Tinks on the Brink?

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And now Benny will have to hitch back to Brisbane to catch his family every weekend. Boo hoo. Funny thing is I ran into Neil Whittaker (remember him) at the ICAC hearings into Eddie Obeid the other day. One of the 'business identities' caught up in the Cascade Coal saga. And strangely there was Peter Tunks also defending himself against an accusation of attempting to get some cash out of a party to the proceedings. Gotta love the League.
 
Haha it is hilarious to see Frogz saying Jatz has a chip on his shoulder then producing the posts he is, pot meet kettle
 
Facts can be presented without the chip on the shoulder attitude ... Doesn't worry me either way, just found it amusing that you accused Jatz of the chip on the shoulder then produced your past couple of efforts
 
HSG are making the play to 'save' $10mil by getting the audit (due under contract by Dec each year) deferred to the new year.

Knights board want the bank guarantee deal to shift with the audit timings as well, as they have no confidence that HSG can meet their financial committments.

Expect Knights to be under new ownership structure by EOFY, with $20mil or $10mil extra, courtesy of Tinkler.
 
Board have agreed to delayed audit date as HSG agree to defer the original 1st Jan cutoff for the $20mil.

Likely the Knights will draw on a portion of the $20mil once the audit is complete, to make up for funding not followed through by HSG as per the agreement.

Would expect HSG will walk soon after the findings and the only question is whether the Knights get the full $20mil, or the $10.3mil.
 
Tax Office to wind up Knights and Jets
By Paddy Manning
Dec. 13, 2012, 11:17 a.m.

The Tax Office has moved to wind up the Newcastle Knights and the Newcastle Jets, along with their parent company the Hunter Sports Group, over unpaid debts of some $2.7 million, as owner Nathan Tinkler's debt problems continue to mount.

Documents filed on Wednesday in the Federal Court in Sydney show the Deputy Commissioner of Taxation is applying for the wind-up of Hunter Sports Group (owing $184,258), Newcastle Jets Pty Ltd (owing $1.063 million) and Newcastle Knights Pty Ltd (owing $1.424 million).

http://www.theherald.com.au/story/1183883/tax-office-to-wind-up-knights-and-jets/?cs=305
 
Knights will cover their debt through the guarantee, but the Jets are in a pickle.

The move to windup HSG plays into the Knights hands to secure the guarantee, whether the audit proves that HSG paid up all that was owed, or not.
 
What's the story here Hamster? Did Tinks ever give the $20Million to a bank to mind, or was it just some sort of promise?
 
DSM5 said:
What's the story here Hamster? Did Tinks ever give the $20Million to a bank to mind, or was it just some sort of promise?

Bank Guarantees of this nature are a common financial instrument. In my experience the bank will have security in the form of either cash held as a fixed deposit or a mortgage over real estate. So in this case the bank will pay the Knights the $20 million and then they will recover that from either the cash deposit or will sell the real estate. either way Hamster is 100% correct, the Knights will get their money.
 
DSM5 said:
What's the story here Hamster? Did Tinks ever give the $20Million to a bank to mind, or was it just some sort of promise?

Tew and Burruston pulled the $20mil out from Tinkler and his day-to-day operations, and it is held in a bank account.

Access to it is dependant on the criteria as outlined in the deal between them, ie. if the upcoming audit shows HSG didn't meet their financial obligations then they'll lose the $20mil (and ownership) to the Knights; if they have then they can pull about half out and the remaining $10mil sits there until the first of either (a) eight years, or (b) HSG dissolves.

Look at the Knights as a creditor that had the sense to get their money in reach before the company is handed over to receivers.

It is interesting to re-read some of the threads in LU and RLeague during the dealings, and the number of Knights fans that thought Tew and Burro were irresponsible for not jumping at Tinklers first offer, which he withdrew (with even the DT labelling Tew a bad negotiator).

If they had of taken up the initial offer, then the story now would have been about the Knights all-but closing their doors in the lead-up to the 2013 season, crippled under their own and HSGs debts, and with no guarantee funding to dig them out of it.
 
Tew and burraston - kinda like football club reps keeping their eye on things in the face of a rich owner. They copped a heap of crap. Any lessons here for manly?
 
Shoe1 said:
Tew and burraston - kinda like football club reps keeping their eye on things in the face of a rich owner. They copped a heap of crap. Any lessons here for manly?

After what those guys copped in the lead-up to the vote and noting what has happened only 2 years later, the Knights fans should be holding these guys up as their clubs heroes, above the likes of Joey and Harragon.

Both of those players questioned the old management and backed the Tinkler horse from day-dot, no questions asked. Irresponsible behaviour from significant figureheads of the club.
 
I believe that 'Supercoach' is employed by HSG and not the Knights. Could he be looking for another job perhaps? How many other employees up there are in the same boat? However you look at this mess, the Knights will struggle.


As well the ATO have lodged wind-up proceedings in the Federal Court on the Knights. I believe the Knights owe the ATO about $1.5Million.. I just wonder how safe the 'bank account' is from the Courts.
 
Shoe1 said:
Tew and burraston - kinda like football club reps keeping their eye on things in the face of a rich owner. They copped a heap of crap. Any lessons here for manly?

As long as they look after the best interests of the club and not themselves then yes
 
DSM5 said:
I believe that 'Supercoach' is employed by HSG and not the Knights. Could he be looking for another job perhaps? How many other employees up there are in the same boat? However you look at this mess, the Knights will struggle.


As well the ATO have lodged wind-up proceedings in the Federal Court on the Knights. I believe the Knights owe the ATO about $1.5Million.. I just wonder how safe the 'bank account' is from the Courts.



The Knights will negotiate a payment plan with the ATO and have the bank guarantee to well and truly look after it.

Hardly the doom and gloom for the club itself that you seem to be hoping for. However the near future collapse of HSG is imminent; I think Tinkler's mob are holding on for a 'pass' in the audit so they can leave the deal with something.

At worst the Knights get $10mil, minus the tax bill. With the previous debts all paid out, it's not a bad result for them.
 
This drama with tinkler and the knights just re-inforces to me why Joey is coaching at manly, not Newcastle. :)
 
Love seeing dramas with the Knighties and the Jets of the gaygame, even more squirming by the many feral supporters around here.

Have been forwarding the mwse.com.au link to knights supporting mates suggesting a superior nrl membership as thiers is about gone.

Course, in actuality the teams and clubs will continue and this'll be forgotten about by most soon, enjoying it while we can ;)
 
By James MacSmith and Justin Chadwick AAP Thu, Dec 13, 2012 - 6:31 PM

The NRL and the FFA have moved to allay fears over the future of rugby league's Newcastle Knights and their A-League siblings the Newcastle Jets due to debts of around $2.5 million.

The Australian Tax Office on Thursday applied for both of owner Nathan Tinkler's teams, the Knights and soccer's Jets, and their parent company Hunter Sports Group, to be wound up due to unpaid debts.

According to documents filed in the Federal Court in Sydney, the Knights owe more than $1.4 million to the tax office, the Jets owe just over $1 million, while Hunter Sports Group is $184,000 in the red.

The tax office has applied for a liquidator to be appointed for both the Knights and Jets and Hunter Sports Group.

However both the NRL and FFA said they were confident the future of each club under their respective authority was not in jeopardy.

Interim NRL chief executive Shane Mattiske said the guarantees that were put in place when Tinkler took ownership of the Knights in 2011 would ensure the club remains viable.

"In relation to the ownership by Hunter Sports Group, guarantees have been put in place by the commission to safeguard the Knights position," Mattiske told AAP.

"Those safeguards were a condition of ownership and are there to ensure the club's future."

The FFA said the Jets would continue to remain viable under Tinkler's ownership.

"FFA has been given assurances by Hunter Sports Group, owner and operator of Newcastle Jets, that the club's operations will not be affected," the FFA said in a statement.

A $20 million bank guarantee was a condition of Tinkler's privatisation of the Knights and the granting of their NRL licence. It is understood the Jets are not covered by a similar safety net.

Hunter Sports Group said it had not been advised of the ATO's move to appoint a liquidator.

"We are surprised by the move by the ATO, as we have not received notification of this move," Hunter Sports Group said in a statement.

"We advise that any outstanding sum will be paid as soon as possible - well before the reported hearing date on the matter next February."

Knights chief executive Matt Gidley and his Jets counterpart Robbie Middleby echoed similar sentiments.

"I have been advised that the outstanding payment to the ATO will be paid shortly and the issue will be resolved," Gidley said in a video statement.

"We are looking forward to regrouping after the Christmas break and looking forward to a positive 2013 on and off the field."

Middleby added: "Our main concern at the Newcastle Jets at the moment is that the players and staff in Perth have their minds on the job and to ensure the Newcastle Jets have a successful 2012/13 season".

The development is a concern for both governing bodies given Gold Coast United's demise last season and the Gold Coast Titans financial struggles. The Titans' troubles resulted in a complete overhaul of the club's administration before they were granted a new NRL licence last month.

Tinkler has reportedly failed to make player payments to the Knights on time. Jets players said the same had not happened to them.

Jets stand-in captain Ruben Zadkovich said: "It's not really something the players can have any input into. We've just got to go out there and do our best, and things will either work out or won't. I don't think the Newcastle Jets are in any danger at the moment. We've just got to focus on the football and let the off-field dramas sort itself out."

http://www.nrl.com/jets,-knights-will-survive-say-peak-bodies/tabid/10874/newsid/70516/default.asp
 
Team P W L PD Pts
3 3 0 48 6
3 2 1 45 4
3 2 1 28 4
3 2 1 22 4
3 2 1 15 4
3 2 1 14 4
2 1 1 13 4
3 2 1 10 4
2 1 1 6 4
3 2 1 -3 4
3 1 2 0 2
3 1 2 -5 2
3 1 2 -15 2
3 1 2 -22 2
3 1 2 -36 2
2 0 2 -56 2
3 0 3 -64 0
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