Newcastle Knights face being booted out of EAS

[Kaz]

Newcastle faces the prospect of being evicted from their home ground with Hunter Venues issuing the club a notice of default for $792,000 in outstanding rent.

Just five days out from their first home game of 2009 at EnergyAustralia Stadium, the Knights have confirmed they owe money and have until the end of next month to settle the debt.

http://www.foxsports.com.au/story/0,865 ... 09,00.html


They need one huge raffle to bail them out.

 

[Bannermania]

Haha. That's a huge meat tray.

 

[ningnangnong]

[icon_lol1.

There's no way they'll stop them from using EAS.

 

[Kaz]

They can change the locks.

Have guards with machine guns.

Wonder if they pass the buckets around again. [icon_lol1.

 

[gUt]

Looks like the Central Coast will have a team after all.

 

[Nashy]

Apparently some Tinkler fella is going to save them.

 

[Major JW Hochstetter]

So both HVA and the Knights are claiming the best part of a mill in unpayed 'monies' from the other party. Looks like its just a shitfight being played out in the media with both sides talking tough.

As for HVA forcing them out or the Knights threatening to move - highly unlikely. HVA can't afford to NOT have the Knights there. The Jets alone wouldn't generate enough money to maintain the trees around the car park.

 

[Kaz]

As if Newcastle would be doing maintence work etc on EAS

 

[Nashy]

As if Newcastle would be doing maintence work etc on EAS

They just spent a shitload to upgrade it didn't they...

 

[Major JW Hochstetter]

A Knights member on LU posted a summary of the sitch from their POV:

ok the background

until last year EAS was owned by the ISC Trust - an independent trust with members appointed by the State Govt.

last year management of EAS (and surrounds), the Newcastle Entertainment Centre and the Newcastle Showgrounds was all given to a new wholly-owned state govt. owned corporation, Hunter Venues.

they recruited some Perth nuffy to be CEO, Mark Zundans.

said Perth nuffy has NFI about Newcastle or Rugby League. Probably hates both. Has already had a go at the Knights (in favour of the Jets, who still owe the Knights considerable sums, it must be said) in the local papers. Not a good start to a working relationship with the Hunter's sporting flagship.

Zundans is given the brief of making as much money as possible through Hunter Venues for the incompetent state govt.

Zundans sets about making as much money as possible, chiefly by trying to screw the Knights.

The Knights already pay the highest stadium rental in the comp. Yes, higher than the Broncos, Titans, anyone.

The Knights spend 20yrs lobbying to get funds spent on EAS. Finally succeed, with no help from Hunter Venues (and very little from the Jets). The upgrades will benefit all parties - in the long term.

In the short term, the Knights suffer massive financial hits as they lose half of their corporate facilities, 20% of their season ticket holders, and 6,000 capacity for a year or two.

Knights seek fair rent abatement (approx 1mil) for the period. I have not seen the lease, but I know the general terms and I know the Knights legal team believe they are in a very strong position to claim this amount.

Hunter Venues, charged with screwing their tenants, offer them $120k.

Knights owe 720k. Knights are owed approx 1mil.

As any business would, Knights offset what they owe against what they are owed. Negotiations are ongoing.

To try to bully the Knights, Hunter Venues issue notice of breach.

Whispers around town are that Zundans wants HV to manage the stadium themselves, and lease to the Knights and Jets as tenants - so HV controls all stadium advertising, catering, etc.

This would bankrupt the Knights, put a dent in the Jets finances too. Zundans, not seeing the forest for the trees, appears not to care. Constantine sees this as an opportunity for him to take control.

HV lose the Knights as a tenant, EAS is a white elephant and Jets take the bill for all the running costs - they pay about 20% now (and think they get a bad deal...)

State Govt needs to step in now, sack Zundans, and work this out quick smart. Our problem is that our local member doesnt represent our area, and is a moron to boot.

 

[Kaz]

They just spent a shitload to upgrade it didn't they...

No

That was the State Government & I think maybe Federal.

 

[Kaz]

Knights fans are saying they pay more rent for EAS then what the Broncos do for Suncorp.

 

[Nashy]

They probably do.

Suncorp Stadium has 3 major football codes playing there. EAS doesn't.

 

[Kaz]

No it has 2.

 

[Black Philip]

No it has 2.

League, Union, Soccer. Soccer isn't as big but still pulls decent crowds.

 

[Coxy]

Knights fans are saying they pay more rent for EAS then what the Broncos do for Suncorp.

They probably also reckon they were the true premiers of 1997.

We all know better.

 

[Nashy]

No it has 2.

I think if you recount them, you'll find three fingers point upwards from your fist.

1. League
2. Union
3. Soccer

Love the other sports or not, they all have a massive following in the country and a national team. Therfore I rightfully call them major football codes.

 

[Kaz]

Sorry, I was talking about EAS & the 2.

But I think the Jets get the better deal.