Tinkler and the Knights

[DIEHARD]

Mining magnate Nathan Tinkler makes $100 million offer to buy Newcastle Knights

MINING magnate Nathan Tinkler is poised to turn cash-strapped Newcastle into one of the NRL'S richest clubs after making a $100 million take-it-or-leave-it offer to buy the Knights.

Tinkler has agreed to guarantee the club a minimum of $10 million a year in sporsorship for the next 10 years, on top of paying out the Knights' existing debt of nearly $3 million, in return for full ownership.

His offer will go before the Knights board tomorrow night.

Given its magnitude, club directors will be under extreme pressure to call an extraordinary meeting of members to vote on the proposal.

If it's rejected, Tinkler says he will walk away from any involvement with the club. "This is it," Tinkler Sports
Group executive chairman Ken Edwards said yesterday.

"This is our final offer and if it's not accepted for whatever reason, Nathan will walk away and concentrate on his other interests.

"In putting this offer together, we have complied with everything the Knights have asked for and agreed to every request.

"Nathan and [Knights chairman] Robbie Tew have shaken hands.

"It's a matter now of waiting to see where it goes."

Tinkler wants to know by Friday if the club's board of directors has agreed to call an extraordinary general meeting to take the offer to Knights members.

A 75 per cent vote in favour of privatisation would be needed for the deal to be given the green light.

Tinkler will walk away and concentrate on his other sporting interests in Newcastle, including his A-League soccer club the Jets, if the Knights reject this final offer.

The Knights currently generate around $7 million a year in sponsorship but have been struggling to stay afloat financially for virtually all of their 23 years in existence.

Under Tinkler's proposal, they would be swimming in cash. At the very least, they would have an extra $3 million a year to spend under his ownership, even if the current sponsorship level was not maintained.

Tinkler and Tew have met twice in the past three or four weeks to discuss the new offer after the mining millionaire's original proposal to own the club was rejected last November.

Knights chief executive Steve Burraston said last night he was not privy to the detail in the new offer.

"There is a board meeting on Wednesday and privatisation is on the agenda, so I'm assuming everyone will be brought up to date then on what is happening," he said.

http://www.couriermail.com.au

[DIEHARD]

Tinkler weighs in with $100m Knights offer

MINING magnate Nathan Tinkler has upped his offer to buy the Newcastle Knights to a staggering $100 million - guaranteeing the Knights $10m in sponsorship every year for the next decade and erasing their $3m debt in return for the club's NRL licence.

Just two months ago, Knights chairman Rob Tew rejected a $10m offer from Tinkler for the licence. Tew last night said he would take Tinkler's offer to a board meeting tomorrow night, when other funding options for the struggling club would be discussed.

''Our responsibility is to act in the best interest of our members,'' Tew said. ''I'm not sure this is the best proposal. We have had a number of interests since Nathan made the last offer public through the media.''

In rejecting Tinkler's initial offer, Tew demanded that the coal baron, who has an estimated fortune of more than $600m, guarantee the club's projected sponsorship income for the next 10 years.

The Knights put that figure at $7m a year. Under the new offer, Tinkler has committed $10m a year. In the unlikely event the Knights lose all of their sponsors after privatisation, it could be a $100m investment. If sponsorship is unchanged, his contribution would be $30m - indexed to CPI - in new capital over 10 years.

Tinkler Sports Group executive chairman Ken Edwards said the upgraded offer had met all the Knights' requirements, and that the increase in sponsorship was not the full extent of their commitment.

''We are not capping ourselves at those numbers,'' he said. ''We will spend what it takes, within reason. We have a business model in place we believe is achievable. The $10m is a number the Knights have asked us to guarantee. We agreed with their request as with the other changes we have made to the offer to make it acceptable.''

Tew rejected Tinkler's initial offer without taking it to the board because he believed the deal was not good enough. He declined to comment on the latest offer, which, apart from the increase in guaranteed capital, remains largely the same.

The Knights board has been investigating full and part privatisation for several years and have been in negotiations with Tinkler for months.

''When we went public with the last offer, the reason for doing that was to get some feedback from the community that we were on the right track,'' Edwards said. ''Clearly we got a strong message from the community, and the Knights board got a strong message from the community, that this was a model that people wanted to see advanced and wanted to see in place.

''We are not aware of any reason why this should be kept from members, and we understand it is the members who will make a decision on this. That is the group we want to present the offer to and explain ourselves fully to. If the board can't agree to do that by Friday then there is nothing more we can do with the board. It will be really then up to the members . If enough members believe in it, it is up to them to call a special meeting.''

Tinkler saved the Newcastle Jets A-league club from oblivion four months ago and plans to introduce the same community-based not-for-profit model at the Knights.

''This is not for profit in the context that if any money is made it is ploughed back into the development of junior rugby league in the Hunter region and to the Knights,'' Edwards said.

''For members it means … a club which is structured properly and will have the funds to compete on and off the field with the other big clubs in the country.''

http://www.smh.com.au/rugby-league/

[DIEHARD]

Harragon, Johns back Tinkler takeover bid

PREMIERSHIP-WINNING captain Paul Harragon has implored the Knights to ''seize'' Nathan Tinkler's offer to buy the club ''with both hands and without delay''.

Harragon, a club legend and former director, yesterday led a chorus of support for the proposal which guarantees the Knights a minimum of $10 million a year in sponsorship for the next decade, on top of paying out existing debts of nearly $3 million, in return for the NRL licence.

The Knights board will address the Tinkler offer and other privatisation models at a meeting tonight.

If the board endorses a proposal, it would then be taken to the members. A buy-out would require the approval of 75 per cent of members who decide to vote.

In an open letter, Harragon describes the Tinkler offer as an extraordinary opportunity to "future proof" the Knights and maximise the club's potential.

''It gives us a very real chance to become a club that is always a likely top-four finisher rather than simply a top-eight hopeful as we've become accustomed to in recent times,'' he writes. ''Very importantly, it delivers for players increased resources and confidence to go forward and build a much stronger platform for investment in the juniors and the local league. All in all it would be a real shot in the arm for the future of rugby league in the region.''

The Knights have battled financial hardship since forming in 1988.

But Harragon believes that under Tinkler, whose wealth is estimated at more than $600 million, the club could get out of the ''poor house'' and be the ''envy of the NRL''.

Tinkler had an initial $10 million offer rejected two months ago.

If unsuccessful with his latest proposition, the coal baron, who in the past three years has contributed $700,000 to the Knights in sponsorship and a yet-to-be-repaid loan, would end his involvement.

Club legends Andrew and Matthew Johns went public with their support of Tinkler's takeover bid in November. When contacted yesterday, Matthew Johns said: ''I don't think there is anyone else in the world that will throw those type of resources at a football club. This is a one-off.''

Johns's former teammate Tony Butterfield has long been an advocate for privatisation but stopped short of endorsing Tinkler's offer.

''Any reasonable person would accept that the club has persevered under duress for a long, long time under the current model,'' he said. ''If we accept that sport has moved forward in a competitive sense, that is competition for dollars and bums on seats, this model now doesn't suit our needs. Exactly what model does is the purview of the board to decide.

''Certainly Nathan has brought the issue to a head and I think the board should consider strongly what is on the table.

''It may wish to make certain amendments, but at some point in the near future, certainly before the new season starts, the members need to be advised as to what the proposal is and how it benefits the community and its football heritage.''

A former captain, deputy chairman and life member, Butterfield was also encouraged that the Tinkler off was not the only proposal for consideration.

''If there are other offers … that can't be a bad thing,'' he said.

''That suggests a lot of people have a deep affection for the club.''

http://www.smh.com.au/rugby-league/

[TITAN PETE]

The Knights would be mad to refuse the offer , it gives the club a certain future

[TITAN PETE]

Knights members to vote on Tinkler proposal

Newcastle Knights Thu, 20 Jan 2011 08:01:00

Knights members will now get their chance to vote on Nathan Tinkler's proposal


Tonight amongst other matters, the Board of the Newcastle Knights has considered two funding proposals.

A funded Patron’s Trust model which comprised of a commitment of funding over 5 years and the revised Tinkler Group offer.

The Tinkler Group offer is a 10 million dollar per annum guaranteed sponsorship for 10 years and is a significantly higher financial commitment than the previous Tinkler Group offer and is a superior offer to the patron’s trust model.

As a consequence – tonight the Board of the Newcastle Knights have agreed in principal, to the revised Tinkler Group offer subject to further negotiations on detailed matters which will form part of an anticipated completed agreement.

The Board of the Knights agree to make all reasonable endeavours to reach agreement on the detail and present the proposed agreement to the members for their determination in March 2011.

There are a number of details which require further clarification but we are optimistic we can reach a commercially realistic outcome.

The Board has agreed to the Chairman and Chief Executive, meeting with representatives of the Tinkler Group to further negotiations in order to reach agreement.

This is a critical matter for the Knights and it is most important that we give it appropriate consideration and take the time necessary to ensure the best outcome for our members, sponsors, staff, players and other important stake holders.

[DIEHARD]

I think it's a fantastic deal. For far too long Knights have been stuggling. But have had so muh potental. I just want the sponsorship in writing and for it to be quantified. And any further sponsorship is gravy.

Surely a good thing and I think most Knights fans would support it.

Privatisation isn't bad. Just as long as the people who own it have their heart in the right place. And I know nothing about Tinkler.

The Members should demand certain caviates to quarantee the clubs identity. I'd also tie in funding for juniors and for the Hunter region.

[TITAN PETE]

AAPMon, Feb 21, 2011 - 1:25 PM

Mining magnate Nathan Tinkler has withdrawn his $100 million offer to buy the Newcastle Knights NRL club.

The Tinkler Sports Group had been due to meet Knights chief executive Steve Burraston and chairman Rob Tew at 1400 AEDT on Monday to resolve their issues after ongoing talks had hit a snag.

But a frustrated Tinkler announced in a statement he had taken the offer off the table due to "too many differences between the two parties that remain unresolved."

Tinkler also reportedly sent an email to board members informing them of his decision and laying the blame for the failed deal squarely on the shoulders of club directors.

The billionaire did not hide his disappointment towards the Knights, who stood to secure $100m over the next 10 years.

"We feel that this outcome has cost the club, its members, fans, Newcastle, the Hunter and Northern NSW community a unique opportunity to guarantee the future of a proud sporting brand," Tinkler Sports Group said in a statement.

"To all members and fans we offer the solemn assurance that Tinkler Sports Group has moved heaven and earth to transact this deal in good faith and with the community interest in mind at all times.

"This now ends our interest in this matter with the current Knights Board.

"We will not be engaging in further discussion.

"The Tinkler Sports Group has a number of Hunter-based sports and community endeavours ready and willing to engage our support.

"We will be moving on with these projects forthwith."

Burraston and Tew have called a media conference for 1430 AEDT.

[TITAN PETE]

Gallop denies Knights in financial danger

Steve Jancetic AAPMon, Feb 21, 2011 - 3:39 PM

Gallop, speaking ahead of the Knights making an official comment on the scrapped deal, said the club was in a position to prosper even without Tinkler's support.

"The Knights are going into a new stadium, they are a big part of the community up there - so this isn't something where we would be suggesting that this has put them in any financial trouble," Gallop said on Monday.

A frustrated Tinkler on Monday morning took his offer off the table ahead of a proposed meeting with Knights chief executive Steve Burraston and chairman Rob Tew later in the day which had been scheduled in a bid to resolve ongoing differences.

Asked whether he was disappointed by the prospect of someone with Tinkler's wealth walking away from rugby league, Gallop said:

"Obviously anyone with deep pockets who wants to get involved in rugby league has got a certain attraction to us, but whether that is a deal that is going to tick all the boxes for the Knights is not for us to say.

"At this stage it's very much been an issue between the Tinkler group and the Knights, obviously the detail was being worked through.

"We are not forcing private ownership on any of our clubs - it's obviously something the game embraced a long time ago and it's been successful by and large in the areas that have embraced it - it's a wait and see at this stage for us."

[DIEHARD]

He is just playing rough. The Knights were right to take their time if promises were recinded. Always get it in writing and never ever agree to anything without this being rock solid.

[DIEHARD]

Cheers as 97% yes vote gives Tinkler the Knights

MULTIMILLIONAIRE Nathan Tinkler owns the Knights after a staggering 97 per cent of the NRL club's members voted in favour of the racing and mining baron's privatisation proposal at an extraordinary general meeting at Newcastle Entertainment Centre last night.

Tinkler required only a 75 per cent majority of members to agree to two constitutional amendments clearing the way for him to take control of Newcastle's NRL club, which until last night's history-making ballot had been a membership-based, community-owned entity from the time it was founded in 1988.

Emerging after an hour-long ballot, Knights chairman Rob Tew announced that the two special motions had been carried, 97 per cent for to 3 per cent against, prompting rapturous applause, a standing ovation from some members, and a spontaneous chant of ''New-cas-tle, New-cas-tle, New-cas-tle''.

''It is a resounding successful proposal for the Tinkler Sports Group,'' Tew said. ''In order to succeed the Tinkler Sports Group needed 75 per cent plus and as you can see they've clearly done that. From the outset, it's been the board's imperative to get the best deal for this club and this vote tonight is an historic vote in the history of this club ? At 97 to three on both resolutions, we continue to be a united club.''

The ballot was conducted under the scrutiny of John Campion and Sean Mahoney, representing accounting firm PriceWaterhouseCoopers. Although official numbers were still being confirmed, it is understood about 2500 votes were lodged and counted - about 800 who voted last night and 1700 by proxy. By those estimations, 2425 voted in favour and 75 were against.

Security personnel estimated about 1500 members attended the meeting last night. In a show of hands before the formal voting took place, fewer than 10 appeared to vote against Tinkler's proposal.

''What a night, hey! It certainly is history,'' Tinkler Sports Group executive chairman Ken Edwards announced to applauding members. ''When we spoke to about 800 members a few nights ago, I said at the time that in my view there were two heroes in all of this. One was Robbie Tew and the board of the Newcastle Knights who have done an outstanding job representing your interests and making sure this club is the very best that it can be.''

Laughing, Edwards said: ''The other was Nathan Tinkler, who very generously agreed to all of the terrible things that Rob asked him to agree to. Well, I think we can now accommodate a third hero to this story, and that's the members, so thank you.''

Knights founding father, life member and long-serving former chairman Michael Hill said he felt ''overwhelmed'' by the lopsided result. NRL chief executive David Gallop applauded the decision by members of a club representing one of rugby league's heartlands, and wished Tinkler every success.

Although Tinkler was not present, Edwards said the former electrician was immediately made aware of the result, was ''well pleased'' with the show of support by members, and could not wait to start implementing his grand plans to make the Knights the jewel in the crown of his ''Team Newcastle'' sporting super club.

Source: http://www.leaguehq.com.au

[DIEHARD]

Best of luck to the Knights. 97% is an overwhelming level of support!

Newcastle will be a true powerhouse to be feared!

[Blazertaser]

Hoping Bennet decides to go to New-Cas-tle instead of the bloody donkeys! Give us something new, make the best out of a team who needs it, give the broncos some time to get used to their new coach and let them roll with it.

[DIEHARD]

Typically the Broncos will be spoon fed good fortune and Bennett will return. At least that is my take on it.

[Blazertaser]

Typically the Broncos will be spoon fed good fortune and Bennett will return. At least that is my take on it.

Unfortunately, it will happen...... Seeing as it is a high possibility that it will happen, to bad he is 1 year late to send locky out on a high note

[DIEHARD]

I've had Knightmares about this. I think that this might be FANTASTIC financially and it will bring members, crowds and sponsors, but maybe they have sold their soul. Tinkler has a bad reputation as a hothead and has reportedly said some pretty shocking things.

I don't see that type of personality working in a Rugby League club, so either hopefully he doesn't have such a personality or he needs to change his behaviour.

Otherwise the Newcastle Knights will become the Dark Knights.