Penn ensures clubs future

[byso]

Penn Sport has purchased the majority of the outstanding shares in the Manly Warringah Sea Eagles Limited today for an undisclosed sum after unanimous approval by the Board to proceed with the sale.

The investment by Penn Sport comes at an important time for the Sea Eagles and further enhances Manly’s financial security well into the future.

At the completion of the transaction both Penn Sport and Max Delmege, who increased his shareholding at the same time, will each own a little under 40% of the club with the remainder owned by the Football Club Members. Both major shareholders continue to view the increased shareholding ability of the Football Club to further increase its shareholding as critical to the long term success of the Sea Eagles and have agreed a process for that to take place.

 

[Ryan]

YES !!!!!!!!!!!!!!!!

 

[kizbro]

PENN ENSURES MANLY SOARS INTO 2006 & BEYOND

18/01/2006


By Manly Sea Eagles

Unanimous approval by Manly Warringah Board to allow Penn Sport to purchase the majority of the outstanding shares in the club

Penn Sport has purchased the majority of the outstanding shares in the Manly Warringah Sea Eagles Limited today for an undisclosed sum after unanimous approval by the Board to proceed with the sale. The investment by Penn Sport comes at an important time for the Sea Eagles and further enhances Manly’s financial security well into the future.

At the completion of the transaction both Penn Sport and Max Delmege, who increased his shareholding at the same time, will each own a little under 40% of the club with the remainder owned by the Football Club Members. Both major shareholders continue to view the increased shareholding ability of the Football Club to further increase its shareholding as critical to the long term success of the Sea Eagles and have agreed a process for that to take place.

Since late 2002, Max Delmege has contributed significant funds into ensuring the financial viability of the Manly Sea Eagles. This support will continue and as further evidence of his commitment, Delmege Commercial has recently entered into a three year sponsorship arrangement with the Club.

The Board of the Sea Eagles will now increase to nine with the four major stakeholders, Delmege Commercial, Penn Sport, Manly Football club and Manly Leagues Club all having the right to appoint two directors. An Independent Chairman will be elected by the eight directors.

Given the requirement for “independence” the current Manly Leagues Club Executive Chairman Paul Cummings today has resigned his position as Executive Chairman of the Sea Eagles. He will remain on the Sea Eagles Board as a Manly Leagues Club appointee.

“I’m extremely proud to have served as Executive Chairman of the Sea Eagles this past year and I look forward to continuing my involvement as a director and as Chairman of the Leagues Club. We’re fortunate to have two partners who are willing to invest in the long term future of Manly and are absolutely, passionately committed to its success.”

“The loyalty of Max Delmege to the club speaks for itself and the Penn family are life long fans and passionate supporters of the Sea Eagles. Penn Sport also has a depth of experience in sponsorship and sports management and will add value to the club and be of enormous advantage in moving the club forward.”

“I’m also very proud to announce that the Leagues Club has agreed to continue to propagate to the game of Rugby League in our area to the tune of $3,000,000 over the next three years.”

C.E.O. of Penn Sport, Scott Penn said:
“This is an important day for the future of the Manly Sea Eagles. Penn Sport were instrumental in initiating the privatisation process more than two years ago and has been actively involved in the club ever since. We are very pleased to be involved in helping to secure a strong future for the club both on and off the field.”

“Having been on the Board for the past two years I have seen first hand the tremendous transformation of the club to a best practice sporting organisation. The Penn family looks forward to being an integral part of the future of the Manly Sea Eagles.”

“With the strength of the existing Board, Penn Sport’s Marketing and Sports Management skills, plus the strongest team of players and coaching staff in many years we can’t wait for the 2006 season to kick off.”

Manly Football Club Chairman, Kerry Sibraa said:
“The Football Club is pleased with the sale of the remaining shares and the immediate cash injection that it brings to the Sea Eagles. Importantly for our members, there has been no change to our Preference Share which ensures that the members control the name, colours and location of the Team. We are delighted with the arrangements that have been put in place to enable us to increase our shareholding via our membership drive.”

Max Delmege said:
“The members placed an enormous amount of trust in the privatisation process when they voted in June 2004. Today that structure has been vindicated with the purchase of the outstanding shares in the Sea Eagles. I’m committed to this organisation more than ever and will continue to be the Major sponsor in 2006 and beyond. I welcome Penn Sport to the register and look forward to working closely with them and both the Football Club and the Leagues Club.”

Mr Joe Cross was today unanimously elected as Chairman of the Sea Eagles. He has already served as Chairman from July 2003 to July 2005.

Joe Cross said:
“I’d like to thank Paul Cummings for his dedication and commitment to the organisation not only during his time as Executive Chairman but for the critical roles he has played in various executive positions since 2002 to ensure the long term viability of the Sea Eagles.”

“I welcome the Penn family onto the register and look forward to chairing this great club in 2006.”

“We are a stronger team on and off the field as we set our sights on the 2006 premiership. Today’s announcement is great news for our fans!”

 

[byso]

Thanks Kiz, but the full story is on our front page

 

[Matabele]

Surely the members deserve to be told how much they were purchased for?

 

[Dan]

they must have been worried about the financial viability of the club then!

 

[Fluffy]

good news - surely with the investment from Penn and Max there will be little room for under performing professionals both on and off the field.

 

[Stevie]

good news - surely with the investment from Penn and Max there will be little room for under performing professionals both on and off the field.

Isnt Scott Penn Zorba's Nephew ??? 8|

 

[kiwigirl]

they must have been worried about the financial viability of the club then!

Not necessarily Daniel. I'd call it good business to keep improving and building for the future. I would think they will still continue to look at ways to improve. I think it's a great move. Sad about Cummings though - really like the man.

Stevie .... you're right about that one!

 

[Guest]

PENN ENSURES MANLY SOARS INTO 2006 & BEYOND


“I’m also very proud to announce that the Leagues Club has agreed to continue to propagate to the game of Rugby League in our area to the tune of $3,000,000 over the next three years.”

$1m a year from the leagues club is bugger all compared to what otjher leagues club give the their football clubs. The inability of the leagues club to fully fund the football club is why Penn and Delmage have to put their money in.

 

[The Fonz]

I don't think they mean the football club mate i think they mean junior rugby league. i.e jim beam cup and a grade.

 

[Guest]

I don't think they mean the football club mate i think they mean junior rugby league. i.e jim beam cup and a grade.

In that case it is quite a lot of money and should do a lot of good if spent wisely.

Does anyone know what the Leagues club's grant to the football club is these days?

 

[byso]

“I’m also very proud to announce that the Leagues Club has agreed to continue to propagate to the game of Rugby League in our area to the tune of $3,000,000 over the next three years.”

 

[Guest]

"good news - surely with the investment from Penn and Max there will be little room for under performing professionals both on and off the field."


Hasn't stopped them in the past....I do hope your right thou.

 

[DUFFMAN]

the amount penn put in is believed to be 1.5 to 2 million for his 40% share.
seems a bit cheap to me, with that figure they saying the club is worth less the 5 million, aren't crowe and homes offering 10 million for 51% for souths ????

 

[Normie]

Penn takes stake in NRL Sea Eagles
Wednesday Jan 18 19:24 AEDT
Manly are on the way back to regaining the NRL's silvertails tag after another phase in their privatisation on Wednesday.

Marketing company Penn Sport has bought a stake of nearly 40 per cent in the Sea Eagles, equalling that of major shareholder Max Delmege, in a deal Penn chief executive Scott Penn said was worth "millions".

The purchase came as the Sea Eagles board approved the sale of the outstanding shares made available by the club's privatisation in June 2004.

"I'd prefer not to comment on the dollars but it's certainly in the millions," Penn told AAP.

"From a Penn family perspective, it's about supporting the Sea Eagles and we're life-long supporters."

"The money Max Delmege put into the club has certainly got it back on its feet and got it to where it is today.

"Based on that... we're now prepared to back that and say to them, let's take it even further. Let's definitely get it back to its heyday."

Penn, who has been a member of the Sea Eagles board for two years, originally invested $100,000 in the float for a small share in the club.

The privatisation makes Manly unique in the NRL.

While News Limited owns the Brisbane, Melbourne and North Queensland clubs, only Manly shares ownership between major shareholders and football club members.

South Sydney is considering a similar deal, with Hollywood actor Russell Crowe and businessman Peter Holmes a Court tabling an offer of $3 million for 75 per cent of the Rabbitohs.

The new Sea Eagles board will increase to nine with Delmege Commercial, Penn Sport, Manly football club and Manly Leagues club all to appoint two directors.

Leagues club chairman Paul Cummings on Wednesday resigned as executive chairman of the Sea Eagles to take up one of the directors' roles with Joe Cross unanimously elected the board's independent chairman.

Penn said Manly supporters can expect improvement on the field, but they might need to get used to being hated again.

"With (Matt) Orford and (Steve) Bell coming on board it may take a little bit of time for them to integrate, but we're quietly confident.

"If that (being hated) is the result of being a very successful team on and off the field, absolutely, bring it on."

 

[byso]

Top article Goldie.

Looks like our hurdle now is the salary cap.

 

[Normie]

Does this mean another "new" jumper???????

Where will Penn Sports go - front or back?

 

[Guest]

I don't think they mean the football club mate i think they mean junior rugby league. i.e jim beam cup and a grade.

Manly celebrate private cash flow
January 19, 2006

MANLY, so close to folding three years ago, have sold another 40 per cent of their football club to secure their financial underpinning for years to come.

Penn Sport has paid an estimated $1.5million to $2million for a 40 per cent share of the club.

The club's other major shareholder Max Delmege has also increased his previous equity to 40 per cent as well as remaining Manly's naming rights sponsor.

Manly football club has the remaining 20 per cent of shares.

The move makes Manly the first publicly acknowledged privately owned rugby league club in Australia.

Brisbane, the Cowboys and the Storm also have shareholders and private financial support but the full details have never been revealed.

Manly celebrated the deal with Penn Sport yesterday, acknowledging the financial freedom it presents.

With around $2million from Penn, additional money from Delmege as well as a sponsorship worth up to $650,000 a season, $2.5million from the NRL and a guaranteed $1million from Manly Leagues Club, officials say the Sea Eagles have no financial worries.

"The board has ratified the deal," said CEO Paul Cummings, a major forces in the deal. "We have now done what we set out to do in 2003 and that was privatise the company and sell 10 million shares."

Manly's new nine-man board will have two representatives each from Delmege Commercial, Penn Sport, Manly Leagues Club and Manly Football Club under independent chairman, highly regarded Joe Cross.

Fonz - this article from today's telecrap says that manly leagues puts $1m to the football club. I think you might find that this amount covers all grades as well as Jim Beam cup and juniors and is the $3m over 3 years quoted in yesterday's article. It is not a lot.

Also only $650,000 a year in sponsorphip is not a lot either

 

[kiwigirl]

It's better than nothing though Tooks and it's a start.