The National Rugby League's "handover of the Knights to the Newcastle-based Wests Group has been cleared after a resounding vote" from the club's members to take control of the outfit, according to the AAP. Wests Group confirmed 93% of 13,635 members said yes to the group acquiring 100% ownership of the Knights during the voting window last week. The group said in a statement, "The board would like to thank all members who took the time to vote and correspond with us about this matter." As part of negotiations with the NRL, Wests Group committed to match a maximum A$10M ($7.9M) from the state government to build a center of excellence and home base for the Knights. Wests Group also promised to spend at least A$500,000 ($394,000) on grassroots football per year for five years (AAP, 8/9).
HIGH HOPES: In Newcastle, James Gardiner reported Knights Chair Brian McGuigan labeled the takeover a "turning point." Club CEO Matt Gidley described it as a "brilliant outcome" and a catalyst for "better times ahead." Wests Group will enter into an interim partnership with the NRL, which has owned Newcastle's franchise "since the demise of Nathan Tinkler three years ago," until the end of the season. The marriage with Wests "brings an end to an 18-month search by the NRL, in conjunction with the Knights board, for a suitable owner." A new board structure will be revealed in the months ahead, and the incoming directors "will be elected by Wests, pending NRL approval" (NEWCASTLE HERALD, 8/8).
'VERY HUMBLING': In Sydney, Carly Cook reported under the deal, Wests Group will acquire the Knights with no license fee and "no outstanding debts." Wests CEO Phil Gardner said that he was "pleased members voted overwhelmingly in support of the takeover." He said, "It is very humbling for us to know that we have the genuine support of the community and hopefully taking the Knights back to where they should be as one of the premier sporting organizations in the country." He said that change at the club "was inevitable," adding, "I need to be responsible for the financial success of this organization and others will be responsible for on-field success" (ABC, 8/8). In Sydney, Robert Dillon reported the Wests Group vote "was not a formal process, because the group's directors would have been constitutionally entitled to make such a decision any way," but they felt a "plebiscite" was essential before proceeding. Wests "will not pay out any of the liabilities the NRL has incurred during its three-year tenure as Knights owner," but is expected to contribute toward running costs before the Nov. 1 handover. Gardner said that after months of negotiations with the NRL, "there was no reason to suspect that any anomalies would be discovered during the due-diligence process" (SYDNEY MORNING HERALD, 8/7).
