Not sure what the impact of it not having unanimous support will have?
Knights board endorses Tinkler deal for members call
BY BRETT KEEBLE
04 Mar, 2011 04:00 AM
THE Newcastle Knights board has endorsed Nathan Tinklers privatisation proposal in what Knights chairman Rob Tew described as a watershed day in the NRL clubs 23-year history.Emerging shortly before 8oclock last night from a board meeting that lasted almost four hours, Tew said the decision was not unanimous but the majority of directors believed the Tinkler Sports Groups offer, which includes $10million in guaranteed annual sponsorship revenue for the next 10 years and a bank guarantee of $20million for the first two years of that deal, was superior to the alternatives.
Tew said an extraordinary general meeting of up to 3000 eligible voting members would be held at the earliest opportunity, most likely Thursday, March 31, at which a 75per cent majority is required to vote in favour of Tinklers bid to make the relevant changes to the clubs constitutional structure.
After due consideration of the attendant risks, the board believes the commercial benefits of the transaction are superior to the alternatives, and on that basis recommend this transaction to members for their support, Tew said, reading from a hand-written prepared statement.
When that news was relayed to Tinkler last night, the multimillionaire racing and mining magnate told the Newcastle Herald: Thats great news.
When asked whether he and the directors would now stand alongside Tinkler and urge Knights members to vote in favour of the proposal, Tew said: Thats exactly what that statement says. Its a defining day ... It is a watershed day, and it is a big decision for our members to make.
Tew, who said he personally endorsed Tinklers proposal, and Tinkler Sports Group executive chairman Ken Edwards said a unanimous board endorsement was not required for the offer to remain, and that the support of a majority of directors was sufficient.
This is a big decision, and as Ive read there, there is attendant risks in that, which our members will assess in their own right, Tew said.
Theyre fully explained, and they will be fully explained and posted out to them in an explanatory memorandum, so our members will have an opportunity to bring their own considerations to the table.
Tew said the necessary paperwork had to be sent to the clubs printers by 9am today to make the deadline for a March 31 meeting.
Earlier, Knights chief executive Steve Burraston emerged from the board meeting after about two hours to attend the clubs corporate season launch at Fort Scratchley last night.
Its about clarification and going through it, and they are still working through the document ... Theyre actually working through it page by page, line by line, and getting a good understanding from the lawyers what each clause means, Burraston said.
Thats why we havent rushed it. Weve always said well never rush this decision.
Its the most important decision that the club will ever make and weve got to give the board every opportunity, and the members every opportunity, to have all the information necessary and to make an informed decision on that information, so thats the process that theyre going through at the moment.
After twice being postponed on Wednesday, the board meeting to analyse Tinklers proposal was scheduled for 8.30 yesterday morning but Burraston said it was pushed back until the afternoon because directors did not receive copies of the final document until yesterday morning.
The meeting finally began at 4.15pm, Burraston left at 6.30pm, and directors Leigh Maughanand
Peter Corcoran followed him
out the door five minutes later.
Burraston said it was never the clubs intention to announce their decision to members or corporate supporters at the clubs season launches yesterday and last night.
We always said we would call a members meeting when we had a completed document. We do have a completed document now, and we will be putting a members memorandum together to go out in the next couple of days, as soon as possible, he said.
The important thing now is that members get the opportunity to go through that document, take what advice they need, and as weve always said, the decision is theirs. Its not mine, its not the boards, its nobody elses. The members will make the decision.
http://www.theherald.com.au/news/lo...eal-for-members-call/2093417.aspx?storypage=0
