Tinkler and the Knights

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They got a hide these Hunter Sports clowns.

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Newcastle Knights ownership saga: NRL says members are holding up deal

The battle for control of Newcastle’s NRL franchise took an intriguing turn on Friday when the NRL criticised the Knights Members Club for ‘‘holding up’’ a resolution to the impasse.

The NRL’s head of club services, Tony Crawford, said the governing body had reached agreement with Nathan Tinkler’s Hunter Sports Group on terms that would ensure the Knights were financially secure, retained their colours and logo and continued to play in Newcastle.

But he blamed the members club, who have been the third party in negotiations that date back almost three months, for the 15-day hiatus since Tinkler announced announced that HSG would ‘‘have no further role in the Newcastle Knights’’ and would relinquish control ‘‘once all liabilities are paid’’.

“The deal we have put forward will secure the future of the Newcastle Knights and set them up as one of the financially strongest clubs in the NRL,” Crawford said in a statement.

“It’s a great outcome for the club, the players and the fans – but it is being held up by the members club.

“The sooner we can finalise this deal the better it will be for everyone associated with the Newcastle Knights. “So it is disappointing that the members club continues to hold up the process.”

Crawford said the NRL would continue to keep discussions open with the parties.

Knights members club Nick Dan said he had been talking with NRL officials last night and was surprised that a statement had been released.

‘‘I’ve just been informed of the press release,’’ he said. ‘‘The NRL is still explaining the future set-up of the Knights to the members board.

‘‘The members board is hopeful with further clarification, which occurred just prior to the press release, that the negotiations, which have been continuing, will proceed in a positive way.’’

Dan had been hopeful earlier in the week that a resolution was imminent and HSG’s handover was on the verge of being rubber-stamped.

But last night he said: ‘‘After having common views and a common purpose for several weeks, there has been a divergence of views over the last week, which the members club believed would have a major impact on the future of the Knights. These have been discussed at length this evening and the members club believe there is a way of resolving any differences of opinion.’’

It is understood the members club have been trying to preserve what they regard as ‘‘heritage issues’’, in particular how many directors should be elected onto the board of the new Knights entity.

The NRL is understood to favour a seven-person board including a number of independent directors it appoints.

In a statement on the club website, Knights chief executive Matt Gidley said: ‘‘From our point of view, we just want the best possible outcome for the club and anyone who has a view that differs from this should not be involved in the process.

‘‘We continue to trust that the NRL will ensure we reach a resolution that achieves this objective as soon as possible.’’

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

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Some clubs have all the luck!

NRL set to take full control of Newcastle Knights guaranteeing financial future
http://www.dailytelegraph.com.au/

THE uncertainty surrounding the future of the Newcastle Knights will become clearer on Tuesday with the NRL poised to announce it will take over the running of the club following the departure of former owner Nathan Tinkler.

A marathon meeting between the NRL and representatives from the Knights Members’ Club at League Central on Monday paved the way for an agreement to be reached in principle for the game’s governing body to assume full control of the club.

Once the legal paperwork is signed off on, the NRL is expected to step up negotiations with Wests Group with a view to them becoming a major player in a new ownership model that will guarantee the Knights financial future.

Until then, the NRL will bankroll the club and meet all ongoing costs including the monthly wages for all players and staff that are due to be paid on Friday.

“It may take months for the new ownership model to be finalised but the NRL won’t be rushed into doing anything and will wear the cost in the meantime to make sure the club’s future is secure,” a source said.

The agreement can’t come soon enough for a club in turmoil both on and off the field with coach Wayne Bennett admitting on Sunday following the Knights loss to Wests Tigers, their fifth in succession, the ownership wrangle was impacting on performances on the field.

The NRL declined to comment on the outcome of the meeting that lasted more than four hours.

But Members’ Club chairman Nick Dan confirmed several “outstanding issues” had been resolved.

“The meeting went well and hopefully we are nearing a resolution,” Dan said.

The Daily Telegraph understands the deal will virtually mean the end of the Members’ Club in its current form with the NRL agreeing to a compromise that will see a community director appointed to a new seven member board that will be formed to run the club.

The NRL has also agreed to fund a legal case involving the Members’ Club as part of the agreement.

In return, the Members’ Club will sign over the $10.52 million guarantee currently sitting in a joint bank account to Tinkler’s Hunter Sports Group as part of their exit agreement.

As part of the deal reached between the NRL and HSG, more than half the money will be used to pay off existing Knights debts while Tinkler has agreed to provide a $5 million sponsorship of the club over the next five years.

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NEW KNIGHTS: It’s a done deal as NRL boss comes to town

NRL chief executive Dave Smith will appear in Newcastle today to formally announce the new Knights ownership model.

Eleven weeks after the Newcastle Herald exclusively revealed Nathan Tinkler’s reign was in jeopardy because of a problematic $10.52million bank guarantee, the process of removing Tinkler’s Hunter Sports Group from control reached full-time last night.

The Herald has been told Smith will hold a media conference at Wests Mayfield to confirm the details of what will be, initially at least, an NRL takeover.

The governing body will manage and fund the club for an unspecified interim period until it is ready to consider expressions of interest from prospective owners.

Despite weeks of speculation that the affluent Wests Group would be the most likely candidate to replace HSG, it appears Wests is in no rush to become involved and is content to wait until the dust has settled.

Under the deal brokered over the past three months during negotiations between HSG, the NRL and the Knights Members Club, it is expected:

● the new Knights entity will kick off with $4 to $5million in its coffers, which is what remains of the bank guarantee that Tinkler forfeited, but the NRL will also contribute towards running costs;

● the rest of the bank guarantee will be used to help pay selected HSG liabilities, in particular trade creditors and employee entitlements;

● HSG will be left to deal with other liabilities believed to run into millions of dollars;

● a Tinkler-affiliated company will receive signage rights for five years on the back of Newcastle’s jerseys, which HSG insiders have described as a ‘‘sponsorship’’ but which other sources say was a sweetener to relinquish the bank guarantee;

● Smith and NRL legal counsel Nick Weeks will be the founding directors of the new entity, a company called Knights Rugby League Pty Ltd. But, eventually, a seven-person board of directors will be sourced and appointed, including an unknown number from outside Newcastle and at least one woman;

● the members’ club, which ran the Knights from creation in 1987 until privatisation in 2011, will be given a token 20per cent ‘‘B-class’’ shares in the new entity that will be relinquished after a transitional phase;

● there will be no elections for positions on the new board, but members will have the option of nominating a ‘‘community representative’’ director, who will have to be ratified by the NRL;

● the members’ club eventually will be wound up and its 15,500 constituents will become ‘‘ticketed members’’ of the new Knights entity;

● a new chief executive officer, replacing Matt Gidley, and other key administrative staff will be appointed;

● the Knights will retain their colours and logo and will not be moved from Newcastle.

Today’s press conference is expected to be attended by members club representatives, headed by deputy chairman Allan McKeown, as well as Smith and other NRL officials.

Knights Members Club chairman Nick Dan, who has spent countless unpaid hours in negotiations over the past few months, flew out for Europe yesterday on a holiday he booked last year.

Dan and McKeown were liaising with the NRL until late on Wednesday night and the deal merely needed to be rubber-stamped.

HSG had agreed to terms more than a week ago.

It is considered unlikely HSG representatives will be at today’s press conference.

● There was speculation last night the Knights had signed North Queensland Cowboys prop or second-rower Tariq Sims, whose brother Korbin plays for Newcastle.

The 24-year-old from Gerringong has played three games for Country Origin and at the World Cup for Fiji.

http://www.theherald.com.au/

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Interesting that Smith will actually also be on the Knights board.

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NRL takes over Newcastle Knights

In a rescheduled announcement on Saturday morning, NRL chief executive Dave Smith said the move would offer certainty players, fans and sponsors were seeking.

The Knights will continue to play out of Newcastle with their traditional jersey and logo.

“The Knights will continue to be Newcastle through and through,” Mr Smith said in a statement on the Knights' website.

“The team will look the same, they will continue to be based in Newcastle and they will represent this region proudly like they have for the last 26 years."

“The difference is that, financially, they will be one of the top tier clubs in the competition.”

The agreement follows talks between former owner Nathan Tinkler's Hunter Sports Group, the NRL and the Newcastle Knights Members Clubs.

The club's assets have been transferred to new entity Knights Rugby League Pty Ltd, which the Members Club will hold a 20 per cent stake in.

Mr Smith said keeping the Knights competitive was always the goal of the discussions and thanked HSG for their contribution to the club.

“Our first objective was to resolve the ownership dispute in the interests of the Newcastle Knights, their players, staff, sponsors, members and fans – and that has been achieved,” Mr Smith said.

“Our next task is to stabilise the business and, when the time is right, we will consider appropriate longer term ownership options for the business to position it for the future.”

The new Knights board will comprise seven members, including one community representative initially nominated by the Members Club.

Two shareholder representatives from the NRL will also be on the board, with another four independent directors.

The $10.52 million bank guarantee will be used to pay Hunter Sports Group's existing employee and supplier debts and to provide $5.1 million to the new club.

The arrangements will also fund ligitation between the Members Club and promoters Rock City.

No changes will be made to the Knights' business for the rest of the 2014 season, Mr Smith said.

Knights chief exeuctive Matt Gidley said he was pleased with the result.

“We now have an opportunity for a fresh strong start and that will be welcomed by our proud rugby league community,” he said.

Members Club director Allan McKeown said other options were considered but the Members Club, but the final choice was aimed at securing the club's future.

“While there were a range of options available to the Members Club we wanted to end the uncertainty surrounding the Knights and give the players, staff, fans and members a strong future,” he said.

Hunter Sports Group chief executive Tory Palmer said the company was proud of its legacy at the Knights.

“We have invested more than $20 million and the Knights now have a stable building platform which is reflected in the world class training and coaching structure from the NRL down through the elite junior programs.

“We will continue our involvement as a major sponsor for the next five years and support the Knights from the sidelines.”


NRL Knights chairman Paul Harragon and NRL chief executive Dave Smith announce the league will take control of the Knights. Pic: Brett Keeble

In a rescheduled announcement on Saturday morning, NRL chief executive Dave Smith said the move would offer certainty players, fans and sponsors were seeking.

The Knights will continue to play out of Newcastle with their traditional jersey and logo.


“The Knights will continue to be Newcastle through and through,” Mr Smith said in a statement on the Knights' website.

“The team will look the same, they will continue to be based in Newcastle and they will represent this region proudly like they have for the last 26 years."

“The difference is that, financially, they will be one of the top tier clubs in the competition.”

The agreement follows talks between former owner Nathan Tinkler's Hunter Sports Group, the NRL and the Newcastle Knights Members Clubs.

The club's assets have been transferred to new entity Knights Rugby League Pty Ltd, which the Members Club will hold a 20 per cent stake in.

Mr Smith said keeping the Knights competitive was always the goal of the discussions and thanked HSG for their contribution to the club.

“Our first objective was to resolve the ownership dispute in the interests of the Newcastle Knights, their players, staff, sponsors, members and fans – and that has been achieved,” Mr Smith said.

“Our next task is to stabilise the business and, when the time is right, we will consider appropriate longer term ownership options for the business to position it for the future.”

The new Knights board will comprise seven members, including one community representative initially nominated by the Members Club.

Two shareholder representatives from the NRL will also be on the board, with another four independent directors.

The $10.52 million bank guarantee will be used to pay Hunter Sports Group's existing employee and supplier debts and to provide $5.1 million to the new club.

The arrangements will also fund ligitation between the Members Club and promoters Rock City.

No changes will be made to the Knights' business for the rest of the 2014 season, Mr Smith said.

Knights chief exeuctive Matt Gidley said he was pleased with the result.

“We now have an opportunity for a fresh strong start and that will be welcomed by our proud rugby league community,” he said.

Members Club director Allan McKeown said other options were considered but the Members Club, but the final choice was aimed at securing the club's future.

“While there were a range of options available to the Members Club we wanted to end the uncertainty surrounding the Knights and give the players, staff, fans and members a strong future,” he said.

Hunter Sports Group chief executive Tory Palmer said the company was proud of its legacy at the Knights.

“We have invested more than $20 million and the Knights now have a stable building platform which is reflected in the world class training and coaching structure from the NRL down through the elite junior programs.

“We will continue our involvement as a major sponsor for the next five years and support the Knights from the sidelines.”