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