Sell-Off...

[Southernsaint]

Saints' $6.5m sell-off

By Dean Ritchie
March 16, 2006

WIN Television Corporation has purchased a quarter-share of St George-Illawarra in a historic deal worth more than $6 million.

Details of the shock deal will be revealed at a press conference in Wollongong today.

The Illawarra side of the merged club is understood to be struggling to pay back an $8 million loan from St George Leagues Club, and has sold half of its share in the joint venture.

The Steelers are attempting to repay the debt but cannot sustain ongoing heavy payments.

Illawarra's board secretly voted to sell off 50 per cent of its share at a recent board meeting - meaning St George-Illawarra is now 25 per cent owned by the Wollongong-based television station.

Dragons chief executive Peter Doust was unavailable for comment last night.
The $6 million that Illawarra will receive from the WIN Corporation will help pay back the Steelers' debt to St George Leagues Club.

NRL chief executive David Gallop was in Adelaide overnight promoting the round-six match between Penrith and Melbourne at Hindmarsh Stadium on April 15.

Gallop will however return to Sydney early this morning to attend today's announcement.

Illawarra is understood to have borrowed the money from St George Leagues less than two years ago.

The debt proves a theory most held when the two clubs merged in 1999: St George would supply the money, Illawarra the players.
The deal highlights the success of the joint-venture club, with the Russell Crowe-Peter Holmes a Court takeover bid for Souths being negotiated for $3 million.

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Bermuda's biggest Steelers fan, eh?? Where was he when the Stanley's were going down the pan int he late 90's??

 

[Willow]

Illawarra's board secretly voted to sell off 50 per cent of its share at a recent board meeting

Secretly?
That line suggests that only the Illawarra side knew of the sell off.
Who else were they keeping the dark?

Presumably WIN would like to see more TV games in Wollongong but on the surface it looks like quite an odd if not risky move:

Is the Club is still haggling with the Wollongong Trust over WIN Stadium? I understand that still hasn't been resolved and the deal still has to be reviewed at the end of 2007 (although everyone expects Saints will still play games in Wollongong).

Then there's this much publiscised pokey tax, and Illawarra's precarious financial position... a key perhaps and one which forced Illawarra into this sell off.

Meanwhile lights will bring Kogarah up to TV standard - which by rights should mean a true 50/50 split and at least one less game in Wollongong in 2007.

It'll be interesting to see the response from the entire Club. No doubt St George will be happy to see some money coming back but the politics have shifted slightly. WIN TV now have a say in the opertaions of the joint venture Club and equally, Illawarra have reduced their say (at least in company terms).

Half the bed is looking somewhat crowded.

 

[drake]

i just hope that WIN don't want there logo on our kit.

Our jerseys will end up as bad as V8 supercars jumpsuits, logos on every centimetre of fabric.

 

[Willow]

There's a press conference today at Steelers Club with David Gallop, Warren Lockwood and Peter Newell in attendance.

The media alert describes it as an 'historic announcement relating to the future of NRL in the Illawarra and South Coast Regions. While it is not possible to provide advance details of the announcement both Sydney and Illawarra based media are advised that it is of major significance.'

 

[Starkers]

i think this is a terrible decision. why could st george not simply re-aquire the 25% stake in the club?

 

[Ribs]

The wollongongers would never allow that.......

 

[drake]

As seen in recent years, I don't think anyone outside the inner circle of the club, Illawarrans or St Georgians, has any say in anything.

Plus, what say did Illawarrans have in whether or not to bludge $8 mill off Saints leagues, and where to spend it? As a south coast resident, I find no redeeming value in spending cash on Steelers leagues club.

 

[Willow]

Had to laugh at this from Jubilee Avenue forum:

But here's a rather comical point:

Ever since the merger, Steelers fans have complained that their club isn't recognised as being worth 50% of the Joint Venture.

Well now, it is official.

They aren't worth 50%.

 

[Ribs]

I suppose having a badge that says St George Win isnt too bad.

 

[Steelers4eva]

As seen in recent years, I don't think anyone outside the inner circle of the club, Illawarrans or St Georgians, has any say in anything.

Plus, what say did Illawarrans have in whether or not to bludge $8 mill off Saints leagues, and where to spend it? As a south coast resident, I find no redeeming value in spending cash on Steelers leagues club.

Exactly right Drake. Last thing I remember hearing about this was the Steelers were planning to sell some land near the leagues club (hoping to achieve around $10 million) to pay off this debt. Now this comes as a bolt from the blue. I just hope they use the entire amount they get for their 25% to reduce the debt to St George instead of pumping funds into the black hole across the road from the stadium.

 

[God-King Dean]

WIN St George Illawarra

 

[S2H]

6Mil for 25% of the dragons, 3mil for 100% of Souths.

 

[Steelers4eva]

6Mil for 25% of the dragons, 3mil for 100% of Souths.

Sounds fair but I think its actually 51% or there abouts of souths for the $3 million. One is a solid and proven product, the other has potential as soon as they get rid of the rooten driftwood who thinks he owns souths. If I had that sort of money I know which one I'd be investing in.

 

[Slippery Morris]

It's actually $3mil for 75% of Souths. Pay another $1mil and they could probably get 100% of Souths.

 

[Willow]

WIN boosts Dragons coffers

Written by: Dragons media

16/03/2006

St George Illawarra's future on the south coast is secure, with WIN Corporation announcing it has purchased a quarter share in the NRL joint venture club for $6.5 million.

The money put forward by the regional television network will help ease the financial burden on the Steelers Club, the Illawarra arm of the Dragons, which is struggling to pay back a loan of $8 million to its joint venture partner, the St George Leagues Club. The financial boost, for which WIN will acquire 24 per cent of the joint venture, will see Wollongong maintain its quota of hosting half of the Dragons' NRL matches at WIN Stadium each year and enable to Steelers Club to work towards financial viability.

Dragons chairman Warren Lockwood says having WIN as a corporate partner is a major coup for rugby league across the Illawarra.http://www.jubileeavenue.com.au/news.asp?num=9986

.................................................................................................................................
Firstly, I don't think there was ever a risk of the Dragons leaving Wollongong in the foreseeable future. The Illawarra arm were either going to sink or swim... that's business. But either way, I doubt St George would ever throw the South Coast juniors to the wolves.

Also, I don't follow the meaning of 'Wollongong maintain its quota of hosting half of the Dragons' NRL matches' - For the last six seasons, Wollongong have been getting a greater share of home games and are merely facing the prospect getting a fair and even 50/50 split.

I fully appreciate the deal will help ease the financial burden on the Steelers Club, and I can understand the attraction of an injection of funds. But in my opinion, it has very little to do with home ground allocation for 2007 or securing the future of the Dragons playing football in the Illawarra.

 

[Father Ted]

I suppose having a badge that says St George Win isnt too bad.

Shame there isn't much to back it lately.

 

[Drew-Sta]

I'm confused about the whole deal.

Why would the Steelers, when they have fought so hard to gain 50% recognition in the joint venture, seek to sell half of what was fought for?

Surely there would have been other financial chances for Illawarra to meet the debt to St George. Secondly, I doubt highly whether St George were houdning them for the money, as it is in the best interests of both Leagues Clubs and the team in general if the Leagues clubs are both working successfully with the footy team.

Lastly, they've introduced a business into the joint venture which is going to look after it's own interests and those aren't going to necessarily be the same as both the Clubs and the team's.

Why introduce a random variable into this mix? At least Holmes a Court is trying to help the club make money AND win a comp. WIN T.V. could have an agenda of it's very own...

 

[Joes Milk Bar]

does this mean illawarra will have to give up 50% of their socks?

 

[Ribs]

The new socks are all new white things... I think they gave up on the socks already.

 

[Follow Me Up To Carlton]

What's next?