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Post by mozgrame on Mar 19, 2014 23:20:37 GMT 10
March 19, 2014
Louise Hall, Adrian Proszenko
After 106 years the Balmain Tigers rugby league club is in danger of collapse with a property developer threatening to call in receivers over an $8 million debt the club admits it cannot pay.
The leagues club's perilous financial situation could have serious consequences for the Wests Tigers NRL team, a joint venture team part-owned by the Tigers, the NSW Supreme Court was told during an urgent hearing on Tuesday.
The property developer, Rozelle Village, took over the Tigers' debts and provided more than $7 million in loans in return for ownership of the club's Victoria Road headquarters with plans to build hundreds of apartments, a shopping centre, car park and new leagues club facilities.
Minutes before an order restraining the developer from appointing a receiver and manager or a voluntary administrator expired on Tuesday, Justice Paul Brereton gave the leagues club grace of 24 hours by extending the injunction until 5pm on Wednesday. He said receivership would be a ''corporate death sentence'' for the inner west club and the consequences would be more than financial.
Counsel for the Tigers, Robert Newlinds, SC, said if the developer succeeded in having the leagues club placed into receivership, it could ''potentially bring to an end a 106-year-old football club''.
Mr Newlinds said it would have serious ''knock-on effects'' on the Wests Tigers NRL club and an enormous number of people, including the players, could lose their jobs.
He said the leagues club's ''reason for being'' was to financially support the football club, however, he made an undertaking that the leagues club would immediately cease making payments and admitted ''it is highly unlikely the receiver [if appointed] will continue to make grants to the football club''.
David Pritchard, SC, for Rozelle Village, said the leagues club had breached its agreement with the developer in at least six ways, including making the ''unauthorised'' payments to the football club, while it may have been insolvent. The developer's director, Ian Wright, was unaware and would not have allowed the payments, he said.
But Mr Newlinds said Mr Wright's claim is implausible and he must be ''the only person in Sydney who didn't realise'' that leagues clubs support football clubs financially.
Mr Pritchard said a receiver could sell the leagues club's assets including the ''Balmain Tigers'' name. ''That name has value and that name could be sold,'' he said.
Rozelle Village's plans have stalled amid fierce opposition and the state government's aborted plan for a Sydney Metro station on the site.
Wests Tigers chief executive Grant Mayer denied the NRL club is at risk, saying it is at ''arm's length'' from the leagues club.
Under an agreement struck in January to overhaul Wests Tigers' corporate structure, the Australian Rugby League Commission agreed to cover the financial shortfall of the cash-strapped side for the next two years.
Read more: www.smh.com.au/rugby-league/league-news/balmain-tigers-parlous-financial-state-could-flow-to-nrl-side-wests-tigers-20140318-350gf.html#ixzz2wPl34ZIg
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Post by mozgrame on Mar 19, 2014 23:38:11 GMT 10
Grant Mayer says Wests Tigers future is secure Wests Tigers CEO Grant Mayer insists the NRL club's future is secure and is adamant they will not be relocating to Perth. Revelations that Balmain Tigers Leagues Club is on the verge of voluntary administration have raised fresh concerns over the future of the joint-venture NRL club. But in a statement released on Wednesday afternoon, Wests Tigers declared recent governance reforms overseen by the NRL will ensure their long-term survival. "The emotion surrounding the recent Balmain Tigers Leagues club issues has created increased concern and confusion amongst Wests Tigers Members, fans and corporate supporter base," Mayer said. "Put simply, there is no need for anyone from Wests Tigers point of view to be concerned. "Wests Tigers have undergone a rigorous process with the NRL to secure the future of the club and would like to ease the concern of our extended famil "Wests Tigers will represent our supporters proudly on Friday night against the South Sydney Rabbitohs and for seasons to come." Mayer took a swipe at sections of the media he says are deliberately attempting to destabilise the club. "Despite an ongoing media campaign linking Wests Tigers with relocation to Perth I once again would like to confirm that this club is remaining where it is – providing rugby league entertainment and opportunities in western and south-western Sydney," he said. "It's an irresponsible claim and one built on self-interest and misinformation. "At a time when we are busily chasing Members and corporate partners, as well as attempting to shore up our playing ranks, emotional claims are unhelpful in the extreme." www.sportal.com.au/league/nrl-premiership/grant-mayer-says-wests-tigers-future-is-secure/l75p3nimeawh18jxh0lfqtt5c |
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Post by mozgrame on Mar 20, 2014 9:16:33 GMT 10
NRL statement on Wests Tigers
8:00am Thu 20th March, 2014
The NRL is working to secure the future of the Wests Tigers.
NRL Head of Club and State Services, Mr Tony Crawford, said the current Supreme Court proceedings have no bearing on the NRL’s restructure package to return the Wests Tigers to a sound financial position.
Mr Crawford said the NRL had been working with the Wests Tigers for several months to restructure the club’s business.
“We are working on improvements to both the club’s governance and financial performance,” Mr Crawford said.
“Our discussions are well advanced and, if they are concluded successfully, the Wests Tigers’ financial future will be secured.
“Those negotiations could be completed as early as the end of the month.
“The parties to those restructure negotiations are the NRL, the Wests Tigers and its shareholders, Western Suburbs Rugby League Football Club and Balmain Tigers Rugby League Football Club.
“The Balmain Leagues Club, the party involved in today’s Supreme Court proceedings, is not a party to the negotiations and plays no role in the restructure.“So today’s developments relating to the Balmain Leagues Club have no impact on the Wests Tigers restructure.”
The NRL said there were no plans to relocate Wests Tigers to another base, such as Perth.
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Post by mozgrame on Mar 21, 2014 21:05:45 GMT 10
Not hurting their on field performances though. I like Marty Taupau! Very impressive player. Nice to see GI put to bed early too! 
He has been needing that hit for a couple of years now haha! |
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