NRL: Knights' future up in the air

"The much talked about $100 million offer turned out to be a mirage". Photo / Getty Images

Disgruntled Newcastle members may seek to move a vote of no confidence in the Knights board following the collapse of the proposed sale of the National Rugby League club to mining magnate Nathan Tinkler.

Tinkler withdrew his $AU100 million offer to buy the club just hours before a scheduled meeting with Newcastle chairman Rob Tew and chief executive Steve Burraston on Monday afternoon, citing "too many differences between the two parties that remain unresolved."

Tew, who described Tinkler's final offer as "a pale imitation" of the one first discussed on January 17, then announced that a 'patrons trust model' would be put to the club's members next Monday, where benefactors would tip in between $6-10 million over a four-year period.

That proposal hardly appeased the Knights faithful however as they called a meeting of members at a local hotel on Monday night.

It is believed they were seeking the 100 members they needed to force an extraordinary general meeting, which could lead to a clear-out of the board and result in Tinkler returning to the negotiating table.

Tew and Burraston claimed the Tinkler Sports Group (TSG) had moved the goalposts in their bid to buy out the beleaguered club.

"Put simply, the much talked about $100 million offer turned out to be a mirage," Tew said.

"The real value of the offer ultimately put on the table is a year-by-year commitment of between $0-10 million paid over ten years with a maximum guarantee of two years.

"We always intended to go to the members, the only issue being whether the final deal would be good enough for the board to unanimously endorse.

"First and foremost, the current offer on the table represents a significant departure from the $100 million proposal guaranteed to be paid over 10 years.

"Currently, the offer consists of a commitment to underwrite the difference between $10 million annually and all revenues, excluding ticketing and membership.

"It's notable, that those revenues already exceed $10 million."

TSG claimed Tew had failed to determine the value of its proposed commitment.

"There have been no material variations to the offer and it is now clear that Mr Tew did not understand the original offer," TSG said in a statement.

"As we presented to the board, the Tinkler Sports Group were prepared to underwrite the difference between the annual sponsorship of the club each year and the $10 million.

"Our offer and guarantee make no mention of membership or ticketing revenue."

Burraston was adamant that the board's reluctance to accept TSG's offer would not lead to a fan revolt, instead claiming that Tinkler's offer would have stripped members of their rights.

An information meeting will be held for members next Monday to clear the air surrounding the embattled club's future, with local businessman Andrew Poole - who is one of the three backers involved in the 'patrons trust model' - set to address members.

"We felt that a community structure is vitally important to this club, more so than any other NRL club, and that if we could find a structure that preserved the members rights and preserved the Newcastle Knights as a community operation then that's the way we'd like to head," Burraston said.

"I think the people who are informed with the details of the document are very positive in rejecting it and it is those who have not seen the details, and we're hoping that this conference will deliver those details, that are misinformed."

"We're disappointed too that it's not a $100 million offer, but it's certainly not."

- AAP