Tax Office to wind up Tinkler's teams

[subsbligh]

A few clarifications:

The NRL licence, the lease on Marathon Stadium and all the other club stuff I imagine are assets owned by Nathan Tinkler Company X Pty Ltd (Hunter Sports Management (?) Pty Ltd) which is sought to be wound up by the ATO.

Just because Tinkler's company is broke, doesn't mean the Knights and Rugby League are done in the Hunter. Far from it - I remember the furore around privatisation and the Chief (yeah, I know right? Novacastrains throw money at at anything that the Chief supports) had to personally support Tinkler's buy out of the club. Most members were resistant.

This deal to sell the club back to the Knights for $1 could be an uncommercial transaction (in my view) and void? That would just mean that the Knights would have to pay market value for the assets.

 

[subsbligh]

Just reading about Tinkler, I just remember that CBA ad with the fat bloke saying:

"Equity maaate"

i.e. GET SOME

 

[Coxy]

Just reading about Tinkler, I just remember that CBA ad with the fat bloke saying:

"Equity maaate"

i.e. GET SOME

Yeah well when he's got $600m or so in assets, and $700m or so in debt...he's in trouble! Just ask home owners in the USA during the GFC after their house values plummeted and they held mortgages they couldn't service that dwarfed the value of their homes they bought with them...

Bad situation to be in!

 

[Anonymous person]

pretty insane that he went from one of the richest people in australia (on paper only it now appears) to possibly being bankrupt in ~12 months. he dun goofed.

 

[Broncoman]

It would be crazy for the NRL to consider scrapping Newcastle. The city bleeds Rugby League and plenty of Origin and Test players have come out of the Hunter region. The Knights are safe no matter what happens to them.

 

[Anonymous person]

the NRL isnt considering scrapping the newcastle team, the newcastle teams owner is possibly going bankrupt and the ATO are trying to get the teams holding company shut down. that would mean that the Newcastle Knights have are shut down too, with the NRL playing no part in their closing.

the NRL will bail them out if that did happen, no doubt. they already keep melbourne afloat 100% because they know how important it is to the good of the game to have a team in melbourne. theyd do the same for newcastle.

 

[Nashy]

No one is looking at the facts at all. The NRL won't have to bail them out. No one will. The club has a guarantee over it's name should he go belly up.

 

[subsbligh]

that would mean that the Newcastle Knights have are shut down too, with the NRL playing no part in their closing.

No it doesn't.

The licence, the lease of the footy stadium and facilities, the player contracts etc would be sold off/assigned (or apparently, sold back to the club members for $1?).

If there was no buyer, well, perhaps then the NRL would consider propping up the Knights but it could only be for a short time one would imagine until another buyer could be found.

 

[Nashy]

No it doesn't.

The licence, the lease of the footy stadium and facilities, the player contracts etc would be sold off/assigned (or apparently, sold back to the club members for $1?).

If there was no buyer, well, perhaps then the NRL would consider propping up the Knights but it could only be for a short time one would imagine until another buyer could be found.

Why do they need to be propped up. Even if he goes under next year they still get a hefty sum of cash.

 

[Coxy]

No it doesn't.

The licence, the lease of the footy stadium and facilities, the player contracts etc would be sold off/assigned (or apparently, sold back to the club members for $1?).

Exactly. It's no different to if a business changes ownership. It's not as if all employees are suddenly free agents and unemployed.

 

[Anonymous person]

No it doesn't.

The licence, the lease of the footy stadium and facilities, the player contracts etc would be sold off/assigned (or apparently, sold back to the club members for $1?).

If there was no buyer, well, perhaps then the NRL would consider propping up the Knights but it could only be for a short time one would imagine until another buyer could be found.

obviously they would be sold off, but all i was pointing out is that none of it is because of the NRL deciding to scrap the knights like broncoman was saying. none of it has anything to do with them until it comes to the knights not being able to find a buyer so the NRL has to step in and prop them up.

obviously its not "if tinkler goes under the knights are out of the nrl unless the nrl props them up". i was just saying that the nrl isnt the one closing them down.

 

[Nashy]

obviously they would be sold off, but all i was pointing out is that none of it is because of the NRL deciding to scrap the knights like broncoman was saying. none of it has anything to do with them until it comes to the knights not being able to find a buyer so the NRL has to step in and prop them up.

obviously its not "if tinkler goes under the knights are out of the nrl unless the nrl props them up". i was just saying that the nrl isnt the one closing them down.

What the hell are you talking about prop them up? Read the article, the NRL doesn't have to do anything, they will have money when he goes bankrupt.

They don't need to find a buyer, if the board can run the joint at a profit, then all is well.

 

[Anonymous person]

What the hell are you talking about prop them up? Read the article, the NRL doesn't have to do anything, they will have money when he goes bankrupt.

if the bank guarantee holds up....

 

[subsbligh]

I think the point is, and I tend to agree, is that the NRL has a vested interest in a rugby league franchise in the Hunter region and would, as a last resort, help fund the Knights (and it wouldn't be under the Tinkler model) until a long term option arose.

 

[subsbligh]

The other issue mentioned in that article is that the Knights have cut loose their old sponsors and invested in a champagne lifestyle (so to speak) on the back of the belief they have an open Tinkler cheque book.

They might find it hard to find sponsors and if they have to tighten the belt, I wonder whether they will be able to afford a $6M coach out of poker machine money and pots of Tooheys Red.

 

[Anonymous person]

http://www.news.com.au/sport/nrl/ne...lub-under-threat/story-fndujljl-1226532849905

"News Limited has learned Hunter Sports Group has asked for an independent audit of the Knights, which was due to be completed by next Saturday, to be pushed back to February 15.

But the Knights Members Club board have refused to comply unless Tinkler extends his $20 million bank guarantee - due to drop to $10.3 million on January 1 - across the same time frame.
...
"By moving the audit date but not moving the bank guarantee date means Knights members can no longer put pressure on HSG for any funds to be committed if there's a shortfall."

 

[subsbligh]

The fact that Hunter Sports Group is subject to winding up proceedings should (if the security is drafted properly) mean that it's already committed an act of default allowing the Knights to call on the bank guarantee.

If you're the Knights do you give Tinkler some time, or burn him and take his $20M now?

 

[Coxy]

The fact that Hunter Sports Group is subject to winding up proceedings should (if the security is drafted properly) mean that it's already committed an act of default allowing the Knights to call on the bank guarantee.

If you're the Knights do you give Tinkler some time, or burn him and take his $20M now?

You burn him.