Nathan Tinkler, one of Australia’s biggest mining personalities, has put a final offer on the table to takeover the Newcastle Knights of $100 million, which will make the Knights one of the NRL’s richest clubs.
The offer is Tinkler’s last however, given that his previous offers and attempts to takeover the Knights have been rejected on several occasions, so it remains to be seen if the Knights accept the new offer.
Under the projected takeover, should Tinkler be successful, the magnate has promised $10 million a year in sponsorship for the next 10 years, as well as paying for the Knights current debt of $3 million, in return for the path to takeover the club.
The Knights board will be fronted with his offer tomorrow night, and club executives will be under extreme pressure and face heavy scrutiny over the matter, regardless of the decision that they make.
If the deal does end up being rejected however, Tinkler will walk away from the NRL club, and make no further offers in the future.
“This is it,” Tinkler Sports Group executive chairman Ken Edwards said yesterday.
“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.”
“This is our final offer and if it’s not accepted for whatever reason, Nathan will walk away and concentrate on his other interests.
Tinkler wants a decision on the matter made by Friday at the latest, so that the board can take the offer to the Knights members to get their views on the matter, and what they think of it.
In order for the deal to get the green light, a 75% vote that supports the privatisation move would be needed.
Since their 23 years of existence, the Knights have struggled to stay afloat financially, despite the fact that they make about $7 million a year in sponsorship.
Steve Burraston, the Knights Chief Executive, says that he is unaware of any stipulations that may be embedded in the contract, and all will be discussed when the board meets.
“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.