National Rugby League side New Zealand Warriors Owner Eric Watson "is not budging on price, while flaws in the Auckland Rugby League's funding model have also contributed" to the potential sale of the club "falling over," according to David Skipwith of the NEW ZEALAND HERALD. Negotiations between the two parties reportedly "broke down this week" after the ARL was "unable to secure the three corporate partners needed to bring them within range of Watson's asking price," which is understood to be close to NZ$20M ($13.8M). The ARL wants to buy a 55% majority share in the Penrose-based club and was "looking for three backers to each take" a 15% stake for an investment of NZ$2M-NZ$3M ($1.4M-$2M). Neither party is "willing to clarify why negotiations halted, when a deal looked imminent." The ARL reportedly "had three potential backers in line but at least one dropped out" to leave it "short on the money required to complete the purchase." Plans to establish and fund a semi-professional second-tier local competition "and enhance and improve junior development pathways" would be easier to fulfill if the ARL owned the Warriors outright, "but are proving a hard sell to small partners expecting to gain some financial reward from their investment." Watson remains in "no rush to sell and is refusing to drop his price knowing the club is virtually assured of turning a healthy profit" in the next few years (NZ HERALD, 11/15).
