Knights agree to Tinkler offer
NEWCASTLE Knights board agreed “in principle” to
mining magnate Nathan Tinkler's $100 million offer to buy the club in a
meeting Wednesday night.
The offer guarantees the club at least $10 million a year
in sponsorship revenue for the next 10 years and wipes out its
estimated $4 million debt.
As a consequence – the Knights board 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.
A funded patron’s model had also been tabled at the board meeting but was rejected in favour of the Tinkler’s plan.
Knights chief executive Rob Tew released the following statement to Knights fans last night following the meeting.
“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,” Tew said.
“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.”
Just two months earlier, Knights chairman Tew rejected a $10m offer
from Tinkler for the licence but he substantially increased that amount
and won the board over.