View Full Version : The Illawarra sells their share of the Dragons to a Wollongong Icon....
Titanium_BD1103
16-03-06, 08:26 AM
from: foxsports.news.com.au
Saints' $6.5m sell-off
By Dean Ritchie
March 16, 2006
WIN Television Corporation has purchased a quarter-share of St George-Illawarra in a historic deal worth more than $6 million.
Details of the shock deal will be revealed at a press conference in Wollongong today.
The Illawarra side of the merged club is understood to be struggling to pay back an $8 million loan from St George Leagues Club, and has sold half of its share in the joint venture.
The Steelers are attempting to repay the debt but cannot sustain ongoing heavy payments.
Illawarra's board secretly voted to sell off 50 per cent of its share at a recent board meeting - meaning St George-Illawarra is now 25 per cent owned by the Wollongong-based television station.
Dragons chief executive Peter Doust was unavailable for comment last night.
The $6 million that Illawarra will receive from the WIN Corporation will help pay back the Steelers' debt to St George Leagues Club.
NRL chief executive David Gallop was in Adelaide overnight promoting the round-six match between Penrith and Melbourne at Hindmarsh Stadium on April 15.
Gallop will however return to Sydney early this morning to attend today's announcement.
Illawarra is understood to have borrowed the money from St George Leagues less than two years ago.
The debt proves a theory most held when the two clubs merged in 1999: St George would supply the money, Illawarra the players.
The deal highlights the success of the joint-venture club, with the Russell Crowe-Peter Holmes a Court takeover bid for Souths being negotiated for $3 million.
The Daily Telegraph
Good to see the St George Illawarra Dragons trying to make themselves stronger and financially viable... and Good luck to WIN on making this club better... with their support of the Illawarra, I can't think of a better person to sell the Illawarra share of the club to.... :clap:
Didnt hear any fuss emanating from the Dragons about privatisation.
Like it or not the way of the future for the big sporting clubs - they will be either privately owned or publically listed.
Didnt hear any fuss emanating from the Dragons about privatisation.
Like it or not the way of the future for the big sporting clubs - they will be either privately owned or publically listed.
I am all for privitisation but for the right reason. The likes of Allan Jones pushing the John Singleton wheelbarrow to have Soth's relocate to Gosford is absurd. Singleton owns the stadium and obviously receives no income if nothings on. He is in it for himself and has shown he is willing to do a deal with any organisation to get them to use his facility
In fact any club would be committing financial suicide moving there, just look at the rapidly declining figures of the Licensed Club and the lessening interest in league for other codes. And they are too close to Newcastle it would be cannabalism at it's worst. Only one side would survive
The destablisation these people cause is not good for the game or the club. Why don't they start a campaign with the storm whom they chased to relocate to Gosford? The storm and the league told these guys to shove it when they bunned this stunt on last year. They need to be told again
The price offered for South's is too low but the idea is right, I only wish the Sydney Council and State Gov would give the approval and a grant to refurbish the oval to a 20,000 capacity similar to the one proposed for the Titans
The State Gov has given monies to Newcastle, West Tigers and other clubs who need asisstance why not Souths.
The community would be the major benefactor and that what we want. :dizzy:
League Freak
16-03-06, 02:25 PM
I think the offer being made for South at the moment is very generous.
$3,000,000.....the way the club is right now that would be turned into nothing in six years time.
Personally, you couldnt give away Souths to anyone that was looking to invest. They lose money hand over fist.
I think the offer being made for South at the moment is very generous.
$3,000,000.....the way the club is right now that would be turned into nothing in six years time.
Personally, you couldnt give away Souths to anyone that was looking to invest. They lose money hand over fist.
Yep - they have a track record of mediocrity that only hard edged business can overcome. They are still run like the local grade team that needs the pub chook raffle to pay its players.
Queenslander
16-03-06, 02:33 PM
I think the offer being made for South at the moment is very generous.
$3,000,000.....the way the club is right now that would be turned into nothing in six years time.
Personally, you couldnt give away Souths to anyone that was looking to invest. They lose money hand over fist.
Souths should really take the Crowe & Holmes a Court offer; The only problem that I see with the offer is the fact that Souths have been valued at around 9 million dollars....So 3 million for 75% doesnt make correct economic sense. If pressured im sure Crowe and Holmes a Court could increase their offer to get some more votes.
True - but they also have to pay market value based on current worth and likely future earnings etc. Souths future is bleak in Sydney without this proposal, that must drastically hurt their market value.
Queenslander
16-03-06, 02:40 PM
True - but they also have to pay market value based on current worth and likely future earnings etc. Souths future is bleak in Sydney without this proposal, that must drastically hurt their market value.
Very true; but my above point is being put infront of all the traditional members of Souths, and im sure they will use the "Its not enough money" as an excuse when they vote no on the bid. Souths need to let go of the past and move on if they want to survive.
The Broncos are publicly listed, the Dragons are partly privatised, didn't hear any fuss when all these ideas were brought up. Wake up to yourself Souths, get your heads out of the dark ages of the 1900's and step into the new millennium. Take the deal from Crowe/Holmes a Court, you could do worse.
League Freak
16-03-06, 06:07 PM
The thing is...they're only worth what people are actually willing to pay for them.
No one with that type of money would be willing to pay 9 million for them. Thats to much for a shambles of a sporting club thats p*ssing money away.
Dragons
16-03-06, 08:44 PM
If it true that should be a positive sign for the Dragons to be able to upgrade Jubilee Oval and of course Win Stadium. The Dragons have just up graded Jubilee so they can play nights games. Poor Souths are they ever gunna get anywhere ?
Steelers
16-03-06, 08:49 PM
As long as Illawarra play an equal part in running the team and remain mainly equal with St George, I am happy :)
Dragons
16-03-06, 09:07 PM
As long as Illawarra play an equal part in running the team and remain mainly equal with St George, I am happy :)
Just cant pop that pimple.....lol
Used to the two teams now so I agree if it got to be.
Dragons
16-03-06, 09:19 PM
Just got this.......
WIN Corporation Secures Steelers Future
16 March 2006
WIN CORPORATION, owner of Australia's largest and leading regional television network, has covered a substantial amount of the Illawarra Steelers debts to joint venture partner St George, which will enable the Dragons to continue playing home matches in Wollongong.
WIN Corporation Executive Chairman, Mr Andrew Gordon made the announcement today saying his media company's investment of $6.5m in the Steelers would enable the repayment of most of the club's debt to St George Leagues Club.
"WIN Corporation originated in the Illawarra and proudly it is still based here today. WIN has always prided itself on showing strong support for locally based, national sporting teams," said Mr Gordon. "We believe the Steelers are a fundamental thread in the fabric of this region and I do not intend for this district to lose hosting NRL matches at WIN Stadium.
"The deal is conditional on the Dragons arranging a new license agreement with the NRL until 2011 and negotiating a similar term arrangement with Wollongong Sportsground Trust ? allowing the St George Illawarra Dragons to play half of their home matches at WIN Stadium, plus a NRL pre-season fixture annually."
Mr Gordon said that besides providing the funding, which will be used solely to discharge the majority of the Steelers debt to St George Leagues Club; WIN Corporation will also receive 24 per cent of the Steelers share in the joint venture.
"We will also provide business opportunities and management to improve the performance of the Steelers Club and ensure long-term continuation in the NRL by way of the joint venture," he added.
Steelers Chairman, Mr Peter Newell said his directors and members were indebted to Andrew Gordon, WIN Corporation and of course Bruce Gordon for their support of the club and the benefits NRL participation brings to the Illawarra region's economy.
"The amount of money WIN Corporation has made available is one of the biggest investments that I can recall involving sport in the Illawarra," said Mr Newell. "The Steelers will still carry a level of debt, but WIN have given us the chance to not only survive, but will work with us on our future."
Mr Newell said that Andrew Gordon would be appointed to the St George Illawarra Dragons Board as one of the Steelers representatives. "WIN Corporation CEO, Mr George Papadopoulos will also be invited to join the Illawarra Steelers Board in an ex-officio capacity. Both these appointments will add strength and business experience to the respective boards.
"The Steelers debts will not only be substantially reduced, but WIN's involvement will enable the club to continue the propagation and development of the game of rugby league in the Illawarra and South Coast region," Mr Newell said.
St George Leagues Club and Dragons Chairman Warren Lockwood, who welcomed the involvement of WIN Corporation with the Dragons explains its impacts for the Dragons and St George Leagues Club.
"A commitment from a corporate partner of the quality of WIN Corporation is a major coup for rugby league across the region and the game itself," said Mr Lockwood.
"In times when there is continuing pressure being mounted on the Licensed Clubs, debt reduction programs are essential.
"The St George Leagues Club has always understood and supported the strategy of the St George Illawarra Dragons from the beginning. An essential component of this strategy, was sustaining viability of the Steelers and their contributions to the Dragons.
"The repayment of capital and interest on loans extended by the St George Leagues Club will enable the Licensed Club to plan for its next phase of refurbishment and better cope with the pressure from increasing poker machine tax."
New Supporters Gear
Steelers
16-03-06, 10:44 PM
If the Dragons are ever moved from Wollongong, boy will there be an uproar. The NRL will be forced into bringing back the Steelers. I'll go to David Gallop myself :p
League Freak
16-03-06, 10:49 PM
I wonder if Win have some controlling interest in Win Stadium aside from naming rights.
Mate - Love this - really sounds like all factions of the club are looking out for the clubs best interest. Should see a strong club for yearts!
Both sides of the joint venture have shown how to operate harmoniously. However, I get the feeling that the St George side is slowly starting to remove any "Illawarra" influence from the team. The only thing left is the name and WIN Stadium. The shorts have been changed, removing the remaining "Illawarra" piece of the uniform. What's next, taking over and changing the name of the Steelers Leagues Club?
Both sides of the joint venture have shown how to operate harmoniously. However, I get the feeling that the St George side is slowly starting to remove any "Illawarra" influence from the team. The only thing left is the name and WIN Stadium. The shorts have been changed, removing the remaining "Illawarra" piece of the uniform. What's next, taking over and changing the name of the Steelers Leagues Club?
what are you talking about. te dragons have changed their away jersey to more resemble the steelers and have 50/50 split of games between Kogerah and Win. plus that their happens to be more original steelers players left at the club. if anything the dragons are getting slowly pushed out.
Steelers
19-03-06, 12:40 PM
I don't want to see any side of our joint venture pushed out, but I don't think that is happening at the moment. The Steelers still own 25% of the club, and an Illawarra company... WIN, have another 25%. Most of the junior players come from the Illawarra region, which shows that every part of the team is heavily influenced by the former Steelers. But St George have the money, and the tradition, and quite a large fan base. I think that our joint venture has been the most successful harmony wise.
I don't want to see any side of our joint venture pushed out, but I don't think that is happening at the moment. The Steelers still own 25% of the club, and an Illawarra company... WIN, have another 25%. Most of the junior players come from the Illawarra region, which shows that every part of the team is heavily influenced by the former Steelers. But St George have the money, and the tradition, and quite a large fan base. I think that our joint venture has been the most successful harmony wise.
Im with Steelers -n this one - apart from some hard core fans from either side - most fans are more than happy with the JV. I know I am, I was a Dragon before, and am happily a St.George Illawarra Dragon now.
I dont see Illawarra od the Dragons pushing the other out - in fact most times the club seems to be most concious of ensuring both factions are dealt with evenly and fairly.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.