In response to criticism from Knights’ Chairman Rob Tew, Nathan Tinkler asserted that Tew lacks the capacity to assess the genuine value of the Tinkler Group’s bid for purchasing the Newcastle club.
During a media conference last week, Tew along with Newcastle Knights’ CEO Steve Burraston announced that the Knights will no longer entertain offers from the Tinkler Group, following the withdrawal of a second proposal due to concerns raised by the Knights board regarding the offer’s details.
Tew characterized the Tinkler Group’s latest proposal as a ‘pale imitation’ of what the club initially expected.
‘What was once presented as a guaranteed $100 million offer to acquire the Knights has diminished to a mere fraction of that amount, lacking certainty for the club beyond two years, with numerous liability issues still unaddressed,’ Tew remarked on Monday.
‘It is simply a shadow of what we first represented in the media.
‘We will not jeopardize the future of the Knights on a ‘just trust us’ premise.’
According to Tew and Burraston, the initial approach by the Tinkler Group had been encapsulated in a brief one-and-a-half-page document.
Complete details of the proposal were only provided to the Knights board in the middle of last week.
‘We received the document on Wednesday night and were allotted just two days to respond. The board convened on Thursday through Sunday to review the document, but many of our expressed concerns had not been addressed, leading to the withdrawal of the offer.
‘The primary concern is that the current offer diverges significantly from the $100 million proposal and lacks a 10-year assurance; it is only guaranteed for two years.
‘Moreover, the Tinkler Group reserves the right to transfer ownership of the Knights to another party—including another Tinkler entity—at any point from day one, and that new entity wouldn’t be obligated to maintain any agreements made in the original sale.
‘Lastly, the Newcastle Knights have upheld responsibility for junior Rugby League development in our region for 23 years. The Tinkler Group, however, has eliminated that commitment.’
Tinkler countered these allegations with a statement issued to the media Monday evening.
‘We reaffirm our commitment of $10 million annually in Sponsorship and Corporate Hospitality for a guaranteed duration of 10 years, as we presented last month,’ the statement outlined.
‘There have not been any substantial alterations to the offer, and it is evident that Mr. Tew has misunderstood the original proposal.
‘As we informed the board, the Tinkler Sports Group was willing to cover the difference between the club’s annual sponsorship and the $10 million.
‘Our proposal and guarantee do not include any references to membership or ticketing revenue.
‘It is unfortunate that Mr. Tew has once more opted to misrepresent our offer, further indicating his disinterest or inability to ascertain the true value of our proposed commitment.’
by Buford Balony
