Nathan Tinkler - what is that stink?

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

By Barry Toohey From: The Daily Telegraph January 18, 2011 12:00AM

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.

SOURCE: http://www.dailytelegraph.com.au/sp...ewcastle-knights/story-e6frexnr-1225989920986

That's a massive offer. Surely they'd have to consider it very seriously.

 

[hitman124]

Sick Puppy.

 

[ABshark]

Its not actually $100m. He's guaranteeing that he will cover any loss in sponsorship each year up to $10m for the next ten years.

 

[josh11223344]

surely they would take this it would guarantee there survival for years to come wouldn't it?

 

[snowman]

its a mis leading bid, read AB's post

 

[slide rule]

Misleading by the tele, but that deal would pretty much guarantee their existence.

 

[A.Snowden]

It is not that misleading. Tinkler is guaranteeing they get $10mil per year for 10 years. Plus paying their $3mil dept out. It's misleading in the sense that ppl read it as though he is giving them $10mil per year. He is ensuring they receive that. All in all it's a Good deal I say.

 

[snowman]

he is spot on actually
it says the knights make 7 mil, he is subsedising plus paying the debt off.
he isnt handing them 10mil a year

 

[NewyKnight47]

they would be fools not to tke it.

the knights may well be the most financially secure club in the nrl if Tinkler takes over.

 

[ABshark]

lolz.

What if he decided to sell the club?

 

[josh11223344]

then we get uate and sau

 

[NewyKnight47]

lolz.

What if he decided to sell the club?

I'd doubt it. He loves league more than any other sport and loves the Knights. He'd sell the Jets before the Knights, they are a far smaller club and he dosent neccesarily even like soccer, only took them over coz he didnt want to see a local team fall apart.

then we get uate and sau

Never!!!

 

[ABshark]

I'd doubt it. He loves league more than any other sport and loves the Knights. He'd sell the Jets before the Knights, they are a far smaller club and he dosent neccesarily even like soccer, only took them over coz he didnt want to see a local team fall apart.

That's more than a fraction naïve. There are any number of reasons why he might sell the club- both clubs in fact.

That's risk you take when you make your club the plaything of a millionaire.

 

[A.Snowden]

That's more than a fraction naïve. There are any number of reasons why he might sell the club- both clubs in fact.

That's risk you take when you make your club the plaything of a millionaire.

What would you say if say Gerry Harvey (Or any other Millionaire) came to us with the same offer? You would have to take a serious look at it as it would cement your place in the game for the long term future, and i'm sure their would be conditions on the sale to protect the Knights.

 

[JimBob]

If this happens then the knights will be safe for a while.

 

[WillyInBris]

Yep I think conditions will be put in place like they did with Souths and I am sure the Nights board aren't going to sell for nothing well I hope they dont.

But a question newnight he will run the show so at the moment you say a 3 mill debt maybe another 1mill this year at worst luck its gets to 4mill all fine he covers that but then new TV deal comes in and the nights get an extra say 4mill a year so the club no longer runs at a loss at all hasn't Tinks just brought a club for no more then 4mill.

Knights are in a bad position they could be dammed if they do or they could be dammed if they dont the way tinks is putting a timeline on this it makes me wonder what he is thinking maybe he wants to get it through before the ICC come together and starts making changes for the better of the game and clubs.

Its always cheaper to buy a bad house on a good street and renovate it.

 

[ben]

What would you say if say Gerry Harvey (Or any other Millionaire) came to us with the same offer? You would have to take a serious look at it as it would cement your place in the game for the long term future, and i'm sure their would be conditions on the sale to protect the Knights.

See how much we can make from the development per year. Would prefer to be owned by the members. Although if I win lotto - sharks are on the list, about $15mil i'm budgeting for.

 

[Bundy Shark]

See how much we can make from the development per year. Would prefer to be owned by the members. Although if I win lotto - sharks are on the list, about $15mil i'm budgeting for.

Good work Ben.

Why cant the poor sharkies have wealthy supporters w/ money comin out of their ears.

Seriously, if I did win oodles & oodles of money I would look after the sharkies as well as my family & friends, problem is I have to win money first.

 

[A.Snowden]

See how much we can make from the development per year. Would prefer to be owned by the members. Although if I win lotto - sharks are on the list, about $15mil i'm budgeting for.

Mate my post was a hypothetical as a reply to a couple of posters on here. If putting us in the same shoes as the Knights, would you take the offer. Development aside. As i said it was a hypothetical and direct reply.

 

[gosharkies]

if tinkler was a sharks supporter & his proposal was to help the sharks would you guys be in favour or agaisnt it? i think i would be in favour cause besides the security of debts paid of and knowing you will have atleast 10 million for the next ten years. crowe and holmes court have seemed to have a postive effect on souths on field performance.