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Win Buys stake in St George Illawarra

S

Saints Forever

Bench
Messages
3,607
Objective View said:
So the first order of business is to sign Johnston as CEO. FMD.

Straight Shooter
Click to expand...

Brian Johnston is the least of our problems

He has the capacity and the passion to be a success as CEO.

Business is all about forging relationships and maintaining them.

Gordon family wanted Johnston as CEO. This made the decision a simple one. They were happy with the devil they are familiar with.

Would you invest $10M in to a business deal without having ultimate control of the business venture ?

It is a testament to Johnston that the Gordon family took a leap of faith based on the relationship they have with various St George board members.
 
Frank Facer

Frank Facer

First Grade
Messages
5,069
I would not buy Saints or any other sporting club, with the intention of running at a profit or making money from it. Very few sporting teams run at a profit. If one owns a sporting team they are the benefactor.

Saints Leagues club was the benefactor of our club when we merged. When they reduced their funding to us, we ended up in debt to the NRL.

I can't see how WIN corporation will make a profit off buying half of the Joint Venture. Buying sporting clubs isn't good business in my opinion. Buying sporting clubs would be hobby.
 
R

redandwhite4evr

Juniors
Messages
1,829
Saints Forever said:
Brian Johnston is the least of our problems

He has the capacity and the passion to be a success as CEO.

Business is all about forging relationships and maintaining them.

Gordon family wanted Johnston as CEO. This made the decision a simple one. They were happy with the devil they are familiar with.

Would you invest $10M in to a business deal without having ultimate control of the business venture ?

It is a testament to Johnston that the Gordon family took a leap of faith based on the relationship they have with various St George board members.
Click to expand...


Perhaps the nearest situation we have to this model is the Penn family at Manly- Barrett has threatened to walk over what he sees at the Penns failure to beef up their front office staff with marketing staff, a football manager- he is having to do a lot of work taking him away from coaching- SGI have some natural advantages with upgraded stadia etc but there is always the danger that WIN will not tip in funds when they are needed eg TPAs and cost us key staff and also players.
 
muzby

muzby

Village Idiot
Staff member
Messages
45,712
Frank Facer said:
I can't see how WIN corporation will make a profit off buying half of the Joint Venture.
Click to expand...

I can.

Revenue into the club leads to a stronger club.

This attracts better on and off field talent.

This leads to on-field success.

This leads to minor premierships and premierships (which leads to prizemoney).

This leads to increased membership numbers and merchandise sales.

This leads to increased revenue from sponsorships.

This all leads to profit.
 
Dorsai

Dorsai

Juniors
Messages
257
possm said:
I'm a little confused, help me someone! From what I understand:
WIN appoint 3 board members on of which is the chairman who has not casting vote rights and the other two have full voting rights.
St George appoints 3 board members all who have full voting rights.
Illawarra appoint 1 board member who has limited voting rights.

Given that the chairman will have full voting rights but not a casting vote, this means:
WIN have 3 board members with full voting rights.
St George have 3 board members with full voting rights.
Illawarra have one board member with restricted voting rights.

So that it would appear that all major decisions would require one board member to vote with the other party. And for minor decisions, Illawarra can break an impass.

Not an ideal situation and I am surprised WIN agreed to such a structure.

I would like to see:
The Chairman have a casting vore.
WIN appoint two board members with full voting rights.
St George appoint two members with full voting rights.
St George Illawarra full members are allocated 3 spots on the board with full voting rights. These members voted in by SGI full members.

Surely it's time to give SGI members a say!
Click to expand...

I read the last announcement as 4 members from each side. 1 being the CEO with full voting rights on the Dragons side, the Chairman having no voting rights from the Illawarra side, and an Illawarra members with limited rights.

I count that as 4 Dragons, 2 win, 1 partial Illawarra.
 
S

Saints Forever

Bench
Messages
3,607
redandwhite4evr said:
Perhaps the nearest situation we have to this model is the Penn family at Manly- Barrett has threatened to walk over what he sees at the Penns failure to beef up their front office staff with marketing staff, a football manager- he is having to do a lot of work taking him away from coaching- SGI have some natural advantages with upgraded stadia etc but there is always the danger that WIN will not tip in funds when they are needed eg TPAs and cost us key staff and also players.
Click to expand...

You make a reasonable point however you cannot compare the Penn family financially to the Gordon family. Gordon is significantly more wealthy. Whether he chooses to use that wealth to support STGI is another matter.

St George Leagues Club has the capacity to support the JV.

Here we have 2 relatively strong organisations supporting our JV, so really our situation is somewhat different to Manly.

Also the new TV deal makes the investment more palatable as neither JV benefactor is expecting to contribute significant capital in the foreseeable future.
 
Gareth67

Gareth67

First Grade
Messages
8,411
Let’s allow the dust to settle, perhaps there are more positives to the new setup than most of us may believe ?
 
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G

getsmarty

Immortal
Messages
33,485
WIN Corporation commits to Dragons future in Wollongong
Dragons Den
Media mogul Bruce Gordon has backed the Illawarra’s long-term future after television network WIN took ownership, officially announced on Monday.

r0_500_4896_3264_w1200_h678_fmax.jpg

Future: WIN Stadium hill. Picture: Adam McLean

Following prolonged negotiations, the deal will see WIN Corporation take over the Steelers share of the club, with Andrew Gordon taking on the chairman role and Brian Johnston taking over from Peter Doust as chief executive.

It has been confirmed the Steelers junior pathways will remain, allowing the name to remain in the NRL club structure.

The Steelers became part of the St George Illawarra Dragons joint venture at the end of the Super League war.

During the negotiation process with the NRL, there was significant doubts about the future of games at WIN Stadium and the Illawarra’s role in the club, which was $6 million in debt.

It is understood there were two other parties involved in discussions to buy out the Steelers share, as well as interest from the St George Leagues Club.

However, the agreement with WIN Corporation and the Dragons likely guarantees Illawarra having 50 per cent of NRL games played in Wollongong in the long-term.

"WIN has long partnered with the Steelers to bring world class rugby league to the Illawarra and we want that legacy to continue. We have worked closely with Peter Newell, Bob Millward and Sean O'Connor in particular throughout that time," Bruce Gordon said.

"The change of ownership allows us to underpin the amazing heritage of the St George Illawarra Dragons with strong commercial strategy while locking in the pathways for junior players to rise through the ranks of the Steelers to the NRL."

However, the announcement comes with some controversy.

St George Illawarra spent tens of thousands of dollars commissioning an independent recruiting firm to scan almost 100 applicants for its chief executive role before appointing chairman Brian Johnston, who wasn’t an original candidate.

The Dragons have defended the integrity of their recruiting process for one of the most coveted jobs in the NRL, having parachuted long-time administrator Johnston into the role after finalising a deal with WIN Corporation to take a 50 per cent stake in the club.

Fairfax Media understands the Dragons received submissions from 98 administrators across a number of sports both domestically and internationally when they hired respected recruitment agency Sportspeople back in April.

It’s believed Johnston, who headed a sub-committee charged with finding Doust’s replacement, did not originally express a formal interest about transitioning from the chairmanship.

But when WIN, who had told the Dragons they no longer had an interest in purchasing the Illawarra Steelers’ stake in the joint venture back in April, quietly came back to the negotiating table, its representatives expressed a desire for Johnston to take on the role.

He agreed to take on the job and Sportspeople abandoned its months-long screening process which the Dragons had paid for.

Doust said it was a ‘‘deliberate process’’ and Johnston’s ‘‘qualifications and experience’’ as well as ‘‘passion for the Dragons’’ made him the No.1 choice for the job.


https://www.illawarramercury.com.au...mits-to-dragons-future-in-wollongong/?cs=3713
 
G

getsmarty

Immortal
Messages
33,485
Dragons announce change of ownership
Author
Dragons.com.au dragons.com.au
Timestamp
Mon 20 Aug 2018, 06:00 PM

The St George Illawarra Dragons have a new ownership structure with WIN taking on responsibility for the Illawarra component of the joint venture.

Following a lengthy and considered process, the St George Illawarra Dragons, the Illawarra Steelers and WIN today announced the transaction which will change the ownership structure, the shareholders, and the Board of Governance of the club.

The new shareholder agreement includes a matching funding arrangement between St George District Rugby League Football Club and WIN, the repayment of the Dragons loan from the NRL and a change in the structure of the club's board. The Steelers retain an interest in the club through a seat on the board.

Dragons Chairman Brian Johnston welcomed the agreement saying the decision would allow the Dragons to remain an iconic club and brand, with successful business, community and rugby league programs for long-term sustainable success.

"Today is a momentous day in the history of the St George Illawarra Dragons as we welcome WIN as a partner in our club," Johnston said. "The Gordon family through WIN bring a great passion for the Dragons and have been a supporter of rugby league for decades, first with the Steelers in 1982 and then the Dragons.

"This is an exciting launching point for the next stage of the Dragons. This arrangement ensures a bright future for our club, particularly as a Pathway and Development Club, in that our male and female pathways from grassroots to NRL remain strong and continue to grow.

"The continuing involvement of the Illawarra Steelers is a welcome and valued part of the ongoing structure."

WIN owner Bruce Gordon said the new partnership would enhance the commercial strength of the club while ensuring the work of the Steelers in crafting strong representation for the Illawarra region in first class rugby league continues to be honoured.

"WIN has long partnered with the Steelers to bring world class rugby league to the Illawarra and we want that legacy to continue. We have worked closely with Peter Newell, Bob Millward and Sean O'Connor in particular throughout that time," Gordon said.

"The change of ownership allows us to underpin the amazing heritage of the St George Illawarra Dragons with strong commercial strategy while locking in the pathways for junior players to rise through the ranks of the Steelers to the NRL."

While Illawarra and Dragons supporters will see no change to the club, the new affiliation is expected to strengthen its corporate structure as it reshapes the business away from the traditional club-funded model.

WIN Executive Chair Andrew Gordon said: "WIN is extremely excited to be partnering with the Dragons. We have meticulously worked through this arrangement to ensure that the Illawarra legacy and the St George heritage are fully respected."

As part of the restructure Brian Johnston will step into the role of CEO, replacing Peter Doust who announced his retirement earlier this year, while Andrew Gordon will take on the role of Chairman. The positions are effective from November 1 and October 1, 2018 respectively.

johnston_gordon.jpg

(L-R) Incoming CEO Brian Johnston and Chairman Andrew Gordon will spearhead the Dragons' new ownership structure
Steelers Chairman Peter Newell said the desire to improve the financial sustainability of the Steelers, to be an ongoing part of the Dragons' Board and to continue to see world class rugby league remain in the Illawarra were fundamental and mandatory to the decision to partner with WIN.

"Today's announcement underlines the close association between WIN, the Gordon family and the Steelers as an iconic Wollongong name now joins another iconic name in St George, in presenting the greatest game of all at home and away," Newell said.

"The Steelers, with the help of our St George colleagues and including WIN, have worked for the past two decades to fulfill our charter of keeping world class rugby league in Wollongong.

"It has been a challenging quest at times, and I am pleased the game at the elite level under the Dragons brand will continue to proudly go forward in our district with two committed joint-venture partners.

"Importantly, all parties share a commitment to ensuring local juniors have the opportunity to represent our district at the highest level."

St George Illawarra Dragons key facts

The new board

St George District Rugby League Football Club Directors: Brian Johnston, Ralph Piggott, Craig Young, Peter Black

WIN Directors: Andrew Gordon, Andrew Lancaster, Craig Osborne and Graeme Gulloch (Steelers)

St George Illawarra Dragons

- New Joint Venture Partnership arrangement between St George District Rugby League Football Club and WIN

- New Board of Directors, Chairman and CEO

- Removal of NRL loan and formal business arrangements with the NRL

- Club and brand remains as St George Illawarra Dragons

- Home Venues, namely Jubilee Stadium and WIN Stadium unchanged

- St George Illawarra Dragons will continue their current funding commitments to the St George, Illawarra and South Coast districts

St George District Football Club

- No change to the St George District Football Club Joint Venture arrangements or commitments

- Ralph Piggott will replace Peter Doust as a representative of St George District Football Club on the Dragons Board in November 2018.

Steelers

- Reached a settlement directly with WIN for their shares for a "commercially in confidence" sum

- Illawarra remains in the name and brand of the Club

- Steelers will have one Director on the new Board

- Harold Matthews (U16), SG Ball (U18) and Tarsha Gale teams in the Illawarra continue as Steelers

WIN

- New 50 per cent owners of the St George Illawarra Dragons, with the St George District Rugby League Football Club

- Reached a settlement directly with the Illawarra Steelers for their shares for a "commercially in confidence" sum

- Four decades of support for rugby league in the Illawarra and the Dragons

Brian Johnston

Johnston's extensive management experience across a variety of sectors with companies such as Suncorp, IAG and Office National has seen him consistently achieve exceptional results since he were last Dragons CEO. Since his previous role at the Dragons, Johnston has successful earned three Masters Degrees: Masters of Business Coaching; Masters of Science, and; Masters of Business Administration.

Andrew Gordon

Gordon has been a Dragons board member since 2006 and currently holds the Executive Chair of WIN Corporation. Gordon held key Executive roles for over a decade in the 90s and 2000s in television and radio. His board roles have included SP Telemedia, Crawford Productions, Mildura Digital Television, Western Digital Television, Broadcast Transmission Services and MediaHub.


https://www.dragons.com.au/news/2018/08/20/dragons-announce-change-of-ownership/
 
Frank Facer

Frank Facer

First Grade
Messages
5,069
Johnston does look pretty well qualified. Ex player, ex CEO of our club 18 years ago, with 3 Marsters Degrees and extensive management experience across a variety of sectors has seen him achieve exceptional results since he were last St George CEO.
 
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