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Tinkler proposal back on (take 3)

Serc

First Grade
Messages
6,902
Probably worth starting a new thread now that everything is back on again, and information is starting to come out about this 3rd offer.

Tinkler set as Knight in shining armour
Brad Walter
February 26, 2011

NATHAN Tinkler will immediately pay up to $5 million to cover Newcastle's debts and has assured members that the Knights would not change their name, colours and logo or relocate to another city without their approval if he was to gain control of the club.
The assurances are contained in a 100-page document outlining the mining magnate's offer to buy the Knights, although the wording of some sections were still being formulated by lawyers from the two parties yesterday to ensure there can be no misunderstanding of the terms of the deal.
Tinkler has also committed to underwrite a minimum of $10 million in sponsorship revenue for the club until 2021 - a guarantee expected to cost him more than $3 million in the first year of the deal as the Knights' sponsorship income is about $7 million.
Any profit made by the club will be put into junior development and should Tinkler, who has an estimated worth of $610 million, go broke the Knights members will be able to buy the club back for $1.
''Nathan won't take a cent out of the club and that is what upset him so much this week, the fact that some people were suggesting he was somehow going to make money out of it or that he was trying to dud the Knights,'' a source close to the deal said of Tinkler's decision to withdraw the offer on Monday before re-submitting it on Wednesday night.
''He just wants to do it for the community and to ensure Newcastle has a good football team.''
Much of the confusion about the deal revolved around the headline figure of $100 million - Tinkler's offer to guarantee the Knights $10 million in sponsorship revenue per year for 10 years. Some people had mistakenly thought Tinkler was paying $100 million to buy the club, a figure that would have dwarfed the $3 million Russell Crowe and Peter Holmes a Court paid in 2006 for a 75 per cent stake of South Sydney.
In fact, the two deals are similar, which is not surprising as Tinkler Sports Group chairman Ken Edwards was the boss of ANZ Stadium when the Rabbitohs, under Crowe and Holmes a Court, negotiated a 10-year, $10 million deal to play at Homebush Bay until 2017.
''Half the fun of privately owned clubs in the NFL,'' says Souths chief executive Shane Richardson, ''is the eccentricity of the owners and it's the same with people like Russell, Nathan Tinkler and Eric Watson at the Warriors.
''You've got to run a club as a business but you have got to have a passion for the game. I don't know Nathan Tinkler but he hasn't robbed a bank, he's a self-made millionaire, he's a race horse owner, he's Newcastle born and bred, his father was a truck driver, so he doesn't look like a bad bloke to me.''
http://www.smh.com.au/rugby-league/...-knight-in-shining-armour-20110225-1b8ns.html
 

Serc

First Grade
Messages
6,902
Tinkler's millions for Knights come at a price
Richard Hinds
February 26, 2011

WOULD Nathan Tinkler be good for the Newcastle Knights? The question would be answered by the factors that always distinguish the good private owners from the opportunists and self-aggrandisers. A terrible season and a sagging bottom line.
Tinkler has offered a guaranteed 10-year investment and, for what it's worth (on top of $100 million), clearly his heart beats red and blue. You got a sense of Tinkler's affection for the club this week when he reminisced about ''The Chief, Sarge and Butts''.
Such passion from a private owner can lead to impatience and impetuosity - potentially ruinous for a young or rebuilding team. It can also be the source of the vibrancy that shakes out the slackers and marginalises the crusty blazers who have put personal position before ultimate success.

Mucci-200x0.jpg
Illustration: michaelmucci.com

The most important thing Newcastle fans need to hear from Tinkler, before a potential vote on the club's ownership structure, is that he has a viable and potentially profitable long-term strategy. A common theme with even the best-intentioned new private owner is to ignore the fact that owning a sports team is often like tipping a suitcase full of $100 notes off the Harbour Bridge. Some flee before the cash has hit the water.
Still, notwithstanding a massive plunge in minerals prices or sweeping bout of equine influenza, Tinkler can afford to put his money where his heart is. He is no Geoffrey Edelsten or Christopher Skase, the flamboyant pair whose costly failures eventually forced the AFL to abandon the private ownership model.
You can be sure of one thing - Tinkler is not staging a $100 million photo opportunity. This, you figure, would be an owner more comfortable having a post-match beer with the boys in the sheds than eating very small salmon from very large plates in the corporate dining room.
I recently attempted to arrange an interview with Tinkler through a publicist to ask him about his passion for sport. I was told he would not talk to the Herald. He was unhappy with the way some of his business dealings had been reported. To make a fortune in such the rough and tumble mining industry takes a hard head and a thick hide. As the old saying goes, you do not make omelette without breaking a few eggs. That was apparent this week in his robust dealings with the Knights board. But Tinkler, as is his right, insists his kitchen was much cleaner than the Herald has portrayed.
Still, it would be fascinating to know what, beyond an oft-stated sense of community responsibility, has inspired Tinkler to put $100 million on the table when others can watch the Knights for the price of a $191 ''bronze defender'' membership. Which raises one problem with Tinkler's offer - not of his making. Newcastle's white Knight would enter the game at a time when the NRL is attempting to convert historically passive, often couch-bound supporters into active members and game-day fans.
Club memberships have grown at a reasonable rate in recent years. Yet the income derived from memberships and reserved seats still falls proportionally far below those of the English Premier League, the American NFL or - as the NRL is loath to be reminded - the massively subscribed AFL.
The reasons for the shortfall in memberships and live attendances are well known. Leagues club models encouraged fans to ''support'' their club by shovelling money into pokies, rather than shuffling through the turnstiles. The disputable theory that league is ''a TV game''. The failure of apathetic or poorly resourced clubs to adequately market themselves.
It seems only the obvious dilemma - that even a much-improved TV rights deal and yet more gambling dollars will not necessarily ensure their continued prosperity - has prompted NRL clubs to act more assertively. Even then, you wonder if they are yet creating the type of bonds that endure inevitable poor seasons. Whether they are doing enough to give the game the audience it deserves.
Like Russell Crowe at Souths, Tinkler would bring with him a sense of hope and excitement to Newcastle. His wish of having ''the best 20 kids from the Hunter running out each week'' might, as he says, strengthen community ties to the club and increase membership sales.
But you wonder if, deep down, those fans who benefit from Tinkler or Crowe's largesse will feel like a premiership has been bought for them, not been created by them. And whether cashed-up private ownership models will dilute the message of those spruiking memberships at clubs with no movie stars or mining magnates.
Still, as a success-starved Bunny or an impatient Knight still wearing his Joey Johns jersey might tell you, a privately owned premiership would be better than no premiership - and no club - at all.
http://www.smh.com.au/rugby-league/...r-knights-come-at-a-price-20110225-1b8ih.html
 

Serc

First Grade
Messages
6,902
Also I spotted this little sequence on the SMH website that I had a few chuckles at:

26FEB11_KNIGHTS_WEB01.jpg


26FEB11_KNIGHTS_WEB02.jpg


26FEB11_KNIGHTS_WEB03.jpg


26FEB11_KNIGHTS_WEB04.jpg

 

Rusty

Juniors
Messages
1,676
It's all fun and games, but there would be club's in a frenzy trying to re-sign their players by March 30 and many sleepless nights.
 
Messages
16,034

roopy

Referee
Messages
27,980
Talking of soap operas - how is Tinks managing to keep his picture out of the paper since he had his stomach banding operation?
I've heard he has dropped an enormous amount of weight and is nearly impossible to recognise, but they are only showing old pics of him still.
 
Messages
3,813
Roops I must agree with you there. The thought of tinks walking in to the takeover announcement looking fit and ripped would be golden for no other reason than to see the looks on the Media's collective dials. It would be like "who the f### is this guy". We could rename him Shrinkler.
 

Serc

First Grade
Messages
6,902
Mad Dog backing Tinkler's takeover
Josh Rakic
February 27, 2011

KNIGHTS veteran Adam MacDougall has pledged his support to multimillionaire Nathan Tinkler's proposed purchase of the club and could not speak highly enough of the man poised to again make the Knights an NRL powerhouse.
Speaking exclusively to The Sun-Herald, MacDougall - who rejoined as a club member - said the highly successful businessman had his vote.
''He's doing great things with the soccer club [the Jets] and personally, I think it'd be a great move to see someone like him come in and provide that sort of expertise and cash,'' he said.
''He'll bring a whole [lot] of security and financial opportunities, but also his expertise and ability to attract good people to the club in a business sense will help as well. The players all rejoined again as members this year … and if I am eligible to vote I'd vote for Nathan. There is no reason not to.
''The model I've seen and heard about looks great and it's a great opportunity for the club to move forward. And as a player, and very soon an ex-player, you want nothing more than to see the club move forwards and be secure for the future and be successful.''
MacDougall played in both of the Knights' premiership wins in 1997 and 2001 and said nothing would make him happier than retiring from the club knowing its future is not only secure, but is likely to be successful.
''I know a lot of the guys at the Jets and they said there's been a real buzz since he took over there,'' MacDougall said. ''There's a real buzz with us, too. At the end of the day, players are just paid to play and we're members. A lot of us don't currently have a vote but a lot of us do, and it's not our job to get caught in the politics. But as a member, I'm excited. And I think any player would be excited about someone like him coming into the club.
''Over the years it's been well documented that the club has been troubled financially and hasn't had the money to spend like other clubs.
''It's exciting because he's not only bringing an abundance of financial resources but, on top of that, he's a self-made millionaire. Someone who's an ordinary bloke who has achieved extraordinary things in the business world. It's a credit to himself and obviously that displays the high level of intelligence and business acumen the bloke's got to run a football club. He's already doing it with the Jets.
''The Tinkler Group is a very professional unit and will bring expertise in every area - whether it be marketing, advertising, resource management, finances. It's going to make the Knights a real powerhouse of the competition.''
More importantly to the long-term success of the Knights, said MacDougall, would be Tinkler's ability to pump cash and resources into the Hunter's grassroots football.
''Where they can differentiate themselves in years to come, because everyone has the same salary cap, is utilise the huge nursery of young footballers in the region and keep them here and develop the ones who fall through the net,'' MacDougall said. ''He'll be able to pump a lot of resources and expertise into the grassroots level. And if they can continue to develop those guys, it'll be huge for the club in years to come … you need to develop a lot of your own players.''
http://www.smh.com.au/rugby-league/league-news/mad-dog-backing-tinklers-takeover-20110226-1b961.html
 
Messages
4,204
Going back to my Steelers days...I hate the knights...as a dragons fan you guys are so so with a soft spot.
The Tinkler proposal could be good or bad for the club depending on the direction of the league. As long as the Salary cap is a barrier to long term success, I really think you guys would do better with a community model. Last cocky Billionare to get his nose involved in RL's name was Rupert
 

voltron

Juniors
Messages
1,454
10 million for 10 years
it has to grow more than that over 10 years
in 2021 any club only getting 10 mill will be dead in the water
how much has our sponsorship grown in 10 years?

but exciting times ahead
 

Alex28

Coach
Messages
11,928
10 million for 10 years
it has to grow more than that over 10 years
in 2021 any club only getting 10 mill will be dead in the water
how much has our sponsorship grown in 10 years?

but exciting times ahead

CPI increases dude...

Seriously...can we see what the offer is before we get too excited?
 

Gene Krupa

Referee
Messages
20,216
So it's back on now? Good!! Now lets make it happen!

Why? So he can have another cry and pull out again and get his mouthpieces McKay, Fitzgibbon and The Herald to have a sook?


I notice with mirth that NIB are set to increase their fees, they can hammer the Knights about anything but they still haven't threatened their support of the Geelong Drug Cats. Funny that.
 

Serc

First Grade
Messages
6,902
Newcastle Knights wait on Nathan Tinkler as meeting looms

  • Steve Gee
  • February 28, 2011 12:00AM
NEWCASTLE Knights are still waiting for Nathan Tinkler's revised bid to present to the club's members at a special information meeting tonight.
The Newcastle Knights had expected to receive full documentation of the new $100 million offer by yesterday.
However, Newcastle CEO Steve Burraston said the club was still awaiting most of the detail addressing its concerns over club sponsorship and junior development.
If the rest of the documentation fails to arrive members will only receive an explanation over why the original offer was not endorsed by the board.
Tinkler will need a 75 per cent majority to vote in favour with the ballot expected to be held on March 30. Tinkler vowed to address concerns over junior development, sponsorship revenue and debt buy-out.
Tinkler has guaranteed $10 million annual sponsorship revenue over a 10-year period.
That's about $3 million more than the club generates now. He will also pay off an estimated $4 million debt.
There are also buy-back and on-sell guarantees in place to protect the rights of club members and Tinkler has upped the ante with his spend on junior development.
The future of the Patrons Trust financial model the Knights had intended adopting if Tinkler had not come back to the table is in limbo. It will remain an option until the Tinkler proposal is accepted.
http://www.dailytelegraph.com.au/sp...as-meeting-looms/story-e6frexnr-1226013154417
 

Serc

First Grade
Messages
6,902
Actually this article has a little bit more info:

Knights board wait on Tinkler papers as members prepare to be heard
Brett Keeble
February 28, 2011

KNIGHTS directors should have Nathan Tinkler's revised takeover offer today only hours before briefing members at an information meeting.
Knights chief executive Steve Burraston yesterday said he was waiting to see the takeover document but the Herald understands the NRL club's legal counsel, after four days of deliberations with Tinkler Sports Group lawyers, anticipated receiving it last night or this morning.
With this in mind the Newcastle board is scheduled to meet this morning to peruse the fine print, which is expected to clarify sticking points in the TSG's January 17 proposal, which guaranteed $100 million in sponsorship revenue over 10 years.
In question was the definition of sponsorship revenue, Knights members' buy-back rights, the guaranteed term of the deal and what would be spent on junior development.
Burraston hoped directors would be in a position to make a recommendation at their board meeting today, but said the members meeting would proceed at 7pm regardless.
''We're hoping [the document] will come in today in its final form, or if not, overnight, and we will be able to meet tomorrow,'' Burraston said yesterday. ''We've had pieces of information come through, but as yet the document hasn't been finalised, although both sets of lawyers have worked long hours for the past few days to get it finished.''
TSG executive chairman Ken Edwards last night said: ''Discussions have continued over the weekend and are moving forward positively.''
Burraston said if the board recommended members vote in favour of Tinkler's proposal, that vote would have to occur at an extraordinary general meeting, which requires 21 days' notice. If that meeting was called today it could not be held before March 21.
After an acrimonious breakdown in negotiations last Monday, and two days of public squabbling between Tinkler and the Knights, NIB chief executive and former Knights director Mark Fitzgibbon helped broker a peace deal.
Knights directors discussed a summary of Tinkler's revised document at their regular monthly board meeting last Wednesday night. Burraston said the members information session tonight would give management a chance to explain the developments of the past week and to answer questions.
Members were asked to register their intention to attend the meeting by noon today, either online or by contacting the Knights office. It is scheduled for the Crusader Lounge in the Andrew Johns Stand at Ausgrid Stadium but if estimated numbers exceed capacity, it may be switched to a larger venue.
''When this members information meeting was called, we didn't have this offer on the table, so it hasn't been called to discuss the final offer. It's an information meeting,'' Burraston said. ''Some members wanted more information and asked that we call a meeting, so we've done that. Seven days ago we called this to discuss why the breakdown had occurred, and since that time we've got another offer.
''Whether we'll be discussing that new offer or not will depend on whether we've received the final documents in time to analyse them before the members meeting.''
http://www.smh.com.au/rugby-league/...mbers-prepare-to-be-heard-20110227-1ba33.html
 
Messages
2,862
I don,t know what other ppl,s feelings are regarding Tinkler,s offer but the word that is filtering through from people I know is that the members meeting (whenever it is called ) WILL NOT get a 75% vote.........Thoughts.
 

perverse

Referee
Messages
26,498
I don,t know what other ppl,s feelings are regarding Tinkler,s offer but the word that is filtering through from people I know is that the members meeting (whenever it is called ) WILL NOT get a 75% vote.........Thoughts.
these people you know have a metaphysical link to our voting membership, do they?

my thoughts are that no-one could possibly know the outcome of a vote that is yet to even be proposed in proper. any talk is pure speculation, given we still don't know what we're voting on.
 

aqua_duck

Coach
Messages
18,509
I think it's way too early to assume anything, as we've seen even 4 days is a long time let alone 3 weeks. I think alot will be dependent on tonight. I imagine if the board backs the deal they'll be alot of propaganda in the media to try get this deal through. I also think if the current players and a few old boys get behind it then the members could be swayed.
 

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