possm
Coach
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It all starts with the Board and the grubby way the buy out of the Illawarra shareholding was done. The main reason for the WIN/Gordon buy out was to avoid taking a total loss with regards to Illawarra bad debt. If the shareholding was snapped up by St George, who Illawarra was also indebted to, it could have been a totally different story today.
The deal took so long to be made mainly because of self interested Board members wanting to ensure their seat on the gravy train was secured long term. I estimate the Dragons would have been 10m better off if they snapped up the Illawarra shares in leu of unpaid debt and then restructured the St George Football Club in a way that members had a democratic say and the Board members were accountable each year for their decisios.
Where was the NRL, why did not they intervene and insure that this did not occur. Maybe they have their own ulterior motive (moving a weak Dragons Club to Wollongong).
Well this has happened, now what can be done about it. In recent times we have seen that this Board can be shaken into action if enough pressure is applied. A prominant person needs to take up the cause, gather support and bring pressure on WIN Corp to give up their shares and become a sponsor rather than an owner.
From that point on a restructure of the Club could happen under an interim Board. One of the key changes to be a 20% share offering made available for purchase by Red V members. A maximum of 25 shares to be offered to each Red V member.at an opening price of $2.00 each.
Such a restructure would see St George Illawarra Football Club shares breakup as follows:
The remaining 10 Board members would nominated by the 3 membership groups as follows;
The Board itself will elect its chairperson for a two year term.
$30m dollars share value attached to this restructure. Of which some will be used to repay St George Leagues Club for buying out WIN/Gordons shares and another 12m counted in as the value of St George Leagues Club currently owned shares. So in effect a net fund raise of about $10m of which $6m representing the Red V membership new share holding. In addition it is estimated the Red V membership number will quickly grow to around 40,000 members.
What do my fellow forum members think about this post; be nice!
The deal took so long to be made mainly because of self interested Board members wanting to ensure their seat on the gravy train was secured long term. I estimate the Dragons would have been 10m better off if they snapped up the Illawarra shares in leu of unpaid debt and then restructured the St George Football Club in a way that members had a democratic say and the Board members were accountable each year for their decisios.
Where was the NRL, why did not they intervene and insure that this did not occur. Maybe they have their own ulterior motive (moving a weak Dragons Club to Wollongong).
Well this has happened, now what can be done about it. In recent times we have seen that this Board can be shaken into action if enough pressure is applied. A prominant person needs to take up the cause, gather support and bring pressure on WIN Corp to give up their shares and become a sponsor rather than an owner.
From that point on a restructure of the Club could happen under an interim Board. One of the key changes to be a 20% share offering made available for purchase by Red V members. A maximum of 25 shares to be offered to each Red V member.at an opening price of $2.00 each.
Such a restructure would see St George Illawarra Football Club shares breakup as follows:
- St George Leagues Club 40%, 4m shares, 12m dollars
- New Partner 40%, 4m shares, 12m dollars
- Red V Members 20%, 2m shares, 6m dollars
- One from St George Leagues Club,
- One from the new partner, and
- One from the Red V membership.
The remaining 10 Board members would nominated by the 3 membership groups as follows;
- St George Leagues Club can nominate up to 6 candidates, 4 of which will be seated,
- The new partner can nominate up to 6 candidates, 4 of which will be seated.
- Red V Member can nominate up to 4 candidates, 2 of which can be seated.
The Board itself will elect its chairperson for a two year term.
$30m dollars share value attached to this restructure. Of which some will be used to repay St George Leagues Club for buying out WIN/Gordons shares and another 12m counted in as the value of St George Leagues Club currently owned shares. So in effect a net fund raise of about $10m of which $6m representing the Red V membership new share holding. In addition it is estimated the Red V membership number will quickly grow to around 40,000 members.
What do my fellow forum members think about this post; be nice!
