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Tinkler weighs in with $100m Knights offer

muzby

Village Idiot
Staff member
Messages
45,959
$100m for a place that has confessed drug addicts & alleged drug dealers as part of it's culture...

really says something about souffs then.. what were they worth? $3m?
 
Messages
3,877
The deal as described is probably worth about $25m to $35m or so. To describe it as $100m is highly misleading.

Probably looks like Tinkler would have to spend something in the region of $3m to $4m in the first few seasons. Inflation and continued club and NRL growth would probably mean that by the end of the 10 year period Knights sponsorship would be worth close to $10m a season anyway. This is before you even consider the time value of the later disbursements.
 
Messages
15,465
I'm sure they'll accept the offer and prepare for a buying spree.

Watch for the Knights to pinch players left right and centre.

If the Central Coast Bears get up with their bid in years to come they are going to have to contend with one very big brother!
 

Ziggy the God

First Grade
Messages
5,240
$100m for a place that has confessed drug addicts & alleged drug dealers as part of it's culture...

really says something about souffs then.. what were they worth? $3m?


Instead of trolling, how about you understand what the deal is, or is it too hard for you sweetheart?

I am not even going to attempt running through the Souths deal, or the extra funding that they have put in since nor the extra income that they have generated for the club. We are happy with how the club is run now, and we don't give a rats what some StMerge fan thinks.

Back on topic.

In terms of the Knights, as I understand it, he is underwriting them for $10m a year in sponsorship, rain or shine.
If he can get them more than $7m pa that they currently get, then he covers the difference plus the $3m debt they have currently.

I have no doubt that he would also put in more to improve the players facilities etc, as that is what you would do when you are the owner with such deep pockets.

This is a great deal for the Knights financially, it is now down to the members whether they want to go down this route. Even though it looks like a no brainer, there are always those that are stuck in their ways and will vote no. It is up to the supporters to get this over the line, alot like what we did with our vote.
 

perverse

Referee
Messages
26,685
The deal as described is probably worth about $25m to $35m or so. To describe it as $100m is highly misleading.

Probably looks like Tinkler would have to spend something in the region of $3m to $4m in the first few seasons. Inflation and continued club and NRL growth would probably mean that by the end of the 10 year period Knights sponsorship would be worth close to $10m a season anyway. This is before you even consider the time value of the later disbursements.
yes, but he would be the one credited with getting us there. a big injection of capital at the very least is exactly what we need to break our current shackles of subsisting on the smell of an oily rag. it's hard for us to do anything but tread water at the moment. Tinkler will provide that injection, and he's finally talking numbers that actually make some sense.

without taking into account the thousands of caveats and intricities this deal could and probably does have hovering around it im hesistant to go all in, but i do want this deal to happen - and the right price tag on this deal indicates to me that it very well could be his final offer. i'm certainly inclined to wanting this deal done.
 

perverse

Referee
Messages
26,685
on another note geez it would be nice for my club to start this season on a massive boost instead of yet another massive downer...

maybe i should give wicksy a call.
 

muzby

Village Idiot
Staff member
Messages
45,959
I am not even going to attempt running through the Souths deal, or the extra funding that they have put in since nor the extra income that they have generated for the club. We are happy with how the club is run now, and we don't give a rats what some StMerge fan thinks.

hey, each to their own..

i'm happy with how our club is run..

still majority club owned..

playing out of our traditional home grounds & haven't sold our soul to make money at ANZ..

we aren't paying overs for imported players..

and that trophy looks real nice...
 

Spot On

Coach
Messages
13,902
I'm sure they'll accept the offer and prepare for a buying spree.

Watch for the Knights to pinch players left right and centre.

If the Central Coast Bears get up with their bid in years to come they are going to have to contend with one very big brother!


Ah, sure will be nice to have the power, influence and money to pay massive overs for players and not raise a sweat worrying about the long term ramifications of this overindulgence!:D
 

perverse

Referee
Messages
26,685
i think ultimately we can all agree that it is far easier to support a well run, successful, financially solid club than a poor basket case, which if we're to be honest with ourselves is exactly what we are, particularly at Administration level. hire monkeys, get bananas.
 

Pierced Soul

First Grade
Messages
9,202
they'd have to accept it given they always seem to be in some financial trouble. given also this bloke is a local he wont want to get run out of town for doing the wrong thing by the club.

i reckon for a lot of clubs having a big financial backer like tinkler or crowe is the only way they'll survive
 

Lambretta

First Grade
Messages
8,689
$100 million is the absolute maximum he could possibly have to pay over a 10 year period if the club gets no other sponsors whatsoever.

What is being proposed is that he guarantees any shortfall of sponsorship up to $10 million per annum for a decade. That means if the Knights get $10 million in sponsorship in a season he puts in nothing - if they get $7 million he puts in $3 million etc.

He also pays out the $3 million debt the club currently has so they dont have to pay interest on that debt - saving the club about $22,500 a year in interest alone before that debt needed to be repaid.

The model that he is proposing is that the club be run as a not for profit organisation, where he covers any losses the club incurs and any profits are put back into the community in the form of junior development and payments into grass root rugby league projects in the Hunter region.

The whole deal is based upon benefitting Rugby League in the Hunter Region and making Newcastle the area successful. There will not be profits for individual board members and therein lies the pinch.

If the current board dont like that proposal or the fact they might be out of a job they might vote against it. If they do so the owners (the club members) can call a board meeting and vote the board off and accept the proposal anyway.

I think the board WILL accept it and even if they dont the members probably will so I believe that this will probably go right ahead.
 

perverse

Referee
Messages
26,685
they'd have to accept it given they always seem to be in some financial trouble. given also this bloke is a local he wont want to get run out of town for doing the wrong thing by the club.

i reckon for a lot of clubs having a big financial backer like tinkler or crowe is the only way they'll survive
we need him to erase the sins of our past, as much as anything. a big debt from administrators of yesteryear really stifles us, and keeps us treading water rather than flying. we post modest profits most years, but it only takes a disaster like 2005, and we register a sizable loss in that year, which of course gets added to the debt, and the interest that the debt accrues etc. money isn't going to fix this like some magic potion, but it's necessary to implement the changes that are needed. a sizable increase in our front office staff will be in order for sure. while Brian Smith was busy spending heaps of extra money on football operations, i get the feeling that the front office was squeezing every last penny from elsewhere to make it happen. remember we were literally training out of shipping crates 4 or so years ago.
 

bobmar28

Bench
Messages
4,304
I'm sure they'll accept the offer and prepare for a buying spree.

Watch for the Knights to pinch players left right and centre.

If the Central Coast Bears get up with their bid in years to come they are going to have to contend with one very big brother!

They better not break the salary cap.
 

Patorick

Moderator
Staff member
Messages
8,994
Fair dinkum, Tinkler could offer $500 million and some of you Knights fan would want to knock it back.

It could be worse, it could be Singleton buying the club.
 

perverse

Referee
Messages
26,685
$100 million is the absolute maximum he could possibly have to pay over a 10 year period if the club gets no other sponsors whatsoever.

What is being proposed is that he guarantees any shortfall of sponsorship up to $10 million per annum for a decade. That means if the Knights get $10 million in sponsorship in a season he puts in nothing - if they get $7 million he puts in $3 million etc.

He also pays out the $3 million debt the club currently has so they dont have to pay interest on that debt - saving the club about $22,500 a year in interest alone before that debt needed to be repaid.

The model that he is proposing is that the club be run as a not for profit organisation, where he covers any losses the club incurs and any profits are put back into the community in the form of junior development and payments into grass root rugby league projects in the Hunter region.

The whole deal is based upon benefitting Rugby League in the Hunter Region and making Newcastle the area successful. There will not be profits for individual board members and therein lies the pinch.

If the current board dont like that proposal or the fact they might be out of a job they might vote against it. If they do so the owners (the club members) can call a board meeting and vote the board off and accept the proposal anyway.

I think the board WILL accept it and even if they dont the members probably will so I believe that this will probably go right ahead.
the board knows it needs to happen as much as anyone (i know of at least 1 member that has told me as much directly). they may look dumb in the papers, but they're not borderline geniused. we need money if anything is to change.
 

Spot On

Coach
Messages
13,902
They better not break the salary cap.


It will be nice to be able to potentially have a circumstance like the Broncos do to have a player, say the ilk of Darren Lockyer maybe, listed under the cap at 200K because he receives a ridiculous amount of money through third party deals. Something Newcastle can't really do under its current structure. I'm all for the big man to jump on board.
 

muzby

Village Idiot
Staff member
Messages
45,959
who, exactly, wants to knock this back?

chuck-norris.jpg
 

Ziggy the God

First Grade
Messages
5,240
hey, each to their own..

i'm happy with how our club is run..

still majority club owned..

playing out of our traditional home grounds & haven't sold our soul to make money at ANZ..

we aren't paying overs for imported players..

and that trophy looks real nice...


Yeah, each to their own.

Our members own our Name, Colours and that our home ground remains in Sydney plus 25% of the club.

You sold out your club by merging with another. It is not the same club, will never be the same club, whilst ours is the same with different ownership.

Traditional Grounds? One of your home grounds is in Wollongong, 80km away. Real tradition there.

Yeah we know you won the competition last year, congratulations.
 
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