Tew silences Burraston on takeover
BY ROBERT DILLON
19 Mar, 2011 04:00 AM
Knights chairman Rob Tew has urged members to vote to support the Nathan Tinkler takeover proposal – and gagged chief executive Steve Burraston from talking about it.
In response yesterday to a campaign urging Knights members to consider the so-called Patrons’ Trust as an alternative to privatisation, Mr Tew issued a statement recommending constituents vote in favour of Mr Tinkler at a historic annual general meeting on March 31.
The Knights’ board endorsed Mr Tinkler’s revamped deal on March 3, and Mr Tew reminded the club’s 3000 voting members yesterday that it was the best available option.
‘‘It is important I remind you what the alternatives are: a continuation of the status quo, which is not to be contemplated, and a Patrons’ Trust proposal, which is an inferior financial proposal,’’ Mr Tew’s statement said.
‘‘Over the previous three years the board has actively pursued alternative funding opportunities as it is our view that the status quo is not tenable in the medium to long-term.
‘‘A Patrons’ Trust model has not been contemplated by the club since the Tinkler Sports Group reinstated and amended their proposal on 23 February so as to satisfy those concerns the board had of the TSG [Tinkler Sports Group] draft proposal at that time.
‘‘On March 3, the Knights’ board – in the majority – endorsed the TSG proposal and recommended it to members for their support at a vote on March 31.
‘‘The board believes that TSG proposal is a superior financial proposal to the alternatives and offers an outstanding commercial opportunity to members.
‘‘On the basis of the commercial benefits as are anticipated to extend to the club, the board is recommending your support of the TSG proposal.’’
Mr Tew’s statement should at least partially appease the Tinkler camp, which was angered by two television appearances Mr Burraston made in the past week to discuss the privatisation bid – on the Channel 9 Footy Show last Sunday and on Foxtel’s post-match show after Monday Night Football.
The Newcastle Herald understands TSG executive chairman Ken Edwards phoned Mr Tew yesterday to voice his disapproval.
When the Herald contacted Mr Burraston yesterday, he confirmed he had been ordered to take a vow of silence.
‘‘At the insistence of the Tinkler group, I’m not allowed to comment on the privatisation matter in any form,’’ he said.
‘‘So I have to decline to comment ... all I can say is that to comply with the request of the Tinkler group I am unable to comment at all.’’
It is understood the Tinkler group felt Mr Burraston did not give its bid an enthusiastic endorsement when he was interviewed on television.
During an eight-minute interview, Mr Burraston told Foxtel’s panel of experts: ‘‘the board has recommended the deal to members. They’ve said they’ve supported it,’’ he said.
‘‘They said they’ve weighed up the risks that are involved in the deal and also the commerciality of the deal.
‘‘In all deals there is risk. And there is risk in this deal.
‘‘But they believe the commercial aspects of the deal, in other words the financial income that may come from it, outweigh those risks.
‘‘And they’re taking Nathan at his word that he’s going to do the right thing by the club.’’
Mr Burraston also cast some doubt about whether the club was in need of a financial lifeline.
‘‘We’re essentially a break-even club,’’ he said. ‘‘Over 23 years, we’re less than 2per cent on the wrong side of the ledger. That’s not an ideal position –we’d all like to have more money.
‘‘But we all operate under a salary cap, so there is only so much you can do with the money anyhow.’’
Mr Burraston told Foxtel he wanted members to ‘‘make an informed decision’’ because it was the most important decision in the club’s history.
His comments on Foxtel prompted an angry response from former Knights board member Garry Murphy, who in a letter published in the Newcastle Herald on Wednesday wrote: ‘‘Mr Burraston, the board’s role is to govern and the CEO’s role is to manage, execute and support strategies agreed to by the board.
‘‘I suggest our chairman should continue as our spokesman, which would at least dismiss possible perceptions of any personal conflict of interest.’’
Mr Tew’s statement was his only comment yesterday. He did not respond to messages.
