Win Buys stake in St George Illawarra

[Frank Facer]

Tell me something?
According to last years financial statements, St George Leagues club tipped in $2.5 million to the St George Illawarra Football Club.

Now why should a Leagues Club, a completely different entity to the Football Club, continue to give a grant to an entity that is now 50% privately owned?

Surely the Gordon’s, said to be worths hundreds of millions, should be made to match the Leagues Clubs grant every year.

And just on the matter of profits, just one club, The Broncos returned a profit last year without the support of a Leagues Club.
https://www.nrl.com/news/2018/06/15...-clubs-grassroots-after-posting-huge-surplus/

See the Leagues club provides a grant to the football club every year. I don't see the Leagues club making any money out of owning 50% of the club, I see them funding the club. Very few sporting clubs run at a profit.

 

[Bests Golden Boots]

See the Leagues club provides a grant to the football club every year. I don't see the Leagues club making any money out of owning 50% of the club, I see them funding the club. Very few sporting clubs run at a profit.

Yeah I get that, but why should the Leagues Club be the only half of the JV to put money in? How much does WIN throw in?

 

[muzby]

Now why should a Leagues Club, a completely different entity to the Football Club, continue to give a grant to an entity that is now 50% privately owned?

Because if they don’t, it will swiftly become 100% privately owned.

 

[muzby]

How much does WIN throw in?

Given we had a $6m-ish debt to the NRL, which this deal has now repaid, I’d say, maybe $6m-ish?

To start..

 

[Bests Golden Boots]

Given we had a $6m-ish debt to the NRL, which this deal has now repaid, I’d say, maybe $6m-ish?

To start..

Well no, the $6mill was part of the reported $10 mill paid to Illawarrafor thier half of the JV.

Does St George get paid any of $7.5 mill they paid in over the last three years while Illawarra was broke?

So where in any of these media releases does it say WIN will pay in any money?

 

[Bests Golden Boots]

Because if they don’t, it will swiftly become 100% privately owned.

Then we you could go back to calling them Illawarra, something I’m sure would make you exceedingly happy.

 

[muzby]

So where in any of these media releases does it say WIN will pay in any money?

Nowhere. We gave them half the club for free.

 

[muzby]

Then we you could go back to calling them Illawarra, something I’m sure would make you exceedingly happy.

Is we you like WeChat?

Call them Illawarra if you want, but I wouldn’t be happy unless we were sponsored by Kaiser Stuhl as well..

 

[Bests Golden Boots]

Nowhere. We gave them half the club for free.

You still haven’t answered the original question.

St George Leagues Club gives a grant of $2.5 million a year.
They own 50% of a joint venture.
The $2.5 million helps keep this joint venture afloat year on year.

Illawarra football club was supposed to help with this joint venture.
They went broke, haven’t made a grant for years, and sold thier 50% stake to Gordon and WIN.

As was pointed out in another article today, St George was perfectly capable and willing to pay the $6 million debt to the NRL, but didn’t to keep the joint venture alive.
The $6 million was paid out of the $10 million paid for the 50% stake.

Does Gordon and WIN now throw in $2.5 million a year to help keep the joint venture afloat?
That’s all I want to know.

 

[Maximus]

You still haven’t answered the original question.

St George Leagues Club gives a grant of $2.5 million a year.
They own 50% of a joint venture.
The $2.5 million helps keep this joint venture afloat year on year.

Illawarra football club was supposed to help with this joint venture.
They went broke, haven’t made a grant for years, and sold thier 50% stake to Gordon and WIN.

As was pointed out in another article today, St George was perfectly capable and willing to pay the $6 million debt to the NRL, but didn’t to keep the joint venture alive.
The $6 million was paid out of the $10 million paid for the 50% stake.

Does Gordon and WIN now throw in $2.5 million a year to help keep the joint venture afloat?
That’s all I want to know.

Well if you had read anything and not just resorted straight to the anti-Illawarra stance, you would have seen this:

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.

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

"Matching funding". Not St George fund everything and f**k Illawarra, oops sorry it's WIN this time, like you so desperately want.

 

[possm]

Well no, the $6mill was part of the reported $10 mill paid to Illawarrafor thier half of the JV.

Does St George get paid any of $7.5 mill they paid in over the last three years while Illawarra was broke?

So where in any of these media releases does it say WIN will pay in any money?

From what I understand the joint venture owed the NRL a little less than 6m and Illawarra owed the St George side about 6m for funds paid on Illawarra's behalf. Win paid the joint venture 10m of which a little less than 6m was paid to the NRL as repayment of a loan. In return WIN receives shares totalling the 50% of the joint venture - Illawarra's shares and the chairmanship of the board plus two extra Board members.

So SGI are now debt free and have a little more than 4m extra in the bank.

 

[Bests Golden Boots]

Well if you had read anything and not just resorted straight to the anti-Illawarra stance, you would have seen this:



"Matching funding". Not St George fund everything and f**k Illawarra, oops sorry it's WIN this time, like you so desperately want.

Thanks.
Now give it up, I happen to like St George “Illawarra”, have always thought it was a natural fit for the club.

 

[Saint_JimmyG]

Don't you mean Fascism haha and seriously why would you let members vote on this?

I mean some of the so called members, would be lucky to be able to read or write let alone think concisely.

Why did you quote me on this?

 

[Saintsified]

Don't you mean Fascism haha and seriously why would you let members vote on this?

I mean some of the so called members, would be lucky to be able to read or write let alone think concisely.

We voted on Super league to go or not to go. These are major decisions.

 

[SaintPauli]

So the whole franchise is worth 20 million. With 50% share I.e. 10 million, Win payed the debt of 6m and the new partneship st george leagues and win are now 4 million in profits.

Hopefully all profits are for the club
Only !

I also hope our new CEO Brian Johnston talks to the NRL about our heritage and that it is to be recognised and preserved. I.e we merged , not started a new club therefore all our histories and Premierships are so to be recognized and combined. I will not ever accept St George Illawarra have one 1 comp. Its 16. This would then imply St George and Illawarra were replaced and do not exist. This is utterly wrong and I want Brian Johnston to fix this technicality with the NRL as a matter if urgency.

 

[Saint_JimmyG]

You still haven’t answered the original question.

St George Leagues Club gives a grant of $2.5 million a year.
They own 50% of a joint venture.
The $2.5 million helps keep this joint venture afloat year on year.

Illawarra football club was supposed to help with this joint venture.
They went broke, haven’t made a grant for years, and sold thier 50% stake to Gordon and WIN.

As was pointed out in another article today, St George was perfectly capable and willing to pay the $6 million debt to the NRL, but didn’t to keep the joint venture alive.
The $6 million was paid out of the $10 million paid for the 50% stake.

Does Gordon and WIN now throw in $2.5 million a year to help keep the joint venture afloat?
That’s all I want to know.

This relates back to a question I asked earlier (and received a single non sensible reply).

Under this new arrangement, while a single Illawarra Steelers’ representative remains on the Board (albeit in a non authoritative role), the SGI Football Club is now effectively a 50/50 split ownership between the St. George Rugby League Football Club and WIN Corp.

Does this mean the club we all support is no longer a joint venture considering the Steelers role has been seemingly reduced to mere window dressing?

If so, the NRL must officially restore the Dragons’ 15 premierships won between 1921-1998.

 

[possm]

So the whole franchise is worth 20 million. With 50% share I.e. 10 million, Win payed the debt of 6m and the new partneship st george leagues and win are now 4 million in profits.

Hopefully all profits are for the club
Only !

I also hope our new CEO Brian Johnston talks to the NRL about our heritage and that it is to be recognised and preserved. I.e we merged , not started a new club therefore all our histories and Premierships are so to be recognized and combined. I will not ever accept St George Illawarra have one 1 comp. Its 16. This would then imply St George and Illawarra were replaced and do not exist. This is utterly wrong and I want Brian Johnston to fix this technicality with the NRL as a matter if urgency.

I'd say it means we have approximately 4m in the bank to be spent on things football not to be used as dividends. Enough to higher a top grade coach and maybe improve our training centre.

 

[muzby]

If so, the NRL must officially restore the Dragons’ 15 premierships won between 1921-1998.

Will never happen.

Even if the JV separates, those titles get shared between the clubs as part of a separation deal.

Adding in the title the Steelers helped the Dragons win in 2010, that means each club would be awarded 8 titles each.

So any future stand alone St George would start with 8 premierships to their name.

The whole JV from the Steelers was actually just a strategic long term play to acquire a long list of historical premierships.

Well played, Stanley.

Well played.

 

[Saints Forever]

From what I understand the joint venture owed the NRL a little less than 6m and Illawarra owed the St George side about 6m for funds paid on Illawarra's behalf. Win paid the joint venture 10m of which a little less than 6m was paid to the NRL as repayment of a loan. In return WIN receives shares totalling the 50% of the joint venture - Illawarra's shares and the chairmanship of the board plus two extra Board members.

So SGI are now debt free and have a little more than 4m extra in the bank.

Possm

My understanding of the transaction is that Illawarra sold its half share of the JV for $10M.

The NRL loan was taken out because Illawarra was unable to meet its share of funding support for the JV.

Consequently, from the $10M sale price, Illawarra was obliged to pay the NRL loan back as its funding arrears to the JV.

Illawarra kept the difference being $4M, however I believe it owes the Gordon family a significant amount of money which was secured against their leagues club.

Hence WIN really only paid $6M in cash and effectively wrote off $4M in debt outstanding to it from Illawarra.

That is my take on the transaction.

 

[possm]

Possm

My understanding of the transaction is that Illawarra sold its half share of the JV for $10M.

The NRL loan was taken out because Illawarra was unable to meet its share of funding support for the JV.

Consequently, from the $10M sale price, Illawarra was obliged to pay the NRL loan back as its funding arrears to the JV.

Illawarra kept the difference being $4M, however I believe it owes the Gordon family a significant amount of money which was secured against their leagues club.

Hence WIN really only paid $6M in cash and effectively wrote off $4M in debt outstanding to it from Illawarra.

That is my take on the transaction.

If what you say is correct, then the Board is more stupid than anyone imagined. Under the joint venture agreement, Illawarra and St George were jointly responsible for funding the operation. Any loan arrangement between the Illawarra Club and their funders has nothing to do with St George. The Illawarra Club is still operational and any deal done to keep it that way has nothing to do with St George.

Tinkler paid 11m for Newcastle some years ago now. There is no way in the world that SGI is worth less than that figure. In my honest opinion the deal is that WIN pays for 50% of the joint venture, in my opinion valued at 20m. With the WIN contribution, the NRL is paid 6m and the remainder of the funds is owned by the joint venture. It is possible that not only do WIN now own 50% of the joint venture, they could very well own the Illawarra Leagues Club and Football Club as well.