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The $10m question: Did the Dragons choose the right buyer?

gonz

Juniors
Messages
1,271
https://www.smh.com.au/sport/the-10...s-choose-the-right-buyer-20180830-p500uo.html


The $10m question: Did the Dragons choose the right buyer?

Andrew Webster

The mystery bidder who missed out on part-ownership of St George Illawarra can finally be revealed amid claims he offered $5 million more than Bruce Gordon’s WIN Corporation, which was ultimately successful in taking a 50 per cent stake in the club.

South Coast entrepreneur Paul Smith’s Total Sport and Entertainment, which also owns 50 per cent of the Sydney Kings, had been in serious negotiations with the club since October. It is understood TSE offered exactly $10m to the Dragons, clearing their $5.8m of debt with the NRL while leaving plenty in cash reserves to help build the famous club into the powerhouse it should be.

Smith also offered the cash-strapped Steelers a $1.25m loan.

When the Gordon family announced in April that it was walking away from two years of negotiations with the Dragons, TSE believed it was in the box seat to buy Illawarra’s 50 per cent stake. Instead, after months of in-fighting between the St George and Illawarra factions, the Dragons enticed the Gordon family back to the table.

While WIN’s successful bid has been hailed as a “win-win” for the Dragons, questions are now being asked about the process that got it there. It has been widely assumed and reported that WIN’s bid was also worth $10m, although that figure has never been confirmed on the record by any of the parties.

There’s a suspicion from TSE the bid was far less. WIN and the Dragons refused to say how much was paid, citing “commercial confidence”.

Maybe more will be revealed when the Dragons’ annual report drops at the end of the year.

The other curious part of the WIN deal was the appointment of Dragons chairman Brian Johnston as chief executive to replace Peter Doust, who is retiring at the end of the season. It smacks of “jobs for the boys”. Johnston is a former Dragons player, was the chief executive before Doust took over in 2000 and was, as chairman, on the sub-committee to find Doust’s replacement.

Doust defended Johnston’s shock appointment when the Herald reported earlier this month that tens of thousands of dollars were paid to a recruitment firm to find a replacement CEO.

Was the WIN deal contingent on Johnston being chief executive? Or was that a condition of the St George side of the joint venture if WIN was to be successful? It is understood TSE was completely blindsided by Johnston’s appointment. It had told the Dragons there was no need to rush into appointing a chief executive. At no stage in negotiations was Johnston becoming CEO discussed.

Smith mightn’t have the public profile of the Gordon family but he is highly regarded in the world of sports business. Apart from growing up and now living on the South Coast, as well as being a life-long Dragons fan, he would’ve brought decades of expertise to the NRL. Which, to be honest, it needs more of.

His former sports consulting firm Repucom counted the NFL, NBA, FIFA and English Premier League among its clients. Smith sold the business in 2016 for $260m.

The fact that Smith’s interest in the Dragons has never been reported shows he’s not one for grandstanding. He declined to comment when contacted.

There were a number of interested parties, all with different propositions involving more than just financials, and such propositions are governed by confidentiality agreements, so it would be inappropriate for me be discussing specifics, other than to say that there were many variables considered,” Doust said.

“The available shares belonged to the Steelers and they dealt directly with WIN with respect to certain elements of the financial transaction. Under the terms of the joint-venture agreement, St George District had to sign off on any potential partner. The Steelers believed that WIN was the best option for them and the St George District Football Club and Dragons supported this decision.”

On Johnston’s appointment, he said: “The decision to appoint Brian as CEO came after it was agreed that WIN was to be the partner of the Dragons, and it was a completely separate process. Whilst there was an independent process under way for the CEO role, both partners agreed that Brian was the best person to see through this transition given his knowledge and experience. Brian is highly capable and credentialed with a vast amount of rugby league and corporate experience to blend with his passion for the Dragons.”

“So what?” some may ask about WIN out-manoeuvring TSE to seize part-ownership.

Dragons fans who have grown tired of never having a say in how their club is run, who runs it, and who owns it, especially with their side face-planting on the eve of the finals once again, might think differently.

On the surface, WIN’s involvement appears to be a fantastic outcome for the Dragons. But, like Manly fans angry about the direction of their club under the Penn family, their faithful followers often feel like outsiders.
 

J.moz

Juniors
Messages
236
Who bloody cares steelers 50% was worth peanuts .Thats why wincorp paid out Illawarra debts .2021 St.george can go it alone with the original buyer back to support the St.george Dragons and the St.george leagues .
 

j0nesy

Bench
Messages
3,747
Too long to read. Can someone give a summary in 2 or 3 lines? Cheers
Suspicion raised by the other bidder (TSE) as to the outcome of the “tender” process to acquire the Steeler’s Club share of the JV. The article asserts that WIN paid less than the other bidder and Johnston got his job to appease the St George faction in a back room deal. At least that’s my take on what the article says...
 
Messages
3,582
At the end of the day Illawarra Steelers chose WIN.

WIN had propped up Illawarra Steelers for over a decade.

Naturally, Illawarra Steelers management felt indebted to WIN.

St George/Doust chose Johnston as CEO.

Doust had a long history of cooperation with the Gordon family.

Given the poor performance of St George management, TSE probably dodged a bullet in “missing out”.
 

j0nesy

Bench
Messages
3,747
Who bloody cares steelers 50% was worth peanuts .Thats why wincorp paid out Illawarra debts .2021 St.george can go it alone with the original buyer back to support the St.george Dragons and the St.george leagues .
Dare I ask how this will be possible in 2021?
 

muzby

Village Idiot
Staff member
Messages
45,708
https://www.smh.com.au/sport/the-10...s-choose-the-right-buyer-20180830-p500uo.html


The $10m question: Did the Dragons choose the right buyer?

Andrew Webster

The mystery bidder who missed out on part-ownership of St George Illawarra can finally be revealed amid claims he offered $5 million more than Bruce Gordon’s WIN Corporation, which was ultimately successful in taking a 50 per cent stake in the club.

South Coast entrepreneur Paul Smith’s Total Sport and Entertainment, which also owns 50 per cent of the Sydney Kings, had been in serious negotiations with the club since October. It is understood TSE offered exactly $10m to the Dragons, clearing their $5.8m of debt with the NRL while leaving plenty in cash reserves to help build the famous club into the powerhouse it should be.

Smith also offered the cash-strapped Steelers a $1.25m loan.

When the Gordon family announced in April that it was walking away from two years of negotiations with the Dragons, TSE believed it was in the box seat to buy Illawarra’s 50 per cent stake. Instead, after months of in-fighting between the St George and Illawarra factions, the Dragons enticed the Gordon family back to the table.

While WIN’s successful bid has been hailed as a “win-win” for the Dragons, questions are now being asked about the process that got it there. It has been widely assumed and reported that WIN’s bid was also worth $10m, although that figure has never been confirmed on the record by any of the parties.

There’s a suspicion from TSE the bid was far less. WIN and the Dragons refused to say how much was paid, citing “commercial confidence”.

Maybe more will be revealed when the Dragons’ annual report drops at the end of the year.

The other curious part of the WIN deal was the appointment of Dragons chairman Brian Johnston as chief executive to replace Peter Doust, who is retiring at the end of the season. It smacks of “jobs for the boys”. Johnston is a former Dragons player, was the chief executive before Doust took over in 2000 and was, as chairman, on the sub-committee to find Doust’s replacement.

Doust defended Johnston’s shock appointment when the Herald reported earlier this month that tens of thousands of dollars were paid to a recruitment firm to find a replacement CEO.

Was the WIN deal contingent on Johnston being chief executive? Or was that a condition of the St George side of the joint venture if WIN was to be successful? It is understood TSE was completely blindsided by Johnston’s appointment. It had told the Dragons there was no need to rush into appointing a chief executive. At no stage in negotiations was Johnston becoming CEO discussed.

Smith mightn’t have the public profile of the Gordon family but he is highly regarded in the world of sports business. Apart from growing up and now living on the South Coast, as well as being a life-long Dragons fan, he would’ve brought decades of expertise to the NRL. Which, to be honest, it needs more of.

His former sports consulting firm Repucom counted the NFL, NBA, FIFA and English Premier League among its clients. Smith sold the business in 2016 for $260m.

The fact that Smith’s interest in the Dragons has never been reported shows he’s not one for grandstanding. He declined to comment when contacted.

There were a number of interested parties, all with different propositions involving more than just financials, and such propositions are governed by confidentiality agreements, so it would be inappropriate for me be discussing specifics, other than to say that there were many variables considered,” Doust said.

“The available shares belonged to the Steelers and they dealt directly with WIN with respect to certain elements of the financial transaction. Under the terms of the joint-venture agreement, St George District had to sign off on any potential partner. The Steelers believed that WIN was the best option for them and the St George District Football Club and Dragons supported this decision.”

On Johnston’s appointment, he said: “The decision to appoint Brian as CEO came after it was agreed that WIN was to be the partner of the Dragons, and it was a completely separate process. Whilst there was an independent process under way for the CEO role, both partners agreed that Brian was the best person to see through this transition given his knowledge and experience. Brian is highly capable and credentialed with a vast amount of rugby league and corporate experience to blend with his passion for the Dragons.”

“So what?” some may ask about WIN out-manoeuvring TSE to seize part-ownership.

Dragons fans who have grown tired of never having a say in how their club is run, who runs it, and who owns it, especially with their side face-planting on the eve of the finals once again, might think differently.

On the surface, WIN’s involvement appears to be a fantastic outcome for the Dragons. But, like Manly fans angry about the direction of their club under the Penn family, their faithful followers often feel like outsiders.
**sniffs the air**

Anyone else smell sour grapes?

TSE, I’m looking in your direction..
 

SBD82

Coach
Messages
16,905
https://www.smh.com.au/sport/the-10...s-choose-the-right-buyer-20180830-p500uo.html


The $10m question: Did the Dragons choose the right buyer?

Andrew Webster

The mystery bidder who missed out on part-ownership of St George Illawarra can finally be revealed amid claims he offered $5 million more than Bruce Gordon’s WIN Corporation, which was ultimately successful in taking a 50 per cent stake in the club.

South Coast entrepreneur Paul Smith’s Total Sport and Entertainment, which also owns 50 per cent of the Sydney Kings, had been in serious negotiations with the club since October. It is understood TSE offered exactly $10m to the Dragons, clearing their $5.8m of debt with the NRL while leaving plenty in cash reserves to help build the famous club into the powerhouse it should be.

Smith also offered the cash-strapped Steelers a $1.25m loan.

When the Gordon family announced in April that it was walking away from two years of negotiations with the Dragons, TSE believed it was in the box seat to buy Illawarra’s 50 per cent stake. Instead, after months of in-fighting between the St George and Illawarra factions, the Dragons enticed the Gordon family back to the table.

While WIN’s successful bid has been hailed as a “win-win” for the Dragons, questions are now being asked about the process that got it there. It has been widely assumed and reported that WIN’s bid was also worth $10m, although that figure has never been confirmed on the record by any of the parties.

There’s a suspicion from TSE the bid was far less. WIN and the Dragons refused to say how much was paid, citing “commercial confidence”.

Maybe more will be revealed when the Dragons’ annual report drops at the end of the year.

The other curious part of the WIN deal was the appointment of Dragons chairman Brian Johnston as chief executive to replace Peter Doust, who is retiring at the end of the season. It smacks of “jobs for the boys”. Johnston is a former Dragons player, was the chief executive before Doust took over in 2000 and was, as chairman, on the sub-committee to find Doust’s replacement.

Doust defended Johnston’s shock appointment when the Herald reported earlier this month that tens of thousands of dollars were paid to a recruitment firm to find a replacement CEO.

Was the WIN deal contingent on Johnston being chief executive? Or was that a condition of the St George side of the joint venture if WIN was to be successful? It is understood TSE was completely blindsided by Johnston’s appointment. It had told the Dragons there was no need to rush into appointing a chief executive. At no stage in negotiations was Johnston becoming CEO discussed.

Smith mightn’t have the public profile of the Gordon family but he is highly regarded in the world of sports business. Apart from growing up and now living on the South Coast, as well as being a life-long Dragons fan, he would’ve brought decades of expertise to the NRL. Which, to be honest, it needs more of.

His former sports consulting firm Repucom counted the NFL, NBA, FIFA and English Premier League among its clients. Smith sold the business in 2016 for $260m.

The fact that Smith’s interest in the Dragons has never been reported shows he’s not one for grandstanding. He declined to comment when contacted.

There were a number of interested parties, all with different propositions involving more than just financials, and such propositions are governed by confidentiality agreements, so it would be inappropriate for me be discussing specifics, other than to say that there were many variables considered,” Doust said.

“The available shares belonged to the Steelers and they dealt directly with WIN with respect to certain elements of the financial transaction. Under the terms of the joint-venture agreement, St George District had to sign off on any potential partner. The Steelers believed that WIN was the best option for them and the St George District Football Club and Dragons supported this decision.”

On Johnston’s appointment, he said: “The decision to appoint Brian as CEO came after it was agreed that WIN was to be the partner of the Dragons, and it was a completely separate process. Whilst there was an independent process under way for the CEO role, both partners agreed that Brian was the best person to see through this transition given his knowledge and experience. Brian is highly capable and credentialed with a vast amount of rugby league and corporate experience to blend with his passion for the Dragons.”

“So what?” some may ask about WIN out-manoeuvring TSE to seize part-ownership.

Dragons fans who have grown tired of never having a say in how their club is run, who runs it, and who owns it, especially with their side face-planting on the eve of the finals once again, might think differently.

On the surface, WIN’s involvement appears to be a fantastic outcome for the Dragons. But, like Manly fans angry about the direction of their club under the Penn family, their faithful followers often feel like outsiders.
Did you happen to check the date on that article?

How is this news? It’s anything but new.
 

muzby

Village Idiot
Staff member
Messages
45,708
Did you happen to check the date on that article?

How is this news? It’s anything but new.
Why are you worrying about that when there’s more important things to deal with - did you hear Notre Dame is on fire?
 

R&WTILLIDIE

First Grade
Messages
5,158
Suspicion raised by the other bidder (TSE) as to the outcome of the “tender” process to acquire the Steeler’s Club share of the JV. The article asserts that WIN paid less than the other bidder and Johnston got his job to appease the St George faction in a back room deal. At least that’s my take on what the article says...

Not all heroes wear capes
 

muzby

Village Idiot
Staff member
Messages
45,708
That’s Illawarra’s fault too, right?
Seems like it.. Pretty sure the Illawarra mafia did it to secure the contracts for both cleaning up the site and re-building it*...


*Using steel from Port Kembla, of course..
 

j0nesy

Bench
Messages
3,747
Did you happen to check the date on that article?

How is this news? It’s anything but new.
Haha, I thought it was 30 Aug this year. No wonder I thought I read this somewhere before. It’s because I had.

Looks like someone might be picking at old wounds.
 

possm

Coach
Messages
15,587
Suspicion raised by the other bidder (TSE) as to the outcome of the “tender” process to acquire the Steeler’s Club share of the JV. The article asserts that WIN paid less than the other bidder and Johnston got his job to appease the St George faction in a back room deal. At least that’s my take on what the article says...
Is it true that Illawarra's debt to the joint venture was about the same figure that SGI owed to the NRL and the remaining funds were related to Illwarra Leagues Club debt to WIN/Gordon.

If St George called in the Illawarra debt about 6m by acquiring the Illawarra shares for say 6m then sold the shares to Smith for 10m with 6m going to the NRL, the result would have been much different:
SGI would have been up approximately 4m and WIN/Gordon still being owed about 6m by Illawarra. All good for WIN/Gordon/Illawarra but not such a good deal for SGI who are short 4m and stuck with all the politics that the Illawarra old boys still wield around the boardroom with their WIN/Gordon proxies.
 

Wittenberg

Juniors
Messages
1,140
Who bloody cares steelers 50% was worth peanuts .Thats why wincorp paid out Illawarra debts .2021 St.george can go it alone with the original buyer back to support the St.george Dragons and the St.george leagues .
We can’t. Like it or not, and I wish it was just Saints, the Illawarra side of the merger keeps this club safe.We will never be threatened in any NRL restructuring or introduction of new teams. We won’t be moved to Perth or Brisbane because we are both a Sydney and a regional team. You only have to look at the discussions over the past few days. TV sees a second team in Brisbane as a necessity and long term Perth as well. West Tigers the Titans and Cronulla are suggested as the teams to be looked at and straight away Morrison saysCronulla will not be going anywhere and that the Sharks are the premier club in Southern Sydney. And guess who helps fund the NRL and oversees TV operations....our government. No because Morrison loves being on telly with his beer singing “up up Cronulla...” we need Illawarra. It’s lovely to think we can return to the past,we can’t. Unless a buyer in some future time buys out WIN we stay in our current situation.....but at least we stay safe
 
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