quick smart. Our problem is that our local member doesnt represent our area, and is a moron to boot.

 

[macavity]

I will add, we need YOUR help guys.

write in to support the knights to every paper you can.

letters@theherald.com.au

http://www.news.com.au/dailytelegraph/letter

letters@smh.com.au

This is about the state govt screwing our sport in their desperate lunge for cash. It is serious enough that the NRL might just lose one of their best supported teams, and an RL mad city might just lose their sporting flagship. we need to put pressure on the state govt to come to their senses.

whether you hate the knights or whatever, please give us a hand.

 

[Mr Saab]

Liquidate Paul Chief Harragon as an asset.

Asset?
He is a liability

 

[forward pass]

Which ground did the Mariners used to play at? Is that an option?

 

[macavity]

Which ground did the Mariners used to play at? Is that an option?

no - it is now a greyhound track.

no2 sports ground in the centre of newcastle would be the only other local option - it holds about 12k, of which maybe 500 can fit in the stand, the rest on the hill.

Zundans is really trying the bully boy tactics.

 

[coach]

May be they could play out of where the Hunter Mariners played.

On a serious note, its not good to hear of the problems the club is having. The game needs a Newcastle team so I hope everything is worked out.

 

[Timmah]

Gardens Greyhound Track (formerly Breakers/Topper Stadium) is still capable of hosting RL and soccer, but it wouldn't be up to NRL standard I would think.

 

[macavity]

Gardens Greyhound Track (formerly Breakers/Topper Stadium) is still capable of hosting RL and soccer, but it wouldn't be up to NRL standard I would think.

hardly the point anyway is it - for the majority of the past 21 years the Knights have paid all the upkeep, paid for improvements, and lobbied for upgrades. They may not own the stadium, but it has been built with their blood, sweat and tears.

this blow-in from Perth is trying to hold us hostage and is acting in bad faith in "negotiating" legitimate claims by the Knights.

He, and the state member imposed on the Hunter, have both consistently acted in a way combatative to the Knights.

The Knights go down or move and who is going to pay the upkeep, the Jets? good luck getting anything out of Con "pay em late, if you pay em at all" Constantine - the Knights sure as hell can't get a fair share out of him.

 

[Timmah]

Don't get me wrong, I want the Knights to stay there - I love that ground. This just sounds that much more serious than anything that's been reported before. Let's hope they're making a mountain from a molehill.

 

[Jobdog]

So let me get this straight, they paid f**kloads of dollars to get the stadium to a "world class facility" just so the Jets can use it 6 months a year? I don't think so ...

 

[skeepe]

Newcastle Knights
1998 - 2009

Good riddance to bad rubbish.

 

[macavity]

Newcastle Knights
1998 - 2009

Good riddance to bad rubbish.

Skeepe = genius.

 

[greg]

Newcastle Knights
1998 - 2009

Good riddance to bad rubbish.

Hopefully that comment is tongue in cheek.
The Knights and Newcastle are a big part of our game, if they were to fold it would be catastrophic. Hopefully it will all be sorted.

 

[Jobdog]

Newcastle Knights
1998 - 2009

Good riddance to bad rubbish.

Face it skeepey, you'd be shattered. Who else would there be for you to hate for no apparent reason?

 

[Timmah]

God {username} is a genius :roll: