League: Monty Betham in talks to lead bid for fans to buy Warriors

Monty Betham. Photo / Photosport

Former Warriors captain Monty Betham has entered formal discussions with Eric Watson about buying the Auckland-based NRL club.

Betham last week suggested Warriors fans launch a crowdfunding campaign to buy their beloved team, after Watson confirmed he was in talks to sell the club to several interested parties.

As reported by the Herald on Monday, Watson is giving serious consideration to a group of prospective investors buying in with him as co-owners - with an additional share made available for fans and sponsors to purchase.

Betham announced today on social media that he and London-based Watson have held initial talks and confirmed to the Herald that plans are well underway for him to lead a bid on behalf of Warriors fans.

"I spoke to Eric on Monday and we had a great talk," Betham told the Herald.

"He said he's open, if we want to buy the club outright or we take some shares and he still remains in the club, he's open to that.

"We're putting together a team but on Monday we'll have a press conference to let people know where we're at and what our plans are."

I HAVE SOME MASSIVE NEWS EVERYBODY Over the last week I have been in some pretty serious discussions and today I can...

Posted by Monty Betham on Wednesday, August 23, 2017

The development comes after Auckland businessman Paul Davys yesterday fell out of the race to purchase the Penrose-based franchise, after Watson rejected his offer of $15 million.

Watson's asking price is $20 million, although he is still considering his options and remains open to the idea of retaining a stake in the club, along with former managing director-turned-executive director Jim Doyle, who owns a 10 per cent share.

The prospect of fans claiming full ownership would bring numerous complications - including questions around how the deal would be structured, who would manage the club, and whether and how shares could be on-sold.

But the Herald understands Watson is open to the idea of fans taking on a share of the club's ownership in a much reduced capacity with the Warriors remaining as a private enterprise.

The way it could work is if three or four individuals were to each buy a share, say 10 per cent, with Watson and Doyle, who currently owns a 10 per cent stake, retaining a controlling share between them.

The potential would then exist for fans- possibly a crowdfunding group as per Betham's original proposal - to also buy a stake, at a value determined by the cost of the shares sold to the group of new investors.

Shares could be made available for sale for fans and sponsors to purchase during a certain timeframe and depending on the level of interest and how many are sold, Watson's stake could then diminish to perhaps 30 or even as low as 10 per cent.